Kuala Lampur, July 14 -- Have you ever wondered why people still queue for premium coffee, buy a new lipstick, or treat themselves to a nice meal even when everyone seems to be talking about rising living costs?

At first glance, it may seem contradictory. If money is tight, shouldn't people stop spending on non-essential items altogether?

Yet history suggests otherwise. Behavioral economists have long observed an interesting phenomenon known as the Lipstick Effect. The theory suggests that during periods of economic uncertainty, consumers often reduce spending on expensive purchases while continuing to buy small, affordable luxuries. Instead of purchasing a new car, they might buy a new lipstick. Instead of booking an overseas holiday, ...