IKEA case study

8 August 2016

IKEA’s view of value creation and delivery assists customer loyalty by creating a strong brand culture. Nowadays, people are becoming brand conscious thus helps IKEA in retaining more customers. The company is customer oriented which make its products based on consumer needs. IKEA sells stylish furniture at such a low price that is really affordable and more people buys it, which in turn increases sales and customer loyalty.

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Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. IKEA started as a pure Scandinavian furniture seller with a standard product but latter on get mixed with local culture of country and life style as in case of China. In addition, convenience of going to IKEA stores is another contributing factor to customer loyalty.

The stores are near to public transport places and shoppers view furniture on the main floor in scores of realistic settings arranged throughout the cavernous showrooms (Wild et. al. , 2007). IKEA has started a home delivery service and assembly service to make it more convenient for the customers. Not only this people who are very busy in life and cannot go to the brick store, they can also order through World Wide Web for the furniture and IKEA will deliver it to their doorstep (IKEA, 2012).

Also, the company started additional services such as food outlets, food market and Kid’s corner to entertain its customers who comes for shopping. 2. How does a company evaluate the influences on customer behavior? The processes involved when individuals or groups take in obtaining, consuming, and disposing of products, services, ideas, or experiences to satisfy needs and desires can be said to be a consumer behavior. Also includes how consumers think, feel and the physical actions that results from the consumer’s decisions.

There are three factors, which are cultural, personal, and social factors that can help a company evaluate influences on consumer behavior. The cultural factor includes nationality, religion, racial group and geographic location. Culture is the fundamental determinant of a person’s wants and behavior (Kotler et. al 2009). Personal factor may be age, life cycle stages, occupation, economic situation, personality and self-concept. Social factors include family, values, social roles and reference groups. All factors can affect the consumer buying behavior.

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