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IKEA Effect

What is the IKEA Effect?

This principle states that people attribute more value to products they’ve helped create. It's named after IKEA brand furniture, which has to be assembled by customers in their home. 

The IKEA Effect in the real world

In the 1950s, the Betty Crocker brand was in crisis. They needed to sell more of their instant cake mixes. The product seemed like a winner — just add water, and you’ll have a delicious cake, ready