Case Study of Ikea

Case Study of Ikea

• How does IKEA generate customer loyalty?
As we leaned, Customer loyalty is a deeply held recognition for a company, they   re-buy or re-patronize a preferred product or service by the company. IKEA obtains customer loyalty successfully by constantly maximizing customer price and minimizing customer costs.
Firstly, Ikea offer a unique value proposition to their consumers: leading-edge Scandinavian design at extremely low prices, using unusual names for products and requiring customers to completely assemble those furniture at home. All the products can be transported easily either by the company or the customers themselves which reduces the cost and contribute to the convenience benefits of both parties. In addition, IKEA sources from multiple suppliers around the world which ensures the lowest price possible and passes on savings to the customer. While offering well designed and quality products, IKEA also takes care of customer value by reducing prices annually, which becomes a very important factor in building customer loyalty.
Secondly, IKEA promotes its brand image by differentiating from other competitors which gives customers the image benefit. Unlike other furniture retailers, IKEA enhances its image of being a Swedish by painting its store outfit and delivery vehicles with Sweden’s national color. This simple but easily memorable brand image utilizes the image of its origin of country which offers customers from home country a benefit of familiarity and customers from other countries a benefit of being different. Besides, IKEA devotes itself to the environmental development by using energy saving supplies, which also add up to the good image and benefits customers who buy products from IKEA.
• How does a company evaluate the influences on customer behavior?
✓ A company can evaluate the influences on customer behavior in three aspects: cultural, social and personal factors. Research into these factors can provide clues to...