Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. According to Pan (2005) it covers more than the physical goods the company wants to sell, it is the goods and an attractive assortment of products for consumer to buy in the store combination. IKEA make itself attractive by offering wide range product. Their product range focuses on good design and function at a low price. IKEA offers more than 12,000 items to fit out from flowers pots to carpets, via dishes, lamps and wallpaper, in other words, it offers home furnishing solutions for every room in the home. Products range widely in several ways; first, it is wide in function that customer can find everything they need to furnish their home, from plants and living room furnishings to toys and whole kitchens. Second it is wide in styles, according to Zeller (2002), there are four basic styles which are Scandinavian (sleek wood), modern (minimalist), country (neo-traditional), and young Swede (bare bones) (Zeller, 2002). And finally, by being coordinated, the range is wide in function and style at the same time, and at all times. IKEA products are designed in accordance with the expectations of reach all segments which can be: young or old, high or low income, modern or classic, etc. At the end, no matter which style customer prefers, there is something for everyone in IKEA (IKEA). Furthermore, each of IKEA products has a name rather than a code. This way a television unit can be called Ralf, Timmerman, Kompass or Salen while a plant pot holder can be Suspekt, Metafor of REson. The reason is that IKEA wants to project the feeling that the products are part of the family. (Prime, 1998) Research and development is carried out in IKEA ‘laboratories’, the group take a product council directive, plot IKEA’s existing product lineup on a grid, and look for empty spaces and then, start develop new products (Magonelly, 2002). This is to ensure that their products meet customer day-to-day needs and fulfill whatever customer’s style. The unique point is that at IKEA they design the price tag first and then develop the product to suit that price. They consider that anybody can make a good-quality product for a high price, or a poor-quality product for a low price. Meanwhile as stated by Josephine Rydberg-Dumont, president of IKEA of Sweden, "Designing beautiful products that are inexpensive and functional is a huge challenge.” (Cappel, Sains, & Lindblad, 2005). Thus, IKEA make itself outstanding by making good products at low prices. As the obsession to cut down the cost as low as possible in their mind, the company's 12 full-time designers at Almhult, Sweden, along with 80 freelancers, work hand in hand with in-house production teams to identify the appropriate materials and least costly suppliers. They consider maximizing production equipment, using raw materials efficiently and applying technical innovations and the best possible design. It is all about keeping waste to an absolute minimum. Besides, also in accordance to low costs obsession, IKEA does not wrap its products fancily but with simple and environmental friendly material. In general, IKEA products are same worldwide with small adjustment in every country to meet local demands. For example, three products were added for Chinese IKEA; chopsticks, wok with a lid and a cleaver. And also in mainland China, as well as in Hong Kong, the beds sold are shorter (190cm) than standard-sized beds (200cm). (Burt, Johansson, & Thelander, 2008)
Price is the amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits of having or using a product or service (Pan, 2005). The pricing goods and services performs a key marketing strategy role in many firms, it an important influence on buyers’...