When cost of everything
is in a rising, consumers need to know how spend their money and consumers
always have a list of hierarchy. Based on Maslow’s Pyramid, basic needs come
first, safety needs is the second, the third one is social needs, followed by
esteem needs and the last one is self-actualisation.
Rising in cost living
has resulted in consumers have to make choices among all the needs and they are
unable to fulfilled everything. Of course, consumers will still choose to fulfil
the basic needs first. Basic needs include food, shelter, clothes and
transportation.
In Maslow’s hierarchy,
the second level should be safety needs. In today’s society, safety needs
include insurance purchasing.
The president
National Association of Malaysia Life Insurance Fieldforce and Advisers
(NAMLIFA), Sethu Karuppan pointed out that consumers tend to cancel their
insurance when they are having problem in their financial.
From here, we can see
that consumers tend to skip the second needs in Maslow’s hierarchy. They are
willing to spend their money on other needs such as entertainment and
socialisation needs. An experienced insurance manager, Tan King Guok (translated)
pointed out that, consumers should be aware of the importance of insurance.
As a conclusion,
rising in living cost resulted in impacts such as consumers have to make
choices between their needs. As a consumer, we should be smart in making
choices and bear in mind, everyone has different hierarchy of needs.
