1. Human Geography Chapter 12 SERVICES Robby Wall Mark Additon

2. Consumer Services The purpose of consumer services is to serve individual consumers who can afford them Two main types -Retail services -Personal services

3. Retail Services ¼ of all jobs in the US are retail services These services provide goods for sale to consumers Within retail services ¼ of jobs are wholesale another ¼ are restaurants or food stores, and the remaining half are shops selling other goods.

4. Personal Services Makes up 1/5 of total jobs in the US Provide services for personal improvement or the well-being of consumers 2/5 of these jobs are health care The other 60% are in education, social services, recreation, hotels, membership organizations, and other personal services

5. Business Services The purpose of business services is to facilitate other businesses Two main types of business services – Producer services – Transportation and similar services

6. Producer Services Provide services primarily to help people conduct other businesses Producer services make up 1/6 of the total jobs in the US Ex. Real estate, management, advertising and employment agencies

7. Transportation Services Businesses that diffuse and distribute are classified as transportation and information services 7% of all jobs in the US are these services Ex. Trucking, broadcasting, publishing, and shipping

8. Public Services The purpose of public services is to provide security and protection for citizens and businesses 4% percent of all workers in the US are public service workers Ex. Government: Federal government, local government, and state government

9. Growth in Employment between 1970- 2000 All growth in employment has been in services (tertiary sector) Where as employment in the primary and secondary sector have declined Within the service sector, employment grew rapidly in producer services The number of producer service jobs tripled, where as the number of other services doubled

10. Growth in Employment between 1970- 2000(cont’d) Professional services such as management, engineering, and law quadrupled Large increases were experienced in computer data processing, advertising, and temporary employment agencies Jobs also increased by ¾ in personal, retail, and transportation services

11. Growth in Employment between 1970- 2000 (cont’d) Personal service sector increased rapidly because of a very large increase in the provision of health care services Other large increases have been recorded in recreation and entertainment Public services have expanded much more slowly than other services The number of federal government jobs has declined over the years with state and local government employment expanding to offset the federal decline

12. Services in Rural Settlements Most people of the world still live in Rural Settlements, their purpose has changed little from ancient times. They are known as clustered rural settlements, where a number of families live in close proximity to each other. Dispersed rural settlements, are characteristic of the North American rural landscape. They are characterized by farmers living on individual farms, rather then alongside other farmers in settlements.

13. Clustered Rural Settlements Circular Rural Settlements – Consists of a central open space surrounded by structures. Circular in shape. An example is Kraal villages in Africa who have their livestock in the center surrounded by a ring of houses. Linear Rural Settlements – Buildings clustered around a road, river, or dike to facilitate communications. Fields extend behind the buildings in narrow strips.

14. Clustered Rural Settlements (Cont’d) Colonial American Clustered Settlements- A settlement built on an open area called a common. Clustered settlements were favored by the English for multiple reasons. For example it reinforced cultural and religious values.

15. Dispersed Rural Settlements In America, due to the racial variety, people began to care less and less about the values that used to be reinforced. They became more separate and began to live further away from each other then before, including their farms The Enclosure Movement: In Great Britain between 1750 and 1850, the government began consolidating individual strips of land to a single large farm owned by an individual. Because of this farms became more efficient with a single farmer working then several working discontinuous farms.

16. Central Place Theory A central place is a market for the exchange of goods and services by people attracted from the surrounding area. Central places compete against each other to serve as markets for goods and services this competition creates a regular pattern of settlements according to the central place theory. CPT was proposed in the 1930s by the German Geographer Walter Christaller, based on studies in southern germany.

17. Market Area of a service The area surrounding a service from which customers are attracted is the market area or hinterland. Since most consumers prefer to go to a local location for goods the closer they are to a market area the more likely they are to go to the market area for goods and services. Based on the Circumference of the market area circle, people are more likely to go to the market or not.

