1 / 14

Central Place Theory and Market Area Analysis

Chapter 12 sections 2 and 4. Central Place Theory and Market Area Analysis. Terms/Concepts. Central Place Theory Central Place Market Area / Hinterland Range Threshold Gravity model. Why is that Store There?.

reeves
Télécharger la présentation

Central Place Theory and Market Area Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 12 sections 2 and 4 Central Place Theory and Market Area Analysis

  2. Terms/Concepts • Central Place Theory • Central Place • Market Area / Hinterland • Range • Threshold • Gravity model

  3. Why is that Store There? • Why is there often one retail store like Target in an area but then 4 or 5 gas stations in the same area? • What factors go into why businesses are where they are?

  4. Market Area of Service • Central Place Theory- a theory that explains the distribution of services, based on the fact that settlements serve as centers of market areas for services • Larger settlements are fewer and farther apart than smaller settlements and provide services for a larger number of people who are willing to travel farther • Proposed by German geographer Walter Christaller

  5. Central Place- the market center for the exchange of goods and services by people attracted from the surrounding area • Centrally located to maximize accessibility form the surrounding region • Central places compete against each other to serve as markets for goods and services • Creates a regular pattern

  6. Market Area (hinterland)- the area surrounding a central place, from which people are attracted to use the place’s goods and services

  7. Range and Threshold • To determine a market area geographers need to know a services range and threshold • Range- the maximum distance people are willing to travel to use a service • Radius from the node • Distance willing to travel is based on the value of the good or service • High-order goods will have a longer range • Low-order god will have a shorter range • People are only willing to go short distances for things like groceries and pharmacies • Will travel long distances for baseball games or concerts

  8. Range and Threshold • Threshold- the minimum number of people needed to support the service • Once range is determined, then need to see if there is a high enough threshold within that range • Services must decide what the minimum number of people are for their service • Not all services attract people evenly • The product determines how consumers are counted • Based on age, gender, income, education

  9. Market Area Analysis • Profitability of a location • 1. Compute the range • People willing to travel 15 minutes to a department store • 2. Compute the threshold • Department store typically needs 25,000 people within the 15 minute range • 3. Draw the market area • Draw circle with 15-minute radius • Count number of people within • Gravity model • Predicts the optimal location of a service • Related to the number of people in an area • Inversely related to the distance they must travel

  10. Terms/Concepts • Central Place Theory • Central Place • Market Area / Hinterland • Range • Threshold • Gravity model

More Related