Huff model

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The Huff model is a mathematical model for the delimitation and segmentation of market areas of shopping centers , other agglomerations of retail businesses or individual providers. The probabilistic market area model was developed by David L. Huff in 1962 and represents a further development of the deterministic models by Reilly and Converse.

This variant of the simply limited interaction model calculates the probability with which customers will visit a certain supply location in order to map the size of catchment areas of individual retail locations, depending on distances and attractiveness. For the graphical representation of the catchment area in the form of a map, the shopping probabilities around the shopping site in question are determined and the points are connected with one another with the same probability, one then speaks of iso-probability lines. It is a recognized and often used method in retail research, which is used especially at the local level for predictions about the effects of certain building measures, such as the construction of a new shopping center.

The often used MCI (Multiplicative Competitive Interaction Model) by Nakanishi and Cooper is based on the Huff model .

Premises

The following assumptions apply:

  • The interactions between location i and j decrease with increasing distance (dij).
  • The interactions between location i and j increase with increasing location masses of source location i and destination j; d. H. the likelihood that a customer will visit the shopping center increases with its attractiveness.

Individual evidence

  1. ↑ D. Fittkau: Influence of regional purchasing power flows by closing the autobahn gap on the A 49 Kassel - Gießen: on the empirical relevance of "New Economy Geography" in economic geography issues . Univ., Dissertation. Göttingen 2004 ( hdl : 11858 / 00-1735-0000-0006-AF12-5 ).

literature

  • R. Decker, R. Wagner: Marketing. In: FG Becker (Hrsg.): Introduction to business administration. Springer, Berlin 2006, pp. 163–199.
  • D. Fittkau: Influence of regional purchasing power flows by closing the autobahn gap on the A 49 Kassel - Gießen: on the empirical relevance of "New Economy Geography" in economic geography issues. Univ., Diss. Göttingen 2004, hdl : 11858 / 00-1735-0000-0006-AF12-5 .
  • DL Huff: Defining and estimating a trading area. In: Journal of Marketing. Vol. 28, 1964, pp. 34-38.
  • DL Huff: A programmed solution for approximating an optimal retail location. In: Land Economics. Vol. 42, 1966.
  • DL Huff, R. Batsell: Delimiting the areal extent of a market area. In: Journal of Marketing Research. Vol. 14, 1977.
  • DL Huff, R. Rust: Measuring the congurence of market areas. In: Journal of Marketing. 1984.
  • M. Nakanishi, LG Cooper: Parameter Estimation for a multiplicative competitive interaction model - least squares approach. In: Journal of Marketing Research. Vol. XI, 1974, pp. 303-311.