Question

Answer the Following questions relating to the VALS Marketing Tool:

• What are the merits and flaws of using VALs as a strategic marketing tool?
• How does the tool relate to the notion of self-concept?
• Considering the merits and flaws, should VALs be used to classify different marketing segments?

Answer 1

Answer 1. VALS or Value, attitude and Lifestyle is a Psychographic market segmentation methodology where psychographics includes the study of human personality, attitude, interest, lifestyle, value etc. and market segmentation is the technique through which the potential as well as existing consumers are divided into various sub-groups based on some similarities. this method gives us an idea about the inner nature of the consumer, which helps us in right kind of communication and promotion activities to attract the potential consumers. the term differs from person to person. foe eg. for high income group the lifestyle and attitude will be different compared to the low income group. Advantages of VALS analysis-

1. it gives idea about the the inner nature of consumer and hence enable us to decide right kind of communication and promotion strategy.

2. consumers are grouped in various categories such as thinkers, believers, achievers, strivers etc and hence gives better insight of consumers.

3. it helps in predicting the buying behaviour of consumer.and hence company can plan it's sales strategy.

Limitation of VALS -

1. Psychographic segmentation is considered very weak indicator of predicting human buying habits.

2. since this tool is not appropriate at predicting human purchase decision so it is also not appropriate at making corporate decisions.

3. this technique is also not suitable for international use as it is culturally specific.

Answer 2. VALS and self concept- Self concept as the name itself suggests is the belief of a person about oneself. it includes the attitude of a person about who and what he or she is, his thoughts, feelings etc. where as VALS is a Psychographic market segmentation tool which includes " value , attitude and lifestyle of a person". so lifestyle is the way of a person's living it is determined by etc of a person. personality, emotions value, culture .by studying the meaning of both the term we find that both are determinant of human inner nature and hence are factors that affect human buying habit. so by studying these two terms a company can predict the purchase habit and plan their sales and promotions accordingly.

Answer 3. every coin has two sides, similarly every concept has few merit and few demerits. so while using the concept of VALS we must be clear about the concept, it's merit as well as demerits so that we can make the right judgement. The VALS as a market segmentation tool can be used to classify consumer mainly according to the value, their attitude and lifestyle,. this will enable the producer in modifying their product and services according to the need of consumer. so appropriate use of VALS concept will facilitate the producer in making right decision.