Services

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Services

• Chapter 12

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• Services activity performed that fulfills a
  human want or need in exchange for money
• Usually a link b/t services and settlements
• Why are services clustered in settlements?
• Optimal location may be a specific place
• location, location, location
• Services must also reflect distribution of people
• Not the only factor b/c areas w/most population
  would have most svcs
• People in MDCs can afford to purchase services so
  most are located there
• Globalization of services-increasingly uniform
• How is local diversity preserved?

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Where Did Services Originate?

• Key Issue 1

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Types of services

• Consumer Services
• Two types
• Retail service (about ¼ all consumer svcs jobs)
• Personal service (about 1/5 all consumer svcs
  jobs)
• Business Services
• Purpose to facilitate other businesses
• Two types
• Producer services help people conduct business
• Transportation and similar services diffuse and
  distribute services
• ½ transportation other ½ information services
• Public Services
• Provide security and protection for citizens and
  businesses

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Types of Services cont.

• These distinctions are not absolute-why?
• Why do geographers find them useful?
• How have the number of employees changed?

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Origin of Services

• Centered around settlemetns
• How did early services evolve into present day
  services?
• Provide examples.
• Settlements at the core of services-Why?

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Services in Rural Settlements

• Clustered vs. dispersed settlements
• Clustered settlements
• Discuss a typical clustered settlement.
• Circular Rural settlements
• Open space surrounded by structures (The German
  Gewandorf)
• Model von Thuen used in his studies
• Linear Rural Settlements
• Structures are clustered along a road, river,
  etc. to facilitate communication
• long-lot seigneurial-be able to describe
• How are colonial American settlements clustered?

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Services in Rural Settlements cont.

• Dispersed Rural Settlements
• Middle Atlantic area
• Mainly b/c people that settled here came as
  individuals rather than as a cohesive group
• As these settlers moved west, pattern of
  settlement followed
• Dispersed settlement began to replace clustered
  settlements- Why?
• Enclosure movement
• What is this movement? Where did it occur? Why
  did it occur? What was the effect of this
  movement?

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Why Are Consumer Services Distributed in a
Regular Pattern?

• Key Issue 2

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Central Place Theory

• Where are central places located? Why?
• Central place theory explains how svcs are
  distributed and why there is a regular pattern of
  settlement
• First proposed by Walter Christaller
• Attempted to develop a model to predict how and
  where central places in cities would be spatially
  and functionally distributed

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Central Place Theory cont.

• Set of assumptions
• Surface of the area would be flat and have no
  physical barriers
• Soil fertility would be uniform
• Population and purchasing power evenly
  distributed
• Uniform transportation which would allow for
  direct travel from each settlement to the other
• Goods and services could be sold in all
  directions out to a certain distance
• Calculated the ideal model and then compared it
  to the real world
• In cities-central places would be nested, so the
  largest central place would provide services to
  smaller places
• Smaller places would provide services to even
  smaller places

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Central Place Theory cont.

• Christaller postulated
• cites would be regularly spaced w/central places
  where the same product was sold at the same price
  was a standard distance apart
• Each city has a complementary region in which
  they have a monopoly on the sale of certain goods
• Market Area of a Service
• Market area/hinterland
• How is a market area established?
• Christaller chose hexagons-Why?

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Central Place Theory cont.

• Size of Market Area
• To determine, need info about its range and
  threshold
• Range of Service
• How far you are willing to go for a service
• Determined by observe consumer behavior
• Threshold of Service
• Minimum number of people required to support the
  service (generate a profit)
• How potential consumers are counted depends on
  the product

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Central Place Theory cont.

• Central Places Today
• Geographer Larry Ford central place theory still
  has a place today
• Sunbelt phenomenon-movement of millions of
  Americans from North and Northeast to South and
  southwest and vice versa
• Result of government economic and social policies
• Some cities would respond by increasing services
  while others would not

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Market-Area Analysis

• Used to determine if a markets location will be
  profitable
• Profitability of a Location
• Calculate the range and threshold
• Optimal Location Within a Market
• Where in the market should the service be located
  to maximize profit?
• Linear
• Nonlinear Settlement

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Hierarchy of Services and Settlements

• Small settlements are limited to consumer
  services w/small thresholds b/c they do not have
  the people to support a lot of services
• Larger settlements can support both
• Yellow pages of a large city vs. that of a small
  city
• Why travel when you can get it right here?

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Hierarchy of Settlements and Services cont.

• Nesting of Services and Settlements
• Central place theory-MDCs would be hexagons
  unless interrupted by physical boundaries
• Hamlets, villages, towns, cities
• Rank-Size Distribution of Settlements
• Ranking settlements based on largest to smallest
  population produces a regular pattern or
  hierarchy
• Rank-size rule
• When plotted, makes a fairly straight line
• What happens if it is not a straight line when
  plotted?
• Primate city rule countrys largest city is
  called the primate city

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Hierarchy of Settlements and Services cont.

• Rank-Size Distribution of Settlements cont.
• Followed by many LDCs
• How does rank-size distribution have an impact on
  the quality of life for its inhabitants?
• Periodic Markets
• Collection of individual venders who come
  together to offer goods and services in a
  location on specified days
• Mostly provided in LDCs or rural MDCs
• Mainly mobile
• Frequency varies by culture

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Why Do Business Service Locate in Large
Settlements?

