Hierarchy Of Needs

Every person has different needs and preferences in daily life. Human needs were thoroughly studied by Abraham H. Maslow through observation. His book THEORY OF HUMAN MOTIVATION was published in 1943. He explained in this work that the first level or level of the hierarchy of needs must be met and satisfied. As the first level is filled with satisfaction, human needs increase until it is climb to the highest level.

There are different levels of the hierarchy of needs:

1. Physiological This is the first level of need which includes the things our body needs to survive. This can be achieved if people have food, clothing, shelter, water and air. 2. Safety Once the first level of need is met. human needs may have increased to safety levels. Many want the environment to have order, tranquility, abundance, prosperity and peace.

3. Companionship with Other people Man does not only need material things, but he also needs love, socializing, and adapting to different types of people. Also join any organization, have friends and a strong family and interact with others. Because man cannot meet his needs if he is alone, it is important for man to have a good and stable relationship with others and with any member or any sector of society.

4. Appreciation

Everyone wants respect. People aspire to feel their importance in society. This is the high society's view of people or dignity. The person also seeks to have great self-confidence and to have assertiveness. This means that he has high self-esteem.

5. Personality

If the person fulfills the needs at the lower level, he can reach, achieve, and even achieve the higher level. Personality is the highest level in the hierarchy of human needs. This is the achievement of high dreams or ambitions in life. It can be made up of dreams that are experienced without fear or fear because a person trusts and believes in his own abilities. This is a belief that he can overcome any storm that may come. It is also necessary to have positive thinking and honest behavior.

There are many factors that can influence the needs and wants of the person or the household. This can be known in every consumption of products and services. The bases of consumption that can affect the needs and wants of people are stated in the following:

Revenue Household income greatly influences consumption needs and preferences for each product and service. A household's income is its total wages, profits, interest, rent, and other income. This is the basis of how the household spends based on the amount or little of the income it receives. According to economist John Maynard Keynes, in his book THE GENERAL THEORY OF EMPLOYMENT, INTEREST AND MONEY, the amount of human consumption depends on its size or smallness. This is explained in the consumption function that when income increases, people's consumption also increases in terms of needs and wants than people with low incomes so consumption is also low.

Wealth Level

When a person has a high income, his wealth also increases. His desire grows and increases. The level of wealth may depend on the type of work and the person's social status. Usually, if the person belongs to the blue collar worker, his income and consumption is lower compared to the white collar worker. Those in high positions and those with high education are also growing wealth levels due to their high income and wealth. The consumption of needs and wants is in line with the amount of income, wealth, and its level in society.

Anticipated Event

This is the human knowledge that there will be an event soon. People's consumption may change depending on the situation. In this event, people's tastes and preferences for products and services may change.