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A quantitative research on what are
the potential preferences that make
Swedish furniture attract
Vietnamese consumers – IKEA as a
case study.
BACHELOR DEGREE PROJECT
THESIS WITHIN: International Management & Marketing Management
NUMBER OF CREDITS: 15
PROGRAMME OF STUDY: Business Administration
AUTHOR: Vy Nguyen & Nhu Nguyen
JÖNKÖPING May 2022
Bachelor Thesis Project in Business Administration
Title:
A Quantitative research on what are the potential preferences that make Swedish furniture
attract Vietnamese consumers – IKEA as a case study.
Authors: Nguyen, Vy and Nguyen, Nhu
Tutor: Nadia Arshad
Date: 2022-05-19
Key terms: IKEA, Product values, Social value, Aesthetic values, Functional values,
Consumption value, Customer perception.
iAbstract
Background:
In recent years, the Swedish furniture industry has recorded many significant successes and
increased its influence in the world furniture market with a high proportion of products being
used for export purposes and the intensifying popularity of Sweden-originated furniture brands.
Among these, IKEA is the most renowned company. Currently, the company plans to grow
further in South-East Asia (IKEA, n.d) and Vietnam is a potential market for this expansion
due to the shortage of furniture supply in the domestic market. However, nothing can assure
that IKEA’s overall success in the oversea market would simplify their way of penetrating the
Asia market. Learning from the past, the company has faced many failures in different markets
such as China, Japan, and India. Considering this, the authors of this paper believe that it is
important to understand how Swedish furniture companies’ product values, IKEA in particular,
could affect customer consumption values, which significantly shape their perception. Based
on this, the company can better in making predictions on their market penetration, thereby
minimizing risks or unprofitable investments.
Purpose:
The purpose of this paper is to understand whether IKEA’s product values have a significant
effect on Vietnamese furniture consumption values and shape their perception or not. Therefore,
the thesis will be drawn on the question of “What are the potential preferences that make
Swedish furniture attract Vietnamese consumers? – IKEA as a case study”.
Method:
This paper is based on the quantitative research method with a positivistic paradigm. A survey
was conducted for collecting primary data with a sample size of 200 Vietnamese furniture
consumers. The collected data were analysed using the SPSS Statistics 28 software.
Conclusion:
The results showed that Swedish furniture firms like IKEA obviously could receive potential
growth in Vietnam since all of IKEA’s product values are tested to have positive effects on
Vietnamese consumption value, which have a strong correlation with their buying perception.
This paper can be used as a premise for further research on customer perceived values when
IKEA’s products are officially experienced by Vietnamese consumers.
ii1. Table of Contents
1. Introduction .......................................................................... 1
1.1 Background information ......................................................................... 1
1.2 Problem definition .................................................................................. 3
1.3 Purpose .................................................................................................. 4
1.4 Research question ................................................................................... 5
2. Frame of references ............................................................... 6
2.1. Customer perception............................................................................... 6
2.2. Customer’s perceived values in the furniture industry ............................. 6
2.3. Ikea’s furniture values – hypothesis development .................................... 8
2.3.1. Social values ........................................................................................... 8
2.3.2. Functional values .................................................................................. 11
2.3.3. Aesthetic values .................................................................................... 14
2.4. Conceptual model ................................................................................. 18
2.4.1. Consumption value ............................................................................... 19
2.4.2. Cultural values ..................................................................................... 20
2.4.3. Personal values ..................................................................................... 21
2.4.4. Research model .................................................................................... 22
3. Methodology ........................................................................ 24
3.1. Quantitative research approach ............................................................ 24
3.2. Research philosophy ............................................................................. 25
3.3. Sampling and questionnaire design ....................................................... 25
3.3.1. Sample ................................................................................................. 25
3.3.2. Questionnaire design............................................................................. 27
3.3.3. Results from the sample ........................................................................ 30
3.4. Data collection ...................................................................................... 33
3.4.1. Primary data ........................................................................................ 33
3.4.2. Secondary data ..................................................................................... 34
3.5. Data analysis ........................................................................................ 34
3.6. Research ethics ..................................................................................... 36
4. Findings and data analysis ................................................... 38
4.1. The overview of customer’s evaluation on IKEA’s generic product
values 38
4.2. The impact of social values on consumption value ................................. 39
4.3. The impact of functional values on consumption value........................... 41
4.3.1. The correlation analysis between the elements of functional values and
consumption value ............................................................................................. 41
4.3.2. Verifying the goodness-of-fit of the regression model ............................. 43
4.3.3. Regression results ................................................................................. 44
4.4. The impact of aesthetic values on consumption value ............................. 46
4.4.1. The correlation analysis between the elements of aesthetic values and
consumption value ............................................................................................. 46
4.4.2. Verifying the goodness-of-fit of the regression model ............................. 48
4.4.3. Regression results ................................................................................. 49
4.5. The correlation between consumption value and customer perception ... 52
iii5. Discussion............................................................................ 54
6. Conclusion........................................................................... 58
References: ..................................................................................... 60
Appendix ........................................................................................ 74
iv1. Introduction
_____________________________________________________________________________________
This chapter delivers both the theoretical and empirical context covered in this study. It
is followed by the purpose, which leads to the elaboration of the research question.
