The
Business School – Campus Harstad Determinants
of the consumer loyalty A
study of IKEA
— Bachelor
thesis in Advanced Marketing, June 2016
Valerija Nezjenskaja
Abstract
Title: Determinants of the consumer loyalty: a study of IKEA.
Level: thesis for Bachelor Degree in Advanced Marketing
Aim: The purpose of this paper is to examine which factors determine the consumer loyalty behavior. Furthermore, I will focus on Swedish; more specifically, I will study the case of IKEA mall in Stockholm. Accordingly, I will pay main attention to the international business in this study.
Method: As far as I expect that study paper to be expository and clear, I decided to follow the qualitative method. I will conduct interviews in Stockholm in order to collect information and get a real feedback from consumers. In addition, the case study method will be helpful with an eye to think over gathered data.
Findings: While studying the consumer loyalty issue, such indicators as quality of services, communication with customers and commercial become significant for businesses. Besides that, reliability and commitment play a big role in success of a company too. Furthermore, Swedish market has its own distinctive features (for example the way of consumer classifying or realizing consumer loyalty strategy), what makes this case study specific. Lastly, some problematic issues of customer loyalty strategy are considered.
Contribution: I will highlight the customer loyalty strategy problematic in that paper and give an importance to specialty of the Swedish market. Consequently, the objective point of this study is to give an extensive view of customer loyalty strategy in the Swedish market.
Key words: consumer loyalty strategy, IKEA, Swedish market.
Content Table
1. Introduction……………………………………………………………………………… 4
1.1. Background....................................................................................................................... 4
1.2. Consumer loyalty definition.............................................................................................. 5
1.3. Objective statement........................................................................................................... 5
2. Literature Review………………………………………………………………..………. 7
2.1. Components of consumer loyalty...................................................................................... 7
2.1.1. Measurements of loyalty................................................................................................ 8
2.1.2. Consumer pyramid model............................................................................................ 14
2.2. Useful side of consumer loyalty...................................................................................... 15
2.3. Towards achieving consumer loyalty.............................................................................. 17
2.3.1. Does my company need it? .......................................................................................... 17
2.3.2. Ground basis of consumer loyalty................................................................................ 18
3. Methodology…………………………………………………………………………….. 20
3.1. Preserving the consumer loyalty...................................................................................... 20
3.2. Specialty of Swedish market............................................................................................ 22
3.3. Research aim.................................................................................................................... 23
3.4. Research method.............................................................................................................. 24
3.5. Information gathering...................................................................................................... 26
3.6. Information analysing...................................................................................................... 27
3.7. Foundation and trustworthiness....................................................................................... 28
4. Analysis………………………………………………………………………….………. 30
4.1. Background of IKEA....................................................................................................... 30
4.2. Interview outcome of IKEA in Stockholm, Sweden........................................................ 31
4.3. Case analysis of IKEA in Stockholm, Sweden................................................................ 34
5. Conclusion………………………………………………………………………….……. 37
5.1. Response to research problematic.................................................................................... 37
5.2. Recommendations for further study................................................................................. 39
Appendix…………………………………………………………………………………… 40
Reference................................................................................................................................ 42