Consumer spending trend likely to change

PETALING JAYA: Consumers are likely to change their spending habits with the rising cost of living and the implementation of the goods and services tax, according to a survey.

“Inflation has always been part of our lives. Consumers will not stop spending, but they will change how they spend,” said PHD Media general manager Jimmy Lim.

The “Shrinking Wallet” study conducted by PHD Media in conjunction with Epinion and Media Prima collected responses from 500 online consumers aged 15 and above in October.

Of those surveyed, 92% said they were worried about their financial status over the past year, 53% started to practise financial prudence and 42% scrutinise cost per unit to get the most out of their money.

“Rising prices are the new normal, and the change in purchasing patterns will persist until consumers feel they have regained their purchasing power,” said Omnicom Media Group research manager Cassandra Ng.

As such, there has been a shift among consumers from passively refraining from spending to actively deciding to cut certain things out of their consumption patterns, making choices that maximise value, generating more income and stretching their budget, said Ng.

Marketers should introduce reward programmes to maintain brand loyalty, she said.

“They can also change price perception to give consumers more value for money, for example by giving consumers 20% more of a product for the same price and upsizing their packaging to reflect that.”

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , PHD research , consumer habits


Next In Business News

Hong Seng partners Pow Pocket for Johor immigration registration platform
MISC posts RM429.8m net profit in 1Q, div 7c
FBM KLCI extends decline for fifth day, gloves slide
March industrial output surges 9.3% on-year, highest since mid-2013
Asia shares, commodities firm on recovery bets; A$ hit by China move
HSBC Malaysia launches mobile app EZInvest
Ringgit slightly lower on cautious sentiment
Quick take: Widetech hits limit-up in early trade
Glove makers drag KLCI deeper into the red
Quick take: Cahya Mata Sarawak falls after CFO suspension

Stories You'll Enjoy