Maslow’s Hierarchy of Needs

Abraham Maslow was a 20^th century social psychologist. His pyramid of basic needs is one of the most cited models in marketing. His theory explains that an individual has many different levels of needs.

1)Self–fulfillment or self-actualizing. Realizing of individual potential, creative talents, personal future fulfillment.

2)Esteem needs. Self-prospect, respect of others, recognition, achievement.

3)Social needs. Friendship, affection, acceptance.

4)Safety needs. Security, protection from physical harm, freedom from fear of deprivation.

5)Physiological needs. Food, water, air, rest, sex, shelter (from cold, storm).

This theory suggests that when one level of needs is satisfied, the next level has the greatest influence on a person’s behaviour.

Imagine that Mr Singh comes to see the bank about his pension plan. The manager of the bank will talk about his hopes and desires for his retirement. They start with how to meet his physiological needs – how he will pay for his food and housing, i.e. his major customer concern. They will also talk about safety needs, how the client will protect himself and his family when he is retired. They think about social needs: will he be able to afford membership of the golf club? Then there is the Porsche that he drives to the golf club. This is an example of an esteem need – to maintain his lifestyle and social status. There are also self-fulfillment needs: here they consider all Mr Singh’s personal projects and dreams. They have to work out how much money he will need to invest today in order, for example, to be able to travel the world when he retires.

Marketers are interested in customer needs as these can explain customer wants or desires for a specific product or service.

Match the needs from Maslow’s pyramid with the reasons for buying certain products:

1)A consumer buys a smoke alarm for her house because she wants to be awarded if there is a fire.

2)A consumer buys a yearly subscription to a swimming pool because she would like to train and win a gold medal at the next Olympic Games.

3)A consumer buys popcorn and drinks because he has invited his friends round to watch an important football match on the television.

4)A consumer buys a chocolate bar because he is hungry.

5)A consumer buys the latest fashion accessory so that she can look and feel good.

a) safety needs b) physiological needs c) social needs

d) esteem needs e) self-fulfillment needs

2. Read and learn what consumer life cycle is:

Consumer Life Cycle (CLC)

Just as products have a life cycle, so do consumers – the Consumer Life Cycle or CLC. Matt Robinson talks about this:

‘Of course, the banking sector is highly attuned to consumer life cycles – we’re able to understand how a customer’s needs change over time. We exploit this by offering different services as our clients age, from their first savings account as a child, to a first current account, to mortgages, life insurance and retirement plans. Some people criticize us for creating needs, for making people believe they need products that they don’t. But I really think we try to fulfill, or satisfy, customer needs as they change over the years. Younger customers do not have the same desires as retired people.’

Correct the mistakes using words and expressions above:

1.Customers like to maintain a certain style for life.

2.A major customer’s concern is how to provide for the immediate family.

3.Buying food and drink is an example of satisfying a physiological lifestyle.

4.Some service sectors are highly attuned with customer needs.

5.The Consumer Life Cycle shows how consumer needs change over a period of time.

3. A) Choose the best word to fill the gap from the choices a-d below the extract:

Date: 2015-01-12; view: 1111