How does IKEA generate customer loyalty?

Topics: Marketing, IKEA, Best Buy Pages: 0 (492 words) Published: September 9, 2014
1. How does IKEA generate customer loyalty?
a) Low price
As the case said “IKEA achieved this level of success by offering a unique value proposition to consumers: leading-edge Scandinavian design at extremely low prices” and IKEA’s vision is “to create a better everyday life for the many people.” “People have very thin wallets. We should take care of their interests.” While IKEA overarching strategy is focused on offering customers everyday low prices, the loyalty program is one of the ways the home furnishings retailer provides special offers. The goal of the loyalty program is to reward IKEA’s best customers with discounts and special offers throughout the store. b) Rewarding customers

Because many of the successful retail companies have loyalty cards, the goal of the loyalty program is to reward IKEA’s best customers with discounts and special offers throughout the store. As the case said “A contest in Atlanta crowned five winners “Ambassador of Kul” (Swedish for “fun”) who, in order to collect their prizes, had to live in the IKEA store for three full days before it opened, which they gladly did.” IKEA has launched a loyalty card that is free of charge and can be used for discounts on selected products.

Certainly, the successful of IKEA in different market also is the way of it generates customer loyalty. As the case “Many IKEA products are sold uniformly throughout the world, but the company also caters to local tastes.” showed. That means they can on the basis of different culture of customer to provide the best products.

2. How does a company evaluate the influences on customer behavior? Customer behavior is influenced by cultural factors such as nationality, religion, racial groups and geographic location. And it can also be affected by personal factors, such as age, life cycle stages, occupation, economic situation, personality & self-identify, values and lifestyle. What’ more, the social factors like family, values, social roles and...
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