Pitney Bowes MapInfo Vertical Mapper - Manual (Page 66)

Understanding the Trade Area Analysis Model
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Vertical Mapper 3.7
This map displays the probability that a consumer will patronize Store A. The influence
of all stores is taken into account in this model so that the locations of stores
surrounding Store A influence the shape of the contours. Patronage probability
decreases as the distance from the store increases.
This map displays the maximum probability at every potential customer location that a
consumer will patronize any one store when presented with all stores.
Retailers can modify the Huff equation parameters by defining the attractiveness of each store
competing for a customer’s patronage and determining the rate at which the pulling power of a store
drops off or decays with distance from the store. This produces a map estimating the probability that
a potential customer (Customer) residing at a given grid location will patronize a particular store at a
particular location (ReferenceStore) given a network of competing stores (Store1 to StoreN where N
= the total number of stores including the Reference Store). This relationship is presented in the
equation below.