Catering to Consumer Needs or Wants: Which is most Important??

"Customers don’t always know what they want. The decline in coffee-drinking was due to the fact that most of the coffee people bought was stale and they weren’t enjoying it. Once they tasted ours and experienced what we call 'the third place'.. a gathering place between home and work where they were treated with respect.. they found we were filling a need they didn’t know they had."

 

Howard Schultz, Chairman and CEO Starbucks

As a business student the very first lesson I was taught was to differentiate 'Needs' from 'Wants' when it comes to Marketing. Needs are identified as the essentials people require in life and wants as the differing ways to fulfill these needs. Accordingly I also remember being taught in Economics that needs are quantifiable and limited in number whereas wants are unlimited and keep on changing with time. Therefore the importance is automatically placed on understanding the ever changing wants and catering to these in order to survive in the market. This strategy is evident clearly in the electronics industry.

This is an idea I didn't challenge until recently when I read through an article written by Gijs van Wulfen, titled "The best innovators are need seekers" (2012). Reading through it I realised that catering to a want is a necessity to adapt to the changes in the market place but catering to a need establishes a new line altogether in the market. Wants will change but needs will remain, therefore the ones who identify the needs, even those which are hidden, have a definite advantage. Wulfen states the following as examples. LinkedIn is created due to identifying businesses needs to increase new customers by expanding the business network and The Bed Bug Detector for a consumer who needs to identify whether a bed is bug free of even those that cannot be seen by the eye. 

Another thought is that firms which understand their customers and aspects such as who buys, what they buy and how they buy will benefit if they cater to their customer needs. For example in the education industry customers who look for a degree which can be achieved at a low cost and in the fastest time as possible will opt for institutes catering to those aspects. Those preferring quality and a proper college life will opt to universities of a differing caliber.(Customers and their expectations, 2012)

In conclusion I would like to form the opinion that we shouldn't take needs for granted just because wants seems to be the ones ever changing, demanding constant attention and monitoring. Needs are the basis and wants are born out of them, therefore paying close attention to needs is far essential when it comes to the end use. 

References: 

 Customers and their expectations . (n.d.). The Times 100 - Teaching business studies by example. Retrieved November 13, 2012, from http://businesscasestudies.co.uk/business-theory/marketing/customers-and-their-expectations.html#ixzz2C4uP2D5f

Wulfen, G. v. (2012, November 12). The best innovators are need seekers | LinkedIn. World's Largest Professional Network | LinkedIn. Retrieved November 12, 2012, from http://www.linkedin.com/today/post/article/20121112071156-206580-the-best-innovators-are-need-seekers