Constructing a consumption model for Malaysian consumers

• Main Authors: Sulaiman, Yaty, Nik Mat, Nik Kamariah, Abd Ghani, Noor Hasmini
• Format: Article
• Language: English
• Published: American Research Institute for Policy Development 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15373/1/4.pdf; http://repo.uum.edu.my/15373/; http://doi.org/10.15640/jmm.v2n3-4a4
• Institution: Universiti Utara Malaysia

The objective of this research is to construct a consumption model for Malaysian consumers.The research is important for Malaysian national agenda, especially, in achieving a societal integrity, social cohesion, the vision of 2020, and developed country per capita income, with the slogan of “1 Malaysia, People First, Performance Now”.The consumption pattern of Malaysian consumers has changed markedly since 2005 as shown by several indicators such as consumer price index (CPI), per capita income and inflation rate.The per capita income for Malaysia has risen but at a very slow pace. It was USD5372 in 2005 and at the end of 2013 it has amplified to USD6765, a rise of 26 per cent. Therefore, Malaysia has to work harder by 121 percent to achieve the 2020 target of USD15,000 per capita income. Furthermore, as compared to per capita income of the consumers, the rise in consumer prices was incomparable. The consumer price index (CPI) increased from 95.4% in year 2000 to 122.8% in 2013.This implies that the consumer have to pay a higher price for purchase of consumer products nowadays.It has been a source of dissatisfaction among consumers.The price hike was triggered by a few factors such as the increase of the oil palm, rubber and fuel prices.