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Recommended: Ikea case study
Introduction
There has been widen concern about wether the experiential consumption promote consumers to purchase products irrationally.Nowadays, ‘experiential marketing’ become an essential word in marketing.With providing attractive experiences for their customers, integrating elements of sensations, imagery, feelings, pleasures as a subjective consciousness, it is essential to position and differentiate consumers’ needs, which is commonly called ‘experiential marketing’(Holbrook and Hirschman, 1982).In this essay, the aspects of experiential marketing whether trigger irrational consumer decision would be fundamental to discuss .Also associated with consumer decision,a successful case of IKEA would be considered to demonstrate experience
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There are quite large amount of hotel chains but hardly to figure out the characteristics clearly.The chain partners with IKEA decorate their rooms with bright and tidy space, simple and comfortable furniture.It is truly give consumers a clear differentiation about hotel chains.Meanwhile,after living in the such impressive hotel ,guests are high likely to choose home furniture in IKEA if they gain cozy and suitable …show more content…
Secondly ,after determining which product is necessary to their house,consumer could combine different set to form a unique product which avoid embarrassed situation because finalized products cannot be changed . All of exclusive measures substantially seize internal demand of consumers,meanwhile,those really do embody marketing offering extra value to consumers which construct profound relationship and create added value for consumers through experiential marketing.There is no doubt that the two-way communication is essential of interaction between firm and consumer.This means experiential aspects tend to become mutually evocative,generally move from quality to fantasy, dreams, and emotional satisfaction lead to rational purchase decision
Consumers become more interested in what brand they buy, and that what they want does not reflect their needs. While there are different products having the same features, people are still giving attention to the brands’ name. When people go shopping at the mall, they do care how the stores present their commodities, which brands use to target their consumers, especially women, and teenagers because they spend more time at the mall, so they are more likely to spend money on useless features’ commodities. Shopping at home, the salesperson explains the features of the product so that another will offer to buy it. Also, at home is the easiest way to buy useless
There will be more experiential marketing towards the beginning of a new line extension/product, to promote brand switching from the competition products while creating brand awareness at the same time based on the value creation of each new line/product. The reduction in advertising budget due to high brand awareness of Allround will help us allocate more financial resources towards experiential marketing. As a team, we agreed that this was the best way to draw in more customers with heavily affecting the bottom
IKEA is one of the huge successful retailers in the world whereby has 280 stores in 26 countries by the year 2010 and had been visited by 580 million shoppers. IKEA has elegant designed products with low priced. IKEA’s sale has increased from 4.4 billion in 1994 to 23.5 billion in 2010. The author has attached the sales report in appendix 1 and 2. The founder was Ingvar Kamprad whereby he is still a dynamic advice-giver of IKEA despite his age reached 80. IKEA had influence worldwide market widely with a good strategic marketing tool. IKEA products are cheaper 30%-40% compare to other retailers. Besides that, Asian market convinced with their economical western product that has complete household products. In this chapter, the author had explained on the overall IKEA’s history. In the next chapter, had explained on four important macro elements followed by the macro elements effect towards the organization, and also given suggestions to manage the organization according to the macro elements.
