going back in time, respect played an important role in survival. if we think of a small tribe wandering in the desert,we can imagine that a person not respected by anyone could be left behind and die. such a person was considered to have no worth, no importance, no value to the group.
this, i believe is the foundation of our psychological need to feel respected.
nowadays it seems much more possible to survive without being respected. someone could, for example, inherit a large sum of money, have many servants and employees and have salesmen constantly calling on him and catering to him,yet not be respected in the least.
someone could also make a lot of money through having a particular talent which is valued, such as being able to dunk a basketball yet not really be respected, perhaps because of the way he treats others.
still, there is a value to respect which money can't buy.though someone's life might not depend on it, there are times, many times in fact, when another person has the chance to make a personal decision--a judgment call. when that person feels sincere respect for someone else, they will make a different decision than if they feel no respect, even if they have customarily shown a false, pseudo-respect to the person.
in summary, it is for both evolutionary and practical reasons that respect is important, and also why we simply feel better when we are respected.