Needs and Wants

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Needs and Wants
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Needs

• Needs would be defined as goods or services that
  are required.
• This would include the needs for food, clothing,
  shelter, health care.

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Wants

• Wants are goods or services that are not
  necessary for survival yet we desire or wish to
  own or take advantage of them.
• For example, a people need clothes but may not
  need designer clothes.
• People do not need toys, entertainment, or cars.
• People need food but do not have to have steak or
  dessert.

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• An important part of the economics is the
  distribution of resources or goods so that
  people's needs are met.
• This is especially true in times of scarcity when
  there are not enough resources, goods or
  services.
• Many times advertisers try to appeal to consumers
  in such a way that the consumers feel they need
  certain goods or services when in fact they only
  want them.

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Maslows Hierarchy of Needs
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Maslows Hierarchy of Needs

• The basis of Maslow's theory is that human beings
  are motivated by unsatisfied needs.
• Certain lower needs must be satisfied before
  higher needs can be satisfied.
• As long as we are motivated to satisfy these
  cravings, we are moving towards growth, toward
  self-actualization.

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Physiological Needs

• Physiological needs are those required to sustain
  life, such as
• Air
• Water
• Food
• Sleep

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Physiological Needs

• According to Maslow's theory, if these
  fundamental needs are not satisfied then one will
  surely be motivated to satisfy them.
• Higher needs such as social needs and esteem are
  not recognized until one satisfies the needs
  basic to existence.

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Safety Needs

• Once physiological needs are met, one's attention
  turns to safety and security in order to be free
  from the threat of physical and emotional harm.
• Such needs might be fulfilled by
• Living in a safe area
• Medical insurance
• Job security
• Financial reserves
• If a person feels threatened, needs further up
  the pyramid will not receive attention until that
  need has been resolved.

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Social Needs

• Once a person has met the lower level
  physiological and safety needs, higher level
  needs awaken.
• The first level of higher level needs are social
  needs.
• Social needs are those related to interaction
  with others and may include
• Friendship
• Belonging to a group
• Giving and receiving love

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Esteem Needs

• Once a person feels a sense of "belonging", the
  need to feel important arises.
• Esteem needs may be classified as internal or
  external.
• Internal esteem needs are those related to
  self-esteem such as self respect and achievement.

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Esteem Needs

• External esteem needs are those such as social
  status and recognition.
• Some esteem needs are
• Self-respect
• Achievement
• Attention
• Recognition
• Reputation

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Esteem Needs

• Maslow later refined his model to include a level
  between esteem needs and self-actualization
• the need for knowledge and aesthetics

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Self-Actualization

• Self-actualization is the summit of Maslow's
  hierarchy of needs.
• It is the quest of reaching one's full potential
  as a person.
• Unlike lower level needs, this need is never
  fully satisfied as one grows psychologically
  there are always new opportunities to continue to
  grow.

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Self-Actualization

• Self-actualized people tend to have needs such
  as
• Truth
• Justice
• Wisdom
• Meaning

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Self-Actualization

• Self-actualized persons have frequent occurrences
  of peak experiences, which are energized moments
  of profound happiness and harmony.
• According to Maslow, only a small percentage of
  the population reaches the level of
  self-actualization.