This is a presentation slide on Chapter of Needs on Retailing Management Course. It is prepared solely by me.

1. MD. ABDUR RAKIB
ID No: 041

2. Need Recognition
Buying process starts with an unsatisfied need which arises when
a customer’s desired level of satisfaction differs from the
present one.
Visiting stores, surfing the internet & purchasing products are
approaches to satisfying different types of needs.
However, need recognition is an important concern for the
retailers.

3. Types of Needs
Needs
Functional Needs
1. Directly related to performance
2. Often referred to as rational
Exp: Buying Sprite to meet thirst
Psychological Needs
1. Associated with personal
gratification
2. Often called as emotional or
irrational
Exp: Buying Rolex watch to feel like a
fashionable & smart person

4. Why People Go Shopping & Purchase
Merchandise?
People go shopping and buy merchandise to fulfill their desired
psychological needs. These psychological needs are:
1. Stimulation created by the retailers among the customers
2. To satisfy their individual need for social experience
3. Learning new trends, fashion, ideas & environment
4. Satisfy need for social status and power
5. Satisfy the need for self-reward while buying

5. Conflicting Needs
• Most people usually have multiple needs which create
conflict between needs.
Exp: A student desires to buy a new watch to build his
image among friends but he requires to buy his books with
that money for studying.
• Consumer’s shopping behavior is inconsistent which is called
as cross-shipping.
Exp: A person owning a car buys clothes and vegetables
from pavements parking it there.
• In case of conflicting needs, customer needs to adjust the
price or features by cutting back the another need.

6. Stimulating need Recognition
A customer may be motivated or stimulated towards his/her
desired needs & thus fulfills the unsatisfied needs very
often.
Retailers, distributors, or manufacturers stimulate a customer
to satisfy the desired needs.
Advertisement, publicity, direct mail, newspaper, salespeople,
visual merchandise etc. are the motivating or stimulating
factors.
However, a seller must consider how to stimulate the need
recognition among the customer to increase sales and
thereby profit.