CONSUMER NEEDS AND WANTS. Unit 1
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1 CONSUMER NEEDS AND WANTS Unit 1
2 CONSUMER 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
3 ABRAHAM MASLOW AND PERSONAL MOTIVATION 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
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6 CONSUMER NEEDS AND WANTS CON T 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?
7 NEEDS VS WANTS Cultural differences 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.
8 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.
9 THE ROLE OF THE CONSUMER 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.
10 CONSUMING HABITS 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?
11 FACTORS THAT AFFECT CONSUMER NEEDS AND WANTS Stage of Life Interests Tastes Priorities Abilities Family Responsibilities Trends Fads
12 CONSUMER INFLUENCE ON PRICE Today s consumer wants access to a wide variety of cheap, reliable, goods and services. Due to competition, if a consumer doesn t like 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 willing to pay. Ex. New cars starting at around $ Consumers also influence the level of service!
13 TRENDS AND FADS 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
14 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?
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19 WHEN PRODUCTS BECOME OBSOLETE 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?
20 THE TWO RULES OF DEALING WITH CONSUMERS 1.) The customer is always right! 2.) If the customer is ever wrong, reread Rule 1! Do you agree? Why or why not?
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