Have you ever bought a bookshelf or a table from IKEA or other furniture stores and assembled it yourself? Do you know the feeling of satisfaction that comes at the end of it? The IKEA Effect is named after that feeling.
The IKEA Effect is a cognitive bias or a trick that our mind plays on us. We have a tendency to value objects more if we have put them together on our own, even if partially, like furniture pieces from IKEA. This preference is independent of our skill or the result. Instead, it’s the value of the effort put in.
How can this be useful to marketers? Businesses can offer customisable options, such as deciding the ingredients of makeup or cosmetic products, designing your own fashion items, etc. Likewise, brands often conduct social media competitions and challenges inviting customers to redesign their products. An example of this is the “Madbury – Design Your Dream Flavour” contest by Cadbury chocolates.
Such ideas utilise the IKEA Effect to make the customer feel invested and involved in the end-product they buy. It can also personalise the service offered. It also generates excitement in the customers’ minds, and they are more invested in the brand as “co-creators” rather than receivers.