A

PROJECT REPORT
ON
‘’A STUDY ON CONSUMER PERCEPTION
TOWARDS IKEA’’
SUBMITTED
BY
MANDALA ANUSHA
116820684014
UNDER THE GUIDANCE
OF
DR. AMRUTA PANDE
ASSOCIATE PROFESSOR
SUBMITTED IN PARTIAL FULFILMENT
FOR THE AWARD OF DEGREE
BACHELOR OF BUSINESS ADMINISTRATION
BY
OSMANIA UNIVERSITY

R.G.R SIDDHANTHI DEGREE & P.G COLLEGE

SECUNDERABAD
2020-2023
 DECLARATION

I hereby declare that this study on ’A STUDY ON CONSUMER

PERCEPTION TOWARDS IKEA submitted by me to the Department of
Business Management ,O.U., Hyderabad , is a bonafide work undertaken by
me and it is not submitted to any other University or Institution for the award
of any degree diploma / certificate or published any time before.

MANDALA ANUSHA Signature

 CERTIFICATION

This is to Certify that the study on “’A STUDY ON CONSUMER

PERCEPTION TOWARDS IKEA ” submitted in partial fulfilment for the
award ofBBA Programme of Department of Business Management, O.U.,
Hyderabad, was carried out by MANDALA ANUSHA under my guidance.
This has not been submitted to any other University or Institution for the
award of any degree/diploma/certificate.

DR. AMRUTA PANDE

Associate Professor Signature
 ACKNOWLEDGMENT

I sincerely express my humble and heartfelt thanks to the management of

R.G.R SIDDHANTHI DEGREE & P.G COLLEGE for permitting me to
take up the studyon “’A STUDY ON CONSUMER PERCEPTION
TOWARDS IKEA’’
I take much pleasure to express my deep sense of gratitude and thankfulness
to my project guide DR. AMRUTA PANDE , Associate Professor for the
valuable guidance and constant cooperation throughout my project work.

I am thankful to the Director and the Principal Prof. SABIHA for giving me
this opportunity. My special acknowledgement to the faculty of the
management of our college for sharing their insight experience with me.

I express my wholehearted thanks to all my family members and friends for

their support and encouragement.

MANDALA ANUSHA
11682068401
TABLE OF CONTENT

S.NO TITLE PAGE

NO.
INTRODUCTION
1.

COMPANY PROFILE
2.

DATA ANALYSIS AND INTERPRETATION

3.

FINDINGS, CONCLUSION AND

4. SUGGESTIONS

BIBILIOGRAPHY

ANNEXURE
QUESTIONNAIRE
0
 CHAPTER -1
INTRODUCTION

CHAPTER – 1
 INTRODUCTION

1.1 Introduction

Consumer behavior is the study of consumers and the processes they use to choose, apply and
dispose of products and services, including consumer’s emotional and behavioral responses.
Many customers make a decision regarding where to shop based on their attitude toward a
mix of stores, the shopping center environment and the entertaining shopping experience. The
shopping motives can be grouped into three categories: product – oriented, experiential and a
combination of product and experiential. The last motive category occurs when shopper seeks
to satisfy a purchase need as well as enjoying a pleasurable recreational experience.

In marketing consumer perception can be referred as customer’s awareness, their

impressions, and their opinions about your business, products, and brand. Customer
perception is shaped by multiple variables, including direct and indirect interactions with
your offerings. Today perception impacts the buyer decision-making and is a huge success
factor in retail industry. Brands who monitor and understand the consumer perception and its
contributing factors can better identify the opportunities to improve customer experiences.

The continuous change of the competitive scenario (as a result of the barrier absence) has as a
direct consequence the promotion of subjects’ behavior transformation, together with the firm
one, firms which, despite their dimensions, can increase their transactions and enlarge their
turnover, if they have the capability to reinvent themselves.

Accordingly, it is also known that value is single most contributor to beginning of the process
that leads from customer satisfaction to loyalty and retention. Companies create two forms of
value; functional value, which is value related to the firm’s or brand’s ability to be
convenient, accessible, easy to use and its ability to save the customer time and money and;
emotional value which is the extent to which the firm and the employees make the customer
feel important, valued and special. Current global changes require new business approaches
driving sustainable developments on the front to attract more consumers towards it.

The universal appeal of the concept of organized retail has created tremendous competition
among the retailer as well as manufactures. One of the ways of having an edge in this
competition is company runs malls where only goods manufactured and/or marketed by the
parent company are sold. One classic example in this category is IKEA.

IKEA: a Swedish founded, Dutch- headquartered multinational conglomerate that designs

and sells ready-to-assemble furniture, kitchen appliances and home accessories, among other
goods and home services. IKEA was initially started by a seventeen-year-old boy named Mr.
Ingvar kampard in the year 1948. IKEA is one of largest retailers in the world. In the world
of furniture IKEA plays a leading role in satisfying all range of customer needs. IKEA
created its own shopping malls selling only furniture. Once it gained popularity,

IKEA also diversified. It introduced furnishings and other household items like kitchen
utensils, crockery, home decor products. It also started outsourcing products and marketing
them under IKEA brand. Currently it has 433 stores around the world and it operates in 50
countries. IKEA’s vision to create a better everyday life for people; they are targeting a better
every day for all the people impacted by their business by offering wide range of well-
designed, functional home furnishing products at prices so low that as many people as
possible will be able to afford them. IKEA gives the new idea to consumers who do not know
which product they need for their house. IKEA’s products attract consumers with its
innovation and considering consumer expectation.

Customers often want to conduct business with brands they know and trust. Gaining this level
of loyalty can provide a business with repeat customers and a positive reputation. If you want
to help improve your company’s sales and assess your audience, it’s helpful to first
understand what customer perception is and how it can impact customers’ decisions to
purchase your products or services.

Customer perception refers to how a customer feels about a company. This includes their
thoughts, emotions and opinions related to a brand and its products or services. Customer
perception can be positive or negative

The customer perception process occurs when customers interact with your brand, products
or services. This process includes:

Sensing: The sensing stage involves customers' physical senses, meaning what they see,
touch, taste, hear and feel related to your product or services, such as the music playing in the
background at a retail store or restaurant.

ORGANISING:- After customers have a sensory experience, their minds organize this
information based on their own personal values and beliefs. For example, a customer may
consider where to eat for dinner by comparing menu prices, distance from their house and the
sustainability practices of different restaurants.

REACTING:- The reacting stage is when customers decide to act. This might mean they
make a purchase from your company, purchase from another business or don't buy the
product.
Why is customer perception important ?

Customer perception is important because consumers may be more likely to conduct business
with companies they trust. Developing a positive relationship with customers can generate
more leads and sales, contributing to company success and longevity.

Customer perception can also impact whether consumers are loyal to your brand or switch to
your competitors. By cultivating positive emotions and experiences, you can encourage your
customers to come back for repeat purchases. Additionally, customers who value your brand
and think highly of it may be more likely to recommend your products or services to others,
leading to new sales.

WHAT INFLUENCE CUSTOMER PERCEPTION?

Customer perception can change based on a variety of internal and external factors, such as:
Past experiences: Every interaction a customer has with your brand is an opportunity for you
to impact their opinion of your company. Delivering consistently positive experiences can
build trust between customers and your brand and lead to a loyal customer base

Price: Many consumers prioritize price when choosing between service providers. Prices
that are too high or too low may detract from the public's perception of your brand, so it’s
important to incorporate strategic pricing strategies based on market research, competitor
practices and your organization’s financial needs.

Quality: Product quality can influence customers' perception of your brand. When your
product or service exceeds expectations, customers feel like they received a good deal,
leading to a positive experience that can make them want to do business with your company
again.

Usability: Customers generally prefer products that are easy to use and have clear directions.
The ease with which buyers can interact with your products and use them to solve a problem
can influence their feelings about your brand, so aim to create products with straightforward,
widely accessible language and features that a wide range of users can operate easily.

Location: Customers value convenience, and where your company is located can impact
whether certain consumers choose to purchase your products or services. It’s best to have a
location that’s central to your target market and has easy entrance and exit points and
convenient parking.

