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  • Qairul Muzzammil Kamaruzaman

    Member
    November 4, 2021 at 10:52 pm

    Government may exercise its fiscal measures to stimulate or regulate market at large (Macroeconomics) as well as on household level (Microeconomics).

    On macro level, goverment may set up initiatives for companies to take part in special schemes in order to boost market fluidity and regenerate domestic consumptions. Another examples is goverment creating initiative for foreign investors to open a business or plant in Malaysia, as what we’ve seen in 1980s. Since Covid-19 Pandemic hitting the world in a sudden since early 2020, global economic including domestic has been hit badly. Business activities have to be temporarily halted by Movement Control Orders; which was gazetted by government as one of the strategy to reduce the spreading of the virus thru social activities. Although large companies were hit by these MCOs, the Small and Medium Enterpreneurs as well as daily earners have been impacted the biggest.

    As a measure to rejuvenate domestic business, during Special Budget for Covid-19 tabled by then Government, an initiative was set to give tax exemptions up to RM 1000 to tax payers to go for domestic holidays. Furthemore, government has given tax payers as well as companies for tax exemptions on laptops, in order to help companies to be able to operate remotely from home during MCOs.

    Companies should proactively participate in government led market intervention, to be abreast of consumer behaviour. In simple terms consumer and households will always reacted according to market movement, and a good company should be able to anticipate these situation.

    If we look back at the situation during pandemic, during MCO being implimented, physical shopping activities have halted, and most of the shop that continue operate business as usual were essential business such as grocery shops, hardware shops, restaurants catering take away shops, courier provider and others. The remaining business have to think on how to continue making revenue while not be able to operate as normal.

    During these situation I have personally experienced seeing a personal quran recital teacher utilizing online platform to conduct classes, same method was taken by small artists, using online platform to reach to bigger audience, while normal business approach was not possible to be done.

    Another examples of business that understands consumer behaviours can be seen from emergence of online influencers, where these influencers are being hired by certain company to review or place their products in their online postings, since these influencers have many followers. These situation, on the otherhand create demands of influencers for companies to collaborate with. Although not all influencers are able to get bigger cake from revenues, better market reach is a good reason for companies to use this method.

    The recent increase in popularity of Choco Jar also can be seen as one of the examples of understanding of consumer behaviour. When Choco Jar became viral and popular through online platforms, company after company started to tap in the demand by consumer by creating a similar products. Then they created sales and marketing structure by hiring agents and dropshippers.