______________________________________________________________________
1.1 Background information
In recent years, the Swedish furniture industry has recorded many significant successes
and increased its influence in the world furniture market. According to the Swedish
Federation of Wood and Furniture Industry (TMF, 2020), 75 percent of Swedish furniture
production is for export purposes. In 2020, the total export of Swedish furniture reached
18,4 billion SEK, recording a comprehensive growth in many major markets such as the
EU, USA, and Asia. When it comes to Swedish furniture, the first that pops up in most
people's minds to be the most renowned company would be IKEA. The company can be
seen as the pioneer in the global expansion of Nordic furniture. IKEA has built its image
as the “leader of life at home” (Yohn, 2015). IKEA began its global expansion journey in
1963, choosing the Norwegian market as its pioneer location (IKEA museum, n.d). As of
the end of March 2022, the company hit a total of 466 stores operating in 63 markets
(IKEA, n.d). IKEA pride itself on its commitment to bringing basic stripped-down,
modern-designed, and, most notably, affordable price products “to create a better
everyday life for the many people” (IKEA, n. d). The company outstripped its other
competitors by always being unsatisfied with what they have and constantly searching
for optimal solutions within its home furnishing business (Stenebo, 2011). In addition to
offering typical product ranges that bear the imprint of Scandinavia, IKEA also strives to
launch different innovative products that fit with the tastes and lifestyles of the local
people reached by the company. Due to this, their global expansion has been recorded as
significantly successful with very few losses, which relies much on their conscious
decisions and philosophy of trial and error. In 1976, a Testament of a furniture dealer was
published by Ingvar Kamprad – Founder of IKEA (Ingvar, 2016). This included his vision
and ideology about the way IKEA should develop within its ongoing expansion, even
when he was no longer active in the company, thus, enabling him to keep the IKEA
culture alive amongst people who would shape the future of IKEA (Jonsson & Foss,
12011). Ever since then, the company’s format for expansion has always been associated
with replication with minor adjustments to the penetrated markets.
Considering one of the lucrative markets in the world – Asia, it remains positioned as the
world’s most dynamic market by representing enormous economic opportunities for
companies looking to expand globally (Eriksson, 2013). With the generation of over 50
percent of global growth, Asia is on its way to becoming the growth engine of the world
(Barnett & Sergi, 2021). As recorded by the Asia Pacific – Business Sweden (n.d.), Asia
is home to 20 out of 34 megacities around the globe. It holds the highest number of middle
– class population that has surpassed Europe in terms of consumption. Therefore, Asia is
expected to be the world’s largest market in the future. For many companies, it is so ripe
with the opportunity to develop a foothold in this densely populated market. Among the
rapidly developing markets in Asia, several empirical studies have highlighted that
Vietnam is one of the most potential markets in Southeast Asia due to the shift into a
multi-sector economy and the encouragement of the renovation (Doi Moi) policy of the
government (Xuan, 1995; Bryant et al., 2009; Chuong & Schaumburg-Müller, 2010;
Nathalie & Elisabeth, 2013; Ngo, 2020). Therefore, this market is increasingly interested
by many economists, researchers, and foreign companies during the last decade (Endres
& Leshkowich, 2018). Regarding the furniture market, many studies seem to agree that
Vietnam has enormous potential for foreign furniture companies. Polyanskaya et al.
(2020) asserted that 80% of “made in Vietnam” furniture products are produced for export
purposes, while only 20% of them are consumed by the domestic market. The author
further explained due to the rapid growth of both domestic and foreign markets,
Vietnamese furniture enterprises choose to pay much attention to the export market,
where they can gain faster revenue with a broader range of customers. This inadvertently
left the domestic market abandoned, thus creating plenty of gaps for foreign companies.
In addition, Maraseni et al. (2017) discovered that the Vietnamese government has aimed
to enhance the domestic supply of forestry sector to the global market since 2013, which
could aggravate the shortage of wooden resources for domestic furniture production in
Vietnam. Furthermore, many previous studies argued that consumers in developing
countries, Vietnam in particular, typically assume that products from developed countries
such as Europeans or the USA are better and more favorable (Nguyen et al., 2017;
Josiassen & Harzing, 2008; Pappu et al., 2007; Usunier & Cestre, 2008). This awareness
2has enhanced opportunities for many foreign companies to penetrate the Vietnamese
market and take a large share of the market (Nathalie & Elisabeth, 2013). In terms of
political context, in recent years the Vietnamese government has enacted several trade
agreements that make it easier for foreign investors to set up business in Vietnam. For
instance, the EVFTA – EU- Vietnam free trade agreement has now been in force for more
than one year with the purpose of creating a premise for deeper economic cooperation
between Vietnam and European countries. Based on EVFTA, European companies can
be eliminated up to 90% of customs duties and are provided an equal chance when
investing or pitching for government contracts (European Commision, 2020; Europarl,
2020).
Being said, due to the vacancy in the domestic furniture industry, the high preference for
foreign goods of consumers as well as the propitiousness in Vietnamese foreign affairs,
there is plenty of room for a new player like IKEA to set a foothold in the Vietnam market.
1.2 Problem definition
In terms of Swedish furniture companies – IKEA in particular, nothing can assure that
their overall success on the global market would simplify their way to penetrating the
Asia market. Learning from the past, when IKEA first entered in China market, despite
the dramatic growth in the number of store visitors and sale volume, the company still
recognized a breakeven in revenue, which meant there was a gap between actual
purchasers and the number of visitors (Wei & Zou, 2007). Milorad et al. (2012) noted
that IKEA had to deal with many complicated dilemmas and challenges in the Chinese
market. Concretely, although IKEA is well-known for its low-price products in other
countries, this pricing strategy vanished in China. Due to the looseness in IP law in this
country, domestic companies were free to imitate famous furniture brand designs, for
instance, IKEA, then offered furniture at a much cheaper price thanks to the accessibility
to low-price materials, local labor, and shipping methods. This scenario astonished the
IKEA team, who always proud itself to be the company that offers the most price-
competitive products in the world (Giunta, 2016). When it comes to Japan, IKEA faced
the same situation, if not worse because imitating in Japanese means copying the designs
and innovating them for the better (Jonsson, 2008). Besides, Japanese people are
considered as very quality-oriented, thus, from their perspective, low price means low
quality. As a result, there was a huge challenge for IKEA to convince Japanese customers
3that their products are of good quality to set a reasonable price that could balance the
conflict between these two sensitive factors (Kelly, 2006). In India, IKEA, again,
encountered the problem of its “DIY- make it yourself” culture since Indian consumers
perceived it as not fair when they have to pay for and install the product themselves
(Anonymous, 2012). From this case, it can be said that failure in Asian markets is
inevitable for Swedish furniture companies in general because of differences in culture,
customs as well as ways of looking at problems.