Customer service: Customer service is an important facet of how clients and customers view
your business because it can make them feel appreciated, heard and respected. Even when
customers have an issue with a product or service, a productive experience with the
company’s customer care team that solves the problem quickly can leave customers with an
overall positive perception of the organization.

Marketing: Your marketing strategies deliver messages to the public about what your

company is, what it values and why it's better than the competition. Your audience is
receiving these messages from a range of media and can use them to develop an opinion of
your brand.

Reputation: The news and stories people hear about your brand can impact their feelings
about the business and help build a positive reputation. For example, if your company
appears in a news story about a fundraiser for a local charity, this can create positive feelings
for viewers, even if they have never shopped with you before.

Recommendations: Recommendations from family members, friends and influencers can

affect whether a person purchases your products or services. This is why investing in
strategies to improve customers' perception can be worthwhile, leading to an exponential
increase in sales and conversions.

How to improve customer perception

Here are five steps your company can take to improve its customer perception:

1. Learn what customers think

Conduct research to learn what the public thinks of your brand, products or services. You
can:
Send out surveys to current customers.
Purchase a mailing list for your area.
Post a link on your social media accounts to an anonymous survey.
Search online for comments and reviews about your company.
Hearing from people in their own words can provide you with a direction for your marketing
and public relations initiatives. With these insights, you can target your decisions to the
specific areas the public cares about. For instance, if 70% of survey respondents said that
they felt your prices are too high, you might consider an alternate pricing or promotion
strategy.

2. Apply your research to product development

Once you have an idea of how the public feels about you, you can create products and
services that better meet customers' needs. You may consider upgrading existing products to
include more features or enhance their usability. You might also launch new products as a
response to an unmet need among consumers. For instance, if your company offers custom
framing, you might launch a service for measuring and planning gallery walls in customers'
homes.
3. Focus on customer service

Exceptional customer service may outrank other considerations, like price and location, as
customers are deciding where to make purchases. You can ensure your company’s customer
service team is prepared to exceed expectations byCreating comprehensive training programs
for new employees Giving representatives freedom to come up with reasonable solutions on
their own Employing secret shoppers to gauge the customer service experience Providing
surveys for customers to rate their experience Rewarding representatives who exhibit the
company's values Holding regular training sessions that incorporate role-playing scenarios

4.Improve the customer experience

Consider every facet of your customer's experience, from reading the website to visiting the
store. Each of these points can positively or negatively affect how clients and customers feel
about the business. Analyze the steps that a customer takes, and identify areas of
improvement in each phase. For example, if you work for a hair salon, you can improve the
customer experience by: Making the lobby comfortable and inviting Offering beverages or
snacks to clients who are waiting Decreasing wait times for clients Supplying a range of hair
care products in store

 Creating an app and website for clients to make appointments digitally

 Sending reminder emails or texts when it's time for a follow-up service

Your company may also consider hiring a customer experience coordinator who can help
determine what steps to take and how to implement new elements successfully.

5. Monitor public persona

After you conduct your initial research, it's important to stay aware of how the public views
your brand. Stay engaged on social media and review sites to monitor the conversations
around your company’s products and services. For larger organizations, it may be helpful to
hire a public relations professional or reputation consultant.
 6. Customer Perception

Customer perception refers to the customer's opinion of your business or products. It

summarizes how customers feel about your brand including every direct or indirect
experience they've had with your company. By monitoring customer perception, your
businesses can spot common user pain points and improve the customer journey.

Measuring customer perception requires you to gather a variety of qualitative and quantitative
customer data. You'll need to look at resources like product usage reports, NPS® surveys,
and customer interviews to get an accurate view of customer perception. If you don't have
this data, consider adopting customer feedback tools to help you collect this information from
your customer base.

Why Customer Perception Matters

According to a recent survey, 1 in 3 customers will leave a brand they love after just one bad
experience. In other words, we're not far from a world where your customers' perception of
both your brand and quality of service could take precedence over traditional competitive
advantages like pricing, features, or usability.
And if you're not currently investing in your customer experience and perception, you're at
risk of falling behind. Many businesses are already taking stock of their support and services
efforts, with 50% of customer-care leaders rating “investing in new technologies” as one of
their top priorities over the next five years, according to McKinsey.
Now that we know why customer perception matters, let’s dive into different ways you can
improve and uphold it in your business.

8 Ways to Improve Customer Perception

1. Look inward.

2. Strike an emotional chord with your customers.

3. Lean on positive language.

4. Commit to consistency.

5. Fill skills gaps before they become evident.

6. Break down data silos.

7. Collect customer feedback.

8. Follow up with customers after every interaction.

Are you putting process over people?

One of the biggest obstacles businesses often have to overcome is their processed approach to
customer success. While it's valuable to have direction, too much process and protocol can
get in the way of real, human interactions.

To ensure your business isn't getting in its own way, take the time to evaluate your existing
approach. Ask yourself:

 Are you being proactive or reactive in your communications with customers?

 Are you getting to them before a problem arises, or scrambling to collect all the
necessary information you need as the problem escalates?

Strike an emotional chord with your customers.

"Our research across hundreds of brands in dozens of categories shows that the most effective
way to maximize customer value is to move beyond mere customer satisfaction and connect
with customers at an emotional level — tapping into their fundamental motivations and
fulfilling their deep, often unspoken emotional needs," explains Alan Zorfas and Daniel
Leemon.

Think about it: Actions and words carry a lot of weight with customers. To build strong
bonds and promote a positive experience, you must actively demonstrate a long-term interest
and commitment to the relationship through every touchpoint.

This task requires you to dig beyond the surface and actively listen to a customer's needs and
goals, while also tuning in to the details they’re leaving out

This attention to detail can be easily achieved if you apply sound and communication
expert, Julian Treasure's, simple listening acronym, RASA:

 Receive
 Appreciate
 Summarize
 Ask

This "process of extraction" forces you to listen with intent, while also granting the customer
permission to speak openly and freely about their concerns, issues, or complaints. The more
 they reveal, the more opportunity you have to tap into their motivations and intentions to
effectively guide them towards the desired outcome in a human and empathic way.

Lean on positive language.

Dr. Barbara Fredrickson, a leading researcher on the study of positivity , suggests that positive
emotions have the power to open us. In other words, these feelings allow us to see more — they
change our perspective and our understanding of possibilities.
Trouble is, people are often hesitant to introduce these types of positive emotions in the
business world, operating under the notion that it's not appropriate or should be minimized.
However, according to research from the Advances in Developmental and Educational
Psychology journal, suppressing the interpersonal emotions of employees for customers
could lead to a decline in customer satisfaction.
“People providing services in the capacity of their work with daily interactions with
customers sometimes develop feelings for them. The expectation from these employees to
suppress natural emotions, positive and negative alike, is a mistake," Yagil explains.
"The expression of natural positive emotions is well received by the other party and is likely
to contribute to customer satisfaction and customer loyalty."

Commit to consistency.
When evaluating consistency, it's important to take a step back and consider its role in
your customer onboarding process.
To tee up a positive customer perception, you'll want to ensure that the hand-off from sales to
support or customer success is fluid and reflects how you want folks to view your brand.
To achieve this type of harmonious experience, it's helpful to establish core operating values
— like respect, integrity, and customer focus — to serve as a framework for all of your brand
interactions.
For example, Zappos — an online shoe and clothing shop that has set the standard for
customer experience and service — asks that its employees live by the following 10 values:
 Image Source

In doing so, there are no questions around how to act, what to think, or how to approach a
customer problem. You just do it. And if the operating values are enforced consistently,
customers will begin to expect that level of quality over and over again.
Of course, there is — and should be — flexibility around how you adopt and apply these
values. This will help you avoid communications coming off as canned or impersonal during
more specific customer interactions.
Fill skill gaps before they become evident.

