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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.

Service innovation: Using augmented reality in the IKEA Place app