Ever noticed a curious fondness for a piece of furniture you assembled yourself, even if it's not the most elegant or sturdiest? It's not just sentimental value. A well-established concept in behavioral economics called the IKEA effect explains this tendency. We tend to value things more if we've invested effort in creating them ourselves. Studies show people are willing to pay up to 63% more for furniture they assembled compared to pre-built options. This applies beyond furniture – even simple tasks like origami or Legos show the effect.

The reasons are likely twofold. First, successfully completing a task, especially with effort, can be very satisfying. This translates into a higher perceived value for the finished product. Second, the IKEA effect might be linked to “justification of effort.” When we put in time and energy to create something, we tend to justify that effort by assigning the finished product a greater value.

Understanding the IKEA effect can be valuable for businesses. Companies can leverage this concept by offering products that require some customer assembly, like build-your-own furniture or DIY subscription boxes. This strategy can increase customer satisfaction and perceived value for the product. The IKEA effect highlights an interesting aspect of human behavior: the effort we put into creating something can significantly impact the value we assign to it. This concept has applications beyond consumer behavior, but also in educational settings and other areas where individuals are actively involved in the creation process.

Source Links

• https://thedecisionlab.com/biases/ikea-effect

• https://en.wikipedia.org/wiki/IKEA_effect

• https://www.adcocksolutions.com/post/what-is-the-ikea-effect

• https://insidebe.com/articles/the-ikea-effect/

• https://www.sciencedirect.com/science/article/abs/pii/S1057740811000829

• https://www.bbc.com/worklife/article/20190422-how-the-ikea-effect-subtly-influences-how-you-spend