Preview

Ikea Customer Behaviour

Good Essays
Open Document
Open Document
640 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ikea Customer Behaviour
Consumer behaviours

Who are the firm’s current and potential customers?
IKEA’s current and potential customers are male and female consumers who are in their early teens to mid-70.
Consumers who make their purchases at IKEA may be renovators or interior-designer, empty nesters, or just customers who want to decorate their home. Renovators or interior designers may make their purchases at this store because it provides stylish, functional, low-cost furnishings that customers can assemble themselves
As well, renovators and interior-designer are considered to be heavy users because they make most of their purchases at the store. Empty nesters are seniors who downsize their homes because their children have all grown up. Respectively, they are categorized as business-to-business customer and business-to-customer. These are the firm’s current and potential customers because the price range is suitable for low-high income consumers.
IKEA targets those who are looking for an inexpensive way to decorate homes and businesses. More specifically, their current and potential customers, such as middle aged families, college students and first time homeowners, specifically from Europe, North America, Asia and Australia, seek to obtain medium quality, low cost products of a wide variety, that meet the needs of their modern lifestyle.
The important players in the purchasing process for IKEA include purchasers such as first time homeowners, who both purchase and use the product, along with users, such as parents and children, who specifically use the product.
Most of IKEA’s current and potential customers use the company and products as heavy users. Due to the inexpensive cost and general quality of the products, most users are drawn into a heavy cycle of usage.
What do customers do with the firm’s products?
As a company focused on offering customers an inexpensive option to home and business furnishing, IKEA connects their products to their customers in ways of price,

You May Also Find These Documents Helpful

  • Best Essays

    Ethical Issue Ikea

    • 2993 Words
    • 12 Pages

    IKEA’s mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them. The company targets the customer who is looking for value and is willing to do a little bit of work serving themselves, transporting the items home and assembling the furniture for a better price. The typical IKEA customer is young, low to middle income family.…

    • 2993 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Case Study Ikea

    • 1919 Words
    • 8 Pages

    Second, IKEA has set up a very unique concept that perfectly fits its mantra. In order to save costs, they are pursuing a strategy of self service. The customers chose their products themselves, get them from the warehouse, transport them home and assemble them. This helps them to save costs. IKEA has, for instance, implemented flat packages for their products. With this packaging method they can save transport costs, since they save space and IKEA can thus ship more products at once. Furthermore it supports the idea of customer self service, since you can easily transport the flat packages in your car, to carry the products home. Moreover, IKEA is constantly redesigning its products, which helps them to save money and thus keep prices stable or even lower…

    • 1919 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    IKEA case study

    • 440 Words
    • 2 Pages

    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. 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.…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ikea Case

    • 781 Words
    • 4 Pages

    IKEA strategy is characterised by cost saving, where managers fly economy and share rooms in the hotels, salaries are hardly generous, advertising is done in-house, their offices do not look like typical offices of a multinational companies due to fanatical devotion to cost cutting. With this cost cutting urge, the company is capable of offering prices much lower than the competition. Such pricing strategy makes IKEA deliberately focusing on younger people and middle class buyers, those who do not wish or cannot afford buying expensive furniture. IKEA is well aware of who are their key-customers, which is 25-50 years old people, majorly families with kids. Thus, there is a certain focus on a segment, which is another part of hybrid strategy, although IKEA is claiming they are for everyone.…

    • 781 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Ikea: Scandinavian Style

    • 832 Words
    • 4 Pages

    “In addition, the firm is known for its attention to cost control, operational details, and continuous product development, corporate attributes that allowed IKEA to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion.”[ii] In some customers’ mind, IKEA is not only suppose to be the fashion and creative designer, but also an attitude to lifestyle.…

    • 832 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Ikea Case Study Questions

    • 1738 Words
    • 6 Pages

    Ikea has managed to create an unbeatable atmosphere throughout each and every store they have opened world-wide. Paying attention to every little detail from beddings to photo frames, it gives visitors a sense of being at home regardless of their cultural or ethnic background. Every single display at Ikea instigates the feeling to push forward and see more, this is because the company focuses completely on the customer. A person can walk into the store without the intent of spending and walks out buying something at the end. The customers that shop from Ikea can be divided into many categories, and this can be based on a lot of different typologies too. There can be casual customers, who decide to do some small accessory shopping, there can be people who visit the store to eat at the restaurant, The typical Ikea customer can range from low to upper-middleclass, usually young couples or families. They can be first time home owners or movers. And they can be of diverse cultures, in places such as Dubai, where population is vastly diversified, you can find a lot of different people having the same buying behavior at Ikea. This profile can differ across different countries in a variety of ways, there can be economical factors, or demographic factor and it can also depend on the level of disposable income the middleclass people have. For example, China is the Largest supplier of Ikea products in the world, and a typical Chinese Ikea customer earns about Yen 3,300($399)per month the national average is Yen 1,000($121) and buys Yen 300($36) of merchandise per visit. Most of these customers are 20 to 35 years old but the store has repositioned itself to reach the target age of 45 as well, In general…

