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The greater Northwood trade area is an area with a 1990 population of 2014 with 1166 of these living within the city of Northwood.
A trade area can be loosely defined as the geographic area from which businesses or a city draws its customers. A trade area is determined by the city size, location of the city with respect to other trade centers, and the criteria used to distinguish trade area boundaries.
The report entitled North Dakota Trade Areas: An Overview, published in February, 1991 by the Agricultural Economics Department at North Dakota State University, was developed based on information obtained through a statewide survey conducted in 1989. 49,038 respondents were asked where they purchased a variety of goods and services. A total of 18,766 questionnaires were returned for a response rate of 38%, of which 15,493 contained sufficient detail for further analysis. Respondents were then sorted by zip code. North Dakota cities were classified into seven (7) sizes and were allotted to a trade center classification based on average retail sales. Trade center classifications include: Primary Wholesale-Retail Center, Secondary Wholesale-Retail Center, Complete Shopping Center, Partial Shopping Center, Full Convenience Center, Minimum Convenience Center, and Hamlet. The underlying reason for using some type of classification system for trade centers is because small trade centers do not provide the same amount of services as the larger trade areas. Cities having average retail sales ranging from $6 to $12 million from 1987 to 1989 were considered full convenience centers.
Based on this information Northwood was classified as a full convenience trade center. The study identified eight townships around Northwood where the respondents purchased 50% or more of one or more of the survey items in Northwood. Two additional townships were identified that overlap with the Mayville-Portland trade area.
"The criteria for the main trade areas and the greater trade areas were used to determine the trade areas for the full convenience centers. The service mix combined convenience, specialty, and agricultural goods and services. The mix required more extensive experimentation to decrease the range of retail services that full convenience centers provide and to account for the variety of geographic and demographic situations found in full convenience centers (i.e., some are next to large trade centers, some are isolated, and some are located near trade centers of similar size.) The mix of goods and services used for full convenience centers contained some of the same goods and services as partial shopping centers. However, the mix was smaller and contained some retail functions not used in partial shopping centers."
Convenience Goods and Services
*banking *groceries *shareware
Specialty Goods and Services
*barber *dentist *florist
*heating Fuel and Propane *legal services
Agricultural Goods and Services
*Farm Machinery * Farm supplies
Bangsund et al. Feb. 1991
Agricultural Economic Report #265