What is “product value”? Describe the value does IKEA deliver to their customers? The words 'environment', 'eco-friendly' and 'sustainable' have been used in manyproduct and service marketing that represent their eco-friendly characteristics. Terms suchas organic, recyclable, or sustainable are often seen in green marketing campaigns and are usedto influence the customers purchasing decisions.IKEA is a home furnishing company that is not only producing reasonably priced andwell-built furniture and homeware, but also heavily committed to its green initiatives. IKEAhas implemented the ISTAD bag, which is a resealable bag that can be reused to keeps contentsfresh. It is produced using only bioplastic that is sourced from the sugarcane industry. Thisaction is expected to save roughly 75,000 barrels of oil a year. Additionally, this year, IKEAplan to hit the 100% Forest Stewardship Council (FSC) certified wood mark by ensuring thatall of their wooden materials being sourced from FSC forests or from recycled sources.In 2007, IKEA had no longer offer customers free plastic bags. Instead, they chargemoney for plastic bags. This is part of the IKEA project to reduce the number of plastic bagsused by their customers.BRING YOUROWN BAGWe'd really like to see everyone use a reusable bag whenthey shop. That's why we now charge 5 cents for every IKEAplastic bag - money that we donate entirely to Tree Canadaso they can plant more trees.MORE ABOUT REUSABLE SHOPPING BAGS AT IKEAThe IKEA advertisement above illustrates green marketing that reflects IKEAenvironmental responsibility. A part of promoting the 'no plastic bag' policy, IKEA isactually making extra revenue by charging customers for plastic bags and sell their reusableshopping bags. They justify the extra income by saying that the customer should limit theirplastic pollution. At the same time, IKEA will also get a lot of goodwill because they are now"giving to charity" as they give five cents to Tree Canada for every bag sold.

The product attributes give it a distinctive value which is sought by the users and they are…

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What is “product value”? Describe the value does IKEA deliver to their customers?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter4: Managing In A Global Environment

Section: Chapter Questions

Problem 1SGB

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