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Ikea Marketing In Malaysia Marketing Essay

- 211. 0 Introduction

Firstly, customer satisfaction is one of the top strategic issues in the future. Nowadays, many companies use customer satisfaction dimension system that is made available from Research Company to be able to comprehend their customers. By using this system, the business can capture the words from the customer and then predicated on the customers' feedback then increases their products.

In today's market, company needs satisfaction information to make acoustics business decision. Therefore, company must understand the customer's overall satisfaction and then your company will get to know very well what kind of products that the customers are most and least satisfied with. It is because if the customers felt dissatisfied then most likely they will stepped on to the challengers. Hence, client satisfaction is very important in current business community.

According to futurist and corporate advisor, Beliefs Popcorn, a new kind of consumers surfaced in the 90s. They are simply "Vigilante consumers", a fresh generation of very consumers who are smart, discriminating and vocal. They demand value because of their money and expect the companies to be sensible and accountable, when companies don not react; these "Vigilante consumers" can make sure they tell anyone who'll hear why they should not do business with those companies. Therefore, gratifying these smarter consumers just makes good business sense.

In addition, the proposal of this research is a study on the marketing in romance to customer satisfaction on IKEA furnishing company Malaysia. Customers are the main source for the business world. Business cannot run and company also would lose if without the helping of customer. Therefore, many companies are making use of the customer satisfaction measurement to be able to review their customer's degree of satisfaction. Company would have bigger chance to achieve success when they can understand the customer's need, satisfaction and dissatisfaction.

Furthermore, the goal of this study is mainly on to understand the sources of dissatisfaction and the areas that required for improvement. Within this study, some ideas and useful ideas will be proposed. Lastly, when routinely ask customers for opinions and require them in the business, it is also ways to ensure the successfulness of the business.

History of the IKEA Furnishing Company

Firstly, IKEA was founded by Kamprad in 1943. From that point, IKEA has extended to include lots or furniture stores across the world. Inter IKEA system B. V. is the dog owner and franchiser of the IKEA theory. Regardless of their ownership all IKEA sellers worldwide operate on a franchise basis.

IKEA of Sweden Abs is in charge of the whole IKEA product range, thereto commissioned by inter IKEA System B. V. The complete product in the IKEA range is recognized by the label "Design and Quality, IKEA of Sweden".

From inter IKEA Systems B. V. unbiased IKEA Group includes not only most IKEA vendors, but also the product development centre IKEA of Sweden Abs and trading and general companies. The IKEA Group actives are coordinated by IKEA International A/S in Denmark. The IKEA Group is owned or operated with a charitable base in holland.

2. 0 Research Questions

Why customer satisfaction is so important?

How does client satisfaction influence the business?

What will be the variables involve when examining customer satisfaction?

3. 0 Research Objectives

To analysis client satisfaction theory and concept.

To establish advice and ideas for the business.

To measure the variables require when examining customer satisfaction.

4. 0 Books REVIEW

4. 1 Classification of customer satisfaction

According to Leon G. Schiffman & Leslie Lazar Kanuk (2007, p. 9), customer satisfaction is the individual's perception of the performance of the merchandise or service in relation to his / her expectations. They might be a people, tourists, youngsters, retired couples or celebrities. In addition, they could not be looked as one group as their needs is in different ways and hence the service should reflect that.

Nowadays, customer acquired started alert to the importance of quality product and service that acquired provided by a firm. First of all, they will encounters the product or service and then evaluate their experience and lastly decide whether they should purchase the product or service or not. If customers are satisfied with the product or service, they will repurchase again. Normally, they will stepped on to the opponents.

The expression satisfaction is derived from the Latin Satis (good enough) and Facio (make). The Oxford dictionary goes on to further illustrate it as fulfillment, going out of nothing to be desired, to be content or thrilled. However, to research in client satisfaction it's important to move beyond more fulfillment or satisfaction.

Philip Kolter (2006) explained, client satisfaction is a person feeling of pleasure or disappointment caused by comparing something perceived performance in relation to his or her prospects. From here, we can plainly understand that customer satisfaction is dependant on the performance in the regards to the customer goals after purchased. In case the performances are declining short of anticipations then your customer will be dissatisfied. Besides, if the performances surpass the expectation of customer they will be highly satisfied or delighted.

4. 2 Why client satisfaction is so important?

Firstly, customer satisfaction will influence whether the customer will do it again buying products form the same company or not. If customers are positioning positive evaluations, they'll much more likely to repurchase the merchandise again. However, if they are holding negative evaluations, they'll unlikely to buy again.

Besides, customer satisfaction will condition world-of-mouth communication. It'll affect consumers' future purchase habit, post-consumption assessments and other conducts as well. Therefore, we're able to not underestimate the powerful of world-of-mouth.

