APHUG
KEY ISSUE 1: Where Are Services Distributed?
Definition of a Settlement
A settlement is defined as a permanent collection of buildings where individuals reside, work, and obtain various services.Geographical Coverage
Settlements occupy a very small percentage of Earth's surface—well under 1 percent—but are home to nearly all humans. Few people live in isolation.
Introduction to Services and Settlements
Essential Concept
The proximity to the market is the most critical locational factor for a service. This principle holds significance in geographic terms.
Learning Outcome 12.1.1: Three Types of Services
Tertiary Sector (Service Sector):
- Most people in developed countries work in the service sector, which includes shops, offices, restaurants, universities, and hospitals.
- A service is characterized as any activity fulfilling a human want or need and generating revenue for the provider.
- The service sector generates over two-thirds of GDP in most developed nations while less than half in developing countries.
- Service distribution is inversely related to the percentage of primary workers, signifying a greater density of service workers in developed countries like the U.S. than in India or China.
Types of Services:
- Consumer Services:
- Aim to provide services to individual consumers who can afford them. Approximately 50% of jobs in the U.S. fall into this category.
- Divided into four main types: Retail, Health, Education, and Leisure.
- Business Services:
- Purpose is to support business operations. Comprises about 25% of jobs in the U.S.
- Key types include professional services, transportation services, and financial services.
- Public Services:
- Focus on providing security and protection for both citizens and businesses, accounting for about 10% of U.S. jobs.
- Among public-sector employees (excluding educators), 16% work for the federal government, 25% for state governments, and 60% for local governments.
KEY ISSUE 2: Where Are Consumer Services Distributed?
Central Place Theory
Overview:
Central place theory informs the selection of profitable locations for consumer services by illustrating how market areas are structured.
- Developers:
- Proposed by Walter Christaller in the 1930s, further developed by August Lösch and Brian Berry.
- Central Place:
- A central place is a hub for the exchange of goods and services, characterized by its central location to maximize accessibility.
Key Concepts: Market Area, Range, and Threshold
Market Area:
- It’s the space around a service from which customers are attracted. Visualized as a nodal region, often represented as a hexagon or circle on geographical maps. Hexagons nest without gaps and facilitate service competition effectively.
- Range:
- Defined as the maximum distance consumers are willing to travel to access a service. Ex:
- Convenience stores: short range
- Stadiums: extensive range.
- Threshold:
- Refers to the minimum number of customers required to maintain a service's profitability based on the characteristics of the service. Different services attract varying demographics, influencing their threshold.
Changes in Employment Patterns
U.S. employment is increasingly concentrated in the service sector, particularly consumer services, with a decline in primary and secondary activities.
Growth Areas:
- Health care, education, entertainment, and hospitality have shown the most significant job growth.
Hierarchy of Consumer Services
Market Areas Size Variation:
- Large settlements offer more consumer services than smaller ones due to higher essential thresholds.
- Services are nested across varying settlement sizes, providing a pyramid shape of market areas.
Rank-Size Distribution
Settlements in developed countries often follow a predictable rank-size rule, meaning the population of the nth largest settlement is 1/n of the largest settlement.
In contrast, the primate city rule applies when the largest city significantly outstrips its second-largest counterpart, affecting access to services.
Periodic Markets
Development:
- Established as a collection of vendors providing goods and services on specific days, facilitating access in rural and low-income urban areas.
- Variability:
- Operating frequency often reflects cultural practices. For instance, Islamic countries have weekly markets while rural China may operate on a 10-day cycle.
Sustainability Concerns with New Service Types
Emerging Models:
- Companies like Airbnb and Uber challenge traditional service categorizations.
- Classification Debate:
- These companies' employees raise questions on whether they fit into leisure and hospitality or transportation services.These new models have substantial implications for local economies and existing service qualifications.
Visual Data
Figures and Maps:
- Several figures illustrated concepts like GDP from services, hexagon market areas, employment shifts, and the positioning of periodic markets in the U.S. and rural settings.