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market orientation |
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The tendency of an economic activity to locate in proximity to its market. This will be the case where the cost of shipping the product to the consumer accounts for a relatively high proportion of total cost, or where the effort involved in consumers getting to the source of supply, along with the attraction of the good or service, is such that only short distances will be travelled. Market orientation used to apply mainly at the local level, with small-scale producers supplying a local market, while today the pull of the market is rather a factor in the agglomeration of economic activity in major metropolitan areas. (Compare material orientation.)Â (DMS) |
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