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Interview outcome of IKEA in Stockholm, Sweden






The interview of Sweden IKEA Company was conducted in the IKEA store of Stockholm. The interviewee is the sale manager of that store. The interview was conducted face to face and the duration of the interview was about 45 minutes. Before the interview, the interviewee was informed about the purpose of the interview and this thesis and all the questions were sent to the interviewee about one week before the interview; therefore, the interviewee had enough time to prepare the interview. According to the interviewee, larger purchasing amount or frequency represent customers’ loyalty to the brand. IKEA has its own membership system to reward those customers who purchase IKEA’s products in large amounts or frequency. With such a membership card, customers can get some discount of the products and get the information of products and stores with a given period. Therefore, according to the interviewee, they are agreed that large purchase amount/ frequency represent customer loyalty. However, the interviewee also mentions that, besides the purchasing amount, sometimes customers’ word-of-mouth can also be viewed as customers’ loyalty.

 

About how to improve customer loyalty, the interviewee thinks that both activities before and during the transaction are important. According to him, customers must be told what they can get at IKEA’s store before they come. And then, the service quality and promoting methods are also important during the transaction. Therefore, according to the interviewee, they have paid much attention on advertisements within variety of channels and the service and promoting methods as well. According to the interviewee, good purchasing experience and memory will make customers buy more and come to IKEA store again.

 

When answering the questions about loyalty to brand and products, the interviewee thinks that loyalty to brands and products are different. He thinks that customer’s loyalty to a product can be viewed as customers’ preference to the products. The interviewee mentions that IKEA has a special program to record and analyze the sales amount of each category of their products. With these recordings, they can analyze which kinds of products are more preferred by customers and which kinds are not. In addition, understanding customer’s preference can help them to improve those products that are not so preferred by customers. Thus, customers will be more loyal to the brand.

 

About customers’ attitude, the interviewee mentions that they always pay much attention to customers’ attitude. According to him, IKEA’s promoting strategy is to create the same value with their customers. Therefore, it is important for IKEA to know how customers feel about their products and brands. In addition, about how to improve customers’ attitude, the interviewee says that the communication is the most important method. He also mentions that their membership system is a good instrument for doing this. With such a system, they have more chance to communicate with the customers.

 

Besides that, the interviewee also mentions that the service quality during the transaction is important. As what IKEA sells is furniture, they aim to make customers feel at home. About the reason of implementing customer loyalty strategy, the interviewee mentions that to get know of customers and get more idea of designing are the reason for them to pay attention on customers. According to the interviewee, to design products that can meet customers’ expectation, IKEA must communicate more with customers. Through their customer strategy, they can get the knowledge of customers’ attitudes towards their products. And based on this, they can improve their products quality so that the sales amount will be increased. Besides that, according to the interviewee, implementing customer loyalty can better help them to defend against their competitors.

 

About the trust of customers, the interviewee mentions that the basis of the trust is the quality of both products and services. Besides that, he also mentions the communication with customers is also important. Through communication, IKEA can better understand customers’ need and design products that can meet customers’ expectation. Besides that, the interviewee also thinks that the communication can help to establish close relationship between customers and the company. Therefore, customers will stand on their company’s side and view the company as the partner. All of this can significantly help to build trust between customers and IKEA. And about the mutual commitment, the interviewee says that the best way is to give customers chance to understand IKEA and their products. Therefore, all IKEA’s products are displayed with the form of setting-room and customers can freely try most of these products. Besides that, according to the interviewee, through website and some traditional channel and IKEA catalogue, they provide their product and store information to customers openly and customers’ feedback and inquiries will be handled carefully either.

 

When discussing customers classifying method, the interviewee mentions that IKEA’s customers are divided into several groups in their membership system. Customers who have a high level status in the system will receive more rewards and discount when purchasing the products. However, according to the interviewee, IKEA will not treat customers with different respect based on different level of loyalty. He thinks that the classifying method just help IKEA to better understand their customers and better reward them. For active customers, the interviewee mentions that it is not difficult to retain their loyalty, because these customers have a better understanding of IKEA’s value. IKEA just need to pay attention on their feedback and keep the communication channel available. And for those inactive customers, the interviewee mentions that IKEA must make more effort to attract them. According to him, besides the traditional promoting methods, the communication between customers is also good approach. The interviewee thinks loyal customers’ advices or good word-of-mouth sometimes can better help to attract new customers. About customer loyalty strategy cost, the interviewee thinks that compared with the traditional approach, the cost of implementing customer loyalty is low. To the loyal customers, the advertising cost can be saved. And because of the membership system, the cost of survey on customers’ attitude and preferences can also be saved. Besides this, the interviewee also mentions that customer loyalty can bring more benefits than the traditional promoting method. About existing and new customers, the interviewee mentions that IKEA treats all customers with the same respect. However, he thinks that more effort needs to be made to attract new customers. According to the interviewee, IKEA’s customer loyalty strategy is more useful for the existing customers and therefore the promoting to these customers is easier and has a lower cost. The interviewee thinks that to attract new customers, advertising and communication is more useful. However, the interviewee also mentions that studies based on their existing customers can help to improve the efficiency of advertising and communication. And sometimes existing customers’ word-of -mouth can also be helpful.

 

About communication, the interviewee mentions two dimensions of IKEA communication strategy. The first one is “to customers”. According to the interviewee, when delivering information to customer, all the channel, such as TV, newspaper, website and IKEA catalogue, will be used. IKEA thinks that different communication channels can have an impact on different groups of people. Besides that, another dimension of IKEA’s communication is “from customers”. According to the interviewee, it means to answer customers’ inquiry and help to solve customers’ problems. The second dimension of communication not only happens before the transaction, the interviewee thinks it is more important to focus on the period during and after the transaction. The interviewee also mentions that there are special customers service department in IKEA’s company. They will help to analyze and solve all the problems about furniture’s quality, assembling and transporting. According to the interviewee, customers’ need is always at the most important position when IKEA deals with the conflicts. Customers can change or return the products if there is any problem that cannot be solved. All the problems and reasons of conflicts will be recorded in order to avoid it happens again.


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