The quality of a product and price is important when a customer is shopping. For example, I work at Kroger in the meat department and most people like shopping at Publix, but they come to Kroger to get their meat because of the quality and our price are slower. So buying furniture sometime is very expensive, so Ikea’s understand this, for this reason they offer their product the low cost. Yes, some customer value low cost over better high quality products. All it come down to, do you want to save money and more people like saving more so going to ikea’s would be a great decision. Going to shop at Whole Food, Publix, than shopping at Kroger doesn’t make you less healthier because it all about how you take care of
Essentially, just because a product is priced cheaper doesn't mean it lacks in quality and just because a product is priced higher does not indicate or mean that it is of superior quality. So, moreover, you would have to truly decide if the product offers you what you need and has added benefits and features for the price being charged. According to Verma and Gupta (2004), in many instances it is thought that price is a gauge of quality. However, generally there is essentially no relationship between price-perceived quality. Furthermore, price becomes a less important measure of quality in the occurrence of other indications such as brand name and
Trader Joe’s and Whole Foods are grocery retailers who have become very successful. Both these companies offer whole, natural, and quality products but operate to a wide extent particularly in terms of inventory management and supply chain organizations. Trader Joe’s has incredible inventory management and their supply chain focuses on private labels and extreme secrecy while Whole Foods has poor inventory management but their supply chain is quick, nimble and versatile. A huge competitive advantage that Whole food has is that they keep their shelves packed with about 25,00 to 45,000 products while Trader Joe’s keeps about 4,000 products. However, Trader Joes’ still made about $1,750 per square foot in 2009, more than double of what Whole
Upon entering the competitive work field, it is important to do research to find out if an employer may be the right fit. Seeking employment can be tricky if one is not aware of what to look for and how the company can also benefit him/her. Employers and employees need to have a working relationship where there is a mutual gain for both parties. Employers seek motivated and productive employees whereas employees seek financial means for sustainability and a positive working environment. The working relationship helps ensure success for both parties as long as the relationship thrives in a positive direction. Two major supermarkets that take the lead in positive and gainful employment are Publix and Whole Foods. While Publix and Whole Foods are both strong corporations, Publix outshines Whole Foods when it comes to customer service and employee satisfaction. Both competitors are known for their high quality products that attract a lot of consumers daily, but from a potential employee perspective Publix is the best employer to work for. Both companies offer potential prospects in terms of revenue analysis, competition, benefits, and diversity.
By choosing to implement “Everyday low-pricing” strategy to all Hi- Value Supermarket products in Centralia, Missouri, Hi- Value would begin direct competition with Harrison’s via most reasonable prices. According to the Exhibit 6 found on page 506, data shows that, Harrison’s is a market leader with 36 percent of customers agreeing that Harrison’s has the most reasonable prices , while customers rated Hi- Value with only 7percent . Also in this data we can see that Hi Value scored lowest on best overall variety with 2 percent while Missouri Mart came in at 74 percent. With 13,500 households retaining an average income of a mere $36,000/ year,
Grocery shopping is more diversified and evolved than ever before. Individuals across the nation have access to everything from exotic products to unique delivery services. Often, specialty stores have limited locations whereas specialty services have a limited reach. However, two retailers have expanded to hundreds of locations while adhering to unexpected market positioning for previously untargeted market segments. Whole Foods Market and Trader Joe’s have become household names while also innovating beyond regional and national traditional chains. Despite comparable size in
For our case assignment, we decided to compare two grocery stores popular in the NYC area: Whole Foods and Trader Joe’s. We each visited a different location of each store; Samantha visited the Trader Joe’s in Union Square, Heather visited Trader Joe’s on the Upper West Side, Cathleen visited Whole Foods on the Upper West Side, and Brittany visited Whole Foods in Chelsea. Each store had its own dynamic, but the brand positioning for both stores was consistent.
Shopping can and should be about more than just price or convenience. Moreover, for high street and main street retailer, concentrating only on price means losing the opportunity to build genuine brand loyalty or give shoppers a reason to enjoy their visit.
4. This will depend on the position that HSM will take. The separates customer ignores quality in preference to the ability to purchase more garments, and might not perceive any difference between HQS and low-quality separates (LQS). Hence, if no action is taken by HSM, the separates customer might still prefer LQS (since it costs lesser than HQS, and enables them to purchase more garments), and HSM will still face significant competitive threat from LQS. Therefore, HSM must be able to differentiate HQS such that the separates customer perceives distinct benefits in HQS as compared to LQS, which also justifies the difference in price. One example would be to market HQS strategically so as to convince the separates customer that higher quality will equate to higher comfort (since separates customer places emphasis on comfort), which justifies the higher prices charged for HQS. Thus, LQS could cater to the separates customer who prefers having the ability to purchase more garments (and hence, sacrificing ‘comfort’), while HQS could cater to the separates customer who does not mind paying a higher price for more ‘comfort’. Hence, if HSM is able to create perceived value for its HQS and communicate this message effectively, it will be able to
At first glance, these seem to be two companies with similar goals and direction. They sell organic foods and appeal to a certain niche of customer. They both pride themselves on customer satisfaction, but their approach is totally different. Trader Joe’s is mainly focused on providing the best possible product while Whole Foods is deeply involved in Community Social Responsibility. They are both dedicated to supporting local producers and try to purchase only from them if possible. Trader Joe’s and Whole Foods Market have similar appearances but have different mission statements.
IKEA is a global furniture retailer, which is established on the concept of contributing wide range of well designed, functional, and low cost home furnishing products in 40 countries, with 330 stores and 154,000 workers (The IKEA concept, 2012). IKEA was founded in 1943 by Ingvar Kampar and has turned in an international furniture retailer that specialized in stylish but inexpensive furniture designs.
As pointed out in Ikea's mission statement, the company is in business to produce high quality products at a low cost. This would support a
Customer tends to position a brand perceptually, In our respondent’s mind they perceived that IKEA is for people how rent house and who do not have considerable salary.
At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lends to systematising operations but which implies capital intensive processes and therefore cost considerations will be crucial. Second, IKEA offers a large number of products (up to 14000 depending on the country/store) so there is high variety in the
* IKEA’s low cost structure has been the very core of its success. It’s low-cost and high-quality strategy fits with the current state of the economy. Offering convenience factors within IKEA’s stores would fit well with IKEA’s low cost structure. It maintains its low-cost business model by creating a different furniture shopping experience. IKEA supplies customers with all possible materials needed to complete their shopping when they enter the store (that are, measuring
The services and products offered by IKEA provide value to its customers in various ways. For one, the products and services are very affordable. The products and services are not priced highly and therefore, the average customer can enjoy them. At the same time, the products are of high quality. From IKEA’s slogan “low prices but not at any price”, it is clear that the company prices its products lowly but that does not mean that the quality is compromised. IKEA satisfying its customer’s needs through providing them value for their money as they provide quality products that will last for a long time, and at affordable costs. The fact that the company has set the minimum acceptable standards for its wood, implies that it is also keen on quality and on the environmental impact of its action of making furniture ( Edvardsson, Enquist & Hay, 2006).