In addition, negative consumption experience will reduce the odds of do it again buying and it will also lead customers to say unflattering things when discuss their experiences with others. Hence, it proved that customer satisfaction is very important for IKEA. It is because IKEA customer will directly promote IKEA by word-of-mouth advertising no matter they may be satisfied or dissatisfied customer. No doubt, nowadays this is the most reliable advertising method.

Figure 1: The Customer Satisfaction- Price Sensitivity Relationship

Furthermore, client satisfaction can lower consumers' price sensitivity. It is because relating to Blackwell, et al. , (2006) said that typically the more the client value something, a lot more they are prepared to pay for it. In market, many companies can do lots of customer research or survey in order to understand more about the client needs, desires and satisfaction. They discovered that if indeed they promptly follow-up and solve the customer's complaints, the customer may become more likely to do business than those who didn't have a issue. Therefore, high client satisfaction makes money and enhances the company's success.

4. 3 How does customer satisfaction influence the business enterprise?

In today's fast-paced and quickly changing business environment, monitoring and controlling customer relationships is critical. In highly competitive market, it is more and more very important to organizations in order for them to understand their customers' needs and offered something to fulfill their needs.

One of the ways to understand the client is to keep an eye on satisfaction using their purchase and consumption experiences. Whenever a customer is satisfied, it could helps to increase the possibility that he / she will retain commitment and create a long-term marriage with the company. The reason why that company wanted to maintain the loyalty of customer and boost the long-term profitability for the organization could it be will lead them to the successfulness of the business enterprise and they would able to extend their market.

Besides that, today marketing must realized not in the old sense of earning a sale-"showing and selling". However, is in the new sense of gratifying customer's needs. When the marketer does a good job in understanding customers' needs, producing products that provide superior value and prices, distributing and promoting them effectively, the merchandise can sell very easily. Hence, it will influence the business enterprise in increasing more profitability and obtaining a objective and vision assertion in the future.

Many companies are also knowing that losing a person means more than loosing a single sale, this means losing the entire stream of buys that the customer would make over an eternity of patronage.

On the other hand, a good new product idea originates from watching and hearing customers. The business can conduct surveys or focus teams to learn about customer needs. It can help to analyze the client and meanwhile it could able to discover ways to meet the customer.

Finally, customer is often creating services and use on their own, and companies may benefit by finding these products and putting them on the market. To satisfy the client is also good source of ideas for new uses for existing products that can extend their market and prolong their life (Kotler & Armstrong, 1997).

However, customer can also influence all the business with an advantage from stable romantic relationship with suppliers. Business buyers have discovered that partnerships with suppliers. Business customers have found that partnerships using their suppliers are crucial in producing high-quality products while trimming costs. Customers continue to be loyal to businesses that provide them with better value and therefore satisfaction will come in a number of forms ranging from financial benefits to a sense of health or self-confidence in a provider to structural bonds (Lamb, Locks & McDaniel, 2000).

Therefore, the customer satisfaction can impact the business. It will then leads the companies to become more successful in the foreseeable future, for today key issues in developing competitive advantage include creating customers value, preserving customer satisfaction, and building long-term interactions with customer.

4. 4 What are the variables entail when examining customer satisfaction?

4. 4. 1 Marketing Mix

The marketing mixture is one of the major principles in modern marketing. It really is thought as the group of controllable tactical marketing tools-product, price, place and campaign - that your firm blends to create the respond it wishes in the mark market to be able to meet to the client (Kotler & Armstrong, 1997)

An effective marketing program mixes all of the marketing blend elements into a coordinated program made to achieve the company's marketing target by delivering value to customer. The marketing blend constitutes the business's tactical tool kit for building strong setting in target market. Then, successful marketing mixes have been carefully made to satisfy marketplace and can also satisfy the customer in order to achieve competitive success.

4. 4. 2 Competitive Position

In any industry, be it attractive or not, some organization will usually outperform their competitors. It is vital for a firm to have competitive advantage to be able to endure (Raymond, 2000). To take action, the firm must position itself appropriately. Competitive positioning is the ability of the business to select the appropriate generic strategy for its industry, and configure its value-adding activities in support of it, which will generate competitive benefits (Stonehouse et al, 2000)

The placement of the business could be more helpful than another regardless of the profitability level (Passemard and Kleiner, 2000). Lindahl and Beyers (1999) also emphasize the value of positioning, "while many factors contribute to a firm's performance - stable performance within a particular marketplace is finally driven by how the firm positions itself in relation to providers of similar services. " Everything else being equivalent, performance outcomes are associated with organizations seeking the right competitive strategies.

"At the heart of placement is competitive benefit" is Porter's (1998a) opinion. Porter shows that a firm that can position it well may earn high rates of go back even though industry framework is unfavorable and the common profitability of the industry is therefore modest.

