Methodology

In this chapter, the methodology is represented. All the theoretics on are taken from previous chapter. Additionally, interview questionnaire is introduced. Further, research objective, research approach and strategies of the thesis will be presented. Then it will be discussed how data is going to be gathered and analyzed. Finally, actuality and reliability of the thesis will be presented.

3.1. Preserving the consumer loyalty?

In the second chapter, description of consumer loyalty have been measured. Additionally a number of early determinants of consumer loyalty was reviewed according Sä llberg (2004). In theses determination consumer loyalty is considered to be linked with “purchasing”. From this it follows that loyal consumers’ purchasing frequency or quantity of purchasing is elevated and they tend to keep on purchasing products of particular brand. Apart from that, customer relation to brand is significant, if we talk about consumer loyalty. In that case, it is known, that purchasing periodicity and purchase proceeding vary and continuous consumer is vital for loyalty strategy of any organization.

Furthermore, in accordance with Torres-Moraga (Torres-Moraga et al., 2008), product and brand itself are the two phases of evolution of company-consumer relationships in order to respond to consumer wants and requirements. In obedience to the article, towards the creating consumer satisfaction and building consumer loyalty, a brand and a product have to be each separately fourteen examined. It provides crucial importance on innovative products. Naturally, it has some positive signs, for example " first mover advantage" or inexpensive " proactive innovation". Until we raise the issue of how to hold down consumer loyalty, organization have to be aware, if its consumers are loyal, which can be carried in way of estimating consumer loyalty. There are some features touched in Sä llberg’s (2004) book, for example “purchasing”, “periodicity” and “quantity”, which are essential for organization to put mind to. As it can be seen below, a number of questions is represented, basing on these determinations:

Question 1. Pursuant to IKEA’s point of view, can the consumer loyalty be presented by consumer purchasing quantity and purchasing frequency? If yes, what exact quantity and periodicity can be measured as loyal?

Question 2. What steps does IKEA take in order to increase consumer purchasing quantity and purchasing periodicity?

Question 3. Pursuant to IKEA’s point of view, does loyalty to brand differ from loyalty to product? If yes, what loyalty is more substantial for the organization? Ball (Ball. et. al., 2004) describes two customer loyalty measurements, first is behavior loyalty and attitude loyalty is the second one. Behavior loyalty can be measured as frequency (we face the same thing with purchasing quantity or periodicity). Hence, that issue will not be touched further. Attitude loyalty can be measured as impact on relations and a will to save relationship extension (Dick and Basu, 1994). Attitude loyalty mirrors consumer " cognitive, affective, and co-native predispositions" to proceed belonging to the brand or business itself. In this case, the customer engagement can be suspected (Oliver, 1999). The following question is stemming from that:

Question 4. How does IKEA appeal to consumer’s attitude principles like cognitive, affective, and co-native predispositions? If these attitude principles are actually momentous for organization, in what way does IKEA accomplish consumer’s cognitive, affective, and co-native predispositions? Nykamp (2001) says that consumer loyalty strategy could be helpful in order to gain more positive signs for three reasons. In the first place, rival differentiation shows that it is inconvenient to compete on any other basis on a business level. Second, it is quite troublesome to neglect the overestimated consumer expectations. Thirdly, accepting of any new technology (for instance, databases, software etc.), realizes a consumer loyalty strategy easier and much more efficient. The following question is stemming from that:

Question 5. Why does IKEA realize a consumer loyalty strategy (Is IKEA afraid of competitive differentiation, overvalued consumer expectations, accepting of new technology or, perhaps, another reason? Ndubisi (2007) writes about the four bases of consumer loyalty strategy: " trust, commitment, conflict handling and communication". It is theoretically supported, that the four distinguished foundations of marketing relationship are accurately connected and are able to forecast consumer loyalty (Ndubisi, 2007). “Trust” is determined as a readiness to trust to an exchange partner on whom you can rely (Macintosh et al., 1997). “Commitment” is a beneficial framework for evaluating the possibility of consumer loyalty and forecasting further purchase periodicity (Morgan and Hunt, 1994). According to that, the next question will be formulated:

Question 6. How does IKEA refines consumer trust, for instance, the common values, relative objectives, making and keeping promises?

Question 7. How does IKEA refines common commitment with consumers?