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9 solons in army reserve force get CA approval

THE Commission on Appointments (CA) on Wednesday, March 7, approved the nomination of several lawmakers as military officers in the Armed Forces of the Philippines (AFP) Reserve Force. Confirmed with a rank of colonel were House Speaker Pantaleon D. Alvarez, House Majority Leader Rodolfo C. Fariñas, Senator Loren B. Legarda, and Senator Emmanuel D. Pacquiao. Also getting the CA thumbs-up were House Deputy Speaker Gwendolyn F. Garcia, and Reps. Joel Mayo Z. Almario (Davao Oriental, 2nd District), Roy M. Loyola (Cavite, 5th district), Bai Sandra A. Sema (Maguindanao, 1st district) and Marlyn L. Primicias-Agabas (Pangasinan, 6th district). The CA also confirmed the appointment of Rene Glen O. Paje, deputy chief of staff for AFP civil military operations, to the rank of major general. Mr. Paje is a member of the Philippine Military Academy (PMA) Sinagtala class of 1986. — Camille A. Aguinaldo

1st phase done for ‘surfing-inspired’ La Union Convention Center

THE FIRST PHASE of the first convention center in Ilocos Region, located in San Fernando City, La Union, is now complete, the Department of Public Works and Highways (DPWH) announced yesterday. “This first convention center in the region will have a unique architectural and aesthetic design inspired by La Union province’s famous surfing destination,” DPWH Region 1 Director Ronnel M. Tan said in a statement. DPWH said funding for the second phase of the project would be included under the proposed 2019 General Appropriations Act (GAA). The La Union Convention Center, a three-storey multipurpose building in a 2,000-square meter lot, is a joint project of the DPWH and the provincial government of La Union, funded under the Local Infrastructure Project Program.

Tagum City to host this year’s MinBizCom

TAGUM CITY, awarded as the 3rd most competitive among component cities in 2017 by the National Competitiveness Council-Philippines, will host this year’s Mindanao Business Conference (MinBizCom) in September.

The business chamber of neighboring Davao City would be assisting the Tagum chamber in organizing the annual event. Davao City Chamber of Commerce and Industry, Inc. (DCCCII) President Arturo M. Milan, in a text message, said their group might even forego the Davao Investment Conference (Davao-ICon) this year with their hands full assisting in the MinBizCom preparations. Mr. Milan said they would direct interested ICon participants to the MinBizCom should DCCCII’s annual event does not push through.

An official of the British Chamber of Commerce-Philippines (BCCP) has said they are interested to join again in this year’s ICon after last year’s successful participation. “I am meeting up again with the Davao Chamber people because we want to return for Davao ICon… We came to Davao last year and we did a very successful trade mission,” BCCP Chairman Chris Nelson said in an interview during the Philippine National Bank (PNB) customers appreciation event in Davao City. Mr. Nelson is also a director of PNB. During the ICon 2017, BCCP had a delegation representing about 50 companies. — Maya M. Padillo

For traffic lights

TAGUM CITY Mayor Allan L. Rellon (center) leads the groundbreaking ceremony for the P60-million first phase of the local government’s Traffic Signalization Project, intended to address the growing road congestion in the city. Seven busy junctions will be prioritized, and the project is expected to be completed by June 2018, in time for the opening of the new school year. A flyover along the national highway in the city center is also currently under construction.

Cebu business chamber says economic losses due to traffic woes increasing 

ECONOMIC LOSSES due to the traffic problem in Cebu are increasing, said Cebu Chamber of Commerce and Industry President Antonio Chiu, as the implementation of road infrastructure projects is worsening the situation.

Mr. Chiu said businesses in Cebu have been incurring revenue losses due to traffic, although he could not quantify his assessment. He said because of traffic, it would take a longer time for companies to transport goods and their people, thus decreasing their efficiency. Workers are likewise affected, wasting their time stuck on the road and decreasing productivity. “There are really losses, big losses and time wasted,” the CCCI official said. He added, ”We can’t stop these (new infrastructure) projects. But the government must improve on the planning to mitigate their impact on traffic.”

Meanwhile, starting Wednesday, March 7, all southbound vehicles can no longer use the private lane beside a supermarket along F. Llamas Street. The Cebu City Traffic Office was allowed to use the private property for eight days, which lapsed yesterday. Department of Public Works and Highways (DPWH)-Region 7 Project Engineer Roy dela Cruz said F. Llamas Street will not be accessible to all vehicles for three to four months. — The Freeman

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Cabinet to tackle national ID system

By Arjay L. Balinbin

MALACAÑANG will decide in the next Cabinet meeting on the National Identification (ID) system, Presidential Spokesperson Herminio Harry L. Roque, Jr. said.

