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Lecture 6

Lecture 6

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Ryerson University
GEO 301
Joseph Aversa

L6: The Geography Demand This Topic is Divided into Three Parts 1. The Market 2. Consumer Behaviour 3. Canada’s Largest Market Part 1: The Market The Notion of the Market - The market is a set of customers - Retail Sales = ƒ (market income) o i.e. income * people  ethnicity: Italian or Polish?  class: rich or poor?  students or non-students? - Unit of analysis: Individual or household? Four Important Aspects of a Market - Location - Geographical extent/Boundaries - Income - Spending, purchasing power - Demographics - Age, sex, household composition, etc. - Lifestyle - Ethnic identity, sexuality, etc. that influence needs and wants) Different Scales of the Market - Different scales of the market o Settlement scale:  e.g., national, regional and urban markets  the city is treated as a single market - Metropolitan scale: o e.g. retail patterns and facilities within an urban area.  communities and neighbourhoods - Spatial markets vs. non-spatial market (e.g., the rich, the elderly, ethnic minorities) Urban Markets - Firms in the commercial sector are less concerned with the abstractions such as the national market or even the provinces than with the reality of local markets defined by consumer behaviour - WHY ??? ~ Toronto is multicultural only in major urban cities ~ The Size Variations - 25 largest urban markets in Canada, based on market income in 2006 - Varying in size, with Toronto more than forty times larger than Guelph - Represents a powerful regional variation in the distribution of these urban areas - Central Canada (Windsor to Quebec City) has ten times the density of cities as the rest of the settled part of Canada Sub Markets - Reasons why Canada is treated as a series of distinct regional submarkets: o Physical barriers  The Rockies and the Canadian Shield  Water barriers fragmenting the Atlantic provinces o Cultural barriers  Language barriers (francophone/anglophone) Canadian Market Concentration - Canadian market is concentrated in a small number of locations - 65% of the countries purchasing power can be reached in only 25 markets - The next 75 largest places contribute another 12% (so that 80% of the national market is found in 100 locations) - The 144 cities have a combined population of 25.6 million (approx. 80% of total) - The six largest cities account for 44% of the population - The 10 urban areas with more than 300,000 population contribute nearly 60% of the total Recent Growth Trends - Not all urban markets are growing at same rate - Distribution of urban growth over the last decade is far more concentrated than the overall population distribution o Effected by increased immigration and decline in fertility o Effected by growth of jobs in the commercial sectors - Calgary and Edmonton provide the bulk of the growth followed by Toronto, Montreal, Vancouver and Ottawa Canada 10 Mega Regions - These 10 mega regions have been effective in attracting market growth - Between 1991 and 2006 their population increased by over 7% while the rest of the country grew only 3.8% - This means that more than 80% of Canada’s population growth occurred in these 10 markets. - Their market income grew by almost 60% -- compared to less than 30% for the rest of the country. Growth Trends - Central Canada is the dominant region of growth- Followed by Alberta and BC - Smallest city size categories experience 1.9 % and largest places account for almost 8% - In absolute terms the growth is highly concentrated in - In terms of Growth Rates the positive and negative southern Ontario and Quebec and to the west of differentiate the extensive urban cores in Southern Saskatchewan Ontario/ Quebec, Central Alberta and the settled parts of southern BC The Growth in Market - Growth in Market Income is particularly important to commercial activities because it provides opportunities for new store - Places which have grown in number of Households and Increased the level of household income (ie. Calgary, Windsor) have substantial advantages over place where neither population nor income has grown The Distribution of Commercial Employment Commercial Employment - There is a strong relationship between growth rates - Most of the cities that have lost employment are small and city size - Only half a dozen are part of the Windsor-Quebec corridor - In the largest city size category,employment grew at - Clearly there have been substantial shifts of service activity up 10%, almost at the same rate of the market. the commercial hierarchy - The two largest city size categories absorbed 86% of the employment growth in the commercial sectors Variations in Specialization - Large metropolitan areas are seldom found at either end of the centrality distribution. - With their large markets and complex economics, they are most likely to achieve average levels of commercial activity. - The places with the greatest centrality are mostly agricultural central places in Western Canada, cities that are immersed within a network of smaller settlements. - Those with the lowest values, in contrast, are cities on the frontiers, near the ocean or the northern wilderness. - Their trade areas are restricted by the geography, and because they are positioned at the end of the line, they are unable to pass along goods and services to other places. - Low values are also found in the ol
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