Analysis of Customer Service and Problem-Solving Practices in IKEA

This report examines IKEA's customer service and problem-solving practices, focusing on strategies for customer satisfaction and loyalty in a competitive market. It identifies key strategies such as providing high-quality services, utilizing unique pricing strategies, and employing technology for marketing and customer engagement. The report also analyzes how IKEA addresses dissatisfied customers through improved material quality, simplified assembly methods, and effective communication channels. Furthermore, it explores new strategies like omnichannel approaches to enhance customer experience and foster brand loyalty. The research employs a quantitative method to evaluate these strategies and provide insights into IKEA's customer service effectiveness.

CUSTOMERS SERVICES AND PROBLEM
SOLVING PRACTICES IN IKEA

Table of Contents
CHAPTER 1 INRODUCTION.......................................................................................................3
CHAPTER 2 Literature Review......................................................................................................4
CHAPTER 3 Research Methodology..............................................................................................7
CHAPTER 4 DATA ANALYSIS.................................................................................................10
CHAPTER 5 CONCLUSION AND RECOMMENDATION......................................................20
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................3
WBS.............................................................................................................................................3
GANTT CHART.........................................................................................................................3
ETHICAL FORM........................................................................................................................5

Title: To identify the Customers services and problem-solving practices in IKEA
CHAPTER 1 INRODUCTION
Background
Due to pandemic it has been seen that business environment has been changed and
companies has to come up with innovative idea in order to sustain in the competitive
environment. Along with this, it has been seen that during and after pandemic there has been
drastic shift in the customer taste and preferences such as they are buying product with low
prices and essential elements in order to fulfilling their needs. Moreover, customer satisfaction is
one of the primary elements that contributes in business success. It has been found that in order
to keep their customer satisfied and loyal firm need to focus on finished products and services in
order to grow their business in positive manner (Pande and et.al., 2022). Along with this, when
the company has large customer bases it is able to earn huge profit and by fluffing the needs of
consumer organization will be able to increase their sales and revenue. Although a successful
business tries to focus on getting consistent sources of income and stabilized in competitive
market area. However, continues loss of business will affect the sales of the organization. So
firm has to focus on creating positive image in the market through providing customer care
services as it will allow the organization in focusing on market demands that will increase
positive brand name.
The present study has been based on IKEA is one of the largest seller of furniture of
houseware and it creates their own products and sell them worldwide. The vision of the company
is to provide people with good quality of products and services (Song and et.al., 2022).
However, the business idea of company is to offer wide range of well-designed home furnishing
products and services which are affordable by customer. In addition to this, study focuses on the
issues faced by the company regarding their customer services and there will be analysis of
various consumer services strategies which can be used IKEA in order to solve their problem.
Aim: To evaluate the strategies used by Ikea to provide customers with good service and how
do they solve the problems with dissatisfied ones.
Objectives:
 Identifying the best strategies that IKEA use to make happy its customers.
 Analysing how IKEA deals with dissatisfied customers.

 Identifying what are the new strategies that the company is developing to provide an
unforgettable customer experience to its customers.
Research Question
1. What are the best strategies for the satisfaction of the Ikea customers?
2. How does Ikea deal with bad customer service?
3. What new strategies IKEA developing to provide an unforgettable customer experience
to their customers?
Rational
The research focus on analysing the importance of customer satisfaction strategies within retail
sector. Along with this the main motive behind making use of this topic is to identify specific
strategies in order
CHAPTER 2 Literature Review
Theme 1 Identifying the best strategies that IKEA use to make happy its customers.
IKEA is one of the famous brand of furniture and it has been trying to increase their range of
customer day by day so that sales can be increase in positive manner. Along with this, Sun and
et.al., (2020) has define that IKEA customer approach is based on providing high quality of
services to them while purchasing. It’s been accomplished to overload the senses of customer
inside the store. This tactic is known as promise reward that states everything in store has been
designed to attract customer and to improve their IKEA experience. Similar views have been
Abayomi and et.al., (2019) stated by IKEA in which change in pricing strategy has been changed
by the company in order to be unique and innovative. The pricing strategy has been focused on
the need and demands of the targeted audience. Although the company make use of unique
tactic such as making use of technology in which content related to product and services has
been promoted by IKEA on various social sites in order to encourage experience of customer.
IKEA make use of advertising and online marketing in order to reach the targeted customer. The
company sells furniture and household goods at reasonable price and this strategy has
contributed in achieving success. Moreover, the company currently making use of traditional
advertising strategy in which it makes use of social media for promoting their products and to
cover large area of market. It also makes use of advance technology in the store such as E-billing