Noticing that the Swedish furniture industry is on its way to expansion and Asia is a
potential yet competitive market, the authors of this paper believe that the perceptions of
furniture consumption values of the people who are living in a specific Asia market can
add knowledge for Swedish furniture companies – IKEA in particular, to better their
strategy and minimize the risk of failure when entering a new market. Choosing Vietnam
as the investigated context, the findings of this research could reveal which product values
of IKEA have the potential to be preferred by Vietnamese consumers, thereby indicating
which opportunities and concerns should be focused on by the company for their future
expansion. For example, whether a low price strategy can be used in Vietnam or not,
whether IKEA’s culture is compatible with Vietnamese personal values or cultural values.
Considering the fact that this paper is based on a real scenario that IKEA is actually
planning to launch in Vietnam (IKEA, 2020), thus, exploring opportunities that arise in
this market can allow IKEA to better consider whether or not to run their business and
avoid unprofitable investments. Conclusively, this research is relevant to enrich the
available research regarding the Swedish furniture values, simultaneously, filling an
existing gap in the literature concerning Vietnamese consumer perception of furniture
values that are offered by foreign companies. These perceptions can open a window to
further discussion about customer perceived values when IKEA furniture product has
officially been experienced by Vietnamese consumers.
1.3 Purpose
The purpose of this study is:
1. To provide a comprehensive review of the typical values that Swedish furniture
company - IKEA as a case study, brings along with the Scandinavian concept.
42. To understand whether or not IKEA’s product values have a significant effect on
Vietnamese furniture consumption values and shape their perception.
3. To understand whether or not there is potential for IKEA in the Vietnamese market,
and to what extent the opportunities and challenges they could deal with.
1.4 Research question
From these above objectives, the thesis will be drawn on the question of What are the
potential preferences that make Swedish furniture attract Vietnamese consumers? –
IKEA as a case study.
52. Frame of references
_____________________________________________________________________________________
The purpose of this chapter is to provide the theoretical background that concerns
different aspects associate with this study. This part first starts with an introduction to
various product’s values offered by IKEA, based on which the creation of hypotheses is
clarified. In addition, a relevant conceptual model is discussed as a premise for the
elaboration of a self-created model that better suit with the scope of this research. These
concepts will be served as an interpretation of the research’s purpose and a foundation
for the analysis.
______________________________________________________________________
2.1.Customer perception
A perception describes a person whose process of receiving and interpreting information
and transferring it into a response (Blackwell & Engel, 2006). Meanwhile, Walters (1974)
asserted that perception is the whole process of observing and identifying the individual’s
environment and then interpreting their awareness to fit their own frame of reference.
Customer perception is the key role for the marketing manager to understand what they
should focus on developing their products in order to meet customer needs.
No matter how the process of perception begins with identifying information or the
environment, according to Foxall (2015), there are two facets of perception. First, humans
perceive information as well as the surrounding environment through five senses: See,
Hear, Touch, Taste, Smell, and Sense internally. Here, the process of forming perception
begins. However, perception is not synonymous with sensation, although they are closely
related to each other. Second, the interpretation process relies on the socio-psychological.
This means individuals need to match perceived objects to their own worldview because
each person interprets physical and social stimuli in his or her own way. An individual is
different from each other in their life experience, environment, knowledge, etc., thus it
will affect each person's perception process.
2.2.Customer’s perceived values in the furniture industry
The majority of previous studies have defined perceived value as the consumer’s general
evaluation of the usefulness of a product, formed on perceptions toward what they give
and what they received (Bovik, 2004; Jiang et al., 2015; Marback et al., 2016). This
6concept is affiliated with a multi – dimensional approach to perceived values, illustrating
a combination of various dimensions of value that produce different impacts in different
circumstances (Sheth et al., 1991; Sweeney & Soutar, 2001). Holbrook (2005) indicated
that the perceived value can be related to the customer’s preference and experience, which
is based on the product’s characteristics, their personal values, and the society they are
involved in. In this paper, the authors aimed to provide insights on different value
dimensions within furniture products, focusing on social, psychological, and utilitarian
benefits. Concretely, Yu and Lee (2019), listed six values that have significant positive
effects on furniture products: (1) Green value, (2) functional value, (3) emotional value,
(4) aesthetic value, (5) social value, (6) Self-expression value. The result shows that these
six elements have a substantial relationship with customer attitude and their purchasing
experience. Sweeney and Soutar (2001) highlighted functional, emotional, and social
values as the primary perceived values based on the consumption theory. Barbaritano
and Savelli (2021) examined the effects of perceived value on the customer’s purchasing
behavior toward furniture design and discovered that functional, aesthetic, and symbolic
values are the three most principle dimensions among others. While functional and
aesthetic value is relevant dimensions influencing the consumers' perception, symbolic
value is considered more in customer purchasing intention. Concerning previous studies
and the scope of this study, the authors employed functional, social, and aesthetic as three
core values that consumers can perceive as experiencing a furniture product. In this paper,
these values will not be used to evaluate customer purchasing behavior like in previous
studies since IKEA has not officially been launched in Vietnam. Instead, the mentioned
values served as a framework to evaluate the product benefits that Swedish furniture
companies in general and IKEA, in particular, are offering, thereby examining how these
values can attract Vietnamese furniture consumers.