Contrary, the interactive advertising, have the concern of common point between the products and consumers. However, in the present’s world, describe the practical functions and advantages of products are no longer enough for consumers. Consumers are interested in the symbolic value and the imagined beliefs that a brand connects to the product and the image. This is about the concepts “interpassivity”, “thievish joy” and “illusions without owners”, which are describe the interactive communication in the contemporary society. The emotional expression of consumers is delegated to a brand, if a brand can fulfill or provide them psychological needs and experiences. Nonetheless, the relevance between a brand and the symbolic value of its products provided symbolize of the company for consumers. And the effects of a brand’s symbolic capacity are far more important than others. As Markus Walz, Sean Hingston and Mikeal Adehn agree with McCracken’s view point that “ [consumer goods have a significance that goes beyond their utilitarian character and commercial value…their ability to carry and communicate cultural meaning]. Thus, it would seem that although brands may have commercial relevance in their DNA, they have indeed evolved into something beyond that.” (Walz, Hingston and Adehn, 67). Therefore, it is significant for a brand through interactive advertising to
Other: Sometimes just by watching advertisements don’t attract the costumer. Until and unless they don’t taste it they would not trust the product, and buying a product of 3 dollars sometime feels risky. For this the most amazing solution for customers and for the company is to give this product with the other product of the same company in free, or in 10% discount. It will feel like a loss but if we see in the long run process it is kind of a profit only. To buy this product and taste it people will buy the existing product of the company. As the product becomes popular in our target market we can stop this process and start selling it in a normal
The opportunity cost of not adopting corporate branding is relatively high, because selecting corporate branding will possibly increase brand awareness and customer loyalty to the greatest extent, and by using a frequent-stay program, Rosewood will potentially forgo these benefits. The most significant strength of Rosewood is their uniqueness of each property. Because Rosewood had already established uniqueness of each hotel, the transformation will not conflict with the “Sense of Place” philosophy. The location specific design and services will contribute to the development of brand sincerity, which will consequently stimulate consumer loyalty. This is equivalent to a circulating loop mechanism in which brand sincerity generate consumer loyalty, and consumer loyalty motivates sincerer brand. Equally important, the company is recommended to do a thorough financial forecasting on corporate branding. As for now, the company has had a rough expectation of customer life values, but further considerations such as estimated cost of implementation, estimated revenue and change in marketing expense need to be included. Furthermore, the company is recommended to simultaneously change its advertising strategy
IKEA sells the whole concept linked to a lifestyle. A world of people with sophisticated taste and awareness of the latest and best trends and designs.
The company knows that in order to achieve a complete sustainability and stay profitable in the same time, it is crucial to raise costumer awareness and make him look at the sustainability as a lifestyle, making it more attractive in the eyes of ordinary individual. As the company holds a leading place worldwide, Ikea is working on creating great awareness and acceptance among consumers by using its brand
IKEA is a Swedish furniture retailer that sells good-quality and affordable furniture to the consumers of the mass-market. Its procurement policy is to establish long-term relationship with suppliers. IKEA expands globally. Marrianne Barner is the new business area manager for carpets at IKEA. IKEA just signed a contract with the Rangan Exports which is an Indian carpet supplier forbidding the use of child labor. The vision of IKEA is “To create a beter life for the majority of people which is the basis of its strategic orientation.” The mission statement of IKEA is “To offer a wider range of home furnishing items of good design and function at prices so low that the majority of
Experiential: “The experiential positioning should be tangible enough that we immediately know what to do with it” (Schmitt, 2003, p.99). An example of experiential positioning for this product is making the consumer feel and believe they can perform at the same level as LeBron James when wearing his brand of sneaker. Experiential positioning requires marketing of the obvious functions of the
Any brand can be positioned as either functional or experiential, and some brands offer a mixture of functional and experiential benefits. Consumers purchase goods and services and perform consumption behaviors for two basic reasons: consummator affective (hedonic) gratification and/or instrumental, utilitarian
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
Consumer behavior incorporates certain activities, decisions or experiences, which satisfy the needs of the consumers. It concerns all the activities that incorporate consuming, obtaining and product disposing of that precedes and carry out these actions (Darling, 2015). The Consumer behavior remains one of the important areas for research in the tourism and marketing fields in terms of travel behavior or the behavior of tourist (Rid, Ezeuduji & Pröbstl-Haider 2014). There are a few comprehensive literature reviews on the behavior of consumer typically described his injurious area with the help of the existing models or concepts of Consumer Behavior. There are exceptions in the insights of the authors who give the review about
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. Hotel industry not only plays an important role in the life of people but as well as the economy of the country. Development and advancement in the Hotel industry have rapidly been taking place and especially since the rapid change in technology, it is very important for hotels to be promptly keeping up to date. When the hotel industry is spoken of, there are many famous hotels but one hotel company that has been outstanding in growth and other aspects of business, like in Leadership, Teamwork (Employee turnover), Motivation (Customer retention and satisfaction, Goals and objectives, (changing the way hotel business has worked), and Change within the company; structurally inside and physically outside, adding elements, like entertainment, gaming, and outdoor activities, is the Hilton Hotel Company.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...