1. Services Chapter 12

2.  Services: activity performed that fulfills a human want or need in exchange for money  Services and settlements are linked

3. Where Did Services Originate? Key Issue #1

4. Types of services  Distinctions are NOT absolute!  Consumer Services  Retail service (25% of US jobs)  Personal service (20% of US jobs)  Business Services (20%)  Purpose: to facilitate other businesses  Producer services: help people conduct business  Transportation and similar services: diffuse and distribute services  ½ transportation; other ½ information services  Public Services (15%)  Provide security and protection for citizens and businesses

5. Origin of Services  Centered around settlements  Why?

6. Services in Rural Settlements  Clustered vs. dispersed settlements  Clustered settlements  Typical – homes, barns, tools sheds, farm structures, personal services such as religious structures and schools, some public, retail, and producer services.  Early services:  Burial and religion  Housing  Food storage  Cottage industry  Education and entertainment  Trade  defense

7.  Circular Rural settlements  Open space surrounded by structures (ex: The German Gewandorf)  Model von Thunen used in his studies  Linear Rural Settlements  Structures are clustered along a road, river, etc. to facilitate communication  long-lot; seigneurial - be able to describe

8. Services in Rural Settlements cont.  Dispersed Rural Settlements  Middle Atlantic area  Mainly b/c people that settled here came as individuals rather than as a cohesive group  As these settlers moved west, pattern of settlement followed  Replaced clustered settlements  Why? – Considered more efficient

9. Enclosure movement  When? 1750-1850  What? Conversion from clustered to dispersed settlements, consolidated individual strips of land into a single large farm  Where? Europe, Great Britain  Why? To improve agricultural production  Effect? Many people moved to urban areas. Created isolated, dispersed farmsteads

10. Why Are Consumer Services Distributed in a Regular Pattern? Key Issue #2

11.  Central Place  Market Area  Range  Threshold  Primate city  Rank-size rule

12. Central Place Theory  Where are central places located? Why?  Central place theory explains how svcs are distributed and why there is a regular pattern of settlement  First proposed by Walter Christaller  Attempted to develop a model to predict how and where central places in cities would be spatially and functionally distributed

13. Central Place Theory cont.  Set of assumptions:  Surface of the area would be flat and have no physical barriers  Soil fertility would be uniform  Population and purchasing power evenly distributed  Uniform transportation which would allow for direct travel from each settlement to the other  Goods and services could be sold in all directions out to a certain distance  Calculated the ideal model and then compared it to the real world  In cities-central places would be nested, so the largest central place would provide services to smaller places  Smaller places would provide services to even smaller places

14. Central Place Theory cont.  Christaller postulated:  cities would be regularly spaced w/central places where the same product was sold at the same price was a standard distance apart  Each city has a complementary region in which they have a monopoly on the sale of certain goods  Market Area of a Service  Market area/hinterland

15. Central Place Theory cont.  Size of Market Area  Range of Service  How far you are willing to go for a service?  Determined by observing consumer behavior  Threshold of Service  Minimum number of people required to support the service (generate a profit)  How potential consumers are counted depends on the product How far would you drive for a Chicken Quesadilla?

16. Market-Area Analysis  Used to determine if a market’s location will be profitable  Profitability of a Location  Calculate the range and threshold  GIS – Geographic Information System

17. Hierarchy of Services and Settlements  Small settlements are limited to consumer services w/small thresholds b/c they do not have the people to support a lot of services  Larger settlements can support both  Yellow pages of a large city vs. that of a small city

18. Hierarchy of Settlements and Services cont.  Nesting of Services and Settlements  Central place theory-MDCs would be hexagons unless interrupted by physical boundaries  Hamlets, villages, towns, cities  Rank-Size Distribution of Settlements  Ranking settlements based on largest to smallest population produces a regular pattern or hierarchy

19. Rank-Size Rule and Primate City  Nth largest city is 1/nth the size of the largest city  2 nd largest = ½ of pop. of largest city  Primate City – Largest city is more than twice as big as the 2 nd largest city  EX: Paris, London

20. How do you know?  Country A  City A – 12,580,000  City B –3,990,000  City C - 2,800,000  City D – 6, 420,000  Country B  City A – 2, 120,000  City B –1,900,000  City C - 800,000  City D – 9,050,000

21.  Central Place  Market Area  Range  Threshold  Primate city  Rank-size rule  Partners, write word, draw picture of it, two related term to each word, share with partner

22. Why Do Business Service Locate in Large Settlements? Key Issue #3

23. Ancient World Cities  Originally people clustered in agricultural villages  egalitarian society  main activity: agriculture  This changed as cities were formed  people generated personal wealth  began to trade over long distances  formation of stratified classes  engaged in a diversity of economic activities

