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 AreaNeed 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 2nd 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