Functional values: According to Boksberger and Melsen (2011), functional value is
explained as the perceived utility acquired from the ability of an alternative that possesses
functional, ergonomic, or physical attributes. Previous scholars explored that a functional
product comprises various realistic features such as efficiency, user-friendliness,
durability, steadiness, safety, multi-functionality, price, quality, or maintenance needs
(Kumar & Noble, 2016; Bergstrom, 2000; Doyle & Stern, 2006; Melin, 1999).
Concerning the furniture sector, functional value is a dispensable factor that directly
7impacts the usefulness of the place. In other words, furniture products without functional
value would be difficult, if not impossible, to elicit a desire to possess from customers
(Anil, 2009).
Social values: As asserted by Kumar and Noble (2016), the social value represents the
capability of a product to enhance a customer’s perceived social status or self-esteem
improvement with a strong connection with stereotyped demographic, socio-economic,
and racial groups. Products with a positive reputation make customers feel more secure
and social value achievement (Pegan & de Luca, 2020). Being said, the social value of a
product goes beyond the need for satisfaction, yet has a broader long-term effect that
generates a legacy. Therefore, country of origin (COO) has become one of the always
considered elements of social value when customers make a purchase decision on foreign
products (Wang et al., 2014).
Aesthetic values: Antal and Horvath (2016) illustrated that aesthetic value is the style or
effect of objects, and to what extent the appeal of beauty could be perceived or
comprehended. However, in terms of furniture design, Antal (2007) supposed aesthetic
value depends much on how complicated the attributes of objects, materials, and
equipment are. It brings about attractiveness, satisfaction, and amusement in the matter
of feeling, action, or even the human state of health associated with the offered object.
2.3.Ikea’s furniture values – hypothesis development
2.3.1. Social values
The country of origin (COO) in developing countries:
The influence of the country of origin (COO) is an invisible obstacle to penetrating new
markets as a consequence of negative consumer prejudice against imported products
(Wang & Lamb, 1983). Various studies also defined the COO as the “home” country or
the headquarters where the corporate is located and operated (Johansson et al.,1985;
Richard et al., 1994; Samiee, 1994). Kotler and Gertner (2002) and Gertner (2011)
indicated that COO brands associated with geographical areas are indispensable elements
in disseminating implications on both tangible and intangible traits of products, which
have strong impacts on customers’ buying decisions in the worldwide market. Previous
studies agreed that customers in developed countries are more preferable to purchase
8domestic products since they perceive them as higher quality compared to those from less
developed countries (Balabanis & Diamantopoulos, 2004; Granzin & Painter, 2001;
Shimp & Sharma, 1987; Suh & Kwon, 2002). While the opposite is meant for consumers
in developing countries because they have a higher preference for imported products,
especially those that originated from developed countries (Agbonifoh & Elimimian,
1999; Batra et al., 2000; Papadopoulos et al., 1990; Lu & Xiong, 2004). Even with high
ethnocentric consumers in developing countries, may sometimes feel confused and lack
trust in the quality of domestically produced products. Thus, they are more prefer to buy
foreign products even though they are aware that it is an immoral behavior (Sedki &
Romdhane, 2019). To explain this phenomenon, Veblen (1998) theorized that possessing
wealth and power is not sufficient for people to obtain high esteem, yet, only until the
wealth or power is tangibly presented by the evidence, then the esteem is proved to
exist. Consuming a high reputation good allows people to demonstrate their material
strength, in turn, achieving a respectable social evaluation. Therefore, personal wealth
can be signaled by extravagant consumption (Vijayakumar & Brezinova, 2012).
Surprisingly, this consumption behavior has less pertained to people from famous wealthy
countries. Instead, it is more found in economies with marked disparities between social
classes, which is more emerged in developing countries (Sedki & Romdhane, 2019).
Many scholars believed that foreign products can be treated as a symbol of social status
when it comes to developing countries (Alden et al., 1999; Batra et al., 2000; Amatulli et
al., 2018; Marcoux et al., 1997; Mi et al., 2018; Lu & Xiong, 2004). For this reason, in
these countries, the term “imported” or “worldwide well-known brand” become
indisputable appeals that many people aspire to have despite its high price. As Yang
(1981) confirmed that consumers in developing countries are often very concerned about
how others look at them. Being said, the “made in” image can have a strong impact on
the consumers’ perspectives toward a product in developing countries.
IKEA’s COO brand:
As recorded by Davies (1997), Scandinavia's furniture industry began to flourish over the
period between the late 1940s and early 1950s. Thus, during the 1950s, the Nordic
countries, namely Sweden, Norway, Denmark, Finland, and Iceland, decided to form the
brand of “Scandinavian design” with the aim to depict their design styles in the market
based on their common cultural and traditional characteristics (Lie, 2016). Throughout
9this “Golden Age”, Scandinavia expanded its way by producing a massive number of
global design icons, which blended a receptive attitude toward innovative technology
with a practical perspective of human demands (Gura, 2007). Within the nineteenth and
twentieth centuries, “Scandinavian design” has marked a breakthrough step and made
itself a very much phenomenon by starting a remarkable traveling exhibition in North
America, entitled “Design in Scandinavia: An exhibition of Objects for home” (Halén &
Wickman, 2003). Meanwhile, various small exhibitions were also taken place under
different forms in an attempt to closer Scandinavian furniture brands to consumers around
the world. Since then, the labels of “Swedish Modern” also gained an international
commercial foothold as well as brand recognition (Tsukasa et al., 2022). This was
considered the foundation of the popularity of made-in-Swedish furniture products.
