IKEA the perception of customers headed for IKEA,

IKEA is a company that uses its own resources to grow in the market; it offers wide range of home furnishing products at a low price strategy hence, it can be reasonably priced designed for everyone to purchase. IKEA’s vision is to “make everyday life at home better” where they start the development of every single product. As well as they attempt to offer high quality products compatible with low price they offer to be able to suit their customers. IKEA is functioning in a number of countries and in recent times started functioning in Jordan. Thus, we decided to research about IKEA to understand how customers perceive the price related to the quality of their products, as well as, in what manner they provide customer service and whether they satisfy their customers by means of the services they offer. We picked out IKEA, since in recent times it started to operate in Jordan. For that reason, we selected IKEA as our research project to study three different perspectives of IKEA firstly, the customer’s perception of the performance of IKEA and whether they perceive their qualities and prices as reasonable or not, in addition to the services they are responsible for, whether they satisfy their customers. Moreover, we used secondary data to compare different point of views of authors to be able to acknowledge additional information about the subject in advance of researching about it. Descriptive research was used during this study by asking what, where, who, and how questions to find out results of the research. We used different books, articles and websites. Questionnaire was used as a data collection method to gather the data that was essential to complete the perception of customers headed for IKEA, we used the questionnaire as our data collection method due toPage 2!the reason that it’s a fast and effective way to collect data, also our sample was selected via probability sampling using simple random sampling, 100 respondents were chosen from the population in order for them to fill in the questionnaire randomly chosen. We conducted the questionnaire and distributed them to customers who have already visited IKEA before and analyzed and interpreted the data according to how frequently do customers visit IKEA. We approximated that the whole study would take us about 1 month to find more about the subject, collect data, interpret it and analyze it to come up with convenient data that would solve our research problem. Furthermore, we confronted some difficulties with distributing the questionnaire. To start with, various customers refused to answer the questionnaire stating that they don’t have enough time to fill it. In addition, customers faced complications with the language since our questionnaire was written in English and the citizens in Jordan talk with the Arabic language. Also, we had few problems with the inadequate time we had to finish the research project.Chapter 2Literature ReviewKling and Goteman (2003) argues that there are three different features in IKEA which were function low price and quality of its products, IKEA started off as a marketing catalogue with a showroom providing customers the ability to touch the products. Navita Mittal (2013) suggested that IKEA’s services provided for the customers are special and unique than their competitors since they provide their products in show rooms and give them the idea of putting a room setting targeting customers that are not very rich, young and have children. As Hafez Shurrab (2013) mentioned in his article, that IKEA tries to provide affordable price with good quality for their customersPage !3as well as they are responsible for hiring skillful employees to ensure the quality assurance along with the suppliers. It is fulfilling the needs of customers with different range of characteristics. Walker and Mullins (2014) mentioned that a firm understand what choices customers see to differentiate products within given category. The service ability quality elements which refers to customer’s ability to attain promote and knowledge service when break down of the product occurs. Lots of quality dimensions can be hard for customers to be estimated. Consumers usually simplify from dimensions of quality that are more qualitative and visual. Many of quality essentials are hard to be seen for the customers who by that they simply cannot judge comparing to alternatives or substitutes, mostly for the consumer products. The “Fit and Finish” element attracts customers by making the product considered as a high quality product; because customers are likely to be attracted for attractive and well-designed stylish products. The quality reputation of the brand name, promotion and other activities that endure the reputation can be strongly persuaded by consumers’ insights of quality of the product. Jobber and Lancaster (2009) brought up pricing decisions as vital input in marketing as the customers’ buying power. Differentiating products and services where not found, a company should be able to offer additional competitive price. In that case the size of prices set are embarrassed with what charges the competitors, moreover price differences between companies should be right according to the basis of “differential utility.” Instead of taking the opportunity of distinguishing product offerings, they tend to focus on selling the existing product features. If product differentiating is weak, price competition comes to be important, attainable and easy to be sold. The task to make the product more unique is by reducing price sensitivity. “Company objectives” in making pricing decisions, firms must reach the company financial and marketing objectives by setting the right objectives for itsPage !4pricings. The Swedish retail global furniture store Ikea, use Market penetration strategy, which is based on catching demand supported by heavy promotions and low prices. “Demand Consideration, the upper limit in most markets to the prices the company can charge is determined by demand. This tends to generalize the pricing decisions, through difficulties and demand analysis and its relationships.


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