When they enter the store customers do not require as

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when they enter the store, customers do not require as much assistance from salespeople (p. 497). I feel that this would be another major cost savings as the company would not have to employ as many salespeople. Within its stores, the company also offers extremely inexpensive meals and free family care for anyone ages 4-10 years old (Caldwell, 2015). Cost consciousness dominates all aspects of IKEA’s operations (p. 495). IKEA’s image factor is more important to developing and maintaining customer relationships in the U.S. market. Many American consumers prefer customized items with more style, accent, and color options (Ferrell and Hartline, 2014, p. 498). The tastes and needs of consumers in the United State constantly change (p. 500). This continues to become increasingly true as the
population ages (p. 500). Baby boomer generally desire quality, value their time, and appreciate convenience more so than saving a few dollars (p. 500). There are a lot less young consumers which IKEA targets than there are baby boomers who look for furniture elsewhere due to IKEA’s inconvenience (p. 500). Because U.S. consumers are not highly responsive to catalog marketing, IKEA methods of promotion are less efficient and cost-effective for the U.S. market (Ferrell and Hartline, 2014, p. 499). IKEA’s television commercials are unknown outside of the United Kingdom and many of its ads are controversial and not suitable for a U.S. audience (p. 499). Many of the items shown on the company’s website cannot be order online which forces customers to shop in stores (p. 499). However, the company’s physical presence in the U.S. market is small (p. 499). With the company’s image being so important to developing and maintaining customer relationships in the U.S. market, all of these things create issues for IKEA. References: Caldwell, W. (2015). 4 Ways IKEA – St. Louis Stands Out From Your Favorite Stores. On The Money Magazine Saint Louis. Retrieved September 1, 2016, from moneystl.org/shoppingafforably//ixyqn7nk0z607ku6pr8d12uzqejsa3 Ferrell, O. C., & Hartline, M. D. (2014). Marketing Strategy: Text and Cases (6th ed.). Mason, OH: SouthWestern/Cengage Learning. Lu, C. (2014). IKEA Supply Chain Process – How Does IKEA Manage its Inventory. Tradegeko. Retrieved September 1, 2016, from - management-strategy-ikea 5. Speculate on what might happen at IKEA stores as they are tailored to fit tastes in local U.S. markets. Is the company’s trade-off of service for low cost sustainable in the long term? Explain I foresee a variety of changes occurring at IKEA stores as they are tailored to fit tastes in local U.S. markets. There are two key issues regarding expansion into the U.S. that IKEA must address (Ferrell and Hartline, 2014, p. 496). The need to adapt to preferences of U.S. consumers is the first (p. 496). Due to the fact that American consumers are very demanding and tend to reward marketers that go out of their way to address individual needs and tastes, IKEA will have to adapt its offerings and stores to local tastes (p. 496). This will be a significant shift away from the company’s cost-conscious operating philosophy as it will be much more expensive (p. 496). It is highly likely that IKEA will hire local employees that represent the same values, cultures, and lifestyles of the local areas in which its stores are located (p. 496). IKEA will also alter its promotional television commercials that are currently too edgy in the eyes of American viewers (p. 496). Quality is the second key issue (Ferrell and Hartline, 2014, p. 496). Since American consumers demand quality products, IKEA’s low-cost, do-it-yourself misses the mark for many potential furniture consumers in the United States (p. 496). Self-assembled furniture is oftentimes viewed by Americans as being lower in quality and considered to be comparable to furniture sold by Target and Walmart (p. 497). The majority of American customers like convenience and typically
have the money to pay for it (p. 498). Thus, the time and effort involved in shopping for furniture, bringing it home, and assembling it is not worth it for many consumers in the U.S. (p.

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