When you serve a need or disposition the attitude towards your business is very different from when you serve desire.
Needs-based businesses win through price, efficiency, and convenience. They are a commodity, one of many, and if someone comes along cheaper, more efficient, or more convenient you soon see your place in the market disappear.
A company that serves a desire is much harder to dislodge in a marketplace. Their focus is not function but emotion. Customer service, great packaging, cool offices, or retail environments become places where the brand lives, and resources are pilled in to make sure they are as distinct and attractive as possible.
When you create a desire and feed it, then price becomes almost irrelevant, and you stand alone within a marketplace, a shining beacon.