The VALS System Seeks to Explain Why and How Consumers

question 298

Essay

The VALS system seeks to explain why and how consumers make purchase decisions. Consumers motivated by ideals are guided by knowledge and principle. Explain the difference between Thinkers and Believers.

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Definitions:

Central Government

The government entity or authority that holds the highest level of governance within a nation, responsible for national policies and administration.

Consumer Sovereignty

The theory that consumer preferences and choices dictate the production and sale of goods and services in a market.

Laissez-Faire Economy

An economic system where transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.

Command Economy

An economic system where the government makes all decisions on the production and consumption of goods and services.