we have to answer these questions according to case study

do this one

IKEA ADAPTS FOR GLOBAL MARKETS IKEA is a well-known Swedish retail company that sells low-cost stylish furniture that is purchased in a fiat-packed form and usually assembled at home. It is known for simplistic, clean lined Scandinavian style. IKEA has large warehouse-style stores throughout the world. Although there are differences in various regions, the stores are typically set up into 'rooms' that show the furniture arranged as it would be in homes so visitors can experience it. They also host kid-friendly play areas and cafeterias with Scandinavian foods as well as some local dishes. IKEA stores are often destination shopping centers where consumers frequently travel many miles to visit and spend the day enjoying the experience. IKEA executives believe one reason for IKEA's success is it listens to its customers needs and wants to create value However, the exact Swedish model does not translate well into all cultures So the company takes plenty of time before entering a market to make sure it is done right. Even so, IKEA has encountered some missteps Years often are spent conducting extensive market research and ethnography (the study of local customers and cultures), both before and after entry into a new market IKEA researchers visit surrounding homes and talk with numerous consumers to discover local tastes, preferences and ways of living They also pour over market reports and perform company and consumer surveys. These practices allow IKEA to attain success in a variety of different cultures with dissimilar tastes and values through local adaptations Adaptations can be found in many areas, including catalogues products pricing and shopping styles According to IKEA's Chief Executive Most people don't really know and can hardly imagine that we based in the middle care domniemand According to IKEA's Chief Executive: "Most people don't really know and can hardly imagine that we visit thousands of homes around every store in the world every year. We sit down in the kitchen and talk to consumers. That's the way we try to learn and understand what are you annoyed with? What are your frustrations? What would you like to have? How much can you afford? What are your alternatives? CATALOGUE ADAPTATIONS Each year, IKEA distributes a catalogue in each of the countries in which it is located This is a massive undertaking, especially considering the vast array of lifestyles and values across the various markets For example, in 2017 IKEA distributed 203 million copies of its 324-page catalogue. There were 72 different versions specific to various regional cultures, IKEA's extensive research allows for tailoring the communication and imagery to best target consumers in a given region. There are many different types of kitchens throughout the world and the images attempt to fit the norms of the locations where consumers are viewing the catalogues. For example, in China kitchens are smaller than in Canada IKEA modifies its catalogue photos and in-store kitchen models to reflect the smaller kitchen size as well as other important aspects appealing to Chinese consumers. Other changes are more dramatic, such as the addition for orthodox Jews in Israel. In the Israeli version no female models are included in the photos. Instead, all models are male and some are studying religious texts. The 2011 and 2012 versions for Saudi Arabia similarly omitted female models, or in some cases the images for the Saudi editions contain no models at all This omission of women in these versions was meant to appeal to those male-dominated cultures However after consumer protest, IKEA had to issue apologies in both instances and recognize such practices are not consistent with IKEA's values This is their 2017 statement "We realize that people are upset about this and that the publication does not live un to what IKEA stands for and we apologize for this. We will make sure that future This is their 2017 statement "We realize that people are upset about this and that the publication does not live up to what IKEA stands for and we apologize for this. We will make sure that future publications will reflect what IKEA stands for and at the same time show respect for the community PRODUCT ADAPTATIONS Marketing research and talking with consumers reveals several adaptations to product offerings in Canada IKEA quickly learned that homes are much larger and Canadians prefer their household furnishings to be larger as well Curtains are made longer, sofas are made deeper, spaces and kitchen cabinetry are widened to accommodate Canadian appliances and tableware is enlarged Upon first entry, IKEA executives pondered why they were selling unusually high numbers of vases. It did not take long to realize Canadians were buying them as drinking glasses because the actual initial drinking glasses offered were too small for Canadian taste. Also, IKEA stores initially lacked large tables and serving platters to accommodate large groups of people because Thanksgiving was an unfamiliar concept. IKEA performs this type of research even within regions of the same country Recently IKEA felt it may have been out of touch with the large Hispanic population in California After visiting many homes IKEA made product adaptations such as adding more bold colours Likewise, IKEA found several differences in regional tastes values, and preferences in India that shaped product offerings. The market research revealed that Indian consumers prefer home furnishings with Vivid colours the family life centres around the sofa in the living room where they eat their meals do homework and even sleep and Indians do not enjoy the do-it-yourself culture in response products offered in the Indian market are adopted to have more vivid colours in contrast to the Scandinavian versions where white and beige colour schemes are preferred. Sofas also are redesigned so that they are expandable for sleeping and entertaining and collapsible for maximizing space. Finally, delivery, assembly and installation are highlighted to overcome the aversion to do-it- yourself culture Likewise, IKEA found several differences in regional tastes, values, and preferences in India that shaped product offerings. The market research revealed that Indian consumers prefer home