Modern customer success or customer service professionals know how to treat customers like
humans — not just ticket numbers. They know when to be proactive, when to ask clarifying
questions, and what to do when they don't have the answer right away. These are all skills
that are needed for a positive customer perception.
But this skillful approach to service and customer relationship building doesn't come without
proper training and a commitment to continuous learning. And as the industry standard
continues to shift to meet the demands of the empowered, informed customer, folks in
customer-facing roles need to keep pace.

To maximize your competitive advantage, it's important that both you as an individual — as
well as your larger organization — are aware of the skills and service areas that need
improvement, and are also willing to invest in software and training to help bridge the skills
gap.

Break down data silos

A data silo is information that's only accessible by one team or department. If anyone else
wants to see that data, they need to communicate with the team that owns it. This not only
slows down internal processes, but also creates negative interactions with customers.
Customers want transparency and will get easily frustrated if they think you're withholding
information.

For example, airlines are often criticized for poor customer service. That's because airport
security makes it difficult for employees to share information. When flights get delayed or
canceled, gate attendants aren't allowed to reveal specific details about the problem. While
this data silo keeps passengers safe, customers are less understanding when their needs aren't
being met.

Unless you're an airline, your business probably won't be restricted by intense security
protocol. While you may have some sensitive data, most information should be easily
accessible and readily available when it's relevant to customer needs.

This is where data management plays a crucial role in enhancing customer experience. The
right data management software leads to more personalized interactions and improved
customer perception.
Collect customer feedback.

You can't improve customer perception without knowing what your customers already think
about your company. After all, you don't want to stop doing something that they really like or
keep doing something that they really hate. By collecting customer feedback, you'll know
exactly how they feel about each aspect of your business.
Customer feedback can be obtained in a few different ways. The most popular way is
using surveys or questionnaires to quickly poll customers. You can also conduct interviews
and hold focus groups for more in-depth conversations. Regardless of what you find,
customers will appreciate your efforts to consider their suggestions

Additionally, one of the biggest challenges businesses face is getting participants to submit
feedback. Unless the customer has a strong opinion of your brand, they may not be interested
in taking a survey. This leaves your feedback only consisting of either highly positive or
highly negative reviews. Consider offering an incentive for submitting customer feedback
and you should get a more accurate feel for customer perception.

Follow up with customers after every interaction.

Following up with your customers may seem trivial, however, it's a small investment that
rewards a major payout. In a 2021 survey, 97% of companies did not send a follow-up email
to customers to see if they are satisfied with the response — that’s a lot of lost opportunity.
Motivating customers to return to your business strengthens your relationship with them and
increases customer loyalty.
Follow-up messages present the opportunity to enhance the customer's experience or prevent
potential churn. For example, after a positive interaction, you can use a follow-up call
to upsell and cross-sell. Since the customer just had a good experience, they'll be more likely
to upgrade or buy another product.
On the flip side, if your customer's experience was negative you can use your follow-up to
collect customer feedback. Ask them why their experience was poor and assure them that
your business is still the best option for achieving their goals. PWC found that 32% of people,
after one negative experience, would stop doing business with a brand or company they
previously loved. That means your company could save three out of every 10 unhappy
customers simply by sending an email or making a phone call.
Creating Positive Customer Perception
The bar for customer expectations is rising. They want to eliminate the complexity involved
in solving their problem and they want you to know when it's appropriate to balance
automation vs. human outreach.

If you fail to acknowledge this shift, you can expect your brand perception to take a hit. But if
you get the wheels turning back in the right direction, placing an emphasis on the importance
of that perceived experience with your brand, well, we think you'll enjoy the outcome.

Overview of The Company

IKEA is a Swedish furniture retail giant. It has stores all over the world and reaches millions
of customers every month. IKEA became an international retailer when the first store in
Norway opened in 1963. The company expanded beyond the Nordic countries in 1973, when
a store was established in Switzerland. Thereafter, stores opened in many countries, including
Germany (1974), Australia (1975), France (1981), the United States (1985), the United
Kingdom (1987), China (1998), and Russia (2000). The typical IKEA store is extremely
large, generally covering an area of 186,000 square feet (17,280 square metres). IKEA is not
owned by shareholders. Instead, it is controlled through a number of operating companies,
holding companies, and nonprofit foundations. The complex corporate structure was created
partly in response to high Swedish taxation.[1]
As it is seen, IKEA is an old-aged firm. They have approximately 450 stores around the
world. IKEA sold 38.8 billion euros ($44.6 billion) of goods and services in the 12 months
through August, up 5 percent in local currencies, brand owner Inter IKEA said. The growth
rate was roughly the same as the year before. IKEA, whose stores are owned by 11
franchisees, opened 19 new outlets, taking the total to 422 in more than 50 markets. The
largest franchisee is IKEA Group, with 367 stores.[2]
Target Market
The global retailer IKEA, has deliberately designed products to address the target market and
further reduced costs by facilitating operations with local suppliers. Although the products
are not very expensive, they have a good quality. Customers are aware of this and know that
they will not be faced with a huge budget surprise at IKEA. Besides, customers know that if
they need any furniture for their home, they can find it at IKEA for the best price. In this
case, it can be said that customers with a medium-economic level are main market targets for
IKEA.
IKEA’s main shoppers are classified as not-old, mid-range and upward mobile, preferring
low-priced yet trendy furniture and home products. The company’s CEO defines IKEA’s
target market in the US as ‘someone who travels abroad, loves to take risks, enjoys fine
dining and wine, has frequent flies, and adopts consumer technologies early.’ Recently, IKEA
has developed product plans to increase the use of waste or recycled materials due to the
increasing demand of its customers for environmentally friendly products.[3]
Business Strategies
It seems obvious that IKEA has adapted to international markets while staying true to its
business concept. Besides, IKEA is a concept-driven company where it is necessary to
manage operations and share information through the IKEA method, regardless of the
location of the retail outlet. Open communication is vital to IKEA’s operational systems. For
example, if there is a problem takes place, not only external but also internal networks are
used to have quick solutions. This coincides with research that argues that good relationships
are important to enable knowledge sharing. IKEA devotes considerable time to product
development and strengthens long-term relationships with its suppliers to produce products
cheaper and to constantly find new ways to produce a better product. Strategic global
outsourcing of product manufacturing enabled IKEA to effectively lower prices for its
products, leading to international expansion. In addition, productive internal competitiveness
has developed between retail stores and supply chain distributors.

COSTUMER MOTIVATION FROM THE PERSPECTIVE OF

MASLOWS HIERARCHY OF NEEDS

First of all Maslows Hierarchy of Need Theory should be defined to be able to recognized the
motivation of costumer. Maslows Hierarchy of Need Theory categorized the needs of human
on the basis of their hierarchy. Maslow’s hierarchy table is most often shown as a pyramid
structure. Basic human needs are on the lowest stage of the structure while self actualization
is on the top of the structure.

The groups of users who are motivated to purchase Ikea products range from students to
young married couples and individuals in small residences. Among the people, whose value
affordability and are aware of space saving opportunities are primary buyers.

Ikea also creates opportunities to take advantage of low turnout, utilitarian purchases by using
marketing tactics such as quick grab items and cash space shopping. Intrinsic motivation is
another important factor that motivates buyers as they can gain pleasure or a sense of
accomplishment from the experience of putting together a piece of furniture.[5]

There are some reasons why IKEA addresses to people with narrow and medium economic
levels, having a wide range of products, convincing people to adopt the DIY(do it yourself!)
philosophy and having fun to install the product offer many ways to meet customer
motivation.

When you need a furniture (suc as a chair for your study desk), you look for ways to purchase
a chair. It is the first step of Maslows Hierarchy of Need Theory which is physiological need
step. You feel yourself in good hands because of purchasing this chair from IKEA. This
means that you are on the second step which is safety needs. Because IKEA is a well-known
brand you feel yourself belonging a huge community. So it shows that the third stage of
Maslows which is belongingness is come true. You purchased a new chair because you think
it take a prestige to you, maybe some of your friends will see the new chair and they will tell
you how a good chair that. So the Maslows Hierarchy of Need Table’s fourth stage with is
Ego Needs (Esteem Needs) comes true. You purchased the chair, you transferred it yourself,
and you set up the chair by using the set-up papers. So, the top need of Maslows Hierarchy of
Need Table which is self actualization came true.

