Group Project_Draft.docx

For instance highlighting financial risks and time

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the desired state and actual state. For instance, highlighting financial risks and time risks in brochure or receipt, and then demonstrate those risks can be avoided through Ikea Place application. Moreover, handling brochure to target audiences, inviting customers to interact with application and using Instagram to offer customers a chance to win a prize on what they liked about it are based on operant conditioning, which implicit positive reinforcement to establish the process of learning whereby the consumer’s response to a stimulus. According to Hull’s drive theory, intrinsic motivation for people who participate in social media campaign is truly intended to improve their aesthetic standard, while extrinsic motivation is prizes associated with their primary goals. Cross-selling strategies As big data mechanism extensively applied, market basket analysis is one of the most effective techniques to demonstrate associations between items. Ikea ought to utilize market basket analysis identifies some insights from customer purchasing behavior to increase cross- selling, so that Ikea is capable to address the following managerial problems, like which products should be put together? Or which product should have the best spot? In other words, Ikea ought to simultaneous display some two items in augmented reality application. 4
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Cross-selling tactics are formed from providing essential related products with a strong association and bundle pricing. Based on the familiarity principles, People more likely to develop and construct a stable preference for things merely because they are familiar with them (, 2019), which means let target customers spend some time to adapt and stimulus short-term memory. Besides, the application ought to display complement goods if customer add items to favorites, which means customers still in progress the process of preference formation and it requires repetition and elaboration transfer from short-term memory. Once customers are relatively constructed preference in information search and alternative evaluation stage, customers will experience the same layout of products in Ikea physical stores and Ikea websites (Figure 5). To attract customer attention in physical store, we have to set up a sign along with products (Figure 6). For instance, the probability of observing customer purchase a bed frame and quilt cover sets together are higher than 80%. A sign like “ 80% of others purchased it as bundle price” also have to display in physical stores and Ikea websites, which it will potential stimulus or convince customers to believe they belong to 80% groups rather 20% minority. Additionally, product bundling is one of the most effective pricing techniques that contribute to additional revenues. Ikea ought to bundle several popular products based on analysis results so that it encourages customers to tend to purchase more products to some extent.
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  • Fall '19
  • Augmented reality, Ikea Place

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