Competitive analysis gives a marketing strategist a sense with their organization's respective advantages and weaknesses, which, in turn, may suggest opportunities for differentiation. Relating this information to the internal corporate evaluation should suggest which benefits should be offered to which target market segments. This research should think about both immediate and indirect competitions.

However, competitive evaluation can provide you a common sense of how opponents might be likely to work. If chances seem to be high a stronger competition will proceed to take up the same market with an excellent service notion, then it would be wise to reconsider the situation (Christopher H. Lovelock et al, 1998)

This competitive research should be involvement take in orders to research of the client satisfaction because to reach your goals of our own business, a firm must know opponents does their business gave faces to be able to offers a higher customer value and satisfaction then its opponents do. Thus, marketers should do more then simply adept to the needs of concentrate on customers. They also must gain tactical advantage by placing their offerings highly against challengers' offering in the thoughts of customers.


5. 1 Research Design

According to Cooper & Schindler (2001), research design is to create the research in a way that thought as the blueprint for satisfying research purpose and responding to questions. It really is an essential requirement of all study because inaccurate information in data collection can produce the invalid results in the end of the study.

5. 2 Theoretical Framework

Figure 2: Marketing Mix

The theoretical platform that is used to evaluate the info gain for this research is the marketing mix. The marketing mix was chosen this because this platform provides the chance to measure the marketing mix patterns the role of marketing within all types of organizations, both earnings and nonprofit. Each component in the marketing tools product, price, place and campaign, includes many sub elements. Marketing managers make many decisions predicated on the many sub components of the marketing combine, all in an attempt to fulfill the needs and wishes of consumers.

This function of the Marketing Mixture is to help IKEA Furnishing Company Malaysia create a package (mixture) that won't only gratify the needs of the customers within the prospective markets, but at the same time to maximize the consequence of the business.

5. 3 Type of Data collection

The most practical method used to get information would be extra data collection platform on the nature of the study title. Matching to Ghauri and Gronhaug (2005), cited from Saunder et al (2007), stated that the key advantage of using secondary data to answer the target and research question would help in saving valuable source of information especially money and time. Moreover, as compared to major data collection, secondary data collection would undoubtedly be significantly less expensive (Saunders et al, 2007)

According to Wild hair et al (2003) in addition has claimed the extra data collection is often free of charge or it can be purchased for a much cheaper price as compared to female data collection. In this proposal is highly based on extra data collection. By firmly taking under consideration of the limited the perfect time to span and other costs at principal data collection as well as the sufficient source of information designed for data gathering at extra data collection, the writer decided to conduct secondary data instead of key data. It shows different features of secondary data to support author to find the data.

May have fewer source requirement

According to Ghauri et al (2002), suggested that it's enormous in conserving resources, especially author time and money. And also enable author analysis way larger data collections such as those accumulated by government surveys.


Stewart and Kamins (1993), said that secondary data will tend to be higher-quality data then could be obtained by collecting author own self, and provide unobtrusive solution. Furthermore, Cownton (1998) refer to this advantage as eavesdropping, emphasizing its benefits for hypersensitive situations.

Longitudinal studies may be feasible

For many research study time constraints means that secondary data provide the only possible of starting longitudinal studies. (Saunders et al, 2003)

Can provide comparative and contextual data

It means that publisher can place his own studies within a more general context or additionally, triangulate author's findings beside, secondary data including the census can be used to assess the overall of finding, quite simply how representative these data objective of exploring such relationship.

Permanence of data

Secondary data generally provide a source of data which is both permanent and available in an application that may be examined relatively easily by others, it also demonstrates the info and the study finding are usually more open to open public scrutiny. (Denscombe, 1998)

Table 1: Benefits of secondary data

5. 4 Measurement

Acquire relevant and reliable secondary data is an important part of the research. Therefore, most of the info has been gain from the research booklet which can found in KBU International College or university library. Moreover, other information form journal and article has been acquire form on-line which is Anglia Ruskin college or university catalogue, Emerald website, British isles library, EBSCO Learning resource, Yahoo Scholar and other databases. The info search has been performed using computer and manual types of procedures on a variety of sources the following. In collecting data more importance was supplying to the internet, as it allow faster information handling and option of up-to date credible educational article and information.

5. 5 Sources of Secondary data

The sources of Secondary data use are as follows:

Reference book

Article printed in professional Journals

Magazines and newspapers

Thesis and Dissertation of other authors

World Wide Web

6. 0 Restriction of Study

As the research method in this proposal is based on secondary data, there will have some limitations to be looked at. Saunder et al (2007) implies that there are circumstances where supplementary data might not be straight relevant or obsolete, and also it could be of essential importance exploratory research, as it provides a broader knowledge of the topic from an overall perspective.

Furthermore, the scope includes everything from the sort of study, the analysis setting, the dimension, the sampling design and even the evaluation. There are specific secondary data gathered might not exactly match to the research needs, available of information is limited.

Gantt Chart

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