Final answer:
VALS is an acronym for Values, Attitudes and Lifestyles, not Value Added Life Segmentation. It's a tool used in market segmentation to understand customer behavior beyond just their purchasing habits by categorizing them into eight distinct groups.
Step-by-step explanation:
The statement VALS stands for Value Added Life Segmentation is FALSE. VALS actually stands for Values, Attitudes and Lifestyles and is a psychographic segmentation tool used to categorize consumers based on their psychological traits. Developed by social scientist Arnold Mitchell and his colleagues at SRI International, it helps businesses to identify target markets and understand consumer behavior by analyzing the motivation and resources that affect their purchases.
This system can divide the consumer market into eight distinct segments: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors. By understanding these segments, companies can tailor their marketing strategies to meet the specific needs and preferences of each group.