24. Ancient World Cities cont.  Agricultural surplus and social stratification enabled the formation of cities-Why? 1. advances in technology  leadership class was formed to control the surplus and technology used to create it 2. king or priest/king centralized political power  in turn, demanded labor to create agricultural surplus which would help him/her retain political power  Leadership class controlled all of the society’s resources  since everyone did not participate in farming, could focus on other pursuits such as philosophy and religion  writing and recordkeeping arose from these activities

25. Ancient World Cities cont.  Ancient Athens  city-states  showed urban settlements have been traditionally distinguished from rural settlements not only by public services but also by personal services  Ancient Rome  rise of Rome encouraged urbanization  as Rome declined, so did urban settlements

26. Medieval World Cities  renewed urban life as feudalism spawned urban settlements  largest urban settlements served as power centers  usually fortified by walls  What were believed to be the 5 most populous cities in 900 A.D.?

27. Modern World Cities  Business Services in World Cities  clustering of businesses the result of the Industrial Revolution  Explain.  Consumer Services in World Cities  have a large number of consumer services due to the large and wealthy markets world cities are…more people can afford things there so they provide more retail/service opportunities for their wealthy customers  Public Services in World Cities  may be centers of national or international political power  offices that do business with the gov’t are often located there  New York, Brussels

28. Hierarchy of Business Services  4 levels of cities that play a role in business services  World Cities  Why are they closely integrated into the global economic system?  London, New York, Tokyo  largest city of their main area  most important stock exchanges located there  Chicago, LA, Washington, Brussels, Frankfurt, Paris and Zurich  also included: Sao Paulo and Singapore  where many major banks or other corporations may have their headquarters  What cities make up the third tier?

29. Hierarchy of Business Services cont.  Command and Control Centers  second level of cities  What types of services are located here?  What are some command/control center cities?  Specialized Producer-Service Centers  third level of cities  offer more narrow and highly specialized variety of services  What are some examples?  Dependent Centers  fourth-level cities  unskilled jobs; their economic health depends on the decisions of the other cities  What are the 4 subtypes?

30. Economic Base of Settlements  basic industries vs. non basic industries-What is the difference?  Why is a settlement’s economic base important?  nonbasic industries will not result in the creation of new basic industries  How can a community’s basic industries be identified?  Settlements in the US are classified by type of basic activity –explain.  Economic base of some settlements is in the secondary sector-explain.

31. Economic Base of Settlements cont.  Specialization of Cities in Different Services  Basic industries originally referred to manufacturing  Those specializing in public services are dispersed all over the country-why?  Distribution of Talent  Those with talent are not uniformly dispersed  Why do some cities have a larger number of talented individuals than others?  Richard Florida-what did his research about talent determine?

32. Why Do Services Cluster Downtown? Key Issue #4

33. Central Business District (CBD)  Consumer and business services located in CBDs because of their accessibility  Retail Services in the CBD  Retail Services w/High Threshold  Accessible to a large number of people  Rents here were usually highest  Recently, most have disappeared for the suburbs  Retail Services w/ High Range  Very specialized shop; customers patronize it infrequently  Prefer central locations  Have also moved to suburban shopping malls  How can they still survive in CBDs?

34. What does a CBD Look like? Department Stores like… Specialty Stores Like…. Shops attracting office workers like… Skyscrapers and High-rises filled with things like banks, lawyers, advertisers etc.

35. Central Business District (CBD) cont.  Retail Services Serving Downtown Workers  Cater to those who work in the downtown area  Limited hours  Many of these are expanding-Why?  How have cities attempted to revitalize retailing in CBDs and old er neighborhoods?  Producer Services  Cluster in the center for accessibility  Facilitates communication  Helps to establish sense of trust  Also allows businesses to employ people from all different neighborhoods  Can find employees they need in a CBD

36. Who lives here?

37. Central Business District (CBD) cont.  High Land Costs in the CBD  Accessibility produces competition for land  As a result, extremely expensive  2 characteristics emerge as a result:  Land is used more intensely at the center than elsewhere in the city  Some activities are excluded form the center because it is so expensive  Intensive Land Use  “underground city”  Use of more space above and below ground  Skyscrapers  Building up instead of out  Vertical geography-explain.

38. Central Business District (CBD) cont.  Activities Excluded from the CBD  Manufacturing  Requires too much space  Suitable land usually located in the suburbs  Lack of residents  Most individuals cannot afford the rent in CBDs  Where is this problem especially critical?  What are the push/pull factors for leaving CBDs?

39. Suburbanization of Businesses  Cheaper and it is where most customers are located  Suburbanization of Retailing  Why have downtown sales stagnated?  Has resulted in businesses moving to the suburbs  Suburbanization of Factories and Offices  Why have they moved?  Can pose a hardship for some employees-explain.