The Two Dimensions of the VALS Framework, Needs and Wants

question 19

True/False

The two dimensions of the VALS framework, needs and wants, helps to explain why different consumer groups exhibit different behaviors, and why different consumer groups often exhibit the same behaviors for different reasons.

---

Definitions:

High Concentration

A situation in a market where a small number of firms hold a large market share, often leading to reduced competition.

Herfindahl-Hirschman Index

A measure used to evaluate the level of competition within an industry, calculated by squaring the market share of each firm within the industry and then summing the resulting numbers.

Concentration Ratio

A measure used to assess the degree of market concentration by looking at the market share of the largest firms within the industry.

Highly Oligopolized

A market structure characterized by a small number of firms controlling a large market share, leading to limited competition.