The density of the customer population of a service centre is high near the service centre but decrease with increasing distance,due to the frictional effect of the distance
and other factors such as accessibility and convenience. This means that there will be more customers located closer to the service centre and fewer customers located further away.
This effect can be seen in a variety of service industries such as retail stores, restaurants, and healthcare facilities. For example, a popular restaurant located in the city centre may experience high foot traffic in the immediate surrounding area, but as you move further away from the restaurant, the number of customers may decrease rapidly due to the inconvenience of travelling a long distance for a meal.
Understanding the population density around a service centre is important for businesses to make informed decisions about location, marketing, and customer outreach. By identifying areas of high and low customer density, businesses can adjust their marketing strategies to target specific areas and offer promotions or incentives to attract new customers.
To better understand the situation, let's break it down step-by-step:
Step 1: The given statement states that the density of the customer population of a service center is high near the service center.
Step 2: As we move away from the service center, the density of the customer population decreases.
Step 3: This decrease in customer population density with increasing distance is due to the frictional effect of the distance.
Step 4: The term "frictional effect of distance" refers to the natural decrease in customer population density as distance from the service center increases.
Step 5: The reasons for this decrease could include factors such as transportation costs, convenience, and accessibility.
Step 6: Essentially, customers residing closer to the service center find it more convenient to access the services offered, while those farther away may prefer alternative options or find it less practical to travel the distance.
Step 7: The decrease in customer population density with increasing distance from the service center is a common occurrence in many service-based businesses and can be observed in various industries such as retail, healthcare, and education.
I hope this breakdown helps clarify the concept of high customer population density near a service center that decreases with increasing distance due to the frictional effect of the distance.