Sa susunod na Cabinet meeting po baka magkaroon na ng desisyon dahil napakatagal po iyong pag-uusap tungkol diyan sa national ID system,” Mr. Roque told reporters in a televised press briefing in Palawan on Wednesday, March 7.

(In the next Cabinet meeting, there might be a decision because this has been a longstanding discussion about the national ID system.)

In December last year, Senator Panfilo M. Lacson, chairperson of the Senate subcommittee on the national identification system, said the Senate is targeting to pass the proposed law by the first quarter of this year.

“So they wanted really to find out what the final legislative output will be before a decision could be made,” Mr. Roque said in a press briefing last Tuesday.

Asked whether there are initial proposals, Mr. Roque said: “Well, ang proposal lang is kinakailangan ba smart ID o hindi. So may mga ganoon — kailangan ba multipurpose na iyong ID o talagang just for purposes of identification?” (Well, the only proposal is whether the ID should be a smart ID or not, or whether it should be a multipurpose ID or just for purposes of identification.)

Budget Secretary Benjamin E. Diokno, in a press statement in January, said the 2018 General Appropriations Act (GAA) includes an allocation for the implementation of the National ID System.

“P2.0 billion is…earmarked for the implementation of the National ID System. The said allocation is within the budget of the Philippine Statistics Authority (PSA), and will ensure that public resources are delivered to their intended beneficiaries. The National ID system will limit leakages in the delivery of social services programs, particularly the cash transfer programs of the government,” the budget secretary said.

Duterte tackles drugs, ICC, Lopezes ‘yellows’ in Aquino bailiwick Tarlac

By Arjay L. Balinbin

SHOWING yellow flowers to his audience in Tarlac province on Wednesday, President Rodrigo R. Duterte said: “I mean no insult. This color, I hope after the elections… it’s over.”

Mr. Duterte was in Tarlac for the 145th founding anniversary and 2nd  Kanlahi Festival of the province, widely known to be the bailiwick of the Aquinos.

The President did not mind asking the audience to accept the Ilocanos’ wish to consider the late dictator Ferdinand E. Marcos “as a hero.”

“Otherwise, half of Ilocandia, magdamdam ‘yan (will take offense), and it will continue to divide the country. So ‘yung (the) yellow, wala,” he said, and he threw away the yellow flowers he was holding.

He noted that the “only one” supporting him in Luzon is Maria Imelda Josefa “Imee” R. Marcos, the late dictator’s daughter who now serves as governor of Ilocos Norte and is considering a senatorial candidacy.

Mr. Duterte likewise talked anew about drugs, oligarchy, and other themes.

“Wealthy people, watch out, cocaine is coming in very fast. The cartel from Mexico and South America has come in, so we are dealing now with cocaine and shabu,” the President warned.

Despite the complaint at the International Criminal Court (ICC), Mr. Duterte said his war against illegal drugs will not stop.

Wala akong pakialam sa kanila…(I do not care about them),” he said, adding: “Hindi ko pinapapatay ‘yung mahirap, ang pinapatay kong mahirap, yung criminal (I do not order the killing of the poor. The poor ones that I ordered killed are criminals).”

“That ICC will never ever ever ever acquire jurisdiction over my person,” he stressed.

The President also mentioned former Iloilo City Mayor Jed Patrick E. Mabilog whom he had tagged as a narco-politician. “I have been looking for him. Hindi na siya umuwi kasi papatayin ko talaga siya (He has not returned home, because I will really kill him).”

Remembering the Philippines after the 1986 EDSA uprising, the President took swipe at the Lopez family.

“Remember the Lopez groups before, right after the EDSA. They borrowed about P7-8 billion from DBP (Development Bank of the Philippines).”

“Then they dissolved the corporations, ang utang nila (and their loans), so the GDP dived. It was condoned. And if that’s not economic sabotage, what is it?” he added.

He likewise warned the businessmen and local officials in Boracay, saying, “Don’t make it hard for me…It is our interest to preserve its pristine state, just like before.”

“They do not want to cooperate, and they begin to protest. I will arrest you all. If you put up a fight, I’ll arrest you for sedition, preventing the government for doing what is good for the Filipino people.”

The President  said on Tuesday he would declare a state of calamity in Boracay, and he also cautioned the courts “not to interfere by issuing a TRO (Temporary Restraining Order).”

