Unit 1CONSUMER NEEDS AND

WANTS

How many times have you asked your parents for

something and they have said “no, you don’t need it” or

have you ever asked yourself when you are considering

buying something “Do I really need this”?

What is the difference between needs and wants – and

would everyone answer the same?

Need – An item necessary for survival

Examples include: Food, clothing or shelter

CONSUMER NEEDS AND WANTS

Maslow was a psychologist who studied human behavior, he explored human motivation or human needs.

Humans are motivated to satisfy needs according to a hierarchy; satisfying their most basic needs first, and working their way up to more complex levels of need.

The highest is self‐actualization, which includes the need to know and explore, find beauty, reach your own potential and help others find theirs

ABRAHAM MASLOW AND PERSONAL

MOTIVATION

Want – An item not necessary for survival but that adds

pleasure and comfort to life

Examples include: …

How would you describe what a business is?

CONSUMER NEEDS AND WANTS CON’T

Cultural dif ferences – eg. a car. Some cultures might consider a car a “want” or a luxury item, while other cultures would consider transportation a necessity to get to work.

In our culture, most people would view electricity, running water, fuel to be necessities of life or needs. With changing technology and our heavy reliance on the internet for (communication, information, banking, etc) it could be argued that access to the internet is a need.

Value differences – how people prioritize and judge their needs vs. wants can depend on their values. Back to school supplies and internet access could be considered a “need” by some or judged to be a “want” by others.

How a person would prioritize the importance of these items would be based on their own value system. Sometimes it is hard to decide if something is a “want” or a “need” - that is when we have to look at how we would prioritize the importance of each item to our survival and ability to carry out everyday life.

NEEDS VS WANTS

Some items can be considered both a need and a want. For instance, food could be a need or a want, depending on the type of food.

You need to eat protein, vitamins, and minerals (meat, nuts, or soy products to get protein, fruits, vegetables, yogurt , cheese, even breads to get vitamins and minerals. These basic kinds of foods are needs.

Ice cream is a want. You don't really need to eat ice cream to survive. You can eat it to get some vitamins and minerals, but other foods like cheese and yogurt give you more of those same vitamins and minerals without giving you the fat that ice cream does. Still, ice cream tastes good to many people. They like to eat it. They want it, but they don't need it. They like it, but they don't have to have it to survive.

NEEDS VS WANTS

Producers are the businesses that make goods or provide

services.

Consumers are the people who buy computers, along with

those who have their computers serviced at computer -repair

shops.

Producers and consumers operate together to create a market

place! A marketplace is any location where producers and

consumers come together to engage in buying or selling

goods and services.

Ex. Mall, farmers market, restaurant etc.

THE ROLE OF THE CONSUMER

The consuming habits of Canadians tell businesses what

goods and services people want and how much they are

willing to pay for them!

Transition from business control of the market to consumer

control of the market.

Ex. “People can have the Model T in any colour –so long as it’s black.”

Why the change?

Consumer demands and increased competition!

Why is competition good for both consumers and businesses?

CONSUMING HABITS

Stage of Life

Interests

Tastes

Priorities

Abilities

Family Responsibilities

Trends

Fads

FACTORS THAT AFFECT CONSUMER

NEEDS AND WANTS

Today’s consumer wants access to a wide variety of cheap, reliable, goods and services.

Due to competition, if a consumer doesn’t l ike the price of a good or service at one business, they will simply go to another!

This is called Consumer purchasing power!

Thus businesses try to offer the best price they can. Price is partially determined by what the consumer is will ing to pay.

Ex. New cars starting at around $14 000

Consumers also influence the level of service!

CONSUMER INFLUENCE ON PRICE

A trend is the direction in which society is heading, the way

things are going to be for a Long time!

Ex. Technology, high gas prices, higher education, environmental

awareness, two income families

Trends will influence what people need and want, what they

will buy

How can higher gas prices affect consumer purchasing and

habits?

Buy smaller cars ‐ Car pool

Buy eco‐friendly cars ‐ Walk or Bike

TRENDS AND FADS

A fad is a short term phenomenon in which something quickly

catches on and dies out almost as quickly.

Most fads deal with personal expression, toys, music, fashion, etc.

Fads too will influence what people need and want - what they

will buy.

Name the latest video game system.

Now name systems that are no longer popular, out‐dated, or no

longer "IN“

How do fads affect business and consumers?

TRENDS AND FADS

Over time goods can become obsolete, meaning that people

no longer want them or that new or improved goods replace

them.

Can you give some examples of obsolete goods?

Services can also become obsolete when they are no longer

needed or wanted!

Question: has Netflix and online streaming made cable television

obsolete?

WHEN PRODUCTS BECOME OBSOLETE

1.) The customer is always right!

2.) If the customer is ever wrong, reread Rule 1!

THE TWO RULES OF DEALING WITH

CONSUMERS

Do you agree? Why or

why not?