THE recent brouhaha over Economy Minister Rafizi Ramli’s statement on expensive coffee has brought to the fore the importance of understanding consumer behaviour.

According to the statement, consumers’ excessive spending habit is observed to be driving skyrocketing living costs, which he said ought to be dodged in response to inflation.

Studies on consumer behaviour have sought to meld different disciplines, including cultural and behavioural psychology, behavioural economics, as well as marketing science.

From a policymaking perspective, an understanding of consumer spending habits is needed to comprehend spending behaviour. 

When looking at consumer spending habits, policymakers should not sideline demographic or push-pull cultural and societal factors.

Coffee culture accommodates social behaviour or a social atmosphere. The brew also acts as a social lubricant.

According to a 2008 study on the consumer behaviour of the millennial generation, a prolonged techno-savvy lifestyle has contributed to the patterns of coffee intake.

In other words, coffee culture is allied to ideas, practices, technology, meanings and associations.

The culture affirms identity, expresses values and enhances social bonding.

Therefore, coffee is more than a material substance as it provides social and symbolic meanings.

Having said that, social relation and class divisions are two factors that could influence the role and meaning of a cup of coffee.

A coffeehouse  integrates consumers who are attracted to the ambience, services, merchandise, ancillary products such as books, music and art prints, as well as the coffee preparation styles and qualities.

In Maslow’s hierarchy of needs, we believe that different motivations are correlated with various human needs on the pyramid.

A one-size fits all policy could never accommodate everyone. Grassroots study and multilateral collaboration by stakeholders are needed in the first stage of policy process, which is addressing problem emergence before seeking to make policies. – January 2, 2023.

* Iris Ng reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.