Question

Why are the consumers exploited by retailers?

Answer 1

The consumers are exploited by the retailers due to following reasons:

1. Low Literacy: Consumers' low literacy leads to their exploitation by the retailers. For example many consumers are not aware of the differences between yards and meters related to cloth and between kilograms and litres in relation to ghee.
2. Lack of Bargaining Power: Proper bargaining helps in reducing the prices of the goods. But under many circumstances, consumers lack the bargaining power.
3. Emergencies: Retailers often manipulate the pricing of the product during emergencies and in the absence of government control as had happened during the Corona crises.