Over the years, IKEA has recorded itself as the world’s most well-known and powerful
furniture brand, being ranked in the top 50 most valuable brands in the world (Denise,
2015). The company constantly emphasizes it as a “made in Sweden” brand throughout
its marketing practices. For example, IKEA’s logo is colored yellow and blue, which are
also the color of the Swedish national flag; their funny ads feature Swedes, promoting the
campaign with the appearance of reindeer as a hint of the country where the company is
based; they serve Swedish meatball in all of their stores worldwide (Jefferys et al., 2018).
Kristofferssion and Jewson (2014) commented that visiting IKEA is just like visiting the
whole of Sweden. This purpose integration of the Swedish COO aims to prompt the
consumer perception of “Scandinavian design” – the solid legacy in the furniture industry
in global markets. This is the primary point when comparing their quality and superiority
to non-Scandinavia or non-Swedish furniture products. Based on this, the COO gives
IKEA a competitive advantage that, if consumers notice that it is a Swedish – originated
furniture product, they would wish to buy it due to the influence of the COO.
Noticing that Vietnam is a developing country with high disparities in the cross-
sectional economy (Tran & Pham, 2003). Hence, to strengthen their social status,
Vietnamese consumers are willing to pay higher for owning a well-known brand of
furniture, among which, IKEA can be a potential option. From this point of view, the
authors of this paper aimed to test:
10Hypothesis 1 (H1): IKEA’s well-known COO brand has a significant effect on
Vietnamese consumption values.
2.3.2. Functional values
Low price and high quality
The seed of “modernism” in Sweden was rooted in the nineteenth century – a bit later
than those in other European countries, with the establishment of The Swedish Society
for Industrial Design in 1845 and The Swedish Domestic Crafts Association in 1894
(Halén & Wickman, 2013). However, the change became more apparent in 1899, when
the feminist writer – Ellen Key published a book called “Skönhet för Alla” (beauty for
all) with the bold idea of “everyone has the right to enjoy beauty”. This idea has paved
the way for the development of modernism design not only in Sweden but also in all
Scandinavian (Gura, 2012). During the 1950s – the Golden Age of “Scandinavian design
brands”, “Modernism” was no longer the sole focus, yet became one of many influences
that shape the design sector. Instead of perceiving its legacy as a creative burden, the new
generation of Scandinavian designers preferred to treat it as fuel for innovation by
constantly updating Modern conventions to better match the current mood (Nelson &
Cabra, 2004). Keith (2015) demonstrated that throughout this period, “Functionalism”
has become the new Modern style that is a combination of traditional humanistic values
and realistic form. In chapter 17 of “the History of design and design law book”, Tsukasa
et al. (2022) indicated that social involvement was one of the driving forces that provoke
functionalism to become the principal ideology of Swedish furniture design. This value
was proposed as a result of the newly elected Social Democrats in Sweden in the 1930s.
The party aimed to promote the innovation of new housing for solving overpopulation,
pervasive poverty, and many other difficulties arising from modernization (Nelson &
Cabra, 2004). Therefore, “functionalism” has launched as a commitment of designers to
provide not only high-quality practical furniture but also to keep its prices sufficiently
low so that it could fit the pocket of middle-income people.
Being the leader in the furniture industry in Sweden, IKEA has adopted Ellen Key’s
vision of “only when there is nothing ugly left to buy; when beautiful things are as cheap
as ugly one is now, will beauty for all be a reality” (Halén & Wickman, 2013). This
statement has led IKEA to the ambition of reaching a large variety of customer segments
11and the creation of the key vision “to create a better everyday life for the many people”
(Kristoffersson & Jewson 2014). Besides, IKEA’s core principle of “democratic design”
emphasizes customer-centricity with the goal of “making well-designed functional
furniture that everyone can afford” (Stenebo, 2011). This democratic concept is deeply
rooted in IKEA's organizational culture and its application can be found in every item
they provide to customers around the globe. By striving to provide long-lasting and well-
thought-out furniture, using resources carefully and sustainably without compromising
on quality, IKEA achieves the low prices that make it possible for many more people to
purchase the company’s products. Plus, since the company's purpose is to work with high
volumes, it can lower costs even more (Lewis, 2005). For example, IKEA aspires to send
as many containers as possible directly from factories to stores, create the ideas of “flat-
pack”, and “customer self-assembly”, and is willing to redesign packaging and shipping
pallets to make sure that not a single bit of space is wasted (IKEA, n.d). By doing so, they
can save a huge amount of fuel and reduce the shipping cost. All of this finally leads them
back to meet their customers and give better offers to them.
In recent years, Viet Nam has made a wide stride in promoting nation-building resulting
in an impressively decline in the poverty rates in this country, from 16.8% to below 5%
(World Bank, 2022). Therefore, Vietnam has successfully transformed from what was
then one of the world’s least advanced countries to a thriving middle-income one
(Trevisanuto et al., 2015). Considering this, IKEA’s “democratic design” can potentially
meet Vietnam customers’ demand for a low price but good quality furniture product. This
led to the creation of these hypotheses:
Hypothesis 2 (H2): IKEA’s low price value has a significant effect on Vietnamese
furniture consumption values.
