VALS uses psychological characteristics to segment the U.S. market into eight un
ID: 350927 • Letter: V
Question
VALS uses psychological characteristics to segment the U.S. market into eight unique consumer groups according to what drives them psychologically as well as by their economic resources. It is based on psychological traits that correlate with consumer behavior and helps companies match products to particular types of people.
VALS was developed by SRI Consulting Business Intelligence. Go to the website http://www.strategicbusinessinsights.com/vals/presurvey.shtml. Click on the link “Take the Survey” to complete a brief questionnaire for free to find out your own VALS type. Then click on the link “The VALS Types” to find a description of each of the eight types. The links under the “About VALS” tab at the top of the page will help you find out more about how marketing organizations can use this research. Click on various links within the website for more information.
Take the VALS survey. Discuss your results. Go to the “The VALS Types” link to read about the eight different types. Do you agree with your results? Why or why not? For what types of products would marketers consider you a target market? So you think some regions of the country are more progressive than others when adopting new consumer products or services? Are some areas of the country more accepting of changes in broader social issues? Discuss your thoughts on this “GeoVALS” concept. (You can also “google” GeoVALS to learn more about this.) Look at the link for International VALS and discuss how this could be helpful in understanding the international market. What are some ways these segmentation systems might be used by organizations? How could your organization benefit from analyzing values and lifestyles of your target market(s)?
Explanation / Answer
GeoVALS statement indicates principle conclusions from study carried out by the VALS research director Dr. Cheri Anderson. For instance relationship between 1999 and 2004 statistics with facts and figures helps to provide an insight about the possible brunt of migration on consumer markets.
Relationship of VALS allocations by geography such as Designated Market Areas (DMA) or Metropolitan Statistical Areas (MSA) with the national VALS allocation point out prospective marketing prospects.
Even though GeoVALS information are most often in use to establish high prospective geographical locations with facilities of direct correspondence and good retail site locations GeoVALS can also be valuable in shaping the market prospective for fresh or existing goods and services.
It is also significant to be able to recognize and approximate the volume of your target market especially if you're of the opinion of a fresh and novel business scheme to ensure if the consumer base is big enough to sustain and maintain your trade or new product initiative.
Keep in mind that it's not sufficient that people like your business conception however there must be sufficient target consumers on a recurrent adequate basis to maintain your business trade, expenses and earnings year after year.
Selling a good or service that people may require only once in a life span may not be an adequate and noteworthy business concept except a huge amount of people requires it at any particular point of time or everybody requires it in the due course.
If your target consumers are the end user of your goods and services then demographic and standard of living aspects are crucial to appreciate and recognize them. However not every company buy and sell directly to the final users of the goods. If you put up for sale with other company’s who revolve just about and resell your goods and services your consumers can primarily then be referred to as channel customers.
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