Needs & Wants (SQA National 5 Business Management): Revision Note
Exam code: X810 75
Customer needs
Businesses thrive when they are able to meet customer needs and wants
Needs are considered to be essential goods or services required to subsist
E.g. shelter, warmth or food
Essential needs cover a range of goods and services that individuals expect to be able to afford themselves or access through the public sector
Examples include health and education services, water, energy and internet access, childcare and elderly care services
Education and healthcare: examples of needs
Product Type | Needs |
|---|---|
Healthcare |
|
Education |
|
Customer wants
Wants are desires which are non-essential, even if consumers consider them to be essential
E.g. branded trainers, an overseas holiday, a wide-screen television
Whilst consumers do not need these products to survive, they improve their quality of life
Education and healthcare: examples of wants
Product Type | Wants |
|---|---|
Healthcare |
|
Education |
|
Examiner Tips and Tricks
You should clearly separate needs (essential for survival) from wants (things that make life more enjoyable)
Use the phrase “Needs = Necessary, Wants = Wishful.” In exams, give one example of each - like food (need) and designer trainers (want) - to show clear understanding
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