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Central Places:
Theory and Applications




              Keller
     kellek@danbury.k12.ct.us
OBJECTIVES

You will be able to:
-describe the Central Place Theory Diagram
-Analyze and apply it's real world
 applications
-describe the positives and negatives
Walter Christaller
Die Zentralen Orte in Suddeutschland
Central Places in Southern Germany
Originally published in 1933, translated into English in 1966
More small places
  than big places    CENTRAL   Ratio of big places to
                               small places relatively
                               constant


Big places farther
                      PLACE
 apart than small
           places

                     THEORY
CENTRAL

                     PLACE

A settlement whose livelihood depends on the sale of goods and
          services to people in the surrounding area
Settlement Sizes
  •   Hamlet
  •   Village
  •   Town
  •   City
  •   Metropolis
Generalizations
• There will be:
  • Few large places


  • Many small places


• population sizes:
  • Large places relatively farther apart


  • Small places relatively closer together
Central Place FunctionsCategories
           of like services found in a
                   central place

 •   Grocery Stores       •   Houses of Worship
 •   Gas Stations         •   Schools
 •   Jewelry Stores       •   Doctors
 •   Book Stores          •   Dentists
 •   Hair Stylists        •   Museums
 •   Auto Dealerships     •   Concert Halls
Higher-Order Functions
    Higher-Order Central Places
• Higher-order/trade in goods and services
     -services that are more valuable and
     infrequently demanded
     -Because the goods and services are
     more valuable, people are willing to
     travel farther to shop.

• Where found?
Lower-Order Functions
     Lower-Order Central Places
• lower-order goods/trade in goods and
  services
   • less valuable and frequently demanded.
   • Because the goods and services are less
     valuable, people are willing to travel only
     short distances to shop.



Where found?
Would you travel farther to buy a new car or
the week’s groceries?
 To buy a new car

Would you travel farther to see your family
physician or a heart specialist?
 To see a heart specialist

Would you travel farther to go to elementary
school or to go to high school?
 To go to high school
A Hierarchy of             City:
 Educational              College
  Services          Town:
                 High School
           Village:
         Elementary
           School
 Hamlet:
No Schools
Stock Exchange


   Sports Stadium



Regional Shopping Mall


Major Department Store



  Income Tax Service



  Convenience Store



     Gas Station
How big is the trade area(
 hinterland) of a service center?

It depends on . . .
- How far a consumer is willing to
travel for the service
- How many customers a service
needs
Each central place function has a:
• Threshold: the          • Range: the maximum
  minimum number of         distance beyond
  people needed to          which a person will
  support a central         not travel to purchase
  place function            a good or service

• With fewer customers    • Beyond a certain
  a store cannot afford     distance people
  to stay in business.      cannot afford the
                            travel costs.
THE CIRCLE OF INQUIRY




                                            Deduction



Induction




             What is? vs. What should be?
Village Population   What to Expect


300+                 One all-purpose shop




500+                 Shop and café
                     Occasional pharmacy


700+                 2 shops, 2 restaurants, garage,
                     pharmacy, maison de la presse



200                  Forget it.
Villages become towns,
and towns become cities.

  The ‘Tween Places
Central Places of
    Intermetropolitan Corridors
Half-way between Washington and
  Richmond?
• Fredericksburg
Half-way between Richmond and Norfolk?
• Williamsburg
Half-way between Washington and
  Baltimore?
• Columbia
Why do we not ever see a perfect
       central place hierarchy?
• Physical geography is important! Topography
  and hydrography interfere.

• Consumer behavior is determined by more than
  economic considerations.

• The automobile has made long-distance travel
  popular (cheap and easy).

• The Internet has made it unnecessary to have
  customers nearby.
How could central place theory
     help you to choose a location for:
•   A new hospital?
•   A new high school?
•   A new mall?
•   A new café?
•   A new grocery store?
•   A new Starbucks?
•   A new McDonalds?
•   A new baseball team?
HGIA Kuby Chapter 9




                      Online Activity
Basic CPT...
Choose three close-together (within 150 miles) towns: the one your school is
located in (Salem) and two others (Racine) (Milwaukee) so that the relative
sizes are at least 1:5:25 (each town is at least or close to five times the size
of the next). Then ask the question (next slide) Which towns would be likely
to have a…
     The examples should lead you to the "obvious" answer that the more
 specialized services will be located in the larger city, while the basic services
   will be found in every town. How do the concepts of threshold and range
                            relate to these examples?
Salem, Population: 9,871
Kenosha, Population: 99,738
Milwaukee, Population: 597,867
Which towns would be likely to have a...

 gas station?
 fast-food restaurant?
 general practitioner?
 shopping center?
 Pizzeria
 shopping mall?
 movie theater?
 theater for plays or performances?
 professional piano tuner?
 lawyer for traffic court?
 neurosurgeon?
 thrift store?
 lawyer for international litigation?
 luxury fashion shop (e.g., Fendi, Prada, Versace)?
 Professional sports stadium, arena, etc…
 Etc…
So to Summarize
              …
In order to determine level of a central place, you must
rank all goods and services according to their thresholds
and ranges.
Threshold – minimum level of demand needed that will
allow a firm to stay in business (minimum level of sales,
minimum population.
Range – average maximum distance people are willing to
travel to purchase a good.
Threshold and range vary for each good and service.
Central places of a given level provide not only goods and
services that are specific to its level, but also all other
goods and services that lower order centers provide.
High-order goods are available only at a few locations.
   -They are expensive and purchased infrequently.
   -They have a high threshold and wide ranges.
Low order goods provided by a large number of
locations.
  -They are relatively cheap and purchased frequently.
  -For any market, the most effective system of
marketing region will be a hexagonal lattice.
Completely covers an area without overlaps or unserved
areas.
Central placetheory