IKEA is a renowned Scandinavian brand known for its unique and intriguing business
model. Out of the most interesting prospects, IKEA displays its products via its
showrooms. By doing so, visitors can walk through a maze-like area where they can check
out all their products in a home-style setting.

In detail, IKEA products are always ready-to-assemble. This means that shoppers can
either choose to build their own furniture to set up at home or ask for assembly assistance.
The IKEA showrooms end in a warehouse where shoppers can pick out the necessary parts
to head home and proceed with the Do-It-Yourself (DIY) set-up.

Besides furniture and product shopping, IKEA also has a food market. In fact, some
shoppers simply visit IKEA to stock up on their groceries and Scandinavian food cravings.
Speaking of, IKEA also has a restaurant in its store. They have exciting breakfast, lunch,
and dinner menus. Thus, Real Research aims to find the public perceptions of  IKEA

Need for the study

Customers no+wadays look into various factors before shopping a product. Few of the factors
can be price, quality, after services, range of options, value of brand etc. Consumers always
look for better options along with quality. The expansion of consumer needs caused retailers
to focus setting up wide range of products with good quality to satisfy maximum needs.
Among this, IKEA is very well-known brand for having wide range of options with better
quality and comparatively low prices. Thus, the present study is to understand the perception
of consumer towards Ikea.

Objectives of the study

 To study the wide range of products offered by IKEA.

 To identify and analyze the customer perception towards IKEA.

Methodology of study

Data sources:

Primary data: The primary data has been collected through issue of a structured
questionnaire to respondents consisting a set of questions to understand the perception of the
respondents towards IKEA.

Secondary data: Secondary data is collected through various relevant websites, magazines
and articles. Data is collected after thorough study of different research papers that are
published on similar topics.
Scope of the study:

It is important for companies to view the relationship from their customer’s perspective. The
relationship consists more than just the customers buying product and services regularly. The
company is required to get an idea about perception that customers hold towards the
experience invested in purchase of products. Thus, the main purpose of this study is to get an
overview about the consumers perception towards IKEA and to understand satisfaction level
of customers towards the purchases from the brand.
Sample size:

The above study is conducted by survey in form of issue of questionnaire to 155 respondents.

Statistical tools for analysis:

Factor analysis and chi square are the statistical tool used to analyze the data. All the data was
processed and analyzed using Statistical Package for Social Sciences (SPSS)

Limitations of study:

The information obtained from the consumer is based on questionnaire which was assumed
to be factual.
The number of respondents that have been collected are limited to 155.
The respondents are selected from twin cities of Hyderabad and Secunderabad.
 CHAPTER 2
REVIEW OF LITERATURE
 2.1 Literature review

Liam Gai sin and shweta pandey (2021) aims to study the factors that affect consumer behavior in
IKEA. They have carried their study through primary data by issues of questionnaire to 250 members
and secondary data also. This study shows that IKEA’s

advertising and promotion is dominated by the catalogue, a marketing instrument that is unusual for an
international retailer but at the core of IKEA’s strategy. IKEA store layout is a plus point to attract
more customers. Customers have liked the idea of self- service concept and the freedom to make their
own decisions and choose their product.

Lovisa Martinell (2020) this study is a critical analysis of IKEA’s expansion into India with a focus on
the external environment, strategy and key resources, ethical issues and the success of the expansion.
By providing an overview of PESTLE analysis and understanding international strategies and key
resources, it can be concluded that IKEA in India is successful due to all the benefits it brings to its
stakeholders. The IKEA experience is a competitive advantage to attract more customers.

Ritika goel and shraddha garg (2018) has carried study on how is India as a market place for IKEA. It
reflects on how IKEA fits into the Indian consumer market and vice- versa. This study was based on
secondary data analysis. Major objectives of the study were getting a brief idea about opportunities and
challenges faced by the company in the Indian market. They have performed the SWOT analysis to
give an overview. The study concluded that it may take few years to get the proposition perfect and
breakeven but success is assured in long run.

Daniyal ahmed faheem and Joy mukhopadhyay this study was aimed to analysis the consumer
perception of IKEA brand in India. The main objectives of the study were to understand how Ikea has
developed its strategy to enter India and understand Indian consumer perception about Ikea brand. The
study was conducted on basis of primary and secondary data. Secondary data included SWOT analysis
which helped in visualizing the opportunities and threats that can affect through Indian market. They
have collected primary data through issue of questionnaire to 150 respondents in Bangalore city. It
concludes that large number of people are interested in buying products from Ikea and have been
eagerly waiting for Ikea to open its store many other metros. It is also found that large set younger
people are much more interested from shopping through Ikea. Overall, a positive response was
concluded

Rebecka Isaksson and Mirela Suljanovic (2006) has studied on how different factors affect the
consumer experience at IKEA. The main objective of the study is how the factors affecting the
customer’s decision to visit IKEA can be described and it also suggested ways design the environment
to enhance the customer experience. Primary data analysis concluded that; most apparent reasons for
people choosing to shop at IKEA is a combination of the store being perceived as offering a major cost-
advantage with their products being relatively cheap in comparison to other retailers and that the
product assortment is wide and constantly changing. It also states that customers are satisfied with the
IKEA experience and willing to revisit as no store can be compared to IKEA in terms of size of the
store, their extensive assortments of products and the visits being considered as something that allows
planning in advance.
The above table of communalities shows the before and after extraction. The
principal component analysis works on the initial assumption that all variance is
common; therefore, before extraction the communalities are all 1. The
communalities in the column extraction reflects the common variance in the data
structure. for the first row the extraction is 0.812 and for the last row the extraction
is 0.797.

The four factors which has highest values are 0.868, 0.867, 0.844 and 0.837, these
are the factors that influence the customer satisfaction.

TABLE:3
The requirement for identifying the number of components or factors stated by selected
variables is the presence of eigenvalues of more than 1. Table here in shows that for 1st
component the value is 5.023>1, 2nd component is 0.339<1. Further the extracted sum of
squared holdings % of variance depicts that the factor accounts to 83.723%.

The first factor satisfies the condition, as it is greater than 1. For second factor the total
value is 0.339 which is less than 1. The rest all factors total Eigenvalues is less than 1, so all
those factors whose total Eigenvalues are less than 1 cannot be considered. The first factor
that satisfies the condition can be considered as it is greater than 1.

TABLE -4
The output shows the component matrix before rotation. This matrix contains the
loadings of each variable onto each factor, the loadings less than 0.4 be suppressed in the
output and so there are blank spaces for the loadings.

The component matrix shows the highest factor as 9.32%, the second highest factor as
9.31%, third highest factor as 9.18% and the fourth highest factor is 9.15%. These factors
determine the satisfaction levels of the customers. The highest the factor value is the
highest the customers are satisfied with those factors.
 CHAPTER-3

COMPANY PROFILE
CHAPTER – 3 COMPANY PROFILE

Introduction to IKEA:

IKEA is the top retailer of ready-to-assemble furniture, accessories, and other items in the world. It was founded
in Sweden in 1948 and has since expanded to include 433 locations worldwide, 211,000 employees, and sales of
more than 41.3 billion euros in 2019. IKEA is the 39th most valuable brand in the world, valued at $15.3 Billion.
IKEA adopts franchising, which enables the company to expand internationally, keep an entrepreneurial spirit,
protect the fundamental idea, and act in the interests of the company and the public.

They own and operate stores in only 24 countries exclusively, the remainder stores are franchised for 3 percent
of franchisees annual net sales.
IKEA's use of the franchising system allowed it to expand consistently, develop its business model,
build a strong basis for its brand, boost sales to 41.3 billion euros in 2019, take advantage of economies
of scale, and maintain its competitive pricing and global presence. Additionally, IKEA has a robust
supply chain that includes 42 trading service offices globally and 1,800 suppliers in 50 different
countries.
IKEA's mission is to improve people's quality of life through its products. They aim to improve the
quality of life for everyone who is influenced by their business by providing a variety of well-designed,
useful home furnishings at affordable rates. In March 2021, there will be 422 IKEA
locations.

