QUANTIFYING THE IMPACT OF PRICE INFLATION ON BUSINESS OPERATION: A CASE STUDY OF RICE SELLERS AT PALMERA WET MARKET

Abstract

This study examines the impact of price inflation on the operations of rice sellers at Palmera Wet Market. Rising prices, particularly for essential commodities like rice, pose significant challenges to businesses. The study aims to assess the financial, decision-making, and operational effects of inflation on rice vendors, explore the strategies they use to navigate inflationary pressures, and provide insights for policymakers on supporting small businesses during economic hardships. The study utilized non-probability sampling techniques to select three rice sellers at Palmera Wet Market as respondents. Data was collected through open-ended questions and rating scales, ensuring compliance with privacy regulations throughout the research process. The survey results among rice retailers at Palmera Wet Market indicate a strong consensus on the impact of inflation on their businesses. Respondents reported that inflation drives up grain prices, reduces profits, and decreases customer loyalty. They also expressed difficulties in setting competitive prices and securing affordable suppliers. To address these challenges, vendors prioritize marketing, customer service, and collaboration over adjusting pricing strategies. The findings highlight a shared understanding among rice sellers regarding the effects of inflation, emphasizing the need for flexible and adaptive measures to mitigate the challenges posed by rising prices. Respondents suggest strategies such as marketing, strengthening buyer-seller relationships, and collaborating with complementary businesses to sustain profitability during price increases. Adjusting pricing strategies ranks lower among the recommended actions during periods of high inflation. The study underscores the challenges faced by middle-income earners and highlights the broader negative impact of inflation on various sectors, including agriculture in areas like Palmera Wet Market.