The Effect of Rising Prices on the Consumption Pattern and Market Fluctuations (A Field Study in Irbid City – Jordan)

Abstract

This study discusses the negative effects of rising prices on the consumption pattern of the Jordanian citizen. The researcher recognized the significance of such phenomena on the consumption preferences of the individual, who tends to choose low-quality products, or content with some goods and services in favor of others. Certainly, this would have social and health effects on the long run.The change in the consumption pattern has negative effects on the entire marketing processes. It is noticed that there is dynamic market fluctuations with each price rise, so that the demand on specific market sectors declines in favor of others. This fluctuation requires studying factors that change the consumption pattern on the short run, such as income, prices, cultural dimensions and consumer perceptions, considering the absence of effective governmental financial policies.For example, the study showed that most individuals in Jordan avoid using heating (worming) fuel, despite of the governmental financial support. This behavior is due to the negative consumption culture related to facing cold weather, in addition to the high prices. These type of consumption patterns causes market fluctuations in favor of other market sectors as education, private means of transportation, and so on, as shown in the statistical analysis section of the study.

Keywords: prices rising, consumer behavior, consumption pattern, motivations, attitudes, market-fluctuations, hierarchy of human needs, pricing policy, consumer protection, market structure, inflation rates.