Identifying the Primary Customer for Discounters among VALS Behavioral Segments

Consumer behavior is a complex field that requires a deep understanding of various factors that influence purchasing decisions. One powerful tool that marketers and retailers can use to gain insights into consumer behavior is VALS™ (Values, Attitudes, and Lifestyles) segmentation. VALS is a psychographic segmentation system developed by Strategic Business Insights, which categorizes US adults into eight distinct types based on psychological traits and key demographics. This article aims to explore the different VALS behavioral segments and identify the primary customer for discounters.

VALS™ Types

VALS segmentation divides the population into eight distinct types: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors. Each type represents a unique combination of psychographic traits and demographic characteristics that influence consumer behavior.

• Innovators are successful, sophisticated, and open to new ideas and technologies. They are considered the most venturesome group and are often early adopters of new products and services.
• Thinkers are motivated by knowledge, intellectual pursuits, and self-expression. They value education and tend to make informed decisions based on rational thinking.
• Achievers are career-oriented individuals who are motivated by success, status, and material possessions. They strive for upward mobility and are likely to make purchase decisions that align with their aspirations.
• Experiencers are young, enthusiastic, and impulsive individuals who seek excitement and new experiences. They are often trendsetters and are willing to try new products and services.
• Believers are conservative and traditional individuals who value stability, order, and family. They are likely to make purchase decisions based on their religious or moral beliefs.
• Strivers are ambitious and trendy individuals who are motivated by achievement and approval from others. They often imitate the behaviors and preferences of higher-status groups.
• Makers are practical and self-sufficient individuals who enjoy hands-on activities and value durability and functionality in their purchases. They prefer do-it-yourself projects and practical solutions.
• Survivors are individuals with limited resources who focus on meeting their basic needs. They are cautious and value familiar and affordable products.

Primary Motivation

VALS identifies three primary motivations that influence consumer behavior: ideals, achievement, and self-expression.

• Ideals are driven by the desire for social responsibility, self-actualization, and a sense of purpose. Individuals with this motivation are likely to make purchase decisions based on ethical considerations and the alignment of brands with their values.
• Achievement is motivated by success, ambition, and a desire for recognition. Consumers with this motivation are likely to make purchases that help them achieve their goals and enhance their status.
• Self-expression is driven by the desire for personal freedom, individuality, and creativity. Individuals motivated by self-expression are likely to make purchases that reflect their unique identity and allow them to express themselves.

Understanding these primary motivations can provide valuable insights into consumer behavior and help discounters tailor their marketing strategies to appeal to the specific needs and desires of their target customers.

Resources

Resources play a significant role in consumer behavior and can vary across different VALS segments. Resources include psychological traits and key demographics that influence an individual’s tendency to consume goods and services.

For instance, individuals with higher income and education levels may have more resources available to them, allowing them to afford higher-priced items and luxury goods. On the other hand, individuals with limited resources may be more price-sensitive and prefer affordable options.

Discounters, who typically offer lower-priced products, may find that certain VALS segments, such as Survivors and Strivers, are their primary customers. Survivors, who focus on meeting their basic needs, may be attracted to discounters due to the affordability and value they provide. Strivers, who seek approval and emulate higher-status groups, may also find discounters appealing as they can access products at lower prices.

Lifestyle Segmentation

Lifestyle segmentation is another approach used in retail marketing to create detailed customer segment descriptions. It takes into account demographic, geographic, and psychographic variables to understand consumer behavior.

Demographic variables include age, gender, income, and education level, while geographic variables consider factors such as location and urban or rural settings. Psychographic variables delve into individuals’ interests, hobbies, values, opinions, and lifestyles.

By combining VALS segmentation with lifestyle segmentation, discounters can gain a deeper understanding of their target customers and tailor their marketing strategies accordingly. For example, discounters can develop promotions or product offerings that resonate with the specific interests and preferences of different VALS segments.

VALS 2 Segmentation

In addition to VALS, there is VALS 2, which is an updated version of the segmentation method. VALS 2 slices the market into eight groups based on psychological parameters, attitudes, and values. It provides a more contemporary understanding of consumer behavior and helps marketers refine their strategies.

