IKEA case study
1. How does IKEA generate customer loyalty?
IKEA obtains customer loyalty by continuously maximizing customer value with greater customer benefits and less customer costs. First of all, it offers customers leading-edge Scandinavian design at extremely low prices. IKEA has grasped the attributes and benefits that their customers look for, which are high quality, fashionable design and convenience with low price. It can offer these because it adds the country of origin effect to its products, for instance, fashionable bargains of products with unusual Swedish name. It is also because 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.
Third, IKEA provides customized experience to customers and maximizes the customer satisfaction. Customers can experience the entire store and have a clear view of what they would like to buy and sometimes
IKEA obtains customer loyalty by continuously maximizing customer value with greater customer benefits and less customer costs. First of all, it offers customers leading-edge Scandinavian design at extremely low prices. IKEA has grasped the attributes and benefits that their customers look for, which are high quality, fashionable design and convenience with low price. It can offer these because it adds the country of origin effect to its products, for instance, fashionable bargains of products with unusual Swedish name. It is also because 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.
Third, IKEA provides customized experience to customers and maximizes the customer satisfaction. Customers can experience the entire store and have a clear view of what they would like to buy and sometimes