“[Y]ou would just exacerbate the situation; and, worse, I might not believe you,” he said.

As for his bank records, Mr. Duterte said he will allow the newly formed Presidential Anti-Corruption Commission (PACC) to look into his accounts.

Kayo (PACC), anytime, I will give you the authority. Honestly. If it exceeds P40 million, kasali na ang (including my) inheritance ko noon,  I will step down,” he said.

Nation at a Glance — (03/08/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

To achieve gender equality, we need women entrepreneurs

By Shamshad Akhtar

IN 2018, we have an opportunity to accelerate progress toward gender equality. Movements such as #MeToo have shone the spotlight on an unacceptable status quo and demonstrated how too many women the world over continue to be deprived of respect and equal opportunities. Let’s use International Women’s Day to build on this global momentum for change and suggest targeted solutions to empower women across our economies and societies. Women entrepreneurs have a key role to play.

In Asia and the Pacific, there has been some progress toward greater equality. Maternal mortality rates have dropped by over 50% between 2000 and 2015. An equal number of girls and boys are now enrolled for primary school education, and near parity exists for secondary and tertiary education. But overall progress remains much too slow. On our current trajectory, South Asia would achieve gender equality in 60 years, Central Asia in 130, and East Asia and the Pacific in 160. At this rate, most women will be dead before they are equal. We need to speed things up.

With this objective in mind, the obstacles women face to find decent work or set up a business in Asia and the Pacific deserve special attention. Female labor force participation has declined in our region over the past 30 years. Most working women are trapped in precarious, informal employment, characterized by low wages and dangerous working conditions. Women are relied on to give up to six hours unpaid care work a day: invaluable to society, but thwarting career prospects, ambitions, and political representation.

We know that setting up a business is a key means for women to empower themselves and break out of poverty. But just as becoming an employee is harder for women, so is becoming an entrepreneur. Barriers include a lack of access to education or training, and limited access to information and communication technology (ICT), market information and finance. Indeed, women-owned small and medium-sized enterprises (SMEs) with reliable funding sources are few and far between, in part because land is often required as collateral for credit in a region where women make up a small minority of landholders. Burdensome registration procedures combine with societal prejudice to frustrate women’s entrepreneurial potential.

The good news is that despite these constraints, the number of women entrepreneurs has been increasing in the Asia-Pacific region. Women entrepreneurs in ASEAN countries have been particularly successful. The proportion of firms with women owners stands at nearly 70% in the Philippines, over 60% in Thailand, and over 50% in Vietnam. This has been achieved through gender responsive budgeting, programs to support SMEs, and strong civil society advocacy to ensure women’s entrepreneurship is prioritized in national policy making. At the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) we want to build on this success and work with countries across policy areas to develop a gender responsive entrepreneurial ecosystem. Four areas are critical to do so.

First, we need to improve women’s access to diverse sources of financing. Women entrepreneurship bonds, impact investment funds, and gender responsive financial technology (fintech) solutions are needed to quicken the pace of change. Combined with measures to improve financial literacy, these solutions should improve access to finance but also reduce transaction costs and support broader growth.

Second, we must improve women’s access to ICT and innovative technologies. Dedicated support is needed for women SME owners wishing to adopt the latest technology to improve business processes, product promotion, and sell into bigger markets. This should be accompanied by lifelong education and training opportunities to enable women to ride successive waves of ICT innovation.

Third, we need to promote a gender responsive policy environment. Public and private institutions should increase the number of women entrepreneurs on advisory boards and the banking sector should be incentivized to serve women better. Streamlined business registration procedures and proactive outreach to potential and existing women entrepreneurs can make a real difference. Women entrepreneur networks, ensuring women’s voices are heard clearly in chambers of commerce, business associations, or civil service commissions, must be part of the picture.

Making life easier for women entrepreneurs is to support women’s empowerment. It can help eliminate gender inequality, protect a fundamental human right, and bring considerable economic benefits. Gender equality in Asia would increase per capita income by 70% over 60 years. This would make a huge contribution to achieving sustainable development and reducing poverty. On International Women’s Day, my hope is that governments across Asia and the Pacific will be entrepreneurial about achieving equality and give women the support and opportunities they deserve.

 

Shamshad Akhtar is the Undersecretary-General of the United Nations and Executive Secretary of Economic and Social Commission for Asia and the Pacific (ESCAP).

How ‘pro-labor’ policies work against labor

“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.”

