Final answer:
c. Performance aspects
Functional needs pertain to the performance aspects of a product or service, focusing on how well it fulfills its intended purpose. They differ from personal gratification, emotional satisfaction, and aesthetic considerations. The law of diminishing marginal utility illustrates how additional consumption yields lower satisfaction over time.
Step-by-step explanation:
Functional needs in the context of products or services refer to the performance aspects of a good or service, which encompasses how well the product fulfills its intended use or function. This is distinct from personal gratification or emotional satisfaction which refer to psychological benefits, and aesthetic appeal which relates to the product's look and feel. Understanding functional needs is crucial for product design, marketing, and enhancing consumer satisfaction. For example, a car engineered with functional needs in mind will take into consideration factors such as regulatory compliance, transportation, assembly, and varying consumer lifestyles.
The law of diminishing marginal utility is an economic principle that explains how the utility or satisfaction derived from consuming goods decreases with each additional unit consumed. For instance, the pleasure gained from the first slice of pizza is higher than the satisfaction obtained from subsequent slices. Recognizing utility, consumer choices and the importance of functional needs helps businesses to design better products and services that provide maximum satisfaction.