Hypothesis 3 (H3): IKEA’s high-quality value has a significant effect on Vietnamese
furniture consumption values
Multi-functional
Multi-functional idea in IKEA design was rooted in the company’s PS (Post Scriptum)
collection, which was first displayed under the theme of “democratic design” at the 1995
Milan Furniture’s Fair (Amanda, 2016). In 2002, the PS collection came up with the new
12theme called “Inside out – outside in”, which officially ushered in a new period of
prosperity for multifunctional or multipurpose furniture. The collection contained
different products that could work well both indoors and outdoors, following the bold
idea of dealing with clutter and constrained space (IKEA museum, 2022). So far, with
unceasing creativity, IKEA continues to come up with a wide range of multi-functional
products and make this value become one of the hallmarks of the company. The designs
that best describe this idea can be mentioned such as UTÅKER: the king of the 3-in-1
which can be flexibly modified into a double, single bed, or even a fancy sofa; HEMNES
formed based on UTÅKER but with extra storage space; or GUALÖV – 3-in-1 table
which can work as a table, a tray or even storage where customers can put their blankets
and cushions (IKEA, n.d).
Currently, Vietnam is facing house shortages and land scarcity due to the dizzying growth
of the population. However, the provision of accommodation in Vietnam has not kept up
with this pace (Zhu, 2012). The new houses or departments are designed as space-saving
as possible causing a challenge to both local furniture manufacturers and customers.
Therefore, optimizing every square foot of living space becomes the present trend of
home design in Vietnam. With this in mind, IKEA’s multi-functional products could be
a perfect match for the Vietnamese market. The authors would like to test:
Hypothesis 4 (H4): IKEA’s multi-functional value has a significant effect on Vietnamese
furniture consumption values.
Safety
Gura (2007) noticed that Swedish furniture design, today, with the solid foundation of
“functionalism” has added the term “safe” into its list of focus in order to address the
healthcare consideration caused by sophisticated and innovative mass-production in the
furniture industry. Thus, the new term so-called “Design for all” was created as an
attempt to facilitate the everyday life of disabled people. IKEA is clearly at the forefront
of this movement in Sweden with its strong commitment from both health and
environmental perspective. According to Kamprad and Torekull (1999), risk assessment
is always at the heart of IKEA’s product development process. Hence, factors including
safety, quality, and environmental impact are strictly evaluated in every stage of the
production line. However, that is not even where it stops, when the products are launched
13in the market, IKEA still does different re-evaluations and examinations on a regular basis
to assure that no problem is missed so that they can make prompt improvements if needed.
At IKEA, both inbound operation and logistics are interrelated in the code of conduct, so-
called as IWAY standard (Edvardsson & Enquist, 2009). The term was established as the
company's minimum requirements for environment, social and working conditions both
on a local and global scale. Through this, IKEA can take initiative in controlling its
operation and gain more influence on its supply chain network. The guiding principle of
IWAY includes fourteen specific components. Among these, the two categories are
environment and chemicals, has highlighted the importance of “safety” in the
environment as well as its impacts on customers through the company’s products,
especially children – customers with the least sense of safety. Understanding that children
are used to exploring the world by chewing and tasting everything they touch, IKEA aims
to make sure all of its products are children-friendly and free from any harmful chemicals.
This, in turn, the company can extend the durability of products since they become easier
to recycle and reuse (IKEA, n.d).
Previous studies have indicated that the situation of low-quality and counterfeit goods in
Vietnam is now at an alarming level, especially the illegal use of images of famous brands
to sell poor-quality products. (Thi & Hoang, 2017; Kuanpoth, 2018; Anonymous, 1998;
Vann, 2006). This may lead to shortages of quality and safe products for children since
parents are gradually losing their faith in domestic products. Regarding this, the
emergence of IKEA can alleviate the need and solve this painful problem in the
Vietnamese market.
Hypothesis 5 (H5): IKEA’s safety value has a significant effect on Vietnamese furniture
consumption values.
2.3.3. Aesthetic values
Minimalism and Clean modern
IKEA is an acronym that lends initials to the first two letters of the founder Ingvar
Kamprad, while “E” stands for Elmtaryd, the farm on which he grew up, and “A” from
Agunnaryd, the nearby village where the farm located (IKEA, n.d). Naming the brand
after the founder himself and the place where he grew up partly showed the significant
14connection and influence of the Småland region of Sweden on the company’s core beliefs
and values. Småland is known as the largest historical province in Southern Sweden,
which is characterized as a sloping and rather stony landscape. Because of this special
terrain, the inhabitants there were often forced to adapt to small means and make use
of the insufficient resources (Småland, 2020). As a result, Smålanders were identified as
thrifty and inventive with a straightforward and no-periphrastic approach when dealing
with everyday problems in general and business difficulties in particular. This “Småland
heritage” has contributed to the creation of IKEA culture, which has been preserved and
proved throughout the company's development and wherever it operates (Stenebo, 2011).
