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Thanks Sachin for your answer and also thank you MiriamElis for your link. It was useful. I had read other blogs which you have written on local SEO previously which was very helpful for my business.

Say if we don't have the physical address for all cities, in that case? As I mentioned its an online product/service, he/she would have the Main head office address but not for all location. As Google gives more importance to the city based keywords how to compete with local websites? It can't have a page just with city keyword and content(no physical address) and do some seo. Does Google treat it has genuine? And also having subdomain i agree with you for multiple countries but what to do for a particular single country and their local cities?

Thanks Sachin for your reply. So google gives the weightage to the location based keyword used in the search query. Now a website have online resource/product/service. Webmaster doesn't want to promote for particular city but needs customer from multi-location but he have only single page about the product(No city based keywords used). How does he/she want to compete with the local websites which have NAP, Google places, title, url all of a particular city etc within the searched query location? I don't want to use ccTLD. I want the same TLD and what should I do? Add pages for city specific?

We all know Google displays nearby results by locating our ip address. My question is how does these results differ?

For eg

1. If someone from Newyork search for "chinese Restaurant in Newyork"

2. Someone from California search for "chinese Restaurant in Newyork"

3. Someone from California changes his location to Newyork and search for "chinese Restaurant in Newyork"

What are the factors the Google SERP looks into to display the result in local terms?