Need, Want, Demand

Need, Want, Demand

Need: A state of felt deprivation.

         

      They include basic Physical needs   - food, clothing, warmth and safety; 

                                     Social needs       - belongings and affection;

                                     Individual needs- self-expression and knowledge

       

          e.g. An American, British or Asian needs food as lunch. 

Want: The form taken by a human need as shaped by culture and individual personality.

           Wants are shaped by culture and individual personality.

e.g. 

An American/British needs food as lunch but his/her wants are 'Hamburger, fries and drinks'

An Asian needs food but his/her wants are 'Chicken Korma, rice and drinks'

Demand: Human wants that are backed by buying power.

Human want to choose products that provide the most value and satisfaction for their money. When backed by buying power, wants become demands.

e.g. Whenever the American, British or Asian person have sufficient money to afford those wants, that would be their demand.

Example: 

Suppose 'Nora' is thirsty and her choice is water. Hence, her need is water.

She was thinking of 'Flavoured water' of M&S to drink. Hence, her want is 'Flavoured water' of M&S.

She checked her wallet to make it sure that she had sufficient money to afford 'Flavoured water' of M&S. Nora went to M&S to buy 'Flavoured water'. Hence, her demand is 'Flavoured water'.