— American economist, political philosopher,
and author Thomas Sowell

There are many legislative and executive proposals now that are meant to protect workers but have the long-term effect of discouraging the hiring of more workers. These five measures seem to stand out.

1. MORE HOLIDAYS WITH PAY
Currently there are 15 national non-working holidays with pay. Then there are city/municipal non-working holidays proclaimed by local governments. Plus paid leaves provided for by special laws like solo parent leave and maternity leave. Plus work suspension with pay during strong typhoons, floods, and other calamities. Plus work suspensions due to politics like nationwide jeepney strikes.

Now there are legislative proposals to create new holidays with pay. Among these are: the last Monday of January as National Bible Day; and, July 27 as Iglesia ni Cristo anniversary day.

2. PAID MATERNITY LEAVE FROM 60 TO 120 DAYS
A bill called the “Expanded Maternity Leave Law” proposes to raise the maternity leave period to 120 days or four months. This will cover all female workers regardless of civil status or legitimacy of the child. Solo parents would be granted a total of 150 days maternity leave with pay. Fathers will also enjoy a 30-day leave with pay versus the current seven days of paid leave as provided for under RA 7322. Penalties for violations are high — fines up to P20,000, imprisonment for six to 12 years, or both.

3. SECURITY OF TENURE, ENDING ENDO
This is removing the employers’ and contractors’ flexibility to hire workers when demand for work is high. Like catering and malls, demand for business and labor is high during November and December due to the Christmas holidays and reunions, then tapers off by January.

4. EVER-RISING MANDATORY MINIMUM WAGE
Even the unskilled should be paid the mandated minimum wage. The danger of this policy is that the less-skilled or skilled but less industrious workers will not be hired, raising the unemployment situation in the country.

5. EXPANDED MATERNAL AND CHILD HEALTH CARE PROGRAMS
Also known as the “Healthy and Bulilit Act” bill, it seeks to expand the health programs during the child’s first 1,000 days of life. It would also strengthen the implementation of RA 10028 or the “Expanded Breastfeeding Promotion Act of 2009.”

These populist and welfarist proposals are based on the premise that: our employment rate is high and workers can easily find other jobs, and the health of Filipino mothers and workers are deteriorating. Both are wrong. Our unemployment rate is the highest in the ASEAN, and Filipinos’ maternal mortality is decreasing although not as low as that of Singapore and Brunei (see table).

Unemployment Maternal ratio

The danger of these proposals is that they make the hiring of workers, especially female workers and managers, become more expensive. If this trend continues, less workers will be hired — only the very talented, very efficient ones will be hired and the rest will be working in the informal, less well-paid sector or will be begging for more subsidies and cash transfers from the government.

And more workers doing repetitive jobs will be replaced by machines, robots, and artificial intelligence (AI). Machines do not ask for holidays with pay or maternity/paternity leaves with pay, and consumers want cheaper goods and services from shops and manufacturing plants.

Employment is not a right or entitlement. It is a privilege for those who have clear ambitions, personal responsibility, and equip themselves with certain skills. Entrepreneurship and being in business is also not a right or entitlement. It is a privilege for those who have deep patience and efficiency to understand both the consumers and suppliers of various production inputs, plus some luck. And the patience to deal with bureaucracies and politicians with very fickle and populist mind-sets.

Employment is a private contract between employers and would-be employees. If the terms are bad for job seekers, they should have more options for other employers. Better yet, employ themselves via micro-entrepreneurship or small start-up businesses.

Government should step back from setting and dictating the terms of employment and focus on enforcement of contracts. Government should also de-bureaucratize business and entrepreneurship so that more workers can migrate to become employers someday more easily.

 

Bienvenido S. Oplas, Jr. is President of Minimal Government Thinkers, a member-institute of Economic Freedom Network (EFN) Asia.

minimalgovernment@gmail.com

Goodman Richard

Last Monday morning, I had the privilege and the pleasure to board the US Navy amphibious ship USS Bonhomme Richard, which was anchored in Manila Bay for a goodwill visit. The ship, I believe, leaves today for its homeport of Sasebo, Japan, prior to returning to the United States for mid-life servicing.

The ship is also commonly referred to as the “BHR” or LHD-6. It is the sixth out of eight so-called Wasp-class “Landing Helicopter Dock” ships currently active with the US Navy in different parts of the world. Interestingly, BHR or LHD-6 came after LHD-5, which is the USS Bataan. Yes, that’s right. There is a US Navy ship in service today named after a province in the Philippines.

