Presentation on theme: "CENTRAL PLACE THEORY. WHAT IS IT? A basic theory describing size distribution of urban locations based upon these locations providing goods and services."— Presentation transcript:
CENTRAL PLACE THEORY Urban hierarchy is based on the functions available in a city Is also related to population as well as functions and services Functions and services attract people from the urban areas as well as the hinterlands Every urban center has an economic reach Central places compete with each other to provide goods and services
Selecting the right location for a new shop is probably the single most important factor in the profitability of a consumer service How far would you go if you wanted… Groceries? Good Italian food? A college/university? A new car? Professional sports team? An amusement park? An art museum? An airport? Would you travel farther to buy a new car or a week’s groceries? Would you travel farther to see your family physician or a heart specialist? Would you travel farther to go to elementary school or to go to high school? CENTRAL PLACE THEORY
Range is the maximum distance people are willing to travel to use a service Threshold is the minimum number of people required to support the service
Explains relationships between cities and surrounding communities and how the most profitable location of a service can be identified Based on demands for goods and services Economic hubs = large cities Central place – market center for the exchange of goods and services by people attracted from the surrounding area Market Area/Hinterland – the area surrounding a service from which customers are attracted Range – maximum distance people are willing to travel to use a service Threshold – minimum number of people needed to support the service CENTRAL PLACE THEORY: WALTER CHRISTALLER
DISTINCT RULES The larger the settlement, the less there are of them and the farther apart they are The less there are of a settlement, the larger the hinterland, or sphere of influence, of its goods and services Places of the same size will be spaced the same distance apart
ORDER OF GOODS High Order 1.High Price 2.Low Frequency of Purchase 3.High Threshold 4.Large Consumer Range Low Order 1.Low Price 2.High Frequency of Purchase 3.Low Threshold 4.Small Consumer Range Examples of High and Low order goods…..?