HUFF’S GRAVITY

MODEL
By

Anoop, Durgesh, Fahim , Anand ,Ranjan , Venky

HUFF’S GRAVITY MODEL

 Based on the premise that the probability

that a given customer will shop in a
particular store
or shopping center becomes larger as
the size of store or center grows and
distance or travel time from customer
shrinks
ASSUMPTIONS:
 The proportion of consumers patronizing a given shopping
area varies with the distance from the shopping area
 The proportion of consumers patronizing various shopping
areas varies with the breadth and depth of merchandise
offered by each shopping area
 The distance that consumers travel to various shopping
areas varies for different types of products purchased
 The “pull” of any given shopping area is influenced by the
proximity of competing shopping areas
HUFF’S MODEL FORMULA
S j  Tij b
Pij  n
 S j  Tij b
j 1
Where
Pij  Probability of a customer at a given point of origin i traveling to a
particular shopping center j
S j  Size of shopping center j

Tij  Travel time or distance from customer's starting point to shopping

center
b  An exponent to Tij that reflects the effect of travel time on different
kinds of shopping trips
UNIVERSITY AND SHOPPING CENTERS:
GRAVITY MODEL ILLUSTRATION
TOTAL Mall
IFIM Business school
500,000 sq ft

Forum Mall
1,000,000 sq Ft
1 mile

OLD TOWN
100,000 sq ft
HUFF’S MODEL: THE SOLUTION
Pij = 1000  32
(1000  32) + (500  52) + (100  12)

Probability = .43
.43 x 12,000 students = 5,160 customers
5,160 customers x Rs.150 = Rs.774,000

Repeat steps 1 to 3 for the remaining areas and

then sum them.
Thank You