When backed by buying power, what do wants become?

Wants become demands when they are supported by buying power. In marketing, this distinction is crucial for understanding consumer behavior. A want is essentially a desire for a specific good or service, while demand indicates that a consumer not only wants a product but also has the financial means to purchase it.

For instance, someone may want a luxury car, but without the financial resources to buy it, it remains simply a want. When that individual has the necessary income or financial capability to make the purchase, their desire transforms into a demand for that luxury car. This shift is critical for businesses as it influences market strategies and product offerings.

The relationship between wants, demands, and purchasing power is foundational in marketing, as it helps businesses identify potential customers who are likely to convert their interests into actual sales. Understanding this dynamic allows marketers to tailor their approaches in reaching consumers effectively.