Ch. 12 Key Issue 3 Why are Consumer Services Distributed in a Regular Pattern?

Ch. 12 Key Issue 3

Why are Consumer Services Distributed in a Regular Pattern?

What is a “regular pattern”?

• Fixed, static, non changing pattern based on size of settlement (larger settlements have more services)

• More services offered in larger settlements• What we get:– Central Place theory (which gives us):• Market Area Analysis (range + threshold + gravity

model = optimal location)• Hierarchy of services and settlements (nesting

pattern; rank-size/primate city rules)

Central Place Theory***• In the 1930s the German geographer Walter Christaller

devised a way of describing how towns of different sizes were arranged - and how the services they supply is also arranged. This is called central place theory.

• A central place is a market center. • Central places (ideally) are located centrally - to maximize

access from the surrounding region.• Central places compete against each other to market goods

and services.• Surrounding every central place is a market area (or

hinterland) - the area from which customers come to the central place. 3

Central Place Theory• Location is biggest factor for profitability• Walter Christaller helped identify the most profitable

location• In a primary industry you have to locate where the

resources are. In secondary and tertiary industries you can choose your location.

• Market Area of a Service– Consumers attracted to central place from “hinterland”

(hexagon)– People prefer to get services from closest location

Central Place Theory

Figure 12-17

Why do geographers use hexagons?

Central Place Theory• Size of Market Area (hinterland)– Range and threshold determine size of market area, and

explains why market size varies for different services– Range• How far are you willing to drive? - MAX distance• Radius of hexagon- irregularly shaped to take into account

distance from competitors• Everyday goods/services have short ranges (groceries)• Special goods/services have long ranges (sports, concerts)

Central Place Theory– Threshold: What is the minimum # of customers needed

to support service?–Common, inexpensive goods need lots of customers

(fast food); small range with lots of customers inside market area–Special, expensive, unique goods need small amount

of customers that will be willing to spend more money on these goods (jewelry); BUT sports teams/concert arenas need large thresholds to stay open. –Counting customers w/in irregularly shaped hexagon.

Use Census!• Type of service determines how many people will be

attracted (McDonalds vs Chiropractor)

How are rage and threshold depicted here?

Assumptions of Central Place Theory***• We assume we are dealing with a flat, featureless plain - no

mountains, rivers, deserts, etc.• Labor is assumed to be available in all locations, and the

population is evenly spread across the landscape.• Transportation is possible in all directions - there are no major

rivers or roads to distort the pattern.• People will always travel the minimum distance necessary to

get the goods and services they want.• The size of the market area is determined by two factors: the

range and the threshold for each service offered in the central place.

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Market-Area Analysis

• Determining profitability of the Market Area– Using range and threshold, a business will:1. Compute the range (survey local people)2. Compute the threshold (how much sales to make

profit?)3. Draw the market area (range + threshold statistics)

• Optimal Location within a Market Area– If range and threshold justify, where do we locate?– Minimize distance for greatest # of people (gravity

model)

Market Area-Analysis: Best Location• In a Linear Settlement– Build shop in the middle of everyone– Gravity Model • More people = more consumers (apartment vs

home)• Further distance = less likely to use service

• In a Nonlinear Settlement– Most settlements are more complex– Gravity model• Locate closest to largest amount of people

Why are these the best locations?

Hierarchy of Consumer Services• Nesting Pattern (click me!)– Markets do not exist in isolation, they are nested– MDCs have more small settlements with small thresh. and ranges

than large settlements w/ large thresh. and range– Small settlements are within the market areas of larger settlements,

which are in turn inside the market area of still larger settlements – Overlapping hexagons represent this “regular” looking pattern• Hamlet• Village• Town • City

Why can’t a large department store exist in a smaller settlement?

Village

Hamlet

TownCity

Figure 12-21

How is this pattern/model similar to the concept of the nesting dolls of Russia?

Central Place Theory

Hamlet

Village

Town

City

List Possible Cities:1. Where would you

find a McDonalds? 2. Where would a 5

star restaurant be?3. Where would a

grocery store be?4. Where would a

museum be?5. Choose 4 locations

for a new mall. Draw the market areas for each mall.

Central Place Theory: Summing Up***

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• Central places are market centers.• Central places compete against each other (fight

for customers).• Small settlements only offer a small number and a

small variety of services.• Larger settlements offer a greater number and a

greater variety of services.• Settlements arrange themselves in a nested

hierarchy - small market areas within larger market areas, within still larger market areas.

• Obviously, the real world is more complicated than central place theory - but central place theory does give us insights into the ways that services and settlements tend to be arranged.

Hierarchy of Settlements– Rank-Size Rule (“regular pattern”) ; US is example• nth city is 1/n the size of the largest (if n = 2 then the 2nd

largest city is 1/2 population of largest city)– Primate city rule• Largest city (the primate city) has more than 2x

population of 2nd largest– European example: Denmark (Copenhagen = 1 mil; Arhus =

200,000)

–Countries that follow the rank-size rule have a wide distribution of goods and services (found everywhere). Primate city countries do not because services will cluster in the main populated city!!!!.

Periodic Markets

• Exist where demand is not sufficient to maintain a permanent market• Provides goods for residents in LDCs and rural areas in

MDCs– These areas have low “purchasing power”- too low to

maintain a regular service–Makes services available in areas where it would

otherwise be possible– “farmers markets” bring fresh food to urban areas

• Part of informal economy (economy not counted by government towards GDP)

Figure 12-23