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central place theory

Definition:
A theory of the distribution of market functions among market centres so that six of the smallest centres are served by a larger supply market. Six of those larger centres are served by a higher level with the pattern continuing until all the centres within the political boundaries are served by the six largest centres. The number six is derived from the hexagon shape formed by equal sized circles being over-lapped to use up all available space (as in a honeycomb). The circle's origins are determined by the distance a person is willing to walk to market, returning the same day. At each level the volume and type of demand has an effect on the function performed and the merchandise offered for sale.

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [A. J. Brown and Michael J. Baker], [1998].