furnishings with Vivid colours, the family life centres around the sofa in the living room where they eat their meals, do homework, and even sleep, and Indians do not enjoy the do-it-yourself culture. In response, products offered in the Indian market are adopted to have more vivid colours, in contrast to the Scandinavian versions where white and beige colour schemes are preferred. Sofas also are redesigned so that they are expandable for sleeping and entertaining and collapsible for maximizing space. Finally, delivery, assembly, and installation are highlighted to overcome the aversion to do-it- yourself culture PRICING ADAPTATIONS In China, research shows key differences from other regions Chinese consumers are highly price sensitive to products for domestic consumption, like household furnishings, and they view shopping as an experience more so than many other cultures. Chinese people are willing to pay a price premium for more visible Western brands, such as automobiles and Starbucks coffee. However, furniture is a much less conspicuous form of consumption. Additionally, there are many low-cost competitors of household furnishings in China. Therefore IKEA had to reduce prices by about 50% before Chinese sales really took off It was a successful strategy though, as evidenced by IKEA becoming the largest foreign commercial land owner. An average Saturday in the Beijing IKEA sees about 28,000 visitors, which approximates the weekly average in European stores. SHOPPING STYLE ADAPTATIONS Many Chinese visitors enjoy the shopping experience but do not make a purchase. In fact in contrast to IKEA stores in other countries, China's IKEA stores are often filled with people sleeping in the model Question 8 (5 points) Utilitarian and hedonic values influence the choses that Chinese consumers make when shopping at IKEA Select either Utiltarian or Hedonic Value for each of the following Large displays of rooms with design ideas for consumers Sampling of products shoven on display encouraging trial 1. Utilitarian Low, competitive prices 2. Hedonic Beds to sleep in Large selection of products Question 9 2 points Which of the following in trends in an sensitive to products for domestic consumption, like household furnishings, and they view shopping as an experience more so than many other cultures. Chinese people are willing to pay a price premium for more visible Western brands, such as automobiles and Starbucks coffee. However, furniture is a much less conspicuous form of consumption. Additionally, there are many low-cost competitors of household furnishings in China. Therefore, IKEA had to reduce prices by about 50% before Chinese sales really took off. It was a successful strategy though, as evidenced by IKEA becoming the largest foreign commercial land owner. An average Saturday in the Beijing IKEA sees about 28,000 visitors, which approximates the weekly average in European stores SHOPPING STYLE ADAPTATIONS Many Chinese visitors enjoy the shopping experience but do not make a purchase. In fact, in contrast to IKEA stores in other countries, China's IKEA stores are often filled with people sleeping in the model beds and on the sofas It is not uncommon for whole families to pile into the bedroom displays alongside strangers to nap and then go eat in the IKEA cafeteria after waking Chinese IKEA management welcomes them because they will likely become customers later and by allowing visitors to spend the day in the store resting and enjoying the air conditioning, IKEA is accommodating local culture and building brand relationship Ikea is committed to understanding its customers by continuously engaging in forms of marketing research to keep in touch with their needs, preferences, values in regions and countries where IKEA is located and those in which it may potentially enter Question 1 (5 points) IKEA retail stores have very specific atmospheres. Select either Functional Quality or Affective Quality for each of the following that contribute to the atmosphere provided in the store Question 4 (2 points) As mentioned in the case, IKEA displays its products in rooms". For example, while shopping at IKEA, you will see a complete kitchen, living room dining room, bathroom, etc. which IKEA feels is the best way to display all its products. Normally you are required to pass by each of these rooms in order to get through the store Imagine you were shopping at IKEA and pass by one of these rooms. Explain how this type of layout in the store can lead to you exhibiting impulsive shopping behaviour Give an example of a specific situation using IKEA as an example, including the product. (2 marks) Question 5 (2 points) Like all retailers IKEA is concerned about Cognitive Dissonance, especially for their products that are considered high involvement which of the following is NOT a cognitive dissonance reduction strategy that consumers can adopt to lessen their feelings of discomfort posl-purchase seek negative information about the alternative selected return the product 12 minimize the perceived importance of the decision 15 complain about the experience to have their complaint resolved Question 6 (3 points The case od good example Resort Rela Eestic and add the back XEA Cherattata Question 9 (2 points) Which of the following emerging trends in family structure should IKEA pay attention to when deciding which products and services to include in their stores in Canada; and how to advertise to Canadian consumers? Increase in the following: divorce rates, two person households, homosexual households, and blended families Increase in the following: divorce rates, blended families, lone-parent households, homosexual households and one person households Increase in the following: divorce rates, children living at home, lone-parent households, and one person households Increase in the following: divorce rates, lone-parent families, two person households, and pets as children Question 8 (5 points) Utilitarian and hedonic values influence the choices that Chinese consumers make when shopping at IKEA. Select either Utilitarian or Hedonic Value for each of the following Large displays of rooms with design ideas for consumers > Sampling of products shown on display encouraging trial 1. Utilitarian Low, competitive prices 2. Hedonic Beds to sleep in Large selection of products