The USS Bataan Amphibious Ready Group (ARG) were reportedly the first ships to respond after the Sept. 11, 2001 attacks, sailing immediately to New York Harbor from their port in Norfolk, Virginia. Materials available online also noted that later on, during Operation Enduring Freedom, the USS Bataan ARG stayed on station off the coast of Pakistan and completed the longest sustained amphibious assault in US history with sailors not touching ground for over four months.

Listed as USS Bataan’s involvements are the Iraq war; providing relief to the victims of hurricane Katrina; assisting in the humanitarian relief efforts following the 2010 Haiti earthquake; it was deployed to Italy to assist in enforcing the no-fly zone over Libya in 2011; and, it was part of the 2014 air campaign against the Islamic State in Iraq and Syria, among others.

As for the BHR, it has an equally interesting history of involvement in both military and civilian operations, particularly disaster relief and humanitarian efforts. Its primary mission, of course, is to embark, deploy, and land elements of a Marine landing force in amphibious assault operations by helicopter, landing craft, and amphibious vehicle. Thus, it carries in its belly over 1,000 Marine troops and their equipment at any given time.

It reportedly had secured Pacific waters as part of Operation Southern Watch. And, like the USS Bataan, it was also deployed as part of Operation Enduring Freedom. Later, it also supported Operation Iraqi Freedom by offloading more than 1,000 Marines and gear into Kuwait, after which it operated miles off the coast of Kuwait and became one of two “Harrier Carriers” along with the USS Bataan in the Persian Gulf.

Information available online indicated that it then detached in 2004 to provide relief efforts in Sri Lanka following the 2004 Indian Ocean earthquake and its subsequent tsunamis. In 2005, the ship helped airlift relief supplies to the coast of Sumatra, Indonesia. Since then, it had been part of various military exercises around the world. In 2009-2010, its ports of call included East Timor; Phuket, Thailand; Kuala Lumpur, Malaysia; and Oahu, Hawaii.

It was in 2012 that the BHR reportedly took the place of USS Essex as the command ship for Expeditionary Strike Group Seven and switched its homeport from San Diego, California to Sasebo, Japan. From Japan, it sailed to assist in the air-sea rescue operation of the capsized South Korean ferry in April 2014. Now on its 20th year since commissioning, it is heading home for servicing.

To get an idea of what the BHR is all about, the US Embassy invited a small group of journalists to board the ship along with some distinguished visitors from the Diplomatic Corps as well as Philippine Defense and military officials. It was a very interesting tour of a ship that one US Marine official described as a “floating airport.”

For that is what the BHR is, really. Sized about two-thirds of a regular aircraft carrier, the BHR secures the Asian region with its load of helicopters, fixed-wing aircraft, amphibious as well as armored vehicles, heavy equipment, and about 2,500 Navy crew members and a Marine expeditionary force.

Unlike an aircraft carrier, the BHR does not have a catapult. Thus, it carries mainly aircraft that can take off and land on their own power. But, also unlike an aircraft carrier, the BHR can lower its rear into the water to load or deploy amphibious vehicles for beach landings. In times of emergency, it can sail to the Philippines from its Japan port in about three to four days.

If you ask me, between a ship that can take the fight to the sea, and a ship like the BHR, the Philippines can be better served by investing even in just one LHD-type naval vessel. BHR, for instance, has a 15-bed Intensive Care Unit and a 44-bed hospital ward. But, in time of emergency, the ship space for bunks can be converted into a 600-bed hospital if necessary.

Moreover, the BHR is accustomed to feeding about 2,500 people with four meals daily. It runs on steam, with boilers running on the same jet fuel used for the aircraft on board. The ship also has its own ability recycle the condensations from its propulsion system and at the same time generate potable water for drinking and cooking and for sanitation use, among others.

Ship officials told journalists that just before reaching Manila, two appendectomies were done on board, with one patient having resumed duties, and another in recuperation. The BHR is a city in itself, which can easily be supplied through airlift even while on duty. And given its capabilities, ship captain US Navy Captain Larry McCullen, Jr. aptly described it as a sort of “Swiss Army Knife.”

While offshore, BHR directs air traffic and flight operations. It caters to helicopters and fixed-wing aircraft in need of servicing and refueling. In short, it is a floating airport that can be easily deployed to where there are deep enough waters, and from its belly it can deploy amphibious vehicles and landing crafts for beach landings.

As a civilian, I look at BHR’s capabilities in relation more to peace time than in war. And with typhoon disasters fairly common here, we could be served well by such a vessel if we had one. During Yolanda, the US actually sent over the USS George Washington Carrier Group. However, how often can a foreign government deploy an entire carrier group to the Philippines for disaster relief operations? Yolanda’s case was unprecedented.

