Almost everyone remembers their first trip to an Ikea store. A labyrinthine expanse where one navigates through passages flanked by towering stacks of flat-packed cardboard cartons. Amid this maze, one is beguiled by meticulously curated showrooms that beckon with beautifully staged bedrooms and kitchens, evoking an aspirational dreamscape. It is within these carefully orchestrated settings that one’s imagination transcends the boundaries of prior conception. A newfound appreciation is born for the power design elements hold in transforming our daily lives. From then onwards, a room is never just a room but an endless canvas to customise and design according to your personal preferences.
The concept known as the “IKEA Effect” was first introduced by Michael Norton, a professor at Harvard Business School, along with Daniel Mochon and Dan Ariely in their 2011 research paper titled “The IKEA Effect: When Labor Leads to Love.” This phenomenon delves into the proclivity of individuals to assign heightened value and form a deep emotional connection with products they’ve had a hand in crafting, even when the task may be as elementary as putting together a piece of furniture.
The psychological phenomenon is underpinned by several intricate psychological factors. At its core, the first of these factors is “Effort Justification.” When individuals invest time and energy into a task, they inherently seek to validate the effort expended. This takes shape as a cognitive process wherein we convince ourselves that the end result must inherently possess a greater value than if the task were effortlessly executed. In the context of assembling a furniture piece from Ikea, the mere labour poured into constructing it becomes an integral element of its perceived worth. This intriguing psychological predisposition highlights how we intrinsically ascribe significance to the products of our toil, often disproportionately so.
The second facet of the IKEA Effect, “Ownership and Identity,” delves into the deeper layers of human psychology. Building or customising something, like assembling furniture, imparts a profound sense of ownership and individuality to the product. It becomes more than a mere object; it becomes a medium through which we express our unique personalities and creative inclinations. This transforms the experience from a routine task into a personal journey of creation, forging a profound emotional connection to the end result. This dimension of the IKEA Effect underlines our innate desire to instil inanimate objects a piece of our identity, increasing the sentimental and emotional value we attach to them.
The third aspect, “Competence” determines that when we engage in the manipulation of objects in our environment, particularly when we successfully accomplish a task, it satiates our inherent desire to exert control over the world around us. This phenomenon was exemplified by the renowned behavioural scientist Albert Bandura in his 1977 paper, where he illustrated how the successful completion of tasks heightened individuals’ sense of mastery and command over their surroundings.
Ikea is not the pioneer in adopting this approach. Rewinding to the 1950s, during a period when the conventional practice of baking was being challenged by the introduction of cake mix, Betty Crocker astutely realised the perks of offering a mix that was not entirely complete. This approach served to enhance the baker’s sense of accomplishment when they were tasked with adding an egg to the mix, creating a more fulfilling and satisfying baking experience.
Other industries have embraced the Ikea effect too, recognising its potential to enhance customer engagement and loyalty. One ingenious application of this concept is in the domain of earned discounts, a strategy wherein customers are required to undertake specific tasks or actions to qualify for promotions. In line with this psychological phenomenon, individuals tend to place higher value on discounts they have “earned.” Examples of such earned discounts include systems such as loyalty points and early bird deals. By engaging customers in these activities, companies not only build stronger customer loyalty but also deepen the connection between consumers and their brand, much like the Ikea Effect does with its self-assembly furniture.
Furthermore, meal delivery kit services have harnessed the allure of customer involvement. Subscribers receive carefully portioned ingredients to prepare home-cooked meals. These companies understand that the labour involved in cooking their meals fosters feelings of accomplishment, similar to Betty Crocker, which can become intricately linked with their brand. The burgeoning meal kit industry, valued at over $5 billion in the U.S., exemplifies how companies are employing the Ikea Effect to promote brand loyalty, recognising that the effort customers invest in their meal preparation contributes to their attachment to the company and its products.
Frequently, businesses also employ tactics that limit product availability, either by intentionally producing an insufficient quantity or by exclusively offering products to registered members. In another approach, they create the illusion of scarcity by deliberately withholding stock. This strategy, commonly referred to as the Scarcity Principle, is prevalent on many online booking platforms, such as those used by hotel and flight providers. These platforms often employ techniques to notify consumers when their selected flights are nearing capacity, when limited-time discounts are about to expire, or when available hotel rooms are dwindling.
In the realm of consumer choices, a keen understanding of how marketing strategies tap into the intricacies of our psyche bestows the gift of astute decision-making. The Ikea Effect stands as a compelling case in point, showcasing the finesse with which capitalism leverages the burgeoning significance of material possessions in our lives. This cognisance enables individuals to traverse the marketplace with heightened discernment, allowing them to make selections that harmonise with their true preferences and values. It serves as a vivid testament to the intricate dance between consumer psychology and commerce, underscoring the necessity for a poised and enlightened approach in our ever-evolving consumer landscape.
Words by Anithya Balachandran.
Image courtesy IKEA.