This may also explain the reason why simplicity and minimalism have become the core
values that are clearly depicted in the aesthetics of almost IKEA’s designs
Besides, the Swedish concept of “Lagom” has also been one of the vital effects that shape
the aesthetic of IKEA products. Lagom is a unique term meaning “just the right amount”,
which can be translated as “moderate”, “perfect-simple” or “good enough” (Carlsson,
2017). It is a popular concept that is applied to almost every aspect of Swedish life,
varying from the aesthetic taste, and lifestyle to working culture or even purchasing
behavior. Therefore, instead of maximalist or pattern-crazy house-ware lines, IKEA
focuses much on minimalism with the aim to provide customers with usability and well-
optimized visual home furnishing (IKEA, n.d)
In terms of clean modern aesthetic, Halén and Wickman (2013) presented that although
Swedish art was highly praised, the new aesthetic of "modernism" was unnoticed by
critics during the period of 1800s. Until the series of clean-lined interiors was introduced
by the architect Gunnar Asplund and interior designer Carl Malmsten. The series has
enhanced a new level of the aesthetic in Swedish interior designs, simultaneously taking
the lead for a cut-down on décor, clutter, and unnecessary flourishes for a streamlined
functional design. One of IKEA's standout chairs – the SINNERLIG launched in 2015,
can best describe the clean modern aesthetic of the company product. With the use of
natural cork material, the chair brings the users a sense of well-being at home (IKEA,
n.d).
Since Vietnam is entering the stage of industrialization and modernization, more and
more people have a fast-paced lifestyle, especially the young generation, who are more
15technology-conscious, active, and inquisitive (Khuong et al., 2022). Therefore, filling the
home with many bulk items is thing of the past. IKEA’s minimalism and clean modern
design can best catch up with this lifestyle by offering less stress, less distraction, and
more freedom furniture. Based on this, the authors proposed to test
Hypothesis 6 (H6): IKEA’s minimalism value has a significant effect on Vietnamese
furniture consumption values.
Hypothesis 7 (H7): IKEA’s clean modern value has a significant effect on Vietnamese
furniture consumption values.
Bright in color and Innovative
Apart from the continuous flourishing of Swedish design’s heritage such as clean lines,
minimalism, muted color or the amalgamation of texture, the current IKEA furniture
aesthetic is also home to the innovation and a delight in color (Dancus & Karlsson, 2020).
The term “innovation” is embraced not only in the way IKEA designs its products but
also in how they mix and match different kinds of materials and textures. To be more
specific, Arabian or Indian patterned textiles, woven rugs, colorful glasses, finest lace,
3D printing, etc all can be easily found in the company’s existing furniture products. This
is considered the result of globalization leading to the fusion of cultures in Sweden society
today (Nelson & Cabra, 2004).
In the context of Vietnam, Szydlowski (2008) identified that the Vietnamese current
aesthetic is partly inspired by traditional art, in which Dong Ho paintings play an
indispensable role. Dong Ho folk woodcut painting originated from Dong Ho – a small
village in Vietnam. Nowadays, it is widely popularized and become a reflection of the
aesthetic values, cultural philosophies, and beliefs of Vietnamese people. The material
used in Dong Ho's paintings is nature-oriented, and generally focus on bright, vibrant,
and unfussy color (Bach & Kim, 2015). In addition, the color aesthetic of Vietnamese is
also evident in their traditional costumes – Ao Dai in the South and four-part dress in the
North of Vietnam (Vietnam society & culture, 2010). These costumes are often designed
with bright colors such as blue, red, purple, and yellow, expressing the optimistic spirit
of the Vietnamese people (Thi, 2021). Regarding innovation, Pamela (2021) noticed that
the modern or innovative art in Vietnam was raised at the beginning of the 20th century
16based on the influences of French colonial values. So far, this ideology in design was
gradually responded to by the Vietnamese, which comes along with a high willingness to
adopt foreign impacts into their culture. Linking with IKEA’s product aesthetic, the
authors recommend the two hypotheses:
Hypothesis 8 (H8): IKEA’s bright color value has a significant effect on Vietnamese
furniture consumption values.
Hypothesis 9 (H9): IKEA’s innovative value has a significant effect on Vietnamese
furniture consumption values.
Blending modern and tradition:
Understanding that aesthetics never stand still, Sweden – a multicultural country
nowadays, has transcended the constant volatility of fashion (durable aesthetics) and
represents a subtle modernization, meaning that preservation of traditions and
craftsmanship values is one of the core focus of Swedish designs, rather than support the
celebration of the radical modernism of today’s design industry. Sandbye (2016) called
this positioning of Swedish Design an intermediary way, which keeps the balance
between the rapid superficiality of the capitalist mass culture and the “emotionless
inhumanity” of Central European modernism culture that was generated during the 1950s
– the peak period of Scandinavian Design’s prosperity. Traditional craftsmanship, design
style, and natural materials have been successfully demonstrated by different products of
IKEA. For example: the HILLEGÄRD – a unique throw that is handmade by skilled
artisans with 100% sustainable cotton; SIESJÖN – the modern bath towel based on the
ideas of traditional Hammam towels, which can be used for multi-purposed, one side is
like a normal towel, one side is an extra-absorptive terry cloth (IKEA, n.d).
Considering the fact that Vietnam is also a country famous for its traditional craft villages
and handmade products are, so far, still favorite by both domestic and oversea customers
(Ganne & Lecler, 2009; Ditzig, 2021). Clearly, there is a potential that IKEA’s product
can cross-path with Vietnamese consumers’ preferences regarding this factor.
Hypothesis 10 (H10): IKEA’s blending of modern and traditional values has a significant
effect on Vietnamese furniture consumption values.
172.4.Conceptual model
A framework of product valuation for consumers (Lai, 1995) is applied to examine the
key effect on customer perceived value through consumption values and consumption
schemata. It indicates the form of assessing products and how customers would perceive
values based on the typology of product values and their own values.
Source: A framework of product valuation for consumers (Lai, 1995).
