African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4194

Full Length Research Paper

Applicability of the huff model in the estimation of market shares of supermarkets within the Tamale metropolis in Ghana

James Abagna Azanlerigu
  • James Abagna Azanlerigu
  • Procurement and Logistics Management Department, School of Business and Management Studies, Bolgatanga Polytechnic, Ghana.
  • Google Scholar
Oswald Atiga
  • Oswald Atiga
  • Department of Transport and Supply Chain Management, University of Johannesburg, South Africa.
  • Google Scholar


  •  Received: 19 June 2015
  •  Accepted: 28 September 2015
  •  Published: 14 December 2015

Abstract

This paper estimated the market shares of four shopping centres/super markets within the Tamale metropolis in Ghana. It employed the Huff model: a probabilistic gravitational model adopted as alternative in the computation and estimation of probabilities and attractiveness as well as the distance in mileage covered by prospective customers to the shopping centres/super markets. The research revealed that 75% of the shopping centres did not have the capacity to compute their own market shares. The computational analysis of four supermarkets under the study are as follows: Supermarket A: 33% market share, Supermarket B: 28% market share, Supermarket C 22% market share and Supermarket D: 17% market share. The paper emphasizes the need for managers of shopping centres/supermarkets to apply tested and proven scientific methods to compute their market shares.

 

Key words: Grocery industry, Huff model, estimation of market shares, supermarkets in Tamale - Ghana.