Mini Case – Practical Application of Value Wedge

IKEA, the Swedish furniture retailer, has been able to sell its products at a price that is perceived to be lower than its main competition. IKEA’s business proposition is that it is able to reduce the cost by passing some of the labor expense to its customers. Furthermore, IKEA points out that most of its customers enjoy assembling their own furniture as it gives them satisfaction of creating a product. IKEA insists that even though their prices are lower than most of their competitors, they do not compromise on quality and their products are highly fit for their intended use. IKEA also claims to be innovative and design conscious and believes in creating what looks good, feels good and lasts longer. IKEA focuses on selling flexibility and gives options to customers in terms of how they want to buy. Mostly this flexibility relates to delivery, furniture assembly and payment. IKEA is highly satisfied with their customer retention rates and even proud to announce, “Once you become an IKEAIAN nothing else will do”. IKEA largely puts down their success to providing value that is driven by the customers and consumers.

Put together a detailed value wedge for IKEA. Describe which key values customers’ get from IKEA and in what shape and form. Also, define the type of customer for whom IKEA products are most appealing and least appealing.

Which is not a recommendation on how an unsuccessful bidder should conduct themself during a debriefing?
Question 60 options:
do not act defensively
attitude should be how to improve in the future
be curious
calmly accept the results
keep asking questions until the desired response is given.
Employer/employee relationships can be avoided by:
Question 59 options:
appropriate language in the contract
ensuring that associated staff understand they cannot give orders or instructions to contracted personnel
contracting with a company
legal counsel advice
all of the above
Which is not fraudulent misrepresentation?
Question 56 options:
a statement made by a person who incorrectly believes something to be true.
Intentionally lying about a product/service in effort to sell it.
Made with intention other party will act on it.
a statement made by a person who does not care if the statement is true or false.
Falsification of present of past fact.