4Central Place TheoryUrban hierarchy is based on the functions available in a cityIs also related to population as well as functions and servicesFunctions and services attract people from the urban areas as well as the hinterlandsEvery urban center has an economic reachCentral places compete with each other to provide goods and services
5Central Place theorySelecting the right location for a new shop is probably the single most important factor in the profitability of a consumer serviceHow 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?
6Central Place TheoryRange is the maximum distance people are willing to travel to use a serviceThreshold is the minimum number of people required to support the service
7Central Place Theory: Walter Christaller 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
8Distinct RulesThe larger the settlement, the less there are of them and the farther apart they areThe less there are of a settlement, the larger the hinterland, or sphere of influence, of its goods and servicesPlaces of the same size will be spaced the same distance apart
10Order of Goods High Order High Price Low Frequency of Purchase High ThresholdLarge Consumer RangeLow OrderLow PriceHigh Frequency of PurchaseLow ThresholdSmall Consumer RangeExamples of High and Low order goods…..?