A STUDY OF THE CONSUMER ANALYSIS ON IKEA

AND CHALLENGES FACED BY IKEA AS IT ENTERS

THE INDIAN MARKET

PRIYA SINGH-19BSP2022
PRADNYA POOJARI-19BSP1899
DARSHITA BANGERA-19BSP0748
NANDINI SWAMI-19BSP1650
ADIN ANSARI-19BSP0416
ADITYA PAREKH-19BSP0146
 INTRODUCTION- IKEA

 IKEA is one of the world’s largest retailer in the world.

 IKEA is an European multinational group that designs and sells
ready-to-assemble furniture, kitchen appliances and home
accessories, among other useful goods and occasionally home
services. Founded in Sweden in 1943 by 17-year-old Ingvar
Kamprad, IKEA has been the world's largest furniture retailer.
 OBJECTIVES OF THE STUDY

 The study is conducted :

 To understand the perception of consumer towards IKEA.
 To find out the level of awareness about IKEA among consumers.
 To determine the factors that affect the attitude of consumers towards
furniture stores like IKEA.
 STATEMENT PROBLEM

 Research question :
 Q1. How can the factors affecting the customer’s
decisions to visit IKEA be described?
 Q2. How can the retail environment be designed to
enhance customer experience?
 RESEARCH METHODOLOGY

 Research Methodology is done to describe the

research procedure . This includes:
 Research Design.
 Sample Design.
 Data Collection.
 Data Analysis and Interpretation.
 RESEARCH DESIGN

 A research design is the blue print of any research.

 CAUSAL RESEARCH: Our research purpose is somewhat
causal, as we explain the results that we have gained by
finding out effect of the factors that were described earlier.
 DESCRIPTIVE RESEARCH: This research is primarily
descriptive via the empirical data we have collected in
order to describe the factors that affect’s consumer’s
shopping experience at IKEA.
 SAMPLE DESIGN

 The sampling design applied was NON-

PROBABLITY SAMPLING
 The sampling technique applied was
CONVENIENCE SAMPLING.
 SAMPLE SIZE: 30 respondents.
 DATA COLLECTION AND ANALYSIS

 The sources of data collection are:

1. Primary Data.
2. Secondary Data.
 The tools and techniques used for data analysis was
FACTOR ANALYSIS.
 DATA ANALYSIS AND INTERPRETATION
 To interpret the findings of the study, the factor analysis was carried
out in SPSS and below is the input of the table:
 The sample was taken from 30 respondents taking 11 variables
which were the factors that affect a customer’s shopping experience
at a retail store.
 V1: Brand name.
 V2: Often purchase.
 V3: Awareness about IKEA.
 V4: In store experience.
 V5: Buying furniture online.
 V6: Environmental friendly products
 V7: Price.
 V8: Location of the store.
 V9: Loyalty towards the brand.
FACTOR ANALYSIS

 As per the inputs entered, we

conducted the factor analysis , and
got the following correlation matrix.
 INTERPRETATION OF TEST

 INTERPRETATION OF KMO TEST: As the KMO value is

greater than 50%, we can say that the sample size is
adequate to conduct factor analysis.
 INTERPRETATION OF THE BARTLETT’S TEST OF
SPHERICITY:
 Null hypothesis: The correlation matrix is an identity
matrix.
 Alternate hypothesis: The correlation matrix is not an
identity matrix.
 Interpretation: As the significance level of the test is 0.000
which is less than 5% level of significance, therefore we
accept the null hypothesis and therefore it can be
concluded that the correlation matrix is not an identity
matrix.
 RESULT

 The total number of factors explained by the analysis

were 3 namely brand name, often purchase and
awareness about IKEA.
 The total variation explained by these factors was
65.185%
 Therefore it can be concluded that the most
important factors that affect the customer’s shopping
experience are brand name, often purchase by
customers and awareness about the brand.