Market Related Inflationary Factors and the Purchase of Consumer Products in Nigeria

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Date
2011
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Publisher
Legaltext Publishing Company Limited
Abstract
Inflation and social welfare have remained a twin issue in any political landscape. The correlation between them is borne out of the fact that economic products available in the market are produced based on cost inputs transmitted into the value of finished goods. When inflationary factors persist, the costs of input increase resulting in expensive products and services. A trend ofthis nature reduces the purchasing power of the consumer and invariably his or her welfare. Government policies have been observed to have far reaching effect on the catalytic effect of inflation in the economy through active monetary policies or a lack-lustre attitude towards investment both internally organized or through foreign direct investment (FDI). Environment- wide impact of inflation cannot be overemphasized, as it has a gamut of negative effects across societal values such as education, women and child labour, diseases, conflicts, riots, and other anti- social disruptions. It was also observed that a veritable paradigm of modern marketing strategy is equally abused and short lived by inflation, as persistent price rise reduces the relationship between the buyer and the seller because of the attendant risks and uncertainty in the marketplace.
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Keywords
Inflation, Welfare, Prices, Costs, Consumers, Government, Nigeria
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