Abstract

IKEA, a worldwide known “Assemble & Install-It-Yourself” furniture company with Swedish origin, launched an augmented reality app, namely, IKEA Place, that aimed to solve practical problems surrounding furniture shopping in September 2017. The IKEA Place, which used augmented reality to allow its users to visualize how furniture will look in their own home, is examined in this article. Discussion is centered around how the app allowed IKEA to create a service-centered value as it signaled that it understood the hurdles involved in the furniture shopping process for investing to extend technology-based support to its customers.

Highlights

  • The RTA furniture market “Oh, no! It doesn’t look like what I have thought that it would look like

  • IKEA Place App, by the renowned furniture retailer, is explored concerning its service innovation to offer its customers with an outstanding digital experience in their shopping

  • According to the traditional view of the G-D logic, business transactions often include some value, which is measured in units of output in manufacturing goods at the end of a production process that utilizes some tangible physical resources (Lusch and Vargo, 2006)

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Summary

Introduction

The RTA furniture market “Oh, no! It doesn’t look like what I have thought that it would look like. One such industry that can benefit from such improvement involves the services included in furniture retailing. IKEA Place App, by the renowned furniture retailer, is explored concerning its service innovation to offer its customers with an outstanding digital experience in their shopping.

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