The “IKEA Effect” is a psychological phenomenon that describes the tendency for people to place a higher value on things they have helped create or build themselves, even if the end result is of lower quality or value than a professionally made product. This effect has been studied and documented by behavioral economists, and it has important implications for marketing, design, and consumer behavior.
The IKEA Effect was first named and studied by Michael Norton, Daniel Mochon, and Dan Ariely in a paper published in 2012. In their research, the authors conducted a series of experiments to test whether people valued items more highly if they had a hand in creating them. They found that people who built their own items, even if they were of lower quality than professionally made products, valued them more highly and were more likely to keep and use them.
One reason for the IKEA Effect is that people derive a sense of ownership and pride from their work. When people invest time and effort into a project, they become emotionally invested in its success. They may feel a sense of accomplishment and satisfaction from having completed the task, even if the end result is flawed or imperfect.
The IKEA Effect has important implications for businesses and marketers. For example, companies can leverage the effect by allowing customers to customize or personalize products, or by offering DIY kits or workshops. By involving customers in the creation process, businesses can increase customer engagement and loyalty, as well as create products that customers value more highly.
However, the IKEA Effect can also have negative consequences. For example, people may overestimate the value of their own work, leading them to be less receptive to feedback or criticism. They may also become more resistant to changing or improving their work, as they have already invested so much time and effort into it.
In conclusion, the IKEA Effect is a powerful psychological phenomenon that describes the tendency for people to value things they have helped create or build themselves more highly than professionally made products. While the effect can have positive implications for businesses and marketers, it is important to be aware of its potential negative consequences and to use it in a responsible and ethical manner.