How does Huff Model work?
The Huff Model is an established theory in spatial analysis. It is based on the principle that the probability of a given consumer visiting and purchasing at a given site is a function of the distance to that site, its attractiveness, and the distance and attractiveness of competing sites.
What does the Huff’s gravity model predict?
In spatial analysis, the Huff model is a widely used tool for predicting the probability of a consumer visiting a site, as a function of the distance of the site, its attractiveness, and the relative attractiveness of alternatives.
What is Huff’s law?
Huff’s Law. Huff’s retail model (1963) assumes that customers have a choice to patronize a location in view of other alternatives. Thus, a market area is expressed as a continuous probabilities line, unless there are no other alternative locations.
What is a retail gravity model?
Gravity models assert that groups of customers are drawn to certain locations because of factors like the distance to market, distance between markets, market population, the size of the retail establishment, the location of competitors, etc.
What is trading area analysis?
Trade area analysis is studying and understanding trade activity within a given geographical area. This includes things like what types of businesses are there (and how many), along with how many potential customers are in the area, where they are coming from (or going), and what they are buying.
What’s a trade area?
A trade area defines where customers live and how far they are likely to travel to a particular business or business district. Thus, basic map data, such as distances, highways, and physical barriers, can be useful in defining trade areas.
How do you use the Huff gravity model?
Attractiveness uses distance and the size of retail location. Take the size of the retail store and divide it by the drive-time (or distance square). For example, ‘attract1’ is the square footage of 200,000 for retail store 1 divided by ‘dist12’.
What are the two assumptions for the Huff’s gravity model?
Huff’s gravity model assumes that attractiveness is based on the size and distance to shopping centres, therefore the following two datasets were selected for the analysis (Fig. 2): ▪ Locations and size of 5 shopping centres (j = 1,..,5) ▪ Mobile network base stations (i = 1, .., 297).
Who gave breaking point model?
Reilley introduced his model of retail gravitation based on Gravity Model. This Retail Gravitation Model is popularly known as Breaking Point Theory or Breaking Point Model.
What is Huff’s law of shopper attraction?
Huff’s model provides a series of probabilities of consumers choosing to visit one center as opposed to another in terms of the attractiveness of each center (measured by floor space) and a deterrence factor (measured by traveling time to the center).
What are the three limitations of Reilly’s law?
A critique of Reilly’s law sets the scene: by adopting a gravity model more general than the Newtonian model used by Reilly, it is shown how the limitations of the law with respect to hierarchy, spatial competition, locational size, and the symmetry of trade flows, are overcome.
What are the three major factors in trading area analysis?
To examine three major factors in trading-area analysis: population characteristics, economic base characteristics, and competition and the level of saturation The best secondary sources for population data are the Census of Population and other publicly available sources.
What is Fringe trading area?
Fringe Trading Area. Your store is in the center of the primary area. Most of your customers will come from this smaller area as well. As you expand out, fewer and fewer customers will be coming to you. This is especially true if, for example, you are a small convenience store or drugstore.
What is Fringe trade area?
Fringe Trading Area – Includes customers not found in primary and secondary trading areas. These are the most widely dispersed customers. Destination Store – Retail outlet with a trading area much larger than that of a competitor with a less unique appeal.
What are the types of trading areas?
There are three types of trading areas that are important to note:
- Primary Trading Area. Where the store is exactly located.
- Secondary Trading Area. The shopping center or area where the store is located.
- Fringe Trading Area. The city or town where the store is located.
How is the gravity model used?
A gravity model provides an estimate of the volume of flows of, for example, goods, services, or people between two or more locations. This could be the movement of people between cities or the volume of trade between countries.
What is breaking point analysis?
Break point analysis is a way of looking at customer satisfaction data to determine when there are shifts or breaks in satisfaction levels. In the doctor’s office visit example, how long are patients willing to wait while still experiencing a high level of satisfaction?
What is index of retail saturation?
Index of retail saturation (IRS): It measures the level of demand in a particular market on the basis of the population, consumer expenditure, competing retail space and a particular product or product area.
What do you mean by breaking point after Reilly?
1. Reilly’s Law of Retail Gravitation and formula defines the probability of two cities to attract retail trade from a third intermediate trade area. 2. Converse’s Breaking-Point Model and formula defines the 50% shopping probability or breaking-point in trade between two cities in miles or travel time.