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.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on company matters.

Degree Of Operating Leverage (DOL)

A measure that assesses the sensitivity of a company's operating income to its sales, indicating the percentage change in operating income for a percentage change in sales.

Degree Of Financial Leverage (DFL)

A ratio indicating how much a company's earnings before interest and taxes (EBIT) can be affected by a change in its capital structure.

EPS

Earnings Per Share – a company's profit divided by the outstanding shares of its common stock, providing an indicator of the company's profitability.