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Medical Definition of place theory. : a theory in physiology: the perception of pitch results from the ability of sounds of different pitch to stimulate different areas of the organ of Cortiâcompare telephone theory.
Though Losch's central place theory looks at the ideal environment for the consumer, both his and Christaller's ideas are essential to studying the location of retail in urban areas today.n addition, the central place theory has three orders or principles. The first is the marketing principle and it is shown as K=3 (K is a constant). In this system, market areas at a certain level of the central place hierarchy are three times bigger than the next lowest one.