Why Are Consumer Services Distributed in a Regular Pattern? Chapter 12.3

Central Place Theory- Walter Christaller (German) Central Place: a market center for the exchange of goods and services by people attracted from the surrounding area Markets are centrally located to maximize accessibility

Central Place Theory Area surrounding a service that attracts customers= market area= nodal region Consumers travel to the closest nodal

Size of Market Area Need the services range and threshold to determine the services market area ◦ Range: maximum distance people are willing to travel to use a service  How far are you willing to travel for groceries?  How far are you willing to travel for a football game?  Typically expressed in time, not distance.  Hexagon shape

Size of Market Area Threshold: the minimum number of people needed to support the service. ◦ How this is counted depends on the product:  Movie theaters= young people  Chiropractors= old people  Thrift stores= poorer people (or Macklemore)  Upscale department stores= wealthier people  Amusement parks=  Nightclubs= ◦ Only the customers this services appeals to should be counted

Market Area Analysis Profitability of a Location ◦ Compute the range  Survey residents ◦ Compute the threshold ◦ Draw the market area  Draw range and make sure that it matches or exceeds the necessary threshold

Market Area Analysis: Optimal location within a market Optimal location in a linear settlement ◦ Location that minimizes the distance you must travel to all potential customers ◦ Half the customers are to the north, half to the south What if: uneven distribution north and south; buildings are apartments: ◦ Follow the Gravity Model:  Greater # of people living in a particular place the greater # of potential customers  Farther people are from a service the less likely they are to use it

Market Area Analysis: Optimal location within a market Best location in a nonlinear settlement: ◦ ID a possible site for new service ◦ Within range, ID where potential customers live ◦ Measure distance from site to every potential customer ◦ Divide potential user # by distance from site ◦ Sum all the results of potential used divided by distances ◦ Selected a second location and repeat above steps ◦ Compare the two site results

Hierarchy of Services and Settlements Large services do not last in small settlements ◦ Threshold needed for the service is too large Only travel distances if the price is lower somewhere else Nesting of services and settlement: ◦ Hexagons overlap each other Rank-size distribution of settlements: ◦ The 2 nd largest city is ½ the size of the largest, etc.  Hierarchy graphs as a straight line  If not a straight line this rule does not apply and the largest city is called the primate city  A regular hierarchy= wealthy country