Review Retailing view 18.2 about customer service at IKEA. How does this retailer utilize a self-service model as a competitive advantages strategy, compared to traditional furniture stores? RETAILING VIEWIKEA a global furniture retailer based in Sweden, employs aconcept of service unlike that of traditional furniture stores.The typical furniture store uses a showroom to display someof the merchandise the retailer sells. Complementing the in-store inventory are books of fabric swatches, veneers, and al-ternative styles from which customers can order. Salespeopleassist customers in going through the books. When a cus-tomer makes a selection, the order is placed with the factory,and the customized furniture is built and delivered to the cus-tomer's home in six to eight weeks. This system tailors thefurniture to the specific customer's preferences, but it in-creases costs and prices. Sales associates need to spend timewith customers, helping them "design" the furniture they wantretailers need to recover the cost of delivering the furnitureto the customers' homes; and customers must wait weeks toget the furniture.18.2Customer Service at IKEAIn contrast, IKEA uses a self-service model based on exten-sive in-store displays and information. At information desks inthe store, shoppers can pick up a map of the store, plus a pen-cil, order form, clipboard, and tape measure. Every productavailable is displayed in over 70 roomlike settings throughoutthe 150,000-square-foot warehouse stores. Thus, customersdon't need a decorator to help them picture how the furniturewill go together. Adjacent to the display rooms is a warehousewith ready-to-assemble furniture in boxes that customers canpick up when they leave the store. After studying displays, cus-tomers proceed to a self-service storage area and locate theirselections using codes copied from the sales tags.ap-Although IKEA uses a "customers do it themselves"proach, it also offers some services that traditional furniturestores do not, such as in-store child care centers, restaurantIKEA effectively uses standardized services through itssignage and information in displays and on the merchandise.FinalClarserving fast food, and extensive information and displays aboutthe quality of the furniture. Toddlers can be left in a supervisedroom filled with 50,000 brightly colored plastic balls. There arechanging rooms in each store, complete with bottle warmersand disposable-diaper dispensers. Displays cover the quality ofproducts in terms of design features and materials, with dem-onstrations of testing procedures.Sources: "Ar IKEA, Kids Play in Free Day Care as Parents Shop inPeace." Orlando Sentinel, July 15, 2009; Bo Edvardsson and Bo EnquistValues-Based Service for Sustainable Business Lessons from IKEA (Oxford.UK: Routledge, 2008): www.ikea.com/ms/en_US/customer_servicesplash.html (accessed Jun 2010)

The strategy of an organization determines its long-term priorities and course of action. It assists…

Answered: Review Retailing view 18.2 about…

Review Retailing view 18.2 about customer service at IKEA. How does this retailer utilize a self-service model as a competitive advantages strategy, compared to traditional furniture stores?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Similar questions

Solve the all subparts Shopee Company thank u. Please solve and no reject thats not essay this complete question
In terms of both features and non-features, what do you believe an ideal online store would need to succeed?
Name the Major store retailer types?
Name the three types of full-service wholesaler.
Describe the major types of retail stores. Give an example of each.
6.What is instant messaging (IM), and howcan it support business operations? Whichtechnology does IM replace or augment inonline retailing?
Today’s retail world is increasingly moving online in an effort to woo customers. Research and identify a retailer from each of these three types: (1) brick & mortar: on-ground presence only, (2) brick & click: on-ground and online presence, (3) click & buy: online presence only. Describe the structures of each of these three firms in terms of the six key elements given in the chapter. Draw a generalized organizational chart for each type of retail organization based on your research.
Choose three different online retailers and highlight two examples of differentiation in each.
How does a traditional specialty store attract customers?
• What do you think is the challenge faced by omnichannel retailing? • What are the advantages over traditional retail models? • Do you have examples from your workplace or industry to share about this experience?
Map ad describe Zara's value chain (use the basic categories of retailing, design and order administration, production and distribution systems)
List the types of Retailers and Retail Operations?