The concept of need: their types and classification

In the world economy there is a concept of need, which is very important for understanding the market and its conquest. It would seem that everything is quite simple, and you just need to know what a person wants. But in fact, everything is not as simple as it might seem at first glance.

The fact is that the needs can be very diverse, they can even be subconscious, so each of them needs to look for its own approach. It is for this that economists have spent a considerable amount of time throughout the history of modern times studying what is a concept of need, how such a need is expressed and what it can be.

What is the need?

The concept of need at first glance may seem quite simple, because it means, in principle, what a specific person needs at a certain moment in time. But in fact, everything is much deeper, especially if you look at this concept from an economic point of view.

In the economy, the internal motives on which the whole system of modern production is based are called needs. It is due to the needs that communication is provided between the buyer, who needs a certain product, a specific service, and the manufacturer who must provide it.

Strictly speaking, the concept of need is indispensable in the system of socio-economic relations in any market. A need is not just something that a person needs, it is a certain product or service that is necessary to him depending on his living conditions, social relations and so on.

Simply put, this is a person's attitude to his living conditions, which can be characterized by the desire to get some object, any service, to experience a sense of satisfaction and improve some aspect of his life.

Classifications of needs

The concept of human needs in the economy has been described for a long time, but the definition is only a general text that affects only the tip of the iceberg. If you go into the study of human needs, it is worth highlighting their various kinds. It is simply impossible to do this spontaneously - the fact is that there can be a lot of types of needs . And depending on the angle from which to look at them, their number may increase, and they may intersect and overlap.

It was for this purpose that the system of classification of needs was introduced. There were a lot of different groups in the whole economic history, but there are some of them that are considered basic and are generally accepted. It is about them that will be discussed later.

Subjects

Concepts of activities, human needs are intertwined with each other, because it is through the activities that the needs are met. Some of them can be satisfied on their own, others are satisfied by other people who produce the product you need or provide the service you need.

However, this view can be called rather one-sided, since in most cases people when they are asked about the needs, try on everything and talk about what one person needs. But if you look at the classification by subject, you will quickly realize that everything is not as simple as it might seem.

Yes, there are individual needs, that is, those that are experienced by one person, which concern only him. However, there are also, for example, collective needs - what is required by a group of people. For example, a working collective needs good leadership, a favorable working atmosphere and so on. There is also an even more global level - social needs, that is, what society needs as a whole. This can be a rise in the standard of living, a reduction in prices, the absence of military conflicts and so on.

However, the classification by subject has another large group, which includes enterprises, farms and even entire states. They also experience economic needs, which can be very diverse. The enterprise seeks recognition in the world market, wants to increase profits, reduce employee turnover. The state wants to establish foreign economic relations, increase revenues to the budget.

That's how versatile can be the concept of need. Satisfaction of all this does not happen instantly - it is always necessary to find those who want to satisfy your needs, regardless of whether you are an individual or a whole state apparatus.

By objects

The concept of "need" is extremely versatile, so it has a variety of classifications. If we talk about the classification of objects, then immediately it is worth noting that in this case, the needs are divided into pairs. So, the first couple are physiological / social needs. The first ones are those that are necessary for a person to continue their existence, that is, food, water, clothing, a roof over their heads and so on. As for social, they are not so important, but they are also incredibly necessary and become much more relevant when physiological needs are met. These include the thirst for communication, socialization, the need to receive new information, stay informed, and so on.

The second pair is material / spiritual. The first part is material goods, various goods and services, while the second part is creativity, personal growth, self-improvement.

It is also worth highlighting a couple of priority and non-priority needs. If you buy items or basic services that you need in the first place and without which you can not, it is difficult or extremely uncomfortable to continue to exist, they belong to the first group. If they are not so important goods and services, which are acquired from a whim, they belong to the second group.

The Maslow Pyramid

Even if you did not know the definition of "need" in the economic light, then, most likely, you at least heard what the Maslow pyramid is. This is a world-famous pyramid of needs, compiled by the famous American psychologist Abraham Maslow. Strictly speaking, this is a graphic representation of the hierarchy of human needs.

The basis of the pyramid is physiological needs, followed by security and protection, socialism follows, then the need for respect. Well, the top of the pyramid is self-realization.

The principle of the pyramid is that a person has a tendency to feel the need for something from each level in ascending order. This means that first a person satisfies physiological needs, then secures safety and protection, and so on.

Thus, if a person is not satisfied with physiological needs, he will not want to satisfy social needs, and when he does not have reliable protection, he will not think about self-realization. Pyramid Maslow most clearly indicates the basic needs. The concept of them in this classification is recognized throughout the world.

By degree of implementation

Another type of classification - the degree of implementation. Here, the needs are divided according to the principle of how and when a person will be able to realize them. For example, there are real needs that can be realized at the current level of the development of society, and there are absolute needs - they arise because of the further development of society, motivating it to progress.

Also worth noting solvent needs, which can be met only at a certain level of income and the availability of funds.

Law of increasing needs

You can not talk about needs and not remember about this law. Its essence lies in the fact that the needs of man and society are constantly changing, increasing, new ones appear that are conditioned by further progress and development. This law is closely connected with the Maslow pyramid - a person has higher-order needs when he meets the needs of a lower order.

Development of needs in the twentieth century

The law of increasing needs can be described on the example of the development of society in the twentieth century. In the first half of the century, material and material needs were dominant. Since the fifties, social needs have begun to dominate, such as education, medicine, sports, entertainment and so on. And since the eighties people have reached a new level, since the needs of the previous two orders could be met without problems. Therefore, there was a desire to develop and grow as a person.