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
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Question
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What is “product value”? Describe the value does IKEA deliver to their customers?

Transcribed Image Text:The words 'environment', 'eco-friendly' and 'sustainable' have been used in many
product and service marketing that represent their eco-friendly characteristics. Terms such
as organic, recyclable, or sustainable are often seen in green marketing campaigns and are used
to influence the customers purchasing decisions.
IKEA is a home furnishing company that is not only producing reasonably priced and
well-built furniture and homeware, but also heavily committed to its green initiatives. IKEA
has implemented the ISTAD bag, which is a resealable bag that can be reused to keeps contents
fresh. It is produced using only bioplastic that is sourced from the sugarcane industry. This
action is expected to save roughly 75,000 barrels of oil a year. Additionally, this year, IKEA
plan to hit the 100% Forest Stewardship Council (FSC) certified wood mark by ensuring that
all of their wooden materials being sourced from FSC forests or from recycled sources.
In 2007, IKEA had no longer offer customers free plastic bags. Instead, they charge
money for plastic bags. This is part of the IKEA project to reduce the number of plastic bags
used by their customers.
BRING YOUR
OWN BAG
We'd really like to see everyone use a reusable bag when
they shop. That's why we now charge 5 cents for every IKEA
plastic bag - money that we donate entirely to Tree Canada
so they can plant more trees.
MORE ABOUT REUSABLE SHOPPING BAGS AT IKEA
The IKEA advertisement above illustrates green marketing that reflects IKEA
environmental responsibility. A part of promoting the 'no plastic bag' policy, IKEA is
actually making extra revenue by charging customers for plastic bags and sell their reusable
shopping bags. They justify the extra income by saying that the customer should limit their
plastic pollution. At the same time, IKEA will also get a lot of goodwill because they are now
"giving to charity" as they give five cents to Tree Canada for every bag sold.
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