18. Flaws with Central Place Theory Circles are not an ideal shape for market area sizes, because when they overlap, gaps are created. Hexagons are an ideal shape for this, as they leave no gaps and can be arranged in an orderly fashion. Even though the distance between one point and the center in a hexagon is not always consistent throughout the whole shape.

19. Size of a Market Area The range is the maximum distance people are willing to travel to use a service. Range has to be constantly modified depending on the type of structure, a kroger might have a smaller range compared to a stadium because of the services offered and how far people are willing to travel to experience them.

20. Threshold of a Service The threshold is the minimum number of people to support the service. Every service has a threshold of people required to make a profit and sustain the service. For example a kroger in Dayton is about 30,000 people. Census data helps show how large a population is in a market area.

21. Optimal Location for a Market According the geographers, the best location for a market would be a place that minimizes the amount of distance for the largest amount of people. Based on how the settlement is constructed, whether it is linear or nonlinear decides on where the optimal location would be for the service.

22. Gravity Model This model predicts that the optimal location of a service is directly related to the number of people in the area and inversely related to the distance people must travel to access it. This model reflects two patterns on consumer behavior. -Greater the number of people living in a particular place the greater is the number of potential customers for a service. -The farther people are from a particular service the less likely they are to use it. Eg: People are more likely to use a store 1 mile away then one 10 miles away.

23. Nesting of Services and Settlements According to Central Place Theory: market areas across an MDC would be hexagon of various sized unless interrupted by physical features such as mountains and bodies of water. But MDCs have settlements of different sizes with different thresholds and ranges. The nesting pattern can be illustrated with overlapping hexagons of different sizes. The nesting pattern is how people will distribute themselves over land area.

24. Rank-Size Distribution of Settlements When ranking settlements from largest to smallest in population, this produces a regular pattern or hierarchy. This is the rank-size rule, in which the country’s nth largest settlement is 1/n the population of the largest settlement. For example the second-largest city is one half the size of the largest, and the fourth largest is one fourth the size of the largest city. When this is plotted on paper, the rank-size distribution forms a fairly straight line.

25. Exceptions Not all countries follow this rank-size rule. Instead the large settlements follow the primate city rule. According to this rule, the primate city (the largest settlement) has more than twice as many people as the second-ranking settlement. In this distribution the city is called the primate city. An example is France, Paris has about 11 million inhabitants whereas Lyon, only has less then 2 million, instead of a 5.5 expected from the rank- size rule. Several LDCs follow this rule

26. World Cities Prior to modern times, virtually all settlements were rural, because the economy was based on agriculture of surrounding fields. Ancient Cities: First concept of urban settlements, diffused to the rest of the world. Most cities usually had a religious structure in the cities. Example: Ziggurat in Ur (Mesopotamia). – Ur – Athens – Rome

27. Medieval World Cities Urban life began to reappear in Europe in the 11 th Century. By the 14 th Century, Europe was covered by a dense network of small market towns serving the needs of particular lords. Walls usually covered the larger settlements in order to protect them. – Baghdad (Iraq)- Constantinople (Istanbul in Turkey)- Kyoto (Japan)

28. Modern World Cities Top of the hierarchy in provision of consumer services. Most political power and business transacted at. The Clustering of Business services in the modern world city is a product from the Industrial Revolution. World Cities offer a large variety of services for the market area surrounding them.

29. Modern World Cities (cont’d) World cities have retail services with extensive market areas due to their large size, but they have more retailers than large size would predict. There is a large amount of wealthy people living in world cities, so there is a large amount of specialized luxury services within world cities. World cities may be centers of national or international political power. Most are national capitals, so they contain mansions or palaces for heads of state, along with several governmental buildings.

30. Hierarchy of Business Services World Cities – Regional command and control centers -Specialized producer-service centers -Dependant Centers

31. World Cities Most closely integrated into the global economic system because they are at the center of the flow of information and capital. Business services concentrate in large numbers in world cities, including law, banking, insurance, accounting, and advertising. Examples: New York, Tokyo, London. Second Tier: Chicago, Los Angeles, Washington, Frankfurt, Paris and Zurich. (MDCs) Singapore, São Paulo. (LDCs) Third Tier: Houston, Miami, San Francisco, Toronto, etc.

