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IKEA effect: definition, examples and how to use it in marketing

Why we value what we built ourselves: the IKEA effect explained, with examples and how to use it with configurators, quizzes and personalisation.

The IKEA effect, also known as "the power of DIY", rests on a human quirk: what we have built ourselves is worth more to us. Our own effort creates a relationship with the product that goes beyond the material. For your marketing, this means that customers who take part become more attached. This article is part of our series 10 psychological effects in marketing.

What is the IKEA effect?

The IKEA effect describes how people value things they have personally invested time and effort in far more highly than equivalent finished things. It was studied by the researchers Michael Norton, Daniel Mochon and Dan Ariely, whose paper was published in 2012 under the title "The IKEA effect: When labor leads to love". Participants who had assembled something themselves were willing to pay more for it than for the same item ready-made.

One condition matters here: the effect occurs when the work succeeds. Anyone who fails does not value their half-finished work more highly.

The IKEA example

Who could embody the effect better than the Swedish furniture retailer? Buy it, take it home, build it yourself: IKEA has created a whole culture around doing it yourself. The shelf you screwed together yourself is not just any shelf, it is yours.

The IKEA effect in marketing

Beyond flat packs and Allen keys, the principle works the same way: let your customers get hands-on.

  1. Co-creation: Involve customers in development through surveys, votes or questionnaires. Anyone who helped decide wants the result too.
  2. Configurators and quizzes: A quiz that finds the right solution, or a configurator that puts together a personal set. The result feels like your own choice.
  3. Personalisation: A T-shirt with your own design, a skincare set for your own skin type. A standard product becomes something personal.
  4. Virtual try-on: Trying on, placing and testing in the browser or in the app. The person is already working with the product before they own it.

How we use the IKEA effect in ads

At ad.boutique, we translate the IKEA effect into creatives and funnels:

  • Show the moment of taking part: Screen recordings of the configurator, hands putting a set together, people unpacking their personalised product. Viewers want to try it themselves.
  • A quiz as the entry point: Instead of going straight to the product, the ad leads to a short series of questions. At the end comes a recommendation that feels like your own choice. How this works together in the shop is explained in online shop marketing strategy.
  • Keep the task small: Few steps, a clear choice, an immediately visible result. Long forms destroy the effect.

Limits

Taking part costs customers time. If the effort is too high or the result unclear, they drop off. The IKEA effect is a reason to involve customers, not an excuse for complicated processes.

Frequently asked questions

What is the IKEA effect in simple terms?

The IKEA effect means that we value what we have built or helped to design more highly than an equivalent finished product. It is named after the furniture retailer and was studied by Michael Norton, Daniel Mochon and Dan Ariely in a paper published in 2012.

Why is it called the IKEA effect?

Because IKEA is the best-known example: customers buy furniture, take it home and assemble it themselves. Their own work turns the finished shelf into something personal.

When does the IKEA effect not work?

The IKEA effect does not work when the task fails. Anyone who cannot finish assembling a piece of furniture does not value it more, they get annoyed. Taking part has to be simple enough to end in a sense of achievement.

How do I use the IKEA effect in online marketing?

Let people shape something before they buy: configure a product, find the right solution in a quiz, personalise a design or have a say in new products. In your ads, you show exactly that moment.

What is the difference between the IKEA effect and the endowment effect?

With the endowment effect, we value something more because it belongs to us. With the IKEA effect, because we have worked on it ourselves. The two often reinforce each other.

Sources

  1. Norton, M. I., Mochon, D., Ariely, D. (2012): The IKEA effect: When labor leads to love, Journal of Consumer Psychology

About the author

Portrait of Daniel Hayden

Daniel Hayden

Managing Director, Creative and Web

Leads creative and web at ad.boutique: ad creatives, video, landing pages and websites that sell.

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