Students should answer the question in relation to the role of country-of-origin effects. These country-of-origin effects influence how consumers rate quality, and sometimes, which brands they will ultimately select. Consumers tend to have an established attitude or even a preference when it comes to a particular product being made in a particular country. This attitude might be positive, negative or neutral. This plays a critical role in IKEA’s marketing strategy, serving to differentiate its value proposition from its competitors and position its brand clearly in the minds of consumers. (Hint: Elaborate on how Ikea utilizes its C-O-Effect in its marketing efforts)
3. To what extent has IKEA practised a standardised strategy versus an adapted strategy in its global strategy? What are the advantages and disadvantages of this approach?
IKEA’s products are manufactured, packaged, and positioned the same way regardless of the country in which they are sold to a global segment.