and digital payment so that time of customer is not waste and it do not have to wait in long
queue. Moreover, Abayomi and et.al., (2019) has stated that for attracting demographic company
make use of American Flag draped on the ceiling of each store which is one of the excellent
example of advertising and attracting the customer worldwide. Thus, it can be state that
marketing strategy of IKEA is low prices and quality services. It tries to make their item look
cheaper as compared to competitors and it also target lower income consumer segments and it try
to come up with new ideas that are not very expensive so that customer can be attracted. Sun and
et.al., (2020) it has said that company conduct online campaign in which it records their daily
routine and give their expert advice so that customer can buy right furniture. This strategy has
helped the organization in dominating their home furnishing retailer globally and in increasing
the rang of their customer in effective manner. Along with this, it can be said that organization
make use of effective marketing strategy in order to increase their range in the customer growth
as well as to improve their overall growth in effective manner.
Theme 2 Analysing how IKEA deals with dissatisfied customers.
According to Mehrolia, Alagarsamy and Solaikutt, (2021) dissatisfied customer damage the
brand name of the organization in negative way as well as decrease the sales. Along with this, it
has been seen that IKEA has been facing lots of complain regarding their services and now it is
trying to improve the quality of the material in order to make the change. The company is trying
to make use of new method od building the furniture in which less complicated process has been
used. It is known as wedge dowel in which fitted groove is created for each piece so that
different part can be used together. There will be no complicated directions and the service will
be provided quickly to the customer and their experience can be improved. In addition to this,
IKEA has been working on the assembly method will also be address properly so that products
and services can be reached to the audience in effective way. Similar view has been expressed
by Belanche and et.al., (2021) that change in the functional unit of business will represent huge
win for the customer as it can get details regarding certain building pieces of furniture will be
shared on social media, articles and on IKEA customer service channels. In addition to this,
company try to listen to their customer so to make them happy and keep them stay loyal towards
firm. The furnishing company has to find innovative way of campaign like finding the median of
communication.

Similar views have been presented by NAVAVONGSATHIAN and et.al., (2020) that feedback
need to be acknowledge as it is one of the most effective way of dealing with unhappy customer.
Although their services need to meet up with their expectation as it has been seen that when
quick remedy is provided to customer it can be transfer into happy one. Thus, if proper
communication has been made then it will allow company to improve their customer experience
in effective way. In addition to this, refund need to be given to targeted audience so to reduce
negative reviews in the market area. Big offers like buy one get one free need to be given to
customer so that it buys more and more products. Although a customer service team need to be
hire so that it can review the negative comments and other issues faced by audience. So
documents of the consumer need to be manage as the main reason for dissatisfied consumer is
misunderstanding and to work properly their issues need to be resolved. Moreover, proper
training need to be given to the customer service executives so that it come up with innovative
ideas of dealing with the problem faced by them.
Theme 3 Identifying what are the new strategies that the company is developing to
provide an unforgettable customer experience to its customers.
As per the view of Belanche and et.al., (2021) furnishing company can make use of Omni
channel strategy for improving their customer experience. It is one of the most effective way that
helps organization to gain important insights regarding customer interaction and their life cycle.
Although this strategy makes use of multiple channels like marketing, sales and customer
support which has been used to communicate with them. In addition to this, for the consistent
customer experience there is need to manage both offline and online customer experience.
Although this strategy empower customer to connect with the company though smooth transition
and interaction. It will also help in understanding about their customer journey and to collect
insights regarding their taste and preferences and proper action need to be taken in order to
improve their various aspect of team productivity and customer experience.
Moreover, Belanche and et.al., (2021) has stated to deliver superior customer services
should be focused in order to enhance the client experience and to evaluate and improve the
customer interactions. However, it has been found that with good approach there are high chance
of increase in the profitability of the company and it focuses on customer. It has been found that
happy customer creates positive brand image in the market area and it is one of the best way to
engage audience with the brand. Furnishing business can make use of the tools to communicate

with clients so to identify their needs. However, tools like live chat can be used to respond to
their queries on time and to reduce their issues. This tool allows to interact with the customer
through co browsing which helps in reducing the touch point through first contact resolution.
Although personal conversation can be used like video chat to deal with the technical issues
more quickly and to provide effective solution.
CHAPTER 3 Research Methodology
This method is consisting of particular techniques which helps in finding and analysing the data
in effective manner. Moreover, it acts as guide that helps scholar in achieving the overall aims
and objective of the study efficiently. Although there are various methods through which result
can be find out related to customer management strategies which help in increasing their
satisfaction.
Research type: There are two method of research which helps scholar in determining aim and
objective. It is of two type such as qualitative and quantitative. Under qualitative method
researchers depends mainly on theoretical approaches related to topic whereas in quantitative
method facts and figures are used to find out better results (Camic and et.al., 2022). Moreover, in
the current study scholar has adopted for quantitative method in order to find out better outcomes
and make the study look more authentic. In addition to this, motive behind making use of this
method is to find out best strategies for company so that it company can keep their customer
satisfied.
Research Approach: It is known as plan which is consist of steps of broad assumption that
helps in collecting the data in effective manner. Along with this, it has been divided into two part
such as deductive and inductive method. In case of inductive qualitative study is analysed
whereas deductive is used to evaluate and determine the objective quantities because it is related
with scientific investigation as well as it deals with hypothesis. In the present study deductive
method has been adopted to gain sufficient information regarding the type of customer
satisfaction strategies. The motive behind making use of this approach is it will help in
evaluating the behaviour and sample of the participant and their raw opinion regarding various
strategies can be analysed.
Research philosophy: The research philosophy is done on the existing factors of the research
and it benefit scholar to collect the data accurately. Along with this, it helps in predicting the
collected data which can be utilised in quantitative report (Ebneyamini, 2022). It is consisting of