Moving forward and planning ahead, rather than a submarine, for instance, which I hear is what the Philippine military prefers to buy, a vessel like the BHR will be most suitable given our archipelagic nation. If and when necessary, such a vessel can be completed by a small fleet of sea planes and heavy-lift helicopters to further boost its capability to assist in disasters.

Yes, a ship like the BHR can cost upwards of $1.5 billion. And it will take a lot of money to maintain and operate it. In this regard, aid, grant, support, or donation from foreign governments will help in procuring such a vessel for the Philippines. This is where diplomacy comes into the picture. That is, if there is the Philippine political will to get something like this done.

 

Marvin A. Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Why do consumers buy?

I love rock and roll. As Mick Jagger and Keith Richards of the Rolling Stones wrote, “I can’t get no satisfaction, I can’t get no satisfaction. ’Cause I try and I try…” The Rolling Stones probably contributed to making Abraham Maslow’s hierarchy of needs popular.

A lot of marketing research has been devoted to answering the million-dollar question: “Why do consumers buy what they buy?” Most economists argue that consumers are economic buyers; that is, they compare choices to get the greatest satisfaction from their purchases. Whether they are people or organizations, economic buyers want more value for their time and money. Thus, marketing managers must understand their needs and find new ways to meet them.

A big challenge for marketing professionals is to understand that consumers decide on their wants and needs based on other variables besides economic influence. These are psychological variables (motivation, learning, attitude, and culture), social influences (family, social class, and reference groups), and purchase situations (purchase reasons, time, and environment).

A great marketer can turn any want into a need.

Everyone is motivated by needs and wants. Needs are the basic motivating forces that shape decision making. Wants are learned needs. In my basic marketing classes, we analyze needs and wants. When I was in graduate school, we were trained to use frameworks. I vividly remember my strategic management professor passionately correcting us during our presentations for not using frameworks.

Psychologists often argue that a person may have several reasons for buying. In basic marketing, one framework we use to understand needs and wants is Maslow’s five-level hierarchy of needs. Maslow suggested that physiological needs are at the bottom and self-actualization needs are at the top. In his 1943 paper titled “A Theory of Human Motivation,” he wrote:

“It is quite true that man lives by bread alone — when there is no bread. But what happens to man’s desires when there is plenty of bread and when his belly is chronically filled?

“At once other (and ‘higher’) needs emerge and these, rather than physiological hungers, dominate the organism. And when these in turn are satisfied, again new needs emerge and so on.”

Physiological needs are concerned with survival food, water, sleep, and sex. Safety needs are concerned with protection and physical safety, and involve health, financial security, and exercise. Social needs include love, friendship, acceptance, and concern for others. Self-esteem needs are concerned with fun, accomplishments, respect, freedom, and relaxation. Self-actualization includes passions, creativity, morality, lack of prejudice, and acceptance of facts.

When I teach marketing topics on needs and wants, I identify types of goods with Maslow’s framework.

Physiological or basic goods are day-to-day consumer convenience goods. These are our staples and impulse items, the goods we buy without laboring over whether or not to buy them: rice on our dinner table, our education, and cellphone load.

Safety needs are unsought goods; these are goods that we will need in the future. Common examples are life insurance, fire extinguishers, gym memberships, and tombstones.

Social needs are things we spend more time thinking about before purchasing them. Any item or activity that will provide an identity, acceptance, or give us friends and love meets a social need. Examples are joining fraternities and sororities, being actively involved in social networking sites, and attending concerts and speed-dating events.

Personal needs or self-esteem goods can be specialty goods and luxury items things that we crave and go out of our way to obtain. Most often, they are non-essential but highly desired. Examples can be philanthropy activities, jewelry, travel, signature goods, bespoke items, and gadgets.

The topmost level in the hierarchy is the need for self-actualization. In my opinion, no product falls under this category. No good is enough to forever satisfy a consumer.

I read somewhere that the birth of a baby is self-actualizing for a husband and a wife because they become parents. My beautiful wife Jen is four months pregnant with our first child. Our baby’s birth will be the start of a different rock ’n’ roll. I should know by late August if the occasion will indeed satisfy my need for self-actualization.

 

Jose Luis C. Legaspi is a part-time professorial lecturer at the Marketing and Advertising Management Department of the Ramon V. Del Rosario College of Business of De La Salle University.

jose.luis.legaspi@dlsu.edu.ph

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