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Case Study Of Ikea

760 words - 4 pages

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 ...view middle of the document...

Research into these factors can provide clues to reach and serve consumers more effectively.
First of all, cultural factor is the broadest and deepest influence on customer behavior. It includes consumer’s nationality, religion, racial group and geographic location. In this case, it was originally from Sweden. However, when it enters into global market, it not only uses this origin to attract customers such likes being special without paying too much, but also adapts itself to the local taste, for example, in China, Ikea stocked 250,000 plastic placements with “Year of Rooster” themes and sold it quickly after holiday because it is Chinese culture to have something with the animal symbolizing current zodiac year to wish a good luck in this year and this culture or tradition is quite essential in Chins and deeply influences the Chinese customers behavior. Thus, a company should have deep understanding of the culture they have business with or in, which can help company make a better plan to gain customers.
Secondly, social factor mainly includes the family, friends and other related social groups of a customer that can influence his or her buying behavior. Customers buying decisions usually can be influenced by the reference group, because they normally are more likely to believe what this reference group says either through word-of-mouth or their own experiences than what the...

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