Why Do Americans Hate To Buy Furniture?

1 - Describe the typical IKEA customer (who shops at IKEA)?

A typical IKEA customer is someone within the range of a low-income group to upper-middle class (usually young shoppers) whose main focus it to stretch their dollar. The typical IKEA customer is looking to furnish their homes with well-designed products that look nice and serve a purpose without breaking their bank. To achieve this, they are willing to become a part and parcel of the company processes (e.g. self-transportation, self-assembly, flat box shipping etc.).

2 - Why do Americans hate to buy furniture? What are the various purchase obstacles?

Americans changed their cars and in some cases their spouses much more often than their furniture. The purchase obstacles specific to IKEA were the discrepancy in product dimensions, experience, comfort, size preferences and expectations of an average American

IKEA’s value proposition when compared with its low-end retail competitors comes from its focus on reducing both cost and price. When compared with Wal-mart that offered cheap furniture to price-sensitive customers like college students with tight budget, IKEA proposed value in terms of its product design, more than limited selection and lively stores.

When compared to high-end specialty stores, which competed in terms of wide selection, huge inventories, quality, high end service, free delivery and installation IKEA’s value proposition came in the form of its price, unique design and finally with its campaign for a more “commitment-free approach to furniture”.

4 - What factors account for the success of IKEA? In other words, what is unique about their value proposition in a mature, furniture retail industry?

IKEA’s cost effective and unique Scandinavian designs provide its target customers great value. IKEA primarily uses 4 marketing strategies when compares to its competitors in the furniture retain