What Factor Is the Biggest Reason for Ikea’s Growth and Popularity: Value or Image? Explain Which Is More Important in Us Market?

Question 2: What factor is the biggest reason for IKEA’s growth and popularity: value or image? Explain which is more important in US market?

The significant reason of IKEA gains massive growth and popularity is because of its value. The products value in terms of quality, functionality, style, durability and affordability motivates the customers to visit IKEA’s stores and purchase their various products. According to Mitchman (2014), IKEA also portrays an image of not formal, relaxed but efficient service in each store.

IKEA creates its value on building Swedish home-based stereotype of clean and efficient service. IKEA’s furniture is designed beautifully according to modern trend, last longer together with high quality. Besides that, all these benefits come with affordable price. IKEA’s value which portrays the brand can be recognised as economic, social, and environmental.

According to Doole (2014), the Swedish company was based on the idea that as long as the price was right, customers would be prepared to travel out of town locations, queue, collect their purchases and assemble the furniture themselves. The mission of IKEA was formulated by its founder. IKEA’s mission is to offer wide variety of functional furniture for the house, of a quality and at a price affordable by a majority of people. The core principles of IKEA that seeks to achieve the mission are quality and economy.

IKEA’s Democratic Designs

IKEA’s designs and styles are very popular to its customers because it is able to blend quality, stylish designs and affordability. According to McDermott (2015), IKEA’s characteristics make IKEA products very attractive to the customers. IKEA’s customers feel that IKEA’s design approach retains a strong Scandinavian identity seen in the use of natural wood, minimalist shapes, high technology, new materials and strong colours. It has become an immensely widespread among the customers domestic living style as IKEA has extended its image according to 20th century Scandinavian Modernism. Customers are more motivated to purchase IKEA products as it fits to the current trends with long lasting qualities. They can spend their time, with the families and decide the colours and types of furniture which will fit their living space.

Some Customers are sensitives towards the design offered by IKEA. This is because the products that they purchase from IKEA reflect their social status. Therefore, the customers will compare the design of IKEA with other competitors like LORENZO to check on the designs and quality of the furniture. Or they might look for other information alternatives like enquiring about IKEA and other furniture’s latest designs and models to their relatives or friends. If the customers have bad experience with IKEA, hence the negative word-of-mouth will spread virally. Therefore, IKEA focuses more on its product quality and design.