Maslow’s Hierarchy of Needs - UMUC / UMGC Fin Academic Paper

 

This article was originally submitted as an academic paper to UMGC. It has been posted here for educational purposes only. Don't be a dummy. If you can find this, so can your teacher. Do use it to help you figure out what you're suppose to be doing.

Instructions

Maslow's Hierarchy of Needs is the model for studying the psychological factors that affect decision making. Review the model and let's discuss how recent events might have affected consumer behaviors in terms of Maslow's Hierarchy. 

 Name a stage and state what types of purchases consumers have been making that are consistent with this stage. Note any possible changes due to recent events. 

Evolving priorities: Covid-19 rapidly reshapes consumer behavior. PWC. https://www.pwc.com/us/en/industries/consumer-markets/library/covid-19-consumer-behavior-survey.html 

 

Maslow’s Hierarchy of Needs

Various environmental conditions in the business world evoke different behaviors in consumers. Typically, customers will opt to buy a particular product based on whether the commodity will satisfy their needs. The ongoing coronavirus pandemic has led to radical changes in consumers’ purchasing power, and most people have changed their behavior to cope and adjust to the living conditions brought by it. Given consumers’ purchasing habits in the face of the pandemic, it is evident that the trend is consistent with the second stage of Maslow’s Hierarchy of Needs.

Background of Maslow’s Hierarchy of Needs

 Maslow’s Hierarchy of needs outlines five stages that influence consumer behavior. Maslow outlines that consumers are motivated by their physiological, safety, love and belonging, esteem, and self-actualization needs (Hopper, 2020). Consumer behavior during the coronavirus pandemic reflects most stages outlined by Maslow; however, it is most consistent with the second stage. Currently, consumers are motivated to purchase goods based on their safety needs. The pandemic has brought uncertainties and constraints that have led to significant shifts in people prioritizing their money on essential goods and personal security.

Maslow’s Hierarchy of Needs: Safety needs

Maslow’s Hierarchy of Needs outlines that people have the propensity to live in a safe environment. Individuals’ inability to have a safe environment makes them more susceptible to fear (Hopper, 2020). People will tend to serve their safety needs first during disasters or in a crisis such as a  pandemic. The pandemic’s economic cost is estimated to be at 78 percent, and as a result, most Americans have ended up only buying essential commodities (PWC, 2021). Most people have been rendered jobless, with the pandemic impeding the economic activity in the country.

The pandemic has forced governments to issue lockdowns to limit the spread of the virus. With minimal movements, consumers have opted to buy non-perishable commodities, thereby fulfiling their safety needs. Recent research highlights that the purchase of non-perishable foods and groceries has increased at an average of 27 percent. Simultaneously, the purchase of perishable groceries has increased by only 12 percent. Furthermore, the purchase of household and cleaning supplies has increased by 25 percent (PWC,2021). This factor is attributed to the psychological stressors the pandemic has brought for people to protect themselves by maintaining a high level of cleanliness and hygiene.

The purchase of non-essential commodities has declined significantly during the pandemic. Consumers have reduced their spending on non-essential products such as alcoholic beverages and tobacco. It is estimated that the buying of alcoholic beverages and tobacco has only increased by 6 percent during the pandemic (PWC, 2021). Maslow’s theory in the safety needs stage argues that people prioritize personal security, resources, employment and health (Hopper, 2019). As a result, more people are practicing healthy lifestyles during the pandemic to avoid contracting the disease. Items such as masks and hand sanitizers are being purchased in large quantities. Moreover, people refraining from buying commodities that make them susceptible to succumbing to the disease, such as alcoholic beverages and tobacco, could explain this move. 

Conclusion

Consumer behavior following the coronavirus outbreak is consistent with the second stage of Maslow’s Hierarchy of needs. This stage stipulates that people will always consider their personal safety first, especially when threatened. Given the pandemic’s hard times in the form of loss of job loss and lack of essential commodities, more people increased their purchases to get by. Consumers resorted to buying critical products, leading to a significant increase in the purchase of non-perishable groceries, households, and cleaning supplies. Furthermore, consumers have shifted to new items such as face masks and sanitizers to support their safety needs.

References

Hopper, E. (2019). Maslow’s Hierarchy of needs explained. Viitattu, 12, 2019.

PWC. (2021). Evolving priorities: COVID-19 rapidly reshapes consumer behavior. PwC. https://www.pwc.com/us/en/industries/consumer-markets/library/covid-19-consumer-behavior-survey.html