32. Command and Control Centers Contain Headquarters for many large corporations, well-developed banking facilities, and concentrations of other business services, including insurance, accounting, advertising, law, and public relations. Important educational, medical, and public institutions can be found here. Regional and Subregional Examples: New Orleans, Indianapolis, Memphis, Denver, etc.

33. Specialized Producer-Service Centers This third level of cities offers more narrow and highly specialized variety of services. One group of these cities offers activities related to specific industries, such as motor vehicles in Detroit and steel in Pittsburg.

34. Dependant Centers Provide relatively unskilled jobs and depend for their economic health on decisions made in world cities, command and control centers, and specialized producer-service centers. 4 Types: – Resort, Retirement, residential: Los Vegas, Albuquerque, Orlando. – Manufacturing Centers: Buffalo, Erie, Rockford. – Industrial and Military Centers: Huntsville, Newport News, and San Diego. – Mining and Industrial centers: Charleston

35. Economic Base of Settlements A settlement’s distinctive economic structure derives from its basic industries, which export primarily to consumers outside the settlement. Nonbasic industries are enterprises who customers live in the same community, essentially consumer services. A community’s unique collection of basic industries defines its economic base.

36. Specialization of Cities and Distribution of Talent Settlements specializing in different services as dispersed around the country. Different settlements may specialize in public services while others may specialize in services related to high-technology industries. Individuals possessing special talents are not distributed uniformly among cities. Some cities have a higher percentage of talented individuals than others. To some extent, talented individuals go to cities with the most job opportunities and financial opportunities.

37. Central Business District (CBD) Usually oldest district in cities, and takes up less than one percent of the urban land area, but contains a large percentage of shops and offices. CBD’s usually offer a large amount of retail services because they require accessibility to everyone in the region.

38. CBD Most shopping centers in the CBD have a high Threshold, Large department stores in the CBD often clustered across the street from another. The second type of shop in the CBD has a high range. Generally, a high range shop is very specialized, with consumers who patronize it infrequently. Most of their customers are scattered among a large area, which causes most of these shops to gather in the CBD.

39. CBD A third type of retail activity in the center serves the people who work in the center and shop during lunch or working hours. Most of these businesses sell office supplies, computers, and clothing, or offer shoe repair, photocopying, dry cleaning, and so on. Offices usually cluster in the CBD for it’s accessibility. Most of these professionals exchange information face to face, despite recent developments in communications.

40. High Land Costs in CBD Because of the CBD’s high accessibility, land cost is very high. Land costs can get extremely expensive in this area and in effect, people tend to build up, instead of across, resulting in skyscrapers. Also in effect, this causes the underground to be used often, resulting in “underground cities” of parking garages, loading docks, and utility lines. Also subways run beneath the streets of larger central cities.

41. Activities Excluded from the CBD Manufacturing tends to stay away from the CBD, because they require large amounts of 1- story land. Suitable land is usually found in the suburbs. There is also a lack of residents in the CBD because few people can afford to pay the high cost of land in the area.

42. Suburbanization of Businesses Suburban residential growth has caused change in traditional retailing patterns. This change has caused the CBD growth to stagnate while the suburban retail growth remains steady at a 5% annual growth. Mainly because most residents are not willing to commute to a CBD anymore when retail centers are in their own neighborhood.

43. Suburbanization of Factories and Offices Because of the low land cost, factories and warehouses have migrated to the suburbs for cheaper land and more space, along with better truck access. Modern factories and warehouses demand more land for more efficient operation because of conveyor belts, forklift trucks, loading docks, and machinery are spread over a single level. While offices that do not require face-to-face contact are increasingly moving to the suburbs where rent is much lower than in the CBD.