IKEA
2. How does a company evaluate the influences on customer behaviour?
Consumer behaviour is based on the activities leading to the acquisition and use of goods or services, including decision-making processes that determine a purchase. In this process the consumer performs actions such as search, purchase, use and evaluation of products expected to be used to meet their needs. Furthermore, understanding consumer behavior is essential to the long run success of any marketing strategy. For instance, if companies know more about the consumer decision making process, they can design marketing strategies and promotional messages that will affect consumers more effectively.
IKEA mostly based on Scandinavian design and quality. IKEA target young low to middle class consumers with its competitive advantage such as low cost. When expanding to the United States market, IKEA ran into a few problems by using this formula because of the different tastes in furniture, cultural change, and more competition. Therefore, IKEA had to adopt some activities to fit American consumer behavior. For example, as American consumers do not enjoy the long queue, IKEA offers delivery service on next day.
IKEA store usually located outside urban areas in less-expensive area and isolated from other shops that can help the company to keep the costs low. Most of Chinese people have no private cars and not everyone is used to go shopping outside the cities. IKEA thus offers delivery and installation service and IKEA built a store at downtown in Shanghai which is located along the public transportation. Another problem IKEA faced in Chinese market is the price. IKEA cheap price in other countries is expensive in China since Chinese consumers have lower purchasing power and lower income level than European countries or the United States. Price is important issue to create and catch the consumer value because IKEA not only competitive with local firm but also copycat companies and products that even
Consumer behaviour is based on the activities leading to the acquisition and use of goods or services, including decision-making processes that determine a purchase. In this process the consumer performs actions such as search, purchase, use and evaluation of products expected to be used to meet their needs. Furthermore, understanding consumer behavior is essential to the long run success of any marketing strategy. For instance, if companies know more about the consumer decision making process, they can design marketing strategies and promotional messages that will affect consumers more effectively.
IKEA mostly based on Scandinavian design and quality. IKEA target young low to middle class consumers with its competitive advantage such as low cost. When expanding to the United States market, IKEA ran into a few problems by using this formula because of the different tastes in furniture, cultural change, and more competition. Therefore, IKEA had to adopt some activities to fit American consumer behavior. For example, as American consumers do not enjoy the long queue, IKEA offers delivery service on next day.
IKEA store usually located outside urban areas in less-expensive area and isolated from other shops that can help the company to keep the costs low. Most of Chinese people have no private cars and not everyone is used to go shopping outside the cities. IKEA thus offers delivery and installation service and IKEA built a store at downtown in Shanghai which is located along the public transportation. Another problem IKEA faced in Chinese market is the price. IKEA cheap price in other countries is expensive in China since Chinese consumers have lower purchasing power and lower income level than European countries or the United States. Price is important issue to create and catch the consumer value because IKEA not only competitive with local firm but also copycat companies and products that even