When comparing VALS and VALS 2, it’s importantto note that both methodologies serve as valuable tools for understanding consumer behavior. They offer insights into the motivations, attitudes, and preferences of different consumer segments, including the primary customer for discounters.

VALS and Market Segmentation

VALS can be used as a psychographic consumer segmentation system to define target markets for products and develop advertising copy and media strategies. By understanding the VALS segments, discounters can effectively tailor their marketing approaches to appeal to specific consumer groups.

For example, discounters targeting the Survivors segment, who prioritize affordability and familiarity, may emphasize the value and cost savings offered by their products. They can highlight how their offerings meet essential needs while providing budget-friendly options.

On the other hand, discounters targeting the Strivers segment, who seek approval and emulate higher-status groups, may focus on showcasing trendy and aspirational products at discounted prices. They can create marketing campaigns that highlight how their products allow customers to keep up with the latest trends without breaking the bank.

By aligning their marketing strategies with the specific motivations and preferences of different VALS segments, discounters can effectively attract and retain their primary customers.

Conclusion

Understanding VALS behavioral segments is crucial for discounters aiming to effectively target the right customer base. By utilizing the insights provided by psychographic segmentation, discounters can tailor their marketing strategies to appeal to the specific motivations, resources, and lifestyle preferences of different consumer segments.

VALS segmentation offers a comprehensive framework for categorizing consumers based on psychological traits and key demographics, providing an in-depth understanding of consumer behavior. By recognizing the primary customer for discounters among the VALS segments, discounters can develop targeted marketing approaches that resonate with their target audience.

Citations:

• Strategic Business Insights. (n.d.). VALS™ | VALS™ Types | SBI. Retrieved from https://www.strategicbusinessinsights.com/vals/ustypes.shtml
• LinkedIn. (n.d.). How can you use lifestyle segmentation to appeal to your retail customers? Retrieved from https://www.linkedin.com/advice/3/how-can-you-use-lifestyle-segmentation-appeal

FAQs

What is VALS segmentation, and how does it categorize consumers?

VALS segmentation is a psychographic segmentation system that categorizes consumers based on psychological traits and key demographics. It divides the population into eight distinct types: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors.

What are the primary motivations identified by VALS?

VALS identifies three primary motivations that influence consumer behavior: ideals, achievement, and self-expression. These motivations play a significant role in shaping consumers’ purchase decisions and preferences.

How do resources impact consumer behavior within VALS segments?

Resources, including psychological traits and key demographics, influence consumers’ tendency to consume goods and services. Different VALS segments may have varying levels of resources, which can impact their shopping behavior and preferences.

What is lifestyle segmentation, and how does it relate to retail marketing?

Lifestyle segmentation is a marketing approach that creates detailed customer segment descriptions based on demographic, geographic, and psychographic variables. It helps retailers understand consumer behavior and tailor their strategies to specific customer groups.

What is the difference between VALS and VALS 2 segmentation?

VALS and VALS 2 are both segmentation methods that categorize consumers based on psychological parameters. VALS 2 is an updated version that provides a more contemporary understanding of consumer behavior and helps refine marketing strategies.

How can discounters utilize VALS segments in their marketing approaches?

Discounters can use VALS segments to better understand their target customers and tailor their marketing strategies accordingly. By aligning their messaging and promotions with the motivations and preferences of specific VALS segments, discounters can effectively appeal to their primary customer base.

Which VALS behavioral segment is most likely to be the primary customer for discounters?

The primary customer for discounters may vary based on specific market conditions and target audience. However, VALS segments such as Survivors and Strivers, who prioritize affordability and value, are often considered primary customers for discounters.

How can discounters attract and retain customers from different VALS segments?

Discounters can attract and retain customers from different VALS segments by tailoring their marketing strategies to each segment’s motivations and preferences. This may involve emphasizing affordability, showcasing trendy products, highlighting cost savings, or providing value for money based on the specific needs and desires of each segment.