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12-3. Central Place Theory and Market Analysis. I. Central Place Theory. A) Theory that explains how “consumer” services are distributed AND WHY a regular pattern of settlement exists in MDC’s B) Parts of the Theory:. B) Parts of the Theory:. Go to page 388 and write a brief definition
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12-3 Central Place Theory and Market Analysis
I. Central Place Theory • A) Theory that explains how “consumer” services are distributed • AND WHY a regular pattern of settlement exists in MDC’s • B) Parts of the Theory:
B) Parts of the Theory: • Go to page 388 and write a brief definition of each: (leave 1-2 lines under each to add further notes) • 1) Central Place • 2) Hinterland • 3) Range of Service • 4) Threshold of Service
1) Central Place • Definition – a market center for the exchange of goods and services by people attracted from the surrounding area Question? Where would be the “central place” in Von Thunen’s model?
2) Hinterland • Definition: AKA market area – area surrounding a service from which customers are attracted. • - Shape – Which one is best? Why?
3) Range • Definition – the maximum distance people are willing to travel to use a service. Applies to TIME of travel too Which one has the largest range????
4) Threshold • 4) Definition – the minimum number of people needed to support the service. I feel so stupid! Size of Service
Also TYPE of service! Thresholds for these will be different depending on WHAT?
II. Market-Area Analysis • A) Profitability of a Location- Range and Threshold considered together • B) Location within a market • Gravity Model -directly related ---number of people in the area and… -inversely related---distance people must travel.
IN OTHER WORDS: • -LARGER # PEOPLE -LESS DISTANCE The more customers that will be “pulled” to the service (gravity model) THE SERVICE
Gravity Model: Cities • Sample Question: • Which of the following would have the most interaction according to the Gravity Model? • A) 2 small towns a medium distance apart. • B) 2 medium cities a large distance apart • C) a small city and a large city a far distance apart • D) 2 very large cities a medium distance apart.
TEACHER NOTE: • CAN CONTINUE ON “OR” ASSIGN HOMEWORK CORNELL NOTES 12-3 (b)
III. Hierarchy of services and settlements • A) Small Settlements must have businesses with • small thresholds, short ranges and small market areas. • SO large settlements or cities have businesses with …….. WRONG! ALL SIZES of Services
B) Linear Settlements vs. Non-linear (page 391-392) Name this town? St Joseph, Quebec
C) Nesting Market Areas Large city Small town
OR A large mall A gas station
D) Rank-Size Rule (nth largest settlement is 1/nth of the largest settlement.) Clear hierarchy of cities. (straight line) US and a few others follow this rule.
If a country follows the rank-size rule and the largest city has 1 million people in it… • Then how many people are in the 4th largest city in the country? • ANS: 250,000 • How about the 10th largest city? • ANS: 100,000
E) Primate City Rule • 1 - A primate city is WAY larger than the 2nd largest city. • 2 - Example: FRANCE (many LDCs) • Paris, (11 million) next largest city • Lyon, France (2 million)
What City is This?????? • 3 – MDC’s that have a primate city STILL follow rank-size rule at other levels. • 4 – LDC’s also have primate cities but don’t follow the rank-size rule at other levels. Lagos, Nigeria Population: 8 Million
5 – Importance of rank size rule • Shows that a country is wealthy enough to have access to consumer goods all OVER the country. Pg. 388
6 – Periodic Markets Name That City??? Kinshasa, Rep. of Congo
The End! Hindu Pilgrims trying to board a Train to attend a festival in Mathura, India