    • 1738 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Ikea Operation

    • 575 Words
    • 3 Pages

    IKEA design products are innovative and gone beyond the basic functionality. It constantly seeks value to its products with strict quality. Product is designed to be sold in flat pack and easy assembly with simple instruction. However self assemble makes backfire if not carefully plan, IKEA successfully translate this tradition to norm. Individual main seem as a fun way of getting family work together. IKEA is situated in urban area which land is cheap, unlike retailer who prefer in the city. IKEA is able to bring costs down with its high-volume production and the unique flat pack allows saving of floor space. The flat pack is also visualize aid for IKEA when product is running low, employee could easily identify. The company promotes products to be modular, allowing different variations of the same basic product to be customised to produce greater variety. This allows IKEA to provide greater variety for its products without holding large amounts of stock.…

    • 575 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ikea and Global Branding

    • 259 Words
    • 2 Pages

    The analysis also reveals that another factor for IKEA’s success would be its customer’s involvement. The company engages in customer involvement, i.e. high involvement in which customer are able to select, choose, purchase and assemble the product. In addition, the company’s motto, “You do your part. We do our part. Together we save money.” Thus, enabling the customer to feel as though a private experience has been gained.…

    • 259 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    IKEA’s vision is to offer ‘a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.’ Because of their cost focus, they have a very broad target audience of anybody with a price preference, appealing to both business-to-consumer and business-to-business categories. IKEA itself has described its target market as ‘‘young people of all ages’’ (Martenson 1987,p.15) including students who may not be able to travel to the more rural locations of the typical IKEA retail store, low to middle income families who may not be able to visit due to household commitments in the day time, and young urban professionals who may not be able to visit the store during standard store opening hours. In the business-to-business context, IKEA’s e-commerce website targets mainly small to medium businesses from restaurants to hotels looking for multiple cheap and chic furnishing products, where it is more convenient to get the products delivered straight to the business, than to self-transport the goods.…

    • 1659 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Ikea Brand

    • 768 Words
    • 4 Pages

    Price: IKEA is perceived as a value brand following their “affordable solutions for everyday living” tagline. Ikea focuses on lowest price segmentation. The company can do this because…

    • 768 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Ikea Invades America

    • 1872 Words
    • 8 Pages

    IKEA has targeted customers who seek stylish furniture at a reasonable cost. IKEA’s business idea is;…

    • 1872 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    I recently had two unpleasant buying experiences. One was at Ikea, where I went to buy office furniture, and the other one was at Staples, whose online store I visited to buy a magazine rack. Every time I shop at Ikea, I swear I won’t be back again. But I keep coming back. On the contrary, it seems unlikely I will buy again at Staples. Why, if both delivered unpleasant experiences, does Ikea still win my loyalty? The In-store Customer Experience at Ikea Do you like shopping at Ikea? It’s not for me. However, I would say I am a loyal customer of Ikea – I keep going back and most of my office and home furnishings are from Ikea. Why? From far away you can see the giant Ikea building in the corporate colors – yellow and blue. Assuming you drive, you’ll find it’s difficult to locate a vacant space in the car park. As you step into the entrance, you find that the interior decoration is pretty attractive and stylish. A free paper ruler, plastic shopping bag and trolley are available for you as you start your DIY tour. The unique “one way” floor design of Ikea forces you to walk through every single display area: living room, dining room, kitchen, study, bedroom, washroom, kid’s room etc. There is no shortcut to your destination. In most cases, you have to spend hours at Ikea even to buy a single piece of furniture. The products are great in look and style, for most items the price is reasonable (at least to me, in the Chinese middle class). The different displays stimulate my shopping impulses and give me alternative ideas on how to decorate my home. I move chairs and tables around and test different combinations, I try out the products – this is the moment I enjoy most in the store. And I have to admit, the signage and labels are attractive, informative and help me to distinguish and choose among different items from various categories.…

    • 2379 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Culture and Ikea

    • 832 Words
    • 4 Pages

    IKEA has become the world's largest home furnishing retail chain with its international expansion in three major phases. Its mission is to offer a wide variety, good design and value for "young people of all ages". IKEA is determined to maintain a standardized product strategy with a universally accepted assortment around the world, now carrying a variety of different home furnishings. It has limited number of manufacturing, however, designs all of its furniture. IKEA's cost leadership strategy through high volume production and standardized items enabled it to sustain its business. Consumers are expected to become "prosumers", in the meaning of half producers and half consumers, thus supplying their time for assembling work after their purchases. Consequently, IKEA's success is due to its customer focused strategy. The principal market target is composed of "people, who are young, highly educated, liberal in their cultural values, white-collar workers, and not especially concerned with status symbol". Therefore, consumers with low status concern and low conservatism enabled IKEA's success in strong cultural influences. Moreover, high income groups have fewer cross-cultural differences and more open to adapt values to new beliefs. As a result, with their right consumer target, IKEA was able to succeed with their relatively standardized product line.…

    • 832 Words
    • 4 Pages
    Good Essays
  • Good Essays

    customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed,…

    • 2173 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    IKEA case study

    • 2319 Words
    • 12 Pages

    IKEA is about much more than just products. It is about offering inspiration, home furnishing…

    • 2319 Words
    • 12 Pages
    Powerful Essays

Related Topics