Based on this model, consumption value is determined as an essential factor that affects
customer perception of product benefits. Therefore, it is necessary to investigate the sub-
factors influencing the consumption values such as IKEA generic product benefits and
personal values. Prior to the scope of this study, consumption schemata will be removed
because this element performs personal consumption data via consuming or owning
products (Lai, 1994). Additionally, perceived product benefits will be replaced by
customer perception since IKEA has not already launched in Vietnam, and thus, there
could be limited for researchers to distinguish consumption schemata and customers’
actual perceived value via the difference between perceived costs and benefits.
Furthermore, the term “benefits” will be changed to the term “values” because benefits
are related to what customers have already attained when experiencing and using the
products or services, on the other hand, values are benefits that customers might gain if
18they purchase that products or services (Emilien & Ludicke, 2017; Neap & Celik, 1999).
Hence, the change in the term can be suitable for the context of this study.
2.4.1. Consumption value
People perform their consumption values as subjective beliefs to achieve personal values.
To simplify, consumption or possession activities are the ways to satisfy personal desires.
The role of society has greatly influenced individual ideas and preferences, leading to the
action of looking for products or services that match their current values (Peter & Olson,
1990). Hence, personal values and consumption values have a natural closed relationship.
Customers’ purchase and consumption intentions are derived from the perception of the
benefits that the individual wants to possess (Lai, 1995). For example, occurring the idea
of owning and furnishing a house with the Scandinavian concept for those people who
like minimalism. Since the living situation has improved significantly thanks to a stable
job and income, the desire of having an elegant house with a simple conceptual style of
furniture is what they are trying to attain for enjoyment after a hard-working day. Or
purchasing a revolving chair is favourable for an officer to work at home, which leads to
personal comfort during working.
Moreover, one person may hold various personal values that directly measure
consumption operations (Lai, 1995). Consequently, it is hard to determine how satisfied
a customer is because consumption values are extremely complicated and it is not only
satisfied by one single personal value (Shet et al., 1991). People can observe themselves
or others as prime objects to demonstrate this complex phenomenon. Backing to
mentioned examples, those people who plan to own an elegant house would require
products and services that fit their personal standards. The house could be furnished in
Swedish style and the owner will try to buy IKEA products to fulfil their wants and needs.
Also, similar to putting the officer at ease on working, this person might procure other
items besides the revolving chair to treat him/herself while working. Overall, from a
certain acquiring purpose of the customer, through the multiple consumption actions for
various groups of consumed products, it is possible to generally satisfy consumers (Lai,
1994).
Linking this paper, depending on what consumption values Vietnamese people aim to
reach, they might consider and evaluate if the values of IKEA products are suitable for
19their consumption values. As IKEA has not been in Vietnam, customer perception would
become the main observation to test how large the fitness between Vietnamese people
perceive IKEA's offered product values and Vietnamese consuming decisions if IKEA
truly enters the market. Therefore, the authors will test the correlation between
Vietnamese consumption value and customer perception. The investigating statement is:
"Whether or not Vietnamese consumption values have a positive relationship with
customer perception".
2.4.2. Cultural values
Culture is the most fundamental root of an individual’s wants and behaviour (Kotler et
al., 2020). They further asserted that culture is expressed through beliefs, religions, and
social standards that have been passed down from generation to generation. In fact,
culture is not the same between rural and urban, between countries and other countries
within the same region, and even among regions. Hence, marketing managers are always
trying to detect the shifts in culture in order to modify or create appropriate products and
services. Following Lai (1995), personal beliefs are shaped by the cultural, social, and
family environments. In a socio-cultural environment, a set of values is shared as a
common orientation for mutual influence on a community in that place. These socio-
cultural core values have been naturally implanted into each person via the upbringing
from family, schools and the society at large (Engel et al., 1987). Yet, in fact, not all
shared values in society are applied by individuals. The reason for this reality is that there
are many different generations in a community, depending on the development level of
the society over the periods, it will shape the characteristics as well as the trends of the
young generation at that time. Therefore, only some cultural values are accepted by a
small part of the citizens, but there exist other values that are broadly followed by the
majority (Lai, 1995).
Regarding the furniture consumption aspect in the Vietnamese market, individualism,
uncertainty avoidance, and long-term orientation are the three main elements used for
analysing.
20Source: Hofstede 6-D model about Vietnamese culture (Hofstede Insight, 2022).
It can be seen from the graph that Vietnam has a high score for long-term orientation and
a low score for individualism and uncertainty avoidance (Hofstede Insight, 2022). The
low score for individualism means Vietnamese society develops toward a collectivistic
orientation. Individuals connect closely to their family, extended family or extended
relationships. Loyalty is an important factor in relationships, and the members involved
in the relationship have a responsibility for the other members. Therefore, when
individuals make a decision, most of these decisions are considered by the remaining
members. On the other hand, the low uncertainty avoidance score indicates that people
are not afraid to change things that are no longer suitable for them. They are willing to
try new innovations if they find it necessary and beneficial. And this new change is not
seen as a threat. Last but not least, long-term orientation is determined by a score of 57
performing a pragmatic culture. Being said, Vietnamese people's personality is generally
persistent, thrifty, easy to adapt to changes in all circumstances, and have a realistic view
of specific situations to adjust their traditions to modern contexts.
2.4.3. Personal values
According to Lai (1995), personal values are what an individual wish to have for
him/herself. In other words, personal values are always closely related to wants and needs.
Personal, social, and cultural knowledge achievement create personal values while
cultural values are considered the largest factor (Clawson & Vinson, 1978). Under the
cognitive aspect, personal values reflect an individual's personality through their
consumption behaviours (Wilkie, 1990). Following that, Kotler et al. (2020) explained
that personal characteristics are reflected via occupational status, ageing, various stages
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