As the economic conditions is tough and challenging in recent years. Cost of living is increasing, especially for those new home starters, like new couples, families with new-born member, or moving out of parents home.
For the general new home starter, money terms and financial issue is a big concern on their everyday life. The need and purchase of furniture would be an inevitable process as they need to start building up and furnishing their new home. They would opt for products that offer the benefits of good living standard, but without sacrifice too much of their earning or income.
In the situation and target group we focus on in this analysis, IKEA and Pricerite would be more likely be the choice to be made in the final decision.
Purchasing off-the-shelf product, rather then tailor-made, good customer value and affordable price are a few major criteria in such case. However consumers would have different consideration for their decision depending on their individual factors.
From having the wants and demand to the step of making purchase decision and consumption. There are different factors that would influence and affect the consumer decision.
There are two sources that influence buying behavior. The first one is formal sources which are kind of well-planned and paid sources. The second source is informal, which is kind of a not pre planned and non-paid sources like family, informal sources, social class and culture etc.
IKEA offer product with Scandinavian design and attractive appearance, IKEA provide an extensive range of choice in terms of product category, models, colors and materials to suit the many different needs and precise preference. The large catalogue of choice in products maximise the chance of finding products to your needs.
Pricerite offer very generic type of product that perform the basic practical and functions. Pricerite have few numbers of choices in each category, if you have some very specific preference, it might be hard to match your exact want and desire.
Both IKEA and Pricerite have utilized web page, social media and also sales promotion to attract customers.
IKEA have a strong buzz each year, promote using television advertisement, often using humor that create buzz and recall rate.
Pricerite focusing on adverting in newspapers, and leaflet with coupons. Also VIP memberships as a loyalty programme that encourage repeat purchase.
Both IKEA and Pricerite has set affordable price for their product that attract many customer and purchase.
Also note that since the products IKEA offer are unique and with brand, customer are more justified if they are paying a bit more. However Products that Pricerite offer are more generic and very uniform, customer might switch to other brand with similar product offered by a lower price supplier, so that Pricerite have to compete with price or otherwise provide products with better perceived value and customer benefits.
Pricerite which has almost 30 retails covered in Hong Kong, when compared to IKEA which has only 3 stores in Hong Kong but a larger comprehensive stores.
The slightly remote distance and limited distribution channel might be a bit pull back if you are a busy person or if you only want to make small quantity purchases. But if the customer would like to buy a range of product or simply enjoy the shopping experience of IKEA. This desire will become a driving force strong enough to stimulate the action of visit and purchase.
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