Research Analysis

Research Analysis On A Sub-Cultural Consumer Segment

Research Analysis On A Sub-Cultural Consumer Segment

This paper will discuss in depth, the Consumer characteristics and behaviors of U.S,and how the product of Wal-Mart can and will impact the U.S. consumers. Additionally, a final analysis will be made of recommendations and strategic initiatives for Wal-Mart.

Shaw defines indicators with: "a set of signs that indicate when a recession is about to occur and when the economy is in one...They are called indicators, not predictors, because they're only rough approximations of what's likely to happen in the future".

Real gross domestic product

Gross domestic product is the total market value of all the final goods and services produced within an economy in a given year. There are two types of gross domestic product, real and nominal. Real gross domestic product is adjusted to how prices have changed, while nominal gross domestic product is the current price as it is calculated. Below is a graph illustrating the growth in real GDP per quarter for the United States from the fourth quarter in 2001 to the third quarter in 2005 as measured by the U.S. Bureau of Economics.

The GDP generally lags other indicators' release dates. As such, other indicators build up to the market's anticipation of how the GDP numbers describe the state of the economy. The data associated with GDP reflect income as well as expenditure flows. Real GDP has been rising in the United States since 1947. The Financial Forecast Center is forecasting an estimated 440 billion dollar rise in real GDP from December of 2005 to December of 2006. This forecast seems to fit the gradual climb that the United States has been experiencing for over 50 years. Below is a graph that illustrates the historical climb as well as the future forecast.

The Inflation Rate

Inflation can be described as a positive rate of growth in the general price level of goods and services. In general, inflation touches on the economic behaviors that can have substantial impacts on the operation of the economy, but that of course would depends on whether the inflation is an outcome of anticipated or unanticipated inflation and the degree of inflation as well. Individual prices rise and fall all the time in a market economy such as Walmart, reflecting consumer choices and preferences, and changing costs.

Producer price index

        The Producer Price Index (PPI), as defined by Colander (2004), is "an index of prices that measures average change in the selling prices received by domestic producers of goods and services over time" (p. 522). The PPI is a measurement from the perspective of sellers. A higher-than-expected PPI is considered inflationary and can cause bond prices to fall and interest rates to rise. A lower-than-expected figure causes yields and interest rates to fall. An important use of the PPI is to capture price movements prior to occurring at the consumer level. The government uses indicators such as this to formulate fiscal and monetary policies. The ...