Behaviour of Price Sensitivity

According to Maslow's theory, the first thing that the theory consider is human needs.Well, need and want are two different things. However, This theory is really true! Human need is an important factor that we need to consider as our first priority, followed by security. Of course, food is an important or necessity for us. We need food to sustain our life. We need food to bring us energy so that we are able to carry out our daily duty. However, in this modern day, food does not seems merely as a need anymore, but also one of the promoting strategy use by the marketer. We can see that in any occasion, or even promotion function for one particular products, food seems to be the best way to attract people in the Malaysia's culture. Undeniable, we love food! Food is a form of enjoyment for us. Food is a form of relaxation for us. Perhaps, some might claimed that food do bring positive ions to the body.

Two days ago, we celebrated the most beautiful day, Mother's Day. Undoubtedly, having a good meal would be the first activities listed among all as part of the celebration.  Yes, we need good food. We need it as part of our celebration. However, we can also see that the price charged by most of the restaurant are so call 'ridiculous'. Here refers to the pricing is not longer reasonable. As an economic student, I know that festive season, prices will rise. Seller will take the opportunity to increase their price. But, increase with a little margin I guess it will be fine enough. Eventually, this is not the case. They will just increase a high as possible as though they was the only seller in the market . As a consumer, we couldn't be bother what sort of price that we are paying. We didn't really think does it worth the money that we are paying or not! We tend to just pay whatever price that offer by the seller. Isn't that true in our culture?

Price sensitivity is a very important practice, so that the price in the market may not escalate drastically as a flowing water in the stream. Price sensitivity bring equilibrium to the marker pricing. It may also bring down the inflation of that particular country.  However, people might not feel that way. As far as they can afford it, they still will patronage even though they know that the pricing does not seems to be reasonable at all. The only way to solve the problem is through Boycott!!! As we know, once the demand is low, it may eventually reduce the price in the market.

Now, some might argue that we are in the capitalist market. I have the money! I can afford it! Why should I worry? The question now is, do you ever consider the poor in the society? It might further increase the social imbalance that increase the gap between the rich and the poor. It might lead to a social problem in the future.
Western country and some part of the state in Malaysia, the consumers are price sensitive toward the things that they are paying. So when we really analyse it, the pricing is reasonable especially food (Human basic necessity).

Therefore, making a right choice in your life so that you and the society might benefit from it.