A CORRELATION BETWEEN PRICE SUSTAINABILIY AND FINANCIAL

STABILITY OF A MEATSHOP BUSINESS IN THE MIDST OF THE GLOBAL

PANDEMIC

COMBIS, John Patrick B.

BORERO, Benedict F.

FRANCE, Miguel Bryan N.

 Background of the Study

In this time, sustainability is significantly important to study. When pandemic arises

in this world many businesses, industry and many other companies need to close in

such time that really impacts the sustainability and stability in terms of their pricing

and financial strategies. That’s why the researchers come up with the title “A

Correlation Between Price Sustainability and Financial Stability of a Meatshop

Business in the Midst of the Global Pandemic.”

Sustainable development is a development that meets the needs of the present

without compromising the needs of future generations to meet their own needs

(Brundtland, 1987). Global pandemic affects a lot in sustaining the price of the

products in the market one of this is meat, which really affects the buying behavior

of the customer who loves to eat meat because of the increase of its price.

According to Kotler and Armstrong (2009, p. 263) the price is “the amount of money

charged for a product or service, or the sum of all the values that customers give up

in order to gain the benefit of having or using a product or service.” Through price,

people pick what they want to buy in the market. Thus, sustaining the price of the

product has a significant effect to every buyer to purchase that kind of necessity.

According to the customer the price for a product is the victim to be taken, to get the
product. Therefore, the net benefit for the customer is the benefit from the product

deducted by the price (Kuß 2006, p. 268). And through price, customer decide

whether the product is worth the price. That’s why it is important for the company

to consider the customer they should sell value, not price. The challenge for the

company is to find the price which meets the value perception of the customers.

Financial stability is defined as the ability of the financial system to facilitate and

enhance economic processes, manage risks, and absorb shocks. Moreover, financial

stability is considered a continuum, changeable over time and consistent with

multiple combinations of finance’s constituent elements (Garry Schinasi, 2005).

Stabilizing finances has a huge role in allocating funds, resources, productive

investment opportunities and managing risk. That’s why the researchers want to

know if the meat shop business stabilizes well their finances in the middle of the

pandemic.

In that said, the reasons behind why the researchers want to study the relationship

between the price sustainability and financial stability is that they want to know if

what are the economic result in the small businesses like meat shop from the start of

the lockdown up to these days of the crisis. Also, the impact of the increasing value

of the necessities in the market to the buyers or customers.