Page 113 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes In this current meltdown, driving the customers to the retail stores seems high and dry.
But, the markets always have the hidden potential despite the slump. Today, the changing
market trends demand the retail industry to expand its reach to the more customer touch
points so as to drive them to the retail points.

5.7 Keywords

Consumer price index (CPI): It measures the average retail prices paid by consumers for goods
and services bought by them.
GDP: It is a measure of all currently produced goods and services valued at market prices.
GDP price deflator: This index measures the prices of all goods and services included in the
calculation of the current output of goods and services in the economy, the GDP.
Inflation rate: It is defined as the rate of change in the price level.
Macroeconomic variables: The characteristics that describe a macro economy.

Macroeconomics: It essentially examines the factors that lead to changes in the main characteristics
of the economy-output, employment, inflation, and the interest rate.
Producer price index: It measures the wholesale prices of approximately 3,000 items.

Unemployment rate: It is defined as the fraction of labor force not working (but actively seeking
employment).
Voluntarily unemployed: People who are not working but also not seeking work-termed by
economists as being "voluntarily" unemployed.

5.8 Review Questions

1. “There is an increase change in the income of consumer spending”. Comment.
2. What are the macroeconomic policies of retail industry of India?

3. Write a brief note on “Recession in retail Industry”.
4. Write Short notes on:
(a) Inflation rate

(b) Unemployment rate
(c) GDP price deflator
5. Differentiate between consumer price index and producer price index.

Answers: Self Assessment

1. season 2. decreases
3. sales and profits 4. inventory

5. Sunday 6. Pricing
7. Y 8. Health, medical
9. Cutting 10. food and drinking
11. advertising 12. technology

13. low

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