Huff Model

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The Huff Model workflow in ArcGIS Business Analyst allows you to create a probability surface to predict the sales potential of an area based on distance and an attractiveness factor.

You can use the Huff Model workflow to do the following:

  • Estimate market potential.
  • Define and analyze market potential.
  • Assess the economic impact of a new site location.
  • Forecast sales and potential of existing stores and outlets.
  • Assess the impact of competitive and environmental changes on outlet performance.

A site may have many attributes that make it attractive to consumers. Attractiveness can be computed as a function of the attributes. For a retail store, these are its retail floor space, number of parking spaces, and product pricing. The attractiveness of a car dealership may be a function of its display area, frontage, and advertisement placement. The attractiveness of an office building may be a function of the number of offices currently located within it and its vacancy rate. Attractiveness can be expressed as one number that combines all the factors that make a site attractive. This user-defined value allows you to fine-tune the exponent value of a Huff model, providing a more accurate, predictive model.