Over 2.1 billion people visited the IKEA websites between September 2015 and August
2016, and the IKEA website has about 12,000 products. One of the biggest wood users in
the retail industry, the group is responsible for about 1% of the world's use of commercial
products.
First store opening in each country:

1958: Sweden

1963: Norway

1969: Denmark

1973: Switzerland

1974: Japan, Germany

1975: Australia, Canada, Hong Kong

1977: Austria 1978: Singapore, Netherlands

1980: Spain

1981: Iceland, France

1983: Saudi Arabia

1984: Belgium, Kuwait

1985: United States

1987: United Kingdom

1989: Italy

1990: Hungary, Poland

1991: Czech Republic2, Serbia, United Arab Emirates

1992: Slovakia2
1994: Taiwan

1996: Finland, Malaysia

1998: China 2000: Russia

2001: Israel, Greece

2004: Portugal

2005: Turkey
 2007: Romania, Cyprus

2008: Ireland

2010: Dominican Republic

2011: Bulgaria, Thailand

2012: Macau

2013: Lithuania, Puerto Rico, Egypt, Qatar

2014: Jordan, Croatia, Indonesia, South Korea
2016: Morocco 2018: India, Latvia, Bahrain
2019: Estonia 2020: Ukraine, Mexico

2021: Slovenia, Philippine

1. History of IKEA:

IKEA have come a long way since our early days in Älmhult, Sweden, but IKEA founder
Ingvar Kampar’s dream to create a better life for as many people as possible – whatever
the size of their wallet – is and will always be our driving force.
IKEA is named after the initials of founder Ingvar Kamprad, Elmtaryd, the farm on which
he grew up, and Agunnaryd, the nearby village.

Snapshots of the history of the IKEA brand briefly:

1926 – Ingvar arrives

IKEA founder Ingvar Kamprad is born at the maternity ward “Vita Korset” in Älmhult in
Småland, southern Sweden.
1933 – An entrepreneur right out of the mould

Even as a young boy, Ingvar knows he wants to develop a business. He takes his first step
to becoming a businessman at age 5 when he decides to sell matches. From there he
moves on to selling Christmas cards, seeds, and pens to neighbors on his bike.

1943 –The first IKEA company is founded

To reward him for doing well in school, Ingvar’s father gives him a small sum of money
which he uses to set up a company. He names it IKEA: an abbreviation of Ingvar
Kamprad from Elmtaryd (the family farm), Agunnaryd (the local parish).

1950s – Shut out in Sweden

The low costs of IKEA products have many Swedish furniture retailers worried. They
exerted pressure on vendors to boycott the IKEA name. They attempt to stop Ingvar from
participating in or even going to furniture fairs in the 1950s. But every problem has a
solution, which is one of the reasons we began looking for international partnerships.

1950 – The IKEA Catalogue makes its debut

A future icon, the first annual IKEA home furnishing catalogue is published in Sweden.
1953 – The first showroom opens

In lmhult, a permanent showroom debuts. Before placing an order, buyers may see and
feel the quality of the goods here, and Ingvar can interact with customers in person and
pick their brains.

1953 – Say Hi to the flat pack

Furniture delivery via mail order is expensive and prone to damage, which is a continual
pain in Ingvar's side. Although it already exists, flat-pack furniture hasn't really taken off
in Sweden. This changes only after Ovendals, an IKEA supplier, shows off a remarkably
stable flat-pack table in Hultsfred. Self-assembly, flat-pack items end up being the answer
to the transportation problem, and the rest is history.

1960 – The first IKEA restaurant opens

In June 1960, the only items offered in IKEA stores were coffee and cold dishes. Before
the year is through, the IKEA restaurant's kitchen is done and features a microwave,
which was brand-new at the time. Everything is available, including hot appetizers like
 hamburgers and á la carte food. When Ingvar observed clients leaving the store for lunch
in order to eat at a restaurant or a street food vendor in lmhult, he became inspired by
what he saw. This throws off the entire buying process. He is aware that hungry
customers make fewer purchases. Or, as we often say, it's challenging to conduct business
while you're hungry.

1963 – Hej Norway!

The first IKEA store outside Sweden opens in Norway.

1965 – The flagship IKEA store opens

Opens its doors are the Kungens Kurva store outside of Stockholm. At the time, it was the
biggest furniture retailer in Northern Europe, and the Guggenheim Museum in New York
served as creative inspiration. Its strategic position makes it convenient to access by
automobile and offers lots of parking.

1970 – The “miracle” fire that changes everything

In September 1970, an electrical error leads to extensive damage when a sign on the roof
of the main IKEA shop catches fire. But there is some good news as well. It marks the
start of something fresh as well. Ikea opens a self-service area among the commotion that
follows the fire, and it is an enormous success. Most items can be picked up in the self-
service area, driven home, and assembled by our customers by the time the store reopens
in 1971.

1973 – Hej Europe!

In Spreitenbach, Switzerland, the first IKEA location outside of Scandinavia opens, soon
to be followed by locations in Germany.

1976 – Ingvar puts pen to paper

Ingvar Kamprad creates "The Testament of a Furniture Dealer" with its nine points 30
years after the start of his company. Many of his concepts, including the IKEA mission to
improve the quality of life for the many people, were initially penned here.

Early ‘80s – A new sustainable owner structure is created

Ingvar is looking for an ownership structure that will provide the optimum circumstances
for complete independence and a long-term commercial outlook. He claims that this is an
effort to "give the IKEA brand eternal life." His suggestion is to maintain the retail
operation's ownership separate from that of the IKEA brand and concept, keeping these
functions in their own autonomous company organizations that operate under a franchise
structure.

1983 – Bye, bye (for now) Japan

Exports to Japan are first made around 1970. By 1973, a joint venture with a Japanese
retailer allowed us to sell our goods in what was essentially a miniature IKEA store
dubbed "IKEA Corner." The Japanese business was shut down in 1983 due to
collaboration issues and the lack of a developed IKEA franchising system. Our second
attempt, made 20 years later, is happily successful, proving that good things may come
from trying and trying again.

1995 –” Democratic Design” is launched

During the 1995 Milan furniture fair, the phrase "Democratic Design" is first used. I'll
never forget how it felt to see that advertisement during the expo in Milan on trams and
billboards. Per Hahn, an archivist at the IKEA Museum in lmhult, relates, "I sat outside
drinking Campari and watching the trams go by displaying the slogan 'Il design
democratico - IKEA'.
1998 – “Sow a seed” launches

In Malaysian Borneo, 18,500 hectares of rainforest are destroyed by fire in 1983. Ingvar
Kamprad is interested in helping the rainforest regenerate after learning about it. So, in
1998, he started funding the "Sow a seed" project, which results in the replanting of more
than 12,500 hectares of rainforest.

2012 – The TV everyone’s been waiting for. Or not.

The IKEA UPPLEVA TV is appreciated for its design and even its sound, but the actual
TV part…not so much. Needless to say, UPPLEVA is phased out of the product range,
and we are reminded of the importance of bringing in expert help.

2014 – The first Life at home report

Beginning with a combination of our own research and interviews, Ikea began a fresh
approach to investigating life at home. Morning routines are the main topic of the first
report. In total, 8,292 individuals between the ages of 18 and 60 are interviewed
throughout 8 cities. It helped to learn a lot of interesting stuff, like that 52 percent of the
Berliners surveyed had used the snooze button at least once, and 36 percent have used it
more than once. Learn more about the report on these drowsy Berlin night owls and other
interesting details.