• Key Issue 3

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Ancient World Cities

• Originally people clustered in agricultural
  villages
• egalitarian society
• main activity agriculture
• This changed as cities were formed
• people generated personal wealth
• began to trade over long distances
• formation of stratified classes
• engaged in a diversity of economic activities

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Ancient World Cities cont.

• Agricultural surplus and social stratification
  enabled the formation of cities-Why?
• advances in technology
• leadership class was formed to control the
  surplus and technology used to create it
• king or priest/king centralized political power
• in turn, demanded labor to create agricultural
  surplus which would help him/her retain political
  power
• Leadership class controlled all of the societys
  resources
• since everyone did not participate in farming,
  could focus on other pursuits such as philosophy
  and religion
• writing and recordkeeping arose from these
  activities

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Ancient World Cities cont.

• Ancient Athens
• city-states
• showed urban settlements have been traditionally
  distinguished from rural settlements not only by
  public services but also by personal services
• Ancient Rome
• rise of Rome encouraged urbanization
• as Rome declined, so did urban settlements

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Medieval World Cities

• renewed urban life as feudalism spawned urban
  settlements
• largest urban settlements served as power centers
• usually fortified by walls
• What were believed to be the 5 most populous
  cities in 900 A.D.?

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Modern World Cities

• Business Services in World Cities
• clustering of businesses the result of the
  Industrial Revolution
• Explain.
• Consumer Services in World Cities
• have a large number of consumer services due to
  the large and wealthy markets world cities
  aremore people can afford things there so they
  provide more retail/service opportunities for
  their wealthy customers
• Public Services in World Cities
• may be centers of national or international
  political power
• offices that do business with the govt are often
  located there
• New York, Brussels

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Hierarchy of Business Services

• 4 levels of cities that play a role in business
  services
• World Cities
• Why are they closely integrated into the global
  economic system?
• London, New York, Tokyo
• largest city of their main area
• most important stock exchanges located there
• Chicago, LA, Washington, Brussels, Frankfurt,
  Paris and Zurich
• also included Sao Paulo and Singapore
• where many major banks or other corporations may
  have their headquarters
• What cities make up the third tier?

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Hierarchy of Business Services cont.

• Command and Control Centers
• second level of cities
• What types of services are located here?
• What are some command/control center cities?
• Specialized Producer-Service Centers
• third level of cities
• offer more narrow and highly specialized variety
  of services
• What are some examples?
• Dependent Centers
• fourth-level cities
• unskilled jobs their economic health depends on
  the decisions of the other cities
• What are the 4 subtypes?

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Economic Base of Settlements

• basic industries vs. non basic industries-What is
  the difference?
• Why is a settlements economic base important?
• nonbasic industries will not result in the
  creation of new basic industries
• How can a communitys basic industries be
  identified?
• Settlements in the US are classified by type of
  basic activity explain.
• Economic base of some settlements is in the
  secondary sector-explain.

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Economic Base of Settlements cont.

• Specialization of Cities in Different Services
• Basic industries originally referred to
  manufacturing
• Those specializing in public services are
  dispersed all over the country-why?
• Distribution of Talent
• Those with talent are not uniformly dispersed
• Why do some cities have a larger number of
  talented individuals than others?
• Richard Florida-what did his research about
  talent determine?

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Why Do Services Cluster Downtown?

• Key Issue 4

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Central Business District (CBD)

• Consumer and business services located in CBDs
  because of their accessibility
• Retail Services in the CBD
• Retail Services w/High Threshold
• Accessible to a large number of people
• Rents here were usually highest
• Recently, most have disappeared for the suburbs
• Retail Services w/ High Range
• Very specialized shop customers patronize it
  infrequently
• Prefer central locations
• Have also moved to suburban shopping malls
• How can they still survive in CBDs?

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Central Business District (CBD) cont.

• Retail Services Serving Downtown Workers
• Cater to those who work in the downtown area
• Limited hours
• Many of these are expanding-Why?
• How have cities attempted to revitalize retailing
  in CBDs and old er neighborhoods?
• Producer Services
• Cluster in the center for accessibility
• Facilitates communication
• Helps to establish sense of trust
• Also allows businesses to employ people from all
  different neighborhoods
• Can find employees they need in a CBD

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Central Business District (CBD) cont.

• High Land Costs in the CBD
• Accessibility produces competition for land
• As a result, extremely expensive
• 2 characteristics emerge as a result
• Land is used more intensely at the center than
  elsewhere in the city
• Some activities are excluded form the center
  because it is so expensive
• Intensive Land Use
• underground city
• Use of more space above and below ground
• Skyscrapers
• Building up instead of out
• Vertical geography-explain.

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Central Business District (CBD) cont.

• Activities Excluded from the CBD
• Manufacturing
• Requires too much space
• Suitable land usually located in the suburbs
• Lack of residents
• Most individuals cannot afford the rent in CBDs
• Where is this problem especially critical?
• What are the push/pull factors for leaving CBDs?

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Suburbanization of Businesses

• Cheaper and it is where most customers are
  located
• Suburbanization of Retailing
• Why have downtown sales stagnated?
• Has resulted in businesses moving to the suburbs
• Suburbanization of Factories and Offices
• Why have they moved?
• Can pose a hardship for some employees-explain.