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The University of Portsmouth

Faculty of Humanities and Social Sciences

B.A. (Hons) International Business Communication  

Project

How Ikea’s family card to win customer satisfaction

Student number: 750748

Project tutor: Rosemary Jane

Abstract

This report on Ikea Restaurant shall be able to make and influence the decision on how to win their customers. The decision is dictated by the level of competition in the market such that they will need to implore on other methods of interacting with their clients directly. The research conducted will with the help of the questionnaires, also make it possible for Ikea Restaurant to gain the knowledge of the features and the mindset of its clients in a bid to win them over its competitors.

Abstract 2

1.0 Introduction 4

1.1 Problem statement 4

2.0 Research methods 4

2.1 Target population and sample size 5

2.2 Instruments for the research 6

2.2.1 Questionnaire for the research 6

2.3 The collection of data 6

3.0 Methodology 7

4.0 Ethical considerations 8

5.0 Results 9

6.0 Discussion 10

7.0 Conclusions 11

8.0 Bibliography 12

9.0 Appendices 14

9.1 Questionnaire 14

9.2 Literature review 21

1.0 Introduction 

The Ikea brand is a global company with dealing in numerous and different position in the economies (Ikea 1 2015). By this, the description is that the company has dealing in the greater Europe regions, Asia, and the North American markets; the brand has dealings in home appliances and the service industry too. The brand derivative of interest will be Ikea restaurants; they deal in the physical location presence of the United Kingdom having equipped themselves with enough detail in catering for family outing as they offer a good dinning rapport to majority of the client (Ikea 1 2015).

Subject to the competition that is in this market, this report will seek to establish the interest of understanding the customer satisfaction levels in a bid for the company to serve their clients better as per the highlights in (Huang & Sarigöllü 2012, p. 95).

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1.1 Problem statement 

 The market environment has been saturated with many products serving the same purpose in the food industry. This has resulted to increased competition in the market than have become a hindrance to market penetration by a new product or equally having a bigger and safeguarding the shares of a company in the restaurant customer market (Ikea 1 2015).

In the launching of new product in such market fails due to lack of sufficient information about the market place or equally due to poor satisfaction level from previous relationships with the company (Finley et al. 2014, p. 423). This research is therefore aimed at collecting information about the customer market that the Ikea has direct dealing with. This includes assessing the competition in the market that will be facing their products preference and their service quality as per the opinions of their customers. This research therefore aims to ascertain the possibilities of Ikea being successful and their products success in the market based on the competition present (Ikea 2015) 

2.0 Research methods 

This methodology used in this study and its methodology for research is what this chapter will maintain to highlight. Particularly, the methodology chapter is the basis on which the different techniques used for the carry out the study, the sampling technique are identified (Saunders, Lewis & Thornhill 2011, p. 16). In essence, this therefore means that in the identification and the collection of data, this chapter will base its interest in identifying with the procedures of collecting data and the interpretation of the data collected.

Owing to the nature of this research, the methodology will incorporate the use of an interactive methodology of study. This is on the rationale that the interactive methodology of study will enable respondents providing complete information for the research (Saunders et al. 2011, p. 23).

 In this light, the researcher is empowered to examine the effect of the Ikea Brand in the market. In addition, the respondents will be able to give their opinion on the attractiveness of the brand in the market and how they thing will be able to offer a solution to their customers. For the reasons of the credibility of this methodology of research, this interactive methodology of study has been a very essential way of providing accurate information in any research field. Having noted this, therefore, the interactive methodology will provide for correct information thereby enabling this research identify the expected effect and available trends in the customer market and therefore influence their wanted levels of customer satisfaction.  

2.1 Target population and sample size 

This research shall concentrate on about randomly selected respondents. This is based on the need to provide unbiased information on the preference of their customer. To consider on the needs of credibility and the consideration of objective information collected, the respondents will all be of age and no minors will be considered in this population.

The sample size will refer to the intended number of correspondents that the research will wish to handle. As highlighted in the design, the interactive sample size will be of about 50 respondents for this particular survey. The sample size of 50 respondents is expected to be conclusive and equally provide for a good interactive data for the research of the customers in Ikea home appliance and furniture market. This will be based on the assumed expectation that the respondents will be with sufficient knowledge of the markets and they will be in a position to provide an interactive consumer analysis of the competition and win customer satisfaction of this market. The respondents are expected to have sufficient knowledge on the in the market and the products of Ikea to help the researcher assess the customer satisfaction facing the demography market of Ikea.

