The needs of customers
The needs of customers motivate them to purchase goods and services. In turn, marketers need to monitor industry trends and changes closely. Maslow’s theory and behavioral models help identify the current needs of the target audience and select effective communication channels. Needs research helps to build a marketing strategy and select products and services that can successfully satisfy consumers. Customers are now thinking about the global impact of consumption, which is also reflected in the top level of Maslow’s theory.
Maslow’s Hierarchy of Needs in Marketing
Maslow’s hierarchy of needs reflects how the motivation of people in society is formed. The theory is presented in the form of a pyramid, which illustrates the significance of a particular need in human life. The pyramid includes needs such as psychological, security, belonging, prestige, and self-actualization needs (Desmet & Fokkinga, 2020). The base of the pyramid is occupied by physiological needs such as food, water, shelter, clothing, rest, sleep, comfort, and reproduction. Next comes the need for security, and higher social needs are placed, such as belonging to a group, family, and friendship. The steps of prestige and self-actualization, needs are closer to the top and gradually take less and less space, and go after the previous levels. Schachter (2016) notes that later the theory also included the level of self-transcendence, which began to illustrate the need for social significance and contribution. Thus, this theory reflects which needs a person is motivated to meet first and which are of lesser importance.
Basic psychological needs, as well as the need for safety, ensure human life; without their satisfaction, other values would not be so significant. Self-actualization or self-transcendence, at the top of the pyramid, are not available to all people, depending on their social conditions and interests, and are satisfied after the previous levels. It is also important that the satisfaction of lower levels of needs provides a person with the opportunity to strive for higher ones. Maslow’s theory emphasizes that even the needs of the higher order are natural and desirable for a person and motivate human beings to achieve them (Acevedo, 2018). This theory can be applied in marketing research to determine the needs of consumers.
It is important for marketers to determine which of the basic needs of the pyramid addresses the product or service. Schachter (2016) emphasizes that the most successful companies meet the needs of multiple levels. Thus, marketers can use Maslow’s theory to target audiences based on what needs their product might meet. Additionally, this concept can be used to modify or improve the product to meet the needs of a specific group of consumers.
Model of Consumer Behavior
There are various models that describe the buyer’s decision-making process. However, researchers agree that the end result of the marketing process is customer satisfaction (Panwar et al., 2019). Panwar et al. (2019), based on a review of the analysis of existing patterns of customer behavior, suggest five stages of the decision-making process. The process begins with the recognition of the problem or with the identification of the customer’s need. At this stage, the buyer realizes that they have a need to purchase a certain product or service. The second stage is the search for information, the duration of which depends on how adequate the product is that meets the current needs. Panwar et al. (2019) identify that this stage seems to be the most significant, as it allows the consumer to learn about the offers on the market. The researchers also note that buyers value personal rather than commercial channels for acquiring more information (Panwar et al., 2019). Thus, marketers can choose which communication channels to use to achieve specific goals.
Then, when the client has a sufficient amount of information about the product, the stage of evaluating alternatives begins. The duration of this stage also depends on the availability of the product, the degree of awareness of the buyer about its properties, as well as on the available melons. If the product or service is a unique offer on the market, then this stage can be skipped. The fourth stage is purchasing, where the customer buys the item and receives it. The last and final stage is satisfaction, which is the goal of the marketing process. At this stage, the customer realizes that the purchased product or service fully meets their needs. Otherwise, if the product doesn’t meet the buyer’s needs, the marketers’ goal is not achieved.
The described behavioral model directly affects the marketing effort, as it identifies the significance of information in the decision-making process. In particular, the product or service must not only meet the needs of the consumer but also communicate it correctly and effectively. To successfully achieve the marketing goal, it is necessary to choose those communication channels that are more likely to be accessible to the target audience. The effectiveness of a particular method of providing information varies depending on the market, product, and consumer. Thus, it is important for marketers to evaluate which communication channel is preferred.
Application to Service
Modern society strives not only for consumption but also for a more conscious use of already existing products. The service chosen for the analysis is the resale of used luxury clothing. This service offers an online store where customers can purchase secondhand clothing from well-known and expensive brands at a reduced price. Additionally, the service may offer the services of a personalized consultant and recommendations for the selection of items.
The demographic profile of a given market is determined by indicators such as socioeconomic status, age, and gender. The target audience is predominantly low-class families, but the last decade has seen an increase in middle-class consumers; high-income consumers are less likely to buy secondhand products (Chu, 2020). Consumers are also more likely to be women between the ages of 25 and 35, while those over 50 are most likely to purchase secondhand clothing (Secondhand fashion, 2021). The main reason for purchasing in this category is the desire to save money and support sustainable fashion trends (Secondhand fashion, 2021). Thus, the purchasing power of the target audience increases as more and more people are attracted to this market (Reinhart, 2021). Thus, the target market is the secondhand clothing market in the US, with a target audience of young women.
Currently, competition in this market is mainly represented by local retailers. There were 25,225 secondhand clothing resale companies in the US in 2020 (Thrift stores industry, 2020). However, some of the biggest competitors include Etsy, Patagonia Worn Wear, Beyond Retro, Depop, Tradesy, Vestiaire Collective, thredUP, and eBay (11 online thrift stores, n.d). In 2021, the size of the secondhand market was 36 billion; by 2025, it is expected to grow to 77 billion (Reinhart, 2021). Due to the increasing level of attention of people to the options of conscious consumption, as well as the flourishing of online retailing, this market expects stable growth (Reinhart, 2021). Companies represented on the market focus on the sale of budget clothing. Additionally, the demographic profile identifies that high-income people are rarely consumers in a given market. The service for the sale of secondhand luxury clothing will attract a new audience of older people and higher incomes to the market.
References
11 online thrift stores for affordable vintage & secondhand clothing. (n.d). The Good Trade. Web.
Acevedo, A. (2018). A personalistic appraisal of Maslow’s needs theory of motivation: From “humanistic” psychology to integral humanism. Journal of Business Ethics, 148, 741–763. Web.
Chu, A. (2020). Who thrift shops?Reuse Berkley. Web.
Desmet, P., & Fokkinga, S. (2020). Beyond Maslow’s pyramid: Introducing a typology of thirteen fundamental needs for human-centered design.Multimodal Technologies and Interaction, 4(3), 1-22. Web.
Panwar, D., Anand, S., Ali, F., & Singal, K. (2019). Consumer decision-making process models and their applications to market strategy. International Management Review, 15(1), 36-44.
Reinhart, J. (2021). 2021 resale report. ThredUp. Web.
Schachter, H. (2016). A practical management twist on Maslow’s hierarchy of needs. The Globe and Mail. Web.
Secondhand fashion, a new impetus for clothing consumption. (2021). Circoax. Web.
Thrift stores industry in the US – Market research report. (2020). IBISWorld. Web.