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Central placetheory

  • 1. Central Places: Theory and Applications Keller kellek@danbury.k12.ct.us
  • 2. OBJECTIVES You will be able to: -describe the Central Place Theory Diagram -Analyze and apply it's real world applications -describe the positives and negatives
  • 3. Walter Christaller Die Zentralen Orte in Suddeutschland Central Places in Southern Germany Originally published in 1933, translated into English in 1966
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. More small places than big places CENTRAL Ratio of big places to small places relatively constant Big places farther PLACE apart than small places THEORY
  • 12. CENTRAL PLACE A settlement whose livelihood depends on the sale of goods and services to people in the surrounding area
  • 13.
  • 14.
  • 15. Settlement Sizes • Hamlet • Village • Town • City • Metropolis
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. Generalizations • There will be: • Few large places • Many small places • population sizes: • Large places relatively farther apart • Small places relatively closer together
  • 23. Central Place FunctionsCategories of like services found in a central place • Grocery Stores • Houses of Worship • Gas Stations • Schools • Jewelry Stores • Doctors • Book Stores • Dentists • Hair Stylists • Museums • Auto Dealerships • Concert Halls
  • 24. Higher-Order Functions Higher-Order Central Places • Higher-order/trade in goods and services -services that are more valuable and infrequently demanded -Because the goods and services are more valuable, people are willing to travel farther to shop. • Where found?
  • 25. Lower-Order Functions Lower-Order Central Places • lower-order goods/trade in goods and services • less valuable and frequently demanded. • Because the goods and services are less valuable, people are willing to travel only short distances to shop. Where found?
  • 26. Would you travel farther to buy a new car or the week’s groceries? To buy a new car Would you travel farther to see your family physician or a heart specialist? To see a heart specialist Would you travel farther to go to elementary school or to go to high school? To go to high school
  • 27. A Hierarchy of City: Educational College Services Town: High School Village: Elementary School Hamlet: No Schools
  • 28. Stock Exchange Sports Stadium Regional Shopping Mall Major Department Store Income Tax Service Convenience Store Gas Station
  • 29. How big is the trade area( hinterland) of a service center? It depends on . . . - How far a consumer is willing to travel for the service - How many customers a service needs
  • 30. Each central place function has a: • Threshold: the • Range: the maximum minimum number of distance beyond people needed to which a person will support a central not travel to purchase place function a good or service • With fewer customers • Beyond a certain a store cannot afford distance people to stay in business. cannot afford the travel costs.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35. THE CIRCLE OF INQUIRY Deduction Induction What is? vs. What should be?
  • 36. Village Population What to Expect 300+ One all-purpose shop 500+ Shop and café Occasional pharmacy 700+ 2 shops, 2 restaurants, garage, pharmacy, maison de la presse 200 Forget it.
  • 37. Villages become towns, and towns become cities. The ‘Tween Places
  • 38. Central Places of Intermetropolitan Corridors Half-way between Washington and Richmond? • Fredericksburg Half-way between Richmond and Norfolk? • Williamsburg Half-way between Washington and Baltimore? • Columbia
  • 39. Why do we not ever see a perfect central place hierarchy? • Physical geography is important! Topography and hydrography interfere. • Consumer behavior is determined by more than economic considerations. • The automobile has made long-distance travel popular (cheap and easy). • The Internet has made it unnecessary to have customers nearby.
  • 40. How could central place theory help you to choose a location for: • A new hospital? • A new high school? • A new mall? • A new café? • A new grocery store? • A new Starbucks? • A new McDonalds? • A new baseball team?
  • 41. HGIA Kuby Chapter 9 Online Activity
  • 43. Choose three close-together (within 150 miles) towns: the one your school is located in (Salem) and two others (Racine) (Milwaukee) so that the relative sizes are at least 1:5:25 (each town is at least or close to five times the size of the next). Then ask the question (next slide) Which towns would be likely to have a… The examples should lead you to the "obvious" answer that the more specialized services will be located in the larger city, while the basic services will be found in every town. How do the concepts of threshold and range relate to these examples?
  • 44. Salem, Population: 9,871 Kenosha, Population: 99,738 Milwaukee, Population: 597,867 Which towns would be likely to have a... gas station? fast-food restaurant? general practitioner? shopping center? Pizzeria shopping mall? movie theater? theater for plays or performances? professional piano tuner? lawyer for traffic court? neurosurgeon? thrift store? lawyer for international litigation? luxury fashion shop (e.g., Fendi, Prada, Versace)? Professional sports stadium, arena, etc… Etc…
  • 46. In order to determine level of a central place, you must rank all goods and services according to their thresholds and ranges. Threshold – minimum level of demand needed that will allow a firm to stay in business (minimum level of sales, minimum population. Range – average maximum distance people are willing to travel to purchase a good. Threshold and range vary for each good and service. Central places of a given level provide not only goods and services that are specific to its level, but also all other goods and services that lower order centers provide.
  • 47. High-order goods are available only at a few locations. -They are expensive and purchased infrequently. -They have a high threshold and wide ranges. Low order goods provided by a large number of locations. -They are relatively cheap and purchased frequently. -For any market, the most effective system of marketing region will be a hexagonal lattice. Completely covers an area without overlaps or unserved areas.