1.

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.