two part such as positivism, interpretivism and realism. In the current study positivism method
has been adopted by the scholar as it evaluates quantitative data as this research has collected
data from managers and employees so it has helped in gathering real time data that is aligned
with primary objectives of research.
Data collection: It is known as method of collecting the information from several sources and
helps in making the study authentic. Along with this, it has been segmented into two part such as
primary and secondary method. In case of primary the researcher in present report has made use
of interview method has been used to collected the raw opinion of the candidates. Along with
this open end question will be asked by the participant so that it share their personal experience
and viewpoints regarding customer satisfaction (Goldstein, 2022). Moreover, 15 employees and
10 customers and 5 mangers has been selected of IKEA for gaining the information. On other
hand for secondary research books and journals, articles, blogs related to tactic of customer
management has been selected so to gather theoretical data.
Sampling: This is known as analysing the outcomes of the study through making use of
appropriate observation techniques for conducting the research. Along with this, the scholar has
selected simple approach under non probabilistic for collecting data related to consumer
satisfaction strategies through different methods. In this interview method has been used in
which 10 customers, 15 employees and 5 manager of IKEA has been selected for finding out the
opinion of the respondents.
Data Analysis: This is known as process of assessing the collected data so that errors can be find
out and to gather information related to core points of the brief. Along with this, descriptive
method has been used as techniques by the researcher for completing the study on time. Along
with this, it has been divided into two type such as thematic and SPSS for analysing data.
Moreover, in the present study SPSS method has been used as it will contribute in making the
quantitative study more authentic and accurate (Hassan and et.al., 2022.). Although the
researcher had sufficient time for reviewing the data and it has been presented in form of graphs
and pie.
Reliability and Validity:
It is one of the most important part of the research as it helps in maintaining the integrity of the
research. Moreover, for maintaining the reliability of the research data has been collected from
published articles of customer satisfaction strategies which has been published after 2018. In

addition to this, for maintaining the validity of the study copyright articles and blogs has been
selected (Klein, 2022). Although appropriate methodology has been selected in order to get
appropriate answer of the research questions.
Research Limitation: There are some limitation in the study such as lack of time and resources
and due to that there was hindrance in collecting the material for the study. Along with this,
SPSS method has been adopted in order to gather the information quickly because of lack of time
as well as to intercept the key findings.
Ethical consideration:
In order to continue the research without flaws it is necessary to maintain the ethics while
conducting the study. Along with this, ethical values need to be followed during interview so that
candidates can freely share their opinion. Moreover, in the interview there was no question asked
which was asked against their moral. All the participant was treated with equality and equitable
care. The researcher specifically made use of data protection act 1998 in order to maintain their
confidentiality and privacy of the study participants (Daniel, 2022). Along with this, researcher
made sure that data has been used for academic purpose only and not for any personal work.
Furthermore, this has helped the participant in sharing truthful answer for the study as well as
prior information has been taken from the authorities before taking interview. In addition to
this, consent form has been signed by the participant which represent wilful participation of the
candidates in the interview.

CHAPTER 4 DATA ANALYSIS
Frequencies
Frequency Table
1. What is your age?
Frequency Percent
Valid
18-29 14 56.0
30-45 8 32.0
46 and above 3 12.0
Total 25 100.0
Interpretation: Out of 15 employees and 10 clients, majority of participants were from 18-29
age group as 14 participants were from 18-29 age group. 8 participants out of 15 employees and
10 customers of IKEA were from the 30-45 age group and 3 participants were 46 and above 46
age. So, on the basis of this, it can be said that IKEA has number of young adult employees and
customers.
2. What is your gender?
Frequency Percent
Valid male 16 64.0

female 9 36.0
Total 25 100.0
Interpretation: On the basis of above chart, it can be said that out of 25 participants including
manager and customers, 16 were male and remaining 9 participants were female. So, on the basis
of this, it can be said that majority of employees as well as customers of IKEA are male.
3. Do you feel that IKEA is the best customer service provider?
Frequency Percent
Valid
yes 17 68.0
no 5 20.0
cannot say 3 12.0
Total 25 100.0

Interpretations: As the main aim of conducting this study was knowing effectiveness of
customer service of IKEA. For this reason, 15 employees and 10 random customers of IKEA
were asked about IKEA in regard to customer service so, in this context, majority or 17
participants stated that they believe that IKEA is one of the best service provider
4. At what scale you rate your experience with IKEA?
Frequency Percent
Valid
5 1 4.0
6 1 4.0
7 8 32.0
8 9 36.0
9 5 20.0
10 1 4.0
Total 25 100.0