Equally, it will be important to consider the sample frame, this will be listed as items that the research will be carried from. In other terms, it characterizes the scope of the research. Owing to the large size of the customer base in this market, the sample of the population in the 50 respondents is expected to deliberate as a good representation of this population. For this reasons, questionnaires represent as the fair methods of distributing the 50 respondents on the entire population. These questionnaires will be expected to get the best of the different characteristics of the market therefore enabling the research to also study the characteristics behind the different levels of customer satisfaction.

2.2 Instruments for the research 

The instruments are best described in the aid and the tool of the researcher. This study will implore on the use of questionnaires as the direct interviews method as the basis of collecting objective unbiased information data from the customer’s respondents.

In fact, the questionnaire directed by the research such that the respondents are limited to providing particular views and takes for the subject topic of the research. This approach will particularly be important in asserting that the methodology gets only the intended and relevant degree descriptions of information, this therefore locks out the scope of the research that had not been anticipated for initially.

2.2.1 Questionnaire for the research 

The questionnaires for this research will be formatted as shown in the appendices.

2.3 The collection of data

The data collection process was primarily supportive; this maintained that the questioners were administered within or away from the presence of the researcher. In this case, this was to provide support for the respondent in going through the questionnaires for better understanding and collection of quality information. In essence, the role of the researcher in the collection of the data will be to offer guidance to the interviewees in order to get 100% responses on all the inquiries. This argument will ensure that the research will get even more that the expected information based on the one on one relationship exhibited in the data collection.

On another divide, the research did not explore the use of secondary sources; this was in the position to not alter the findings of the research analysis. This means that the secondary source will only serve the purpose of guiding and in eventuality offer a comparison ground for the data collected. In addition, the research will make use of the secondary sources of data in order to compare the data obtained in the questionnaire as references.

The secondary data sources that include literature, which will avail the factors considered in determining customer’s satisfaction that will enable the researcher analyse the competition among other recorded text on attempting to satisfy the customers.

Interpretation of the data collected will explore on the knowledge of statistics and mathematics. In detail, this will be presented in form of statistical charts and bar graphs that will be essential in making educated judgment from the analysis. This conceptually implies that the data process will not involve the description of adding any more data into the collected information. The analysis will also not be carried out until all data collected has been presented and processed.

3.0 Methodology

The data was gathered in order to create a report about how customers think about Ikea’s loyalty card. This questionnaire was been hold in an Ikea store which is locate in Southampton in 14^th march, 2015.  These researches extend for about one day. And it was invited 50 volunteers to take part in, who are including both sexes, all age groups and careers, etc. In this questionnaire, it can be divided into three main parts; one is about the volunteers’ personal background information, anther is about Ikea information, the last is make a compare between Ikea loyalty card and other loyalty cards.

The research is expected to be cost friendly; this estimate will cater for the whole research process from printing cost, as the collection of data will equally not be inclusive of research assistant in the data collection stages. Equally, the collections cost are friendly owing to the presentation of the use of printed correspondence such that there is no mailing cost for the methodology.

4.0 Ethical considerations

With reference to the consideration of Halse & Honey (2014, p. 125), ethical considerations will be the inference of the manner in which the methodology for research was incorporative of a number ethics desertion in the use, manipulation the interpretation of data. Therefore, the aim of this research to only use the collected information in testing the customer satisfaction levels in the company based on the description of Ikea restaurants. This equally maintain on the position of the safeguarding of information and confidentiality that the collected information was treated with.

5.0 Results 

From the 50 respondents selected randomly, the result have been empirically asserted as follows

75% of the customers are between the ages of 21-40 years

The characterisation of male and female customers almost evens out at 46% to 54%

Majority of the customers in the restaurant come in family groups

Most of the customers prefer coming to the restaurant in the afternoons 32 out of the 50 questioned and equally 75% of these are in the weekends

The restaurant advertisement are well recognised with 50% of the respondents acknowledging that they receive them

Online shopping experience is more valued owing to the interactive customer care and support present compared to the physical shopping [response reveals a 60% bias to online shopping]

 The family card is still struggling with popularity and use with only 39% using the same

Family card user revels of recommendations as the major part of information awareness in the use of the family card.

The probability of the card being used in the future is however high with a 70% positive response.

The customer satisfaction with the use of the card has been recorded as neutral, with 60% of the responses having only used the family in the last 12 months

Other descriptions of the family card popularity held by the clients are those of Holland & Barrette

An overwhelming 88% of the respondents i.e. 44 out of 50 consider that discounts are the main score in having the family card and not loyalty as the Ikea brand had expected.