2015 – All-in with LED

As of September 2015, halogen and energy-saving compact fluorescent bulbs are no

longer available and the switch is made to light-emitting diodes (LEDs) for all lighting
sold globally.
  IKEA’S FIRTS INDIA STORE – HYDERABAD

The biggest furniture chain in the world, IKEA, has opened a store in India, and it is nothing short
of a wonderland. It is situated in Hyderabad's Hi-Tech City and spans a 13-acre area. It is
open from 10 AM to 11 PM. IKEA has intended to open 25 locations in India, with this one
debuting in August 2018. While Ikea first stated its intention to grow in India in 2012, it took
six years for the strategy to really materialize. Ikea intends to spend Rs 10,000 crore in India,
of which Rs 1 billion will go toward each store.
950 people are employed directly and 1,500 indirectly by the IKEA in Hyderabad. The brand
wants each location to have 2,300 employees. Over 7,500 different product variations are on
show, with more than 1,000 items costing less than Rs 200. In order to decide on the types of
home furnishings, the team actually visited over 1,000 households with different income
levels to understand demands and lifestyles. Ikea sources about 20% of its goods locally,
while 1000 of its products are manufactured in India in accordance with FDI regulations.
Ikea anticipates six million visitors per year. Due to its restaurant industry, the largest portion is
anticipated. The largest Ikea restaurant in the world has 1,000 seats, and it is located in
Hyderabad. The food is obtained through vendors, primarily from social enterprises run by
women. In contrast, customers swarm to other nations to purchase its ready-to-assemble
products.
The store sells hundreds of items, ranging in price from dolls to spice jars, for less than 100
rupees due to India's lower income levels. In some circumstances, Ikea costs less in India for
a product than it does elsewhere. For instance, the company decided to sell four spoons
instead of its children's plastic cutlery boxes because most Indians prefer spoons over knives
when eating. About 1000 households in various cities were also visited by Ikea staff members
to better understand how people lived and what they required. The company increased the
number of folding chairs and stools that could be used as flexible seating because Indian
families spend a lot of time together and relatives frequently drop by.

WHY HYDERABAD WAS CHOOSEN BY IKEA -

Hyderabad now has IKEA's first location in India. Hyderabad didn't even make the list in
2013, when IKEA was looking for a suitable location to open its first store. In reality, IKEA
has plans to open stores in Delhi, Mumbai, and Bengaluru.
Principal Secretary (Industries) at the time Pradeep Chandra was the driving force behind
IKEA choosing Hyderabad as its first location in India. IKEA had expressed interest in
entering the Indian market at the time that FDI regulations there were relaxed.
Few points which may have influenced this decision are -

 There was enough space to build this superstore in a desirable part of the hi-tech city.
 assistance from the state government. Both the current Telangana Government and
the previous AP Government have consistently welcomed these MNCs with open
arms.
 The most populous area of residential and commercial buildings mixed with MNCs
and high-income groups, primarily made up of IT, banking, and finance experts, is
located within a 10-kilometer radius of this store. resulting in a sizable local client
base for IKEA.
 Many of the specialists in this field who have lived abroad are familiar with the IKEA
brand
 They are hosting a cafeteria with a 1000-person capacity, which is a major draw for
the thousands of bachelors working in this area.

SWOT ANALYSIS:

STRENGTH

BRAND VALUE: Ikea is now ranked 46th globally in terms of brand value according to
a Forbes report. It is currently worth $11.9 billion. In the top 10 companies in the retail
industry, Ikea is ranked sixth.
PRODUCTS: The type of products that Ikea manufactures and creates are its greatest
strength. Customers are familiar with its DIY items, which makes them a popular choice
for many of them.
FINANACIAL STABILITY: In 2015, Ikea generated about €32.7 billion in revenue. It
made €14.437 billion in financial earnings for the same period.
COST CONCIOUSNESS: Ikea's items are quite affordable and offer great value for the
money. Customers receive a significant return on their investment in this furniture.
MARKETING: IKEA is renowned for being a clever marketer and for having excellent
product placement in both films and television shows. It effectively focuses on both
above- the-line and below-the-line marketing strategies to build a strong brand for itself.

WEAKNESS:

NEGATIVE IMAGE: IKEA has operations in several nations, which is why it

frequently encounters local issues in some of them. Such actions generate negative press.
SCALABILITY: Because IKEA operates in so many nations, not all locations adhere to
the same standards. Because of this, the company faces issues with its product portfolio
not being completely scalable and repeatable across all of its sites. This raises the price of
them as well.
ENVIRONMENTAL PROBLEMS: IKEA needs to be aware of its stakeholders. Ikea's
frequent appearances in the media over environmental issues have damaged its reputation.
INCREASING RAW MATERIAL COSTS: The core tenet of IKEA is to keep expenses
low, however with rising raw material costs, it is difficult to maintain business standards.
CONTROL FOR STANDARDS: IKEA's key priority is to keep costs to a minimum
while still delivering high-quality services and products. Not usually is this feasible.

OPPORTUNITIES:

ENVIRONMENTALLY FRIENDLY: Consumer demand for eco-friendly items is

increasing in today's market. This could support IKEA's expansion plan.
DEVELOPING NATIONS: In nations with low per capita income, such inexpensive
goods could work wonders. The markets in China and India would be very successful.
CONSUMERS WHO ARE COST- CONSCIOUS: Consumers are becoming
increasingly cost-conscious. They would choose such things because they frequently
change their furnishings.
MARKET SATURATION: IKEA should target and concentrate on nations like China
and India, which have large populations and where people seek distinctive answers to
their difficulties with space usage.

THREATS:

HIGHER INCOME: The expansion of disposable income has encouraged consumers to

move up the value chain of the market.
CHANGING LAWS: The prices of IKEA products could be negatively impacted by
changes to tax laws and other regulations. If taxes go up a much, they might not be able to
deliver on their promises.
INTERNET: DIY once a popular option for many clients, but thanks to the internet and
social media, anything can now be learned and researched by them. IKEA may be losing
its main competitive advantage of DIY items as a result.

PRODUCTS AND SERVICES OFFERED BY IKEA:

1. FURNITURE AND HOMEWARE:

A large portion of IKEA furniture is made to be constructed by the client, as opposed to

being sold pre-assembled. By avoiding air transportation, the company argues that this
helps to cut expenses and the amount of packaging used; the volume of a bookshelf, for
instance, is significantly reduced if it is supplied unassembled rather than assembled. Flat
packets may be transported more easily, making this more useful for clients who use
public transportation.
IKEA uses cabinet-grade and furniture-grade MDF [medium density fiber] in all of its
MDF such as PAX wardrobes and kitchen cupboards. For its furniture and other products,
IKEA also employs wood, plastic, and other materials. The desired outcome is adaptive,
versatile home furniture that may be used in both big and small households. Not all
furniture is kept in stock at the retail level; for example, a certain colour of sofa may need
to be sent to the customer's residence from a warehouse (for a delivery charge).
Additionally, the item may be transported from the warehouse to the shop. Some
shops, but not all, demand an
additional fee for this service. The Poäng armchair, Billy bookshelf, and Klippan sofa are
notable pieces of IKEA furniture that have all racked up tens of millions of sales since the
late 1970s.
2. SMART HOME:

IKEA began expanding into the smart home market in 2016. One of the first product lines
to indicate this transformation was the IKEA TRDFRI smart lighting kit. The IKEA
communications team has indicated that the smart home initiative will be a significant
step.
Additionally, they have begun working together with Philips Hue. Another tactic for the
smart home industry is wireless charging furniture, which incorporates wireless Qi
charging into regular furniture. In December 2017, a partnership to incorporate Sonos
smart speaker technology into IKEA furniture was revealed. The first jointly developed
items will be released in 2019.
IKEA and Sonos have created two unique wireless speakers under the brand name
SYMFONISK, one of which doubles as a lamp and the other of which has a more
conventional bookshelf appearance. Both speakers may be used to start a Sonos
environment.

3. DESIGNING SERVICES:

To encourage social distance between customers during the COVID-19 epidemic in 2020
and to handle the increased number of customers who were scheduling IKEA design
consultation services.
By testing Ombori's paperless queue management solution for the company, IKEA stores
in Saudi Arabia and Bahrain improved their design consultancy procedure.
IKEA released IKEA Studio in March 2021 in collaboration with Apple Inc. The app
allows users to design actual rooms using IKEA furniture using augmented reality on an
iPhone.

