Consumer Needs and Wants

Consumer Needs and Wants
A need is a consumer's desire for a product's or service's specific benefit, whether that
be functional or emotional. A want is the desire for products or services that are not
necessary, but which consumers wish for.
Consumer wants and needs should drive marketing decisions, and no strategy should
be pursued until it passes the test of consumer research.
Demand is the economic principle that describes a consumer's desire, willingness and
ability to pay a price for a specific good or service. A firm in the market economy
survives by producing goods that are in demand by consumers. Consequently,
ascertaining consumer demand is vital for a firm's future viability. Many companies
today have a customer focus. In this approach, consumer wants and needs are the
drivers of all strategic marketing decisions. No strategy is pursued until it passes the
test of consumer research. Every aspect of a market offering, including the nature of the
product itself, is driven by the needs and wants of potential consumers.
A need is a consumer's desire for a product's or service's specific benefit, whether that
be functional or emotional. The emotional benefit tends to be a stronger driver for
consumers, as functional benefits can be easily copied by competitors. On the other
hand, a consumer want is the desire for products or services that are not necessary, but
which consumers wish for. For example, food is considered a consumer need.
However, a steak dinner or dessert is considered a consumer want, as these things are
not necessary in order to live.
Customer Decision Process
There is a five-step process that consumers can go through in making a purchase

decision. These steps include:
1. Need recognition
2. Information search
3. Evaluation of Alternatives
4. Purchase
5. Post-purchase
The customer decision process begins with need identification. Whether we act to
resolve a particular problem depends upon two factors: the magnitude of the
discrepancy between what we have and what we need, and the importance of the
problem. This involves the concept of consumer motivation, which is the internal drive
consumers experience to fulfill conscious and unconscious wants and needs. Once the
problem is recognized, it must be defined in such a way that the consumer can actually
initiate the action that will bring about a relevant solution.
The next step is information search and processing. After a need is recognized, the
prospective consumer may seek information from family, friends, personal observation,
consumer reports, salespeople, or mass media. The promotional component of the
marketer's offering is aimed at providing information to assist the consumer in their
problem-solving process. If the buyer can retrieve relevant information about a
product, brand, or store, he or she will apply it to solve a problem or meet a need.
The criteria used in the evaluation of alternatives vary from consumer to consumer. One
consumer may consider price the most important factor while another may put more
weight upon quality or convenience. The search for alternatives is influenced by such
factors as time and money costs, how much information the consumer already has, the
amount of the perceived risk if a wrong selection is made, and the consumer's
disposition toward particular choices.
During the purchase phase of the decision-making process, the consumer may form an
intention to buy the most preferred brand because he has evaluated all the alternatives
and identified the value that it will bring him. Anything marketers can do to simplify
purchasing will attract buyers. Providing basic product, price, and location information
through labels, advertising, personal selling, and public relations is an obvious starting
point. Product sampling, coupons, and rebates may also provide an extra incentive to
buy.
A consumer's feelings and evaluations after the sale come into play during the post-
purchase phase. These feelings can influence customer retention and influence what
the customer tells others about the product or brand. The marketer may take specific
steps to reduce post-purchase dissonance. Advertising that stresses the many
positive attributes or confirms the popularity of the product can be helpful.
What is the difference between need, demand and want?
These are the three key concepts of marketing, and they are differentiated as
follows. Needs are the basic human requirements; people need food, air, water,
clothing, and shelter to survive and also have strong needs for creation (through raising
family), education, and entertainment. These needs become wants when they are
directed to specific objects that might satisfy the need, though these wants in
themselves are not essential for living. Someone will need food but may want a
hamburger, fries and a soft drink, but someone else will also need food in just the same
manner but will also want a mango, rice, lentils and beans. Wants are therefore
shaped by one's society and surroundings. The third concept, demands, are
wants for specific products backed by an ability to pay. Many people want a luxury car
or a weekend break in the Caribbean, but only a few people are willing and able to buy
one. In business terms, companies must measure not only how many people want their
product but also how many would actually be willing and able to buy it. In marketing,
there are five kinds of needs: Stated, real, unstated, delight and secret. Marketers have
played on the secret needs in recent years as this is the sort which makes the customer
be seen as savvy and a great consumer, and have adopted all sorts of tricks to skew
demand, since there has been more disposable income in the modern age and
shopping has become a prime leisure activity. In some ways, there is a chain
here; more education means more awareness of the wants and more money to
spend on a demand, so in a good and just society there is a large number of people
who push for the demand of a certain product, and this has given rise to very successful
companies who must make brand awareness and corporate social responsibility key
facets of their engagement with the public, otherwise known as ‘the customer’.
Demand = Need + Want + Desire
Need = Internal Stimuli. For Example: Thirst/Hunger
Want = It is the solution of the need created. For Example: Thirst - Water & Hunger –
Foods
Desire = It comes when you have ability to buy the product. (For Example: Cold Drink
and Burger for Thirst and Hunger respectively).

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Consumer Needs and Wants

Customer Decision Process

There is a five-step process that consumers can go through in making a purchase

What is the difference between need, demand and want?

Demand = Need + Want + Desire

Need = Internal Stimuli. For Example: Thirst/Hunger

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