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Where does IKEA fall in the axis that differentiates between retailers?

1) High-end retailers
2) Low-end retailers
3) Mid-range retailers
4) Online retailers

1 Answer

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Final answer:

IKEA is categorized as a mid-range retailer, offering a mix of affordability, style, and self-service that appeals to a broad consumer market, different from both high-end and low-end retail options.

Step-by-step explanation:

IKEA is considered to fall into the mid-range retailers category. It is known for offering a wide variety of furniture and home goods at affordable prices that cater to a broad market segment. IKEA's business model emphasizes cost-effective production, flat-pack shipping, self-assembly, and extensive showroom layouts which reduce costs while allowing a comprehensive consumer experience. Unlike high-end retailers that focus on luxury or premium pricing, IKEA prioritizes value for money and design at an accessible price point. On the other end, unlike low-end retailers, IKEA still offers a sense of contemporary style and practicality that resonates with middle-income shoppers. IKEA also has an online retail presence, but its focus is primarily on physical, large-scale warehouse-like stores that also function as showrooms.

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