4. HOUSE AND FLATS:

IKEA has also expanded its product base to include flat-pack houses and apartments, in
an effort to cut prices involved in a first-time buyer's home.
 5. RESTAURANT ANF FOOD MARKETS:

Up until 2011, the first IKEA store featured branded Swedish prepared specialty foods
such meatballs, packages of gravy, lingonberry jam, and a variety of biscuits and
crackers. It began as a tiny cafe that expanded into a full-fledged restaurant in 1960.
IKEA restaurants often provide breakfast and open daily before the rest of the shop.
Every culinary item is based on Swedish recipes and customs. IKEA's revenues are 5
percent made up of food. Despite serving mostly Swedish food, each café has a unique
menu that reflects its geography, culture, and food.

6. FURNITURE RENTALS:

The business revealed in April 2019 that it would start experimenting with renting out
furniture to consumers. One of the driving forces was the idea that cheap IKEA goods
were "disposable," frequently ending up in the trash after a few years of use. This
occurred at a period when consumers, particularly younger ones, expressed a desire to
lessen their environmental impact.

The plan's other strategic goals included being more accessible and convenient. By 2020,
the company plans to test the rental model across all 30 markets with the expectation that
it will increase the number of times a piece of furniture is used before being recycled.

COMPETITORS:

1.WALMART:
A large selection of high-quality products are offered by Walmart. Walmart stores, Inc. is the
company that controls Walmart, which has its headquarters in San Francisco since 2000.
Walmart.com offers a wide range of products in numerous areas.
Walmart sells items in various categories, including furniture. Walmart offers furniture in
every category that is suitable for a home. It comprises mattresses, small furniture, children's
furniture, living room furniture, kitchen furniture, office furniture, and bedroom furniture.
Walmart offers furniture that meets all criteria for a perfect house. Walmart is a well-known
retail company, making it a formidable rival to Ikea.

WAYFAIR:

An American e-commerce company, Wayfair sells home stuff for various kinds of home
requirements online. Wayfair focuses on décor items and home furnishings and they have
more than10 million products that are spanned over 10,000 suppliers.
Wayfair is headquartered in Boston and it has their warehouses and offices spread across
United States, Germany, Canada, Ireland and the United Kingdom. Way provides the
website to the users which are managed in a user-friendly way.
Its interface takes the users to wide categories of indoor and outdoor furniture. The
interface provides the user with a search option for entering the product for a quicker
search.

AMAZON:
Currently, Amazon offers a wide choice of products under one roof as part of its services.
Customers can choose from a variety of furniture categories on Amazon Home. Kitchen
furniture, bedroom furniture, patio furniture, dining room furniture, and storage furniture
are all covered by Amazon Home.
Amazon offers a variety of services to its consumers, including free EMI, simple
installation, free scheduled deliveries, and only authentic goods.
Additionally, it gives customers a large amount of savings. Amazon is regarded as an
Ikea rival because of the huge variety of furniture products it offers.

TESCO:

Tesco is a British business with its main office in England, part of the United Kingdom. It
is regarded as being the biggest store in the entire planet. Tesco employs more than
476,000 people worldwide and has outlets in around seven different nations.
Tesco Home and Furniture provides customers with significant discounts and services.
Tesco offers high-quality luxury goods along with friendly customer service. No matter
what products are purchased, buyers are given the best prices. They sell furniture such as
couches, chairs, coffee tables, side tables, display cabinets, kids' rooms, shelving for
displays, dining tables, and bedroom sets. Tesco is viewed as an Ikea rival because of
their extensive reach and product line.

SEARS:

Sears is a chain of department shops that sells a variety of goods and is also recognised as
a top Ikea rival. In terms of sales, it ranks as the 23rd biggest store in the country.
Customers can choose from a wide variety of furnishings at Sears. Furniture for the
home, yard, patio, outdoor living, home remodelling, living room, bedroom, kitchen &
dining, bar, and children's rooms are all catered to by Sears. Through their customer
service management, it offers the customers a simple approach to purchase.
It enables customers to place orders and offers delivery and installation services.
Additionally, it offers practical choices for debit and credit card payments. Sears is
regarded as one of Ikea's competitors because of the variety of their items and their
customer service.

PEPPERFRY:
Bangalore is the home of the Indian furniture retailer Pepperfry. Pepperfry was
established in 2011 with the goal of allowing customers to purchase from the comfort of
their homes. More than 38 lakh users who have registered on Pepperfry do so in more
than 500 places.
There are numerous items available from Pepperfry, including sofas, accent chairs,
folding and plastic chairs, stools, bean bags, cupboards, shoe racks, TV units, and bar
furniture. In order to put customers at ease, Pepperfry also offers consumers a very
entertaining app that is enriched with top-notch augmented reality features. Pepperfry is
regarded as one of the top Ikea competitors because of their goods and national reach.
 CHAPTER 4
DATA , ANALYSIS AND INTERPRETATION
 CHAPTER: 3

DATA ANALYSIS AND INTERPRETATION

IKEA, home furnishings retailer that was the world’s largest seller of furniture in the
early 21st century, operating more than 300 stores around the world. IKEA specializes in
low- priced goods, sold whenever possible in compact “flat-pack” form for in-home
assembly by the customer. This chapter deals with analysis of consumer perception
towards IKEA.

Data Collection Technique:

Collection of data for the purpose of the research study is in the form of primary data and
secondary data, as the study being empirical in nature. Primary data is collected through
structured questionnaire through random sampling method. 155 respondents have been
asked about their perception towards Ikea. Secondary data was also collected from
different sources such as articles, journals and related websites.
1.CATEGORY OF THE PRODUCT USED

GRAPH: 4.1

INTERPRETATION:-

From the above figure we can find that large number of respondents have purchased
home décor from Ikea i.e., 68%. The purchasers of furniture, textiles and kitchen
appliances share approximately similar percentage which is 45%, 46% and 46%
respectively.
 2.Rate the quality of the product used:

GRAPH :4.2

INTERPRETATION:-

Majority of the respondents are very satisfied by the quality of the product which can be
understood by 34% of them giving “excellent” rating and 49% of them giving “very
good” rating.
3.HINDRNCES FACED WHILE SHOPPING AT IKEA

GRAPH:-4.3

INTERPRETATION:-

From the above graph representation, we can understand that majority of the respondents
agree that Ikea being an out-skirt store is a hindrance while shopping at Ikea. And least of
them agree high price as a hindrance I.e., around 10%.
4.The self-service of Ikea is convenient:

GRAPH:-4.4

INTERPRETATION:-

Majority of the respondents agree that the self- service of Ikea -(where you get your own
goods) is convenient for them.
5. Rate the experience on usage of self-assembling product:

GRAPH:-4.5

INTERPRETATION:-

Overall majority of the respondents are satisfied with their experience on usage of the self-
assembling product which is around 77%.
6.Purchases from online app of Ikea:

GRAPH:-4.6

INTERPRETATION:-

Nearly 56.3% of them purchased from online app of Ikea.

 7. Is packaging provided by Ikea satisfactory:

GRAPH:-4.7

INTERPRETATION:-

43% of the respondents strongly agree that the packaging provided by Ikea is satisfactory
and around 16 % of them are neutral on this take.
 8. Rate the overall experience at Ikea:

GRAPH:-4.8

INTERPRETATION:-

Looking at the bar graph we understand that large set of the visitors have responded
positively to their experience of shopping at Ikea by rating “5” by 42% and “4” by 43%
of the respondents.
 9. Reasons for not visiting Ikea:

GRAPH:-4.9

INTERPRETATION:-

Around 61.8% respondents agree that Ikea being an out-skirt store as one of reason for not
visiting Ikea. The reason of Ikea being an expensive store and non-availability of product is
also a reason for around 20% of the respondents.
10. Visit in future:

GRAPH:- 4.10

INTERPRETATION:-

67.3% of the respondents have expressed their desire to visit the Ikea store in future.
11.Recommend to family and friends:

GRAPH:-4.11

INTERPRETATION:

Majority of the respondents are willing to recommend their family and friends to visit the
Ikea store.
 FACTOR ANALYSIS:

TABLE:1

The KMO measures the sampling adequacy which determines if the responses given with the
sample are adequate or not and it should be close to 0.5 for satisfactory factor analysis to
proceed. Kaiser recommends 0.5 as a minimum value between 0.7-0.8 are acceptable, and
values above 0.9 are impressive. Looking at the table below, the KMO measure is 0.913,
therefore it can be acceptable.