Cumulatively from the first, five responds on the gender, the age sets, the income expectancy, and the family compositions. The response tends to reflect on the dominance of the female gender in all these positions, with an overall 54% in the female presence. 

9.2 Literature review 

In the reference of clients and market preference, there are a number of details that will be implicit on the manner in which the company will be dealing with their clients. By this, the presentation of different avenues in marketing will be evident. It is therefore very true to consider that in the bid to present their brands as very successful and equally operational, the majority of companies will be interactive of the different position of their competitors (Melewar, Gotsi, & Andriopoulos, 2012, p. 604).

Looking at the description that Ikea will prefer taking, this will be described under the customer care wing of human relationships in business and human resource practice as per (Lee, Lee, & Kang, 2012, p. 30). In essence, this will mean that the company will be interactive of the position that they will take as very important in manipulating the customer ideologies and the customer trend in the market. Equally, as per the description of Vellmure (2010) customer care will be defined under the descriptions of making efforts to make the customer feel appreciated and feel important.

By this the text by Baxter (2012, p. 1250) will equally develop more insights into the description of the position of the role of customers in the market. In essence, this prevails on the positioning of the company to have an understanding in the dealing and the interactions they have with their clients. Therefore, the most important of these aspects will be the communication that the brand has with its customers in their final effort of appealing or equally marketing themselves to the customers (Hüttinger, Schiele, & Schröer, 2014, p. 670).

As per the description of creating a communication with the customers Grissemann & Stokburger-Sauer (2012, p. 1490), business management will be interactive of the methods that they use in communication with the client Gustafsson, Kristensson & Witell (2012, p. 313). Equally, this will also call on the methods that they offer for the client to communicate as per the descriptions of (Teixeira, Patrício, Nunes, Nóbrega, Fisk, & Constantine, 2012). Considering the use of the customer-filled questionnaires, the rationale is that the document is one that is centred in making the communication between the company and the customers and easy description. Therefore, this assets that the methods in any communication or marketing campaign. Any event or action that effective distorts the message of a communication event from reaching the client or the company form any of the two quarters. Holt (2012, p. 34) describes this with the knowledge that it will be true to reflect on the choice of media in creating an environment of understanding for the message.

Looking at this from the traditional angle, companies have been interactive an encouraging their clients to offer feedback and equally get back to their customer care detail in the event of them having any difficulties (Thorbjørnsen & Dahlén, 2011, p. 335) . Neverthless it will be true to conider that very few people will be intrested in hadning ther time and rescouce to get back to the feedback line unless the matter is of importance and urgency. Therefore it is only effective that the brand uses a method that is right for the type of audience and clients that they have.

 Equally, in the development of the customer feedback questionnaires is therefore banking on the reality is that the methods  is only as effective as the audience is in receiving and relaying their message (Bennett, Pierce, Snyder, & Toffel, 2013, p. 1730). It is with this concern that the theory on methods as the content of methods can only directly inspiring to the position of the customer based questionnaires such that the brand is able to collect first hand information on their customer trends, their preferences, and equally the customer thought other than just focusing on the sales in advertisements. Therefore, these methods will be interactive of the imitative of the Ikea group in attempting to understand their customer demographics as per (Chau & Xu, 2012, p. 1190).

Research questionnaires have been describes as getting into the position of listening to the voice of the customer (Wardman, Kelly, & Weideman, 2013, p. 6). By this description, it will be important to identify why the company and the brand will be interested in listening to the voice of their customers in many of these situation. It is with these concerns that the genesis of listening to the customer’s voice was most probably orchestrated in the earlier years. It is therefore with this start that the customer related questionnaires were described as essential to grow your business. In this description therefore the business and in particular Ikea will have to know what its customers want.

Equally, in this digital world of advertisement and communication marketing, the best and most appropriate tool that the business owners and marketers can have for collecting information about their customer targets still describes in the presentation of the questionnaires. Therefore whatever the reason are for the company to involve in the market and customer research, be it to understand the customers' buying habits. Equally, this will be to find out what they think of your products, and generally to identify whether people are aware of the product, the customer-targeted questionnaires will be the best options in to provide this necessary knowledge (Speckbacher & Wentges, 2012, p. 34).

Having noted the importance of these questionnaires it will equally be imperative to assess the direction that should be taken with regards to the formulation of the customer targeting questionnaires. Customers will require some massive descriptions of the company’s interests. Some questionnaires and survey have been very