Maslow's pyramid

A framework to understand the bargaining power customers has against a supplier and the cyclicality of the product and services

Introduction

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. He explained the order of our conditions as human beings, from the most necessary to the least needed.

Maslow's hierarchy of needs, also known as Maslow's pyramid, is a theory in psychology proposed by Abraham Maslow in his 1943 paper.

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation, which he later extended to include his observations of humans innate curiosity.

The hierarchy represented an attempt to understand human motivation, ranging from basic survival needs (e.g., food, water) and physiological requirements (e.g., clothing, shelter) to safety and security needs (i.e., protection against elements like crime), love/belongingness (the need for friendship, family, affection), esteem/recognition from others and finally self-actualization or fulfillment—the realization of one's unique abilities and creative potentials.

A Theory of Human Motivation.

Maslow's hierarchy of needs is a theory of human motivation. It outlines five levels of needs:

• Physiological

• Safety

• Love and Belonging

• Esteem

• Self-actualization

Which are arranged in order of importance. According to the theory, once you have met your basic needs, you can start to move on to the achievement of your higher-level needs.

The need for food and water comes before any other need we have as humans because if we don't meet these requirements, nothing else matters as we will die!

Explanation of the needs.

The first stage, basic needs, is represented by food and shelter. The second stage focuses on safety—anything that keeps you alive and makes you feel comfortable. Things like fire extinguishers and smoke alarms are also examples of products that fit into this category.

The third need refers to the desire for love and belonging; it is the need for interpersonal relationships in a group, affiliation, connectedness, and being part of a group.

Esteem is the fourth need and similar to the second need refers to intangible things, such as accomplishment, respect, and self-worth. Maslow divided these into two categories internal esteem from achievements or mastery and external from others such as status or prestige. It is suggested by Maslow that respect and reputation are the most crucial needs for children and adolescents and come before real self-esteem or dignity.

And finally comes self-actualization—the pinnacle of Maslow's hierarchy of needs model. To achieve self-actualization means living a life full of purpose and meaning—and it's common knowledge that Apple users everywhere have achieved this state (check out some photos from an Apple Store opening if you don't believe it).

Chanel, so like when they want to show that they have super high-quality products and you can be a unique individual by using them it's part of the self-actualization stage.

A lot of times, companies will create a brand image that is associated with being high quality. This is important because people like to think they are unique, and by using this product, they can show their uniqueness. The ultimate goal here would be self-actualization when you feel like you have reached your full potential as an individual and can become who you want to be.

So, for example, if you were looking at the Chanel perfume ad campaign, they show a bunch of different models with different looks. Still, they're all wearing the same perfume. All seem happy, which says something about what kind of person would buy these products because there must be some correlation between how much money someone makes to afford these expensive goods and how happy they look when wearing them, so maybe those two things go together?

Products and services which satisfy needs at the bottom of the pyramid become noncyclical

Taking into consideration the need in the hierarchy you have a framework for cyclicality and importance for a consumer’s and in turn its share of the wallet. Let’s take a current example, as inflation is increasing and the cost of food and energy goes up. What will consumers forgo to be able to pay for food on the table and heat during the winter? Most probably something that is higher up in the pyramid, such as a new phone, travel, or a new car.

Conclusion

Mazlow’s Pyramid Model is a way to understand human needs and their importance. The model helps us to understand what happens when we don’t meet those needs and how important it is to balance them all. Which we can use as a framework for the cyclicality of consumers’ spending behavior.