Consumption Pattern Model for Malaysian Consumers

Consumption is expenses towards household goods and services such as clothing, food, entertainment, health services. Malaysian consumption trend consumers have been changing since 2005 as reported by consumer price index (CPI), per capita income and inflation rate due to inflation rate hikes at the end of 2016 and early 2017. This study examines the factors contributing to the consumption model of Malaysian consumers in rural and urban areas. Eight antecedents of Malaysian consumption pattern, consumer lifestyle, consumer value, consumer motive, consumer preference, and marketing mix of price, product, place, and advertising were measured using 7-point Likert scales. 1400 were questionnaires distributed to households, 851 were returned representing 61 percent response rate. The findings indicate support for validity of measurement models of all variables utilized for both model rural and urban. Structural Equation Modelling (SEM) of SMARTPLS 2.0 technique found that advertising is not a predictor for consumer motive for rural and urban. Apart from that, price hikes have been discussed. On the other hand, the rural model postulates better R2 than the other model. The finding implies that Malaysian government needs to conduct a continuous campaign to consumers regarding GST implementation and its consequences to them. Finally, the instability of the economy changed the consumption pattern throughout their lifestyle, value, motive and preferences.