final report combination

Topics: IKEA, IKEA Catalogue, Furniture retailers Pages: 22 (5193 words) Published: March 12, 2015


MKT 5611 Consumer Behavior

Background
IKEA is a multinational company based in Sweden, and sells assembly furniture through their self-branded stores. It was founded in 1943, and as of January 2014 has generated over 28.5 billion Euros in profit. They are currently listed in Forbes’s list of 50 most valuable companies in the world. They offer a variety of products in relation to home furnishings, including tables, lamps, and entire kitchens. They are famed for allowing their customers to assemble the products themselves, but they still provide services in assembly and consulting for those who desire a hassle free experience. IKEA is a worldwide corporation, currently operating in 46 countries with 364 stores. In Mainland China, IKEA has 16 stores in 13 cities. Also, in Hong Kong, Ikea has 3 department stores, in Sha-Tin, Causeway Bay, and Kowloon Bay respectively. They have mostly kept most of their retail formula intact there, such as a long aisle and emphasis on browsing, instead of salespersons, retaining their trademark “IKEA” store experience.

Competition in furniture industry is very intense in both Mainland China and Hong Kong. IKEA faces a lot of local furniture department stores in Mainland China, and low price furniture from Tao Bao. Meanwhile, the furniture industry in Hong Kong has shrunk in 2014 with most of the products being manufactured in the mainland in order for the companies to maintain a competitive advantage. With increasing awareness of deforestation, there is a strong trend of environmental and green furniture. Furthermore, stronger regulation of building components have forced manufactures to become more careful about what they sell. With skyrocketing house prices, Hong Kong residents are encouraged to purchase compact but functional products.

Objective and focus of the study
The main objective of this research project is to gain a deeper and broader understanding of IKEA by conducting 12 depth interviews of IKEA’s customers. The details are as follows: Gaining a broader understanding about consumers’ perception of the furniture industry and IKEA itself Finding IKEA’s customers buying behavior through past purchase experience Finding IKEA’S customers purchase preference

Gaining findings on IKEA’S customers’ loyalty status

Informants ’ demographic summary
Our informants are all Chinese, and their demographic data are as below. Location
HK
SZ
SH/DL/Macau/UK

Number of Informants
5
3
1

Age
21~22
30~36
50

Number of Informants
7
4
1

Marriage Status
Married
Single
Devoiced
Anonymous
Number of Informants
2
8
1
1
Apartment Ownership
Ownership
Renting
Campus Dormitory
Anonymous
Number of Informants
3
7
1
1

Methods
The knowledge background of our article lies in the application of multidisciplinary subjects including Consumer Psychology, Consumer Behavior and Marketing Strategy. We try to establish a multidimensional research framework using multiple methods in multiple perspectives, so as to initially find out existing and potential problems on the basis of evaluation in various aspects towards IKEA from our twelve respondents. Accordingly, the main research methods contain the following aspects: 1. Literature Review

With the reference from the latest domestic research findings, we generalize the industrial profile for furniture retailers, customer relationships management condition of IKEA, advertising history of IKEA and try making concept definition to illustrate the relationships between customers and IKEA. 2. In-depth Interview Study

For the purpose of enhancing the reputation and evaluation of IKEA, we have performed twelve interviews with existing customers of IKEA, those who are familiar with its products, service, brand image and advertising application. This qualitative research helped us to define the factors that influence the evaluation from customers towards perceived image of...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Internship Report Essay
  • Internship Report Bba Students Essay
  • Contextual Report Essay
  • Guidelines for Preparing Your Executive Report Essay
  • Team and Final Project Essay
  • Guidelines for Preparing Dissertation/Internship/Ocp Report, Iiuc Research Paper
  • Essay on Report Format for Proposal and Report
  • Guidelines AP Final Project 2015 Essay

Become a StudyMode Member

Sign Up - It's Free