Bartlett’s test is another indication of the strength of the relationship among the variables.
This tests the null hypothesis that the correlation matrix is an identity matrix. An identity
matrix is a matrix in which all of the diagonal elements are 1 and all non-diagonal elements
are 0. From the above table, we can see that Bartlett’s Test of Sphericity is significant. If the
significance is less than 0.05 the significance level is small enough to reject the null
hypothesis. This means that the correlation matrix is not an identity matrix. In this case we
can reject the null hypothesis as the significance of Bartlett’s Test of Sphericity is < .001.
TABLE:2
 CHAPTER:5

FINDINGS, SUGGESTIONS AND CONCLUSIONS

FINDINGS:

 Ikea – a global furniture company has paved way for a complete new experience in
furniture market for consumers.
 Ikea’s product range is around 10,000 products and around 2000 new products are
launched every year. The product line of Ikea is very wide, which ranges from
furniture to technological products.
 Out of 155 respondents, majority of them belong to the age group of up to 20 years
i.e. 42.6% and 9.7% belong to the age group above 45.
 The gender distribution gives an idea that majority of respondents are females
(56.1%) and only 43.9% of them are males.
 Almost 94% of the respondents have heard or has an idea about Ikea.
 Though being known to large number of respondents, only around 65% of them have
visited the store in Hyderabad.
 Around 35% of them list Ikea being an outskirt store as a major reason for not visiting.
 The respondents got to know about Ikea through various sources i.e., internet (18%),
advertisement (17%), family (38%) and around 27% of them got to know about it
through friends.
 Large number of respondents visit Ikea on half yearly basis (39%) and around similar
set of respondents visit the store yearly i.e., 31%.
 Around 20% of them visit monthly once and 10% of them visit monthly.
 Nearly 41% of them are willing to spend 2000rs – 5000rs and around 15% of the
respondents are willing to spend amount more than 5000rs.
 The majority of respondents has used the home décor from Ikea i.e., 70%
 The distribution of respondents who used furniture, textiles and kitchen appliances are
almost equal i.e., 45%, 46% and 46% respectively.
 This shows that majority of respondents prefer home décor from Ikea.
 Almost 35% of the respondents are very satisfied by the quality of the product giving
it an excellent rating and 49% of them gave an “very good” rating.
 Majority of the respondents prefer to purchase Ikea products due to the quality of
products and availability.
 Large number of respondents agree that the major hindrance faced by them while
shopping at Ikea is because of the location of the outskirt store.
 Around 85% of them have used the catalogue provided by Ikea before or during
shopping at Ikea.
 Nearly 86% of the respondents agree that the self- service of Ikea is continent for them.
 85% of the respondents have purchased the self- assembling products from Ikea.
 Around 43% of such users have rated “4” on the experience on usage of self-
assembling products.
 Nearly 43% of them strongly agree that the packaging of products provided by Ikea is
satisfactory.
 Around 6% of them strongly disagree that packaging of products provided by Ikea is
satisfactory.
 Nearly 43% of the respondents rated 5 out of 5 for the overall experience about Ikea.
 Majority of respondents i.e., 87% would recommend to visit Ikea to their family and
friends.
SUGGESTIONS:

 Ikea's layout has to be more segmented so that customers can find specific products
easily.
 Ikea has to make the information about the rules surrounding home delivery more clear.
 Ikea must maintain its capacity to regularly update and reinvent its product lineup.
 The business should consider expanding its product offerings so that customers have a
wide range of choices

CONCLUSION:

Customers' overall, physical and mental perception of a store is known as its "store image." It
is crucial to build this because merchants may use it as a competitive advantage to establish,
move comparable projects, or obtain an unassailable edge in a foreign host market. They may
also use it to evaluate the performance of their marketing campaigns.
The main factors influencing customers to choose Ikea are the costs and the extensive product
selection. Ikea gives clients the option of combining their shopping trip with accompanying
people's social activities. Some customers perceive Ikea's outlying store to be a major
inconvenience when they buy there. Additionally, customers think Ikea's design takes a lot of
time.
BIBLIOGRAPHY
 BIBLIOGRAPHY

REFERENCES:

 Daniyal Ahmed Faheem and Joy Mukhopadhyay - “Consumer perception of Ikea

brand in India”.

 Rebecka Isaksson and Mirela suljanvoc - “The Ikea Experience”, 2006.

 Liem Gai Sin and A.A. Gde Satia Utama and Shweta Pandey - “A case study of the
factors that affect consumer behavior in Ikea”. Asia Pacific journal of Management
and Education Vol. 4 No.2 (2021)

 Ritika Goel and Shraddha Garg - “India as a Marketplace: A Case Study of IKEA".
Dec, 2018.

 Emeli Ranelid and Fbiola Rivera Bello - “Consumer perception of store image: A
study of Ikea and Ilva in Sweden and Denmark”. 2006.
WEBSITES:

1. IKEA to open its second store in India on December 18 | Business News.

https://www.timesnownews.com/business-economy/companies/article/ikea-to-open-
its-second-store-in-india-on-december/690798

2. Why IKEA India picked Hyderabad over Mumbai, Bengaluru, Delhi NCR — Quartz
India. https://qz.com/india/1692282/why-ikea-india-picked-hyderabad-over-mumbai-
bengaluru-delhi-ncr/

3. Why Hyderabad was chosen by IKEA for its first India store | The News Minute.
https://www.thenewsminute.com/article/why-hyderabad-was-chosen-ikea-its-first-
india-store-86330

4. Complete Marketing Mix of IKEA - All 7Ps Explained | IIDE. https://iide.co/case-

studies/marketing-mix-of-ikea/

5. Analysis Of Ikea and Its Products Marketing Essay.

https://www.ukessays.com/essays/marketing/analysis-of-ikea-and-its-products-
marketing-essay.
 ANNEXURE

QUESIONNAIRE:

1. How did you get to know about Ikea*

 Internet
 Advertisement
 Family
 Friends
 Other:

2. How often do you visit Ikea*

 Monthly once
 Monthly twice
 Half yearly
 Yearly

3. What approximate amount are you willing to spend at Ikea*

 Upto Rs1000
 1000 - 2000
 2000 - 5000
 Above 5000

4. Category of ikea products used*

 Furniture
 Textiles
 Kitchen & appliances
  Home decor
 Other:

5. Rate the quality of products purchased from Ikea*

 Poor
 Fair
 Very good
 Excellent

6. Reasons for preference towards Ikea products*

Strongly agree Agree Neutral Disagree Strongly disagree

 Affordable
 Quality
 Wide range
 Availability
 Unique designs
 Offers/discounts

7. What are the hindrances faced while shopping at Ikea*

Strongly agree Agree Neutral Disagree Strongly disagree

 Time consuming
 Quality of products
 High prices
 Outskirt stores
8. Have you used the catalogue provided by Ikea before or during shopping at Ikea
 Yes
 No

9. The self-service of Ikea - [where you go to large showrooms and get your own product] is
convenient for you*

 Yes
 No

10. Have you purchased self-assembling products from Ikea*

 Yes
 No

11. Rate your experience on usage of self-assembling products

1 23 4 5

12. Have you heard of online app of Ikea*

 Yes
 No
 Maybe

13. Have you purchased through online app of Ikea

 Yes
 No

14. How would you rate the online services of

Ikea 1 2 3 4
15. Is the packaging of products provided by Ikea satisfactory*

 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

16. Rate your overall experience about Ikea*

1 2 3 4 5

17. Would you recommend you family/friends*

 Yes
 No
 Maybe

IF NO, THEN:

18. Reason for not visiting Ikea*

 Expensive
 Outskirt stores
 Non- availability
 Quality
 Other:
19. Would you visit the Ikea store in future*

 No
 YES
 Maybe