What types of needs do most products and services aim to satisfy?

Most products and services are designed to meet both functional and psychological needs, which is why the correct answer encompasses both aspects. Functional needs refer to the practical and utilitarian aspects of a product or service—essentially how well it serves its intended purpose. For example, a washing machine meets the functional need of cleaning clothes.

On the other hand, psychological needs pertain to how a product or service satisfies emotional or identity-related desires. These needs can include feelings of prestige, belonging, or personal satisfaction. A luxury car, for instance, not only provides transportation (functional) but also conveys status and meets desires related to self-image (psychological).

Therefore, products and services that successfully address both types of needs can enhance their appeal and increase consumer loyalty, making individuals feel that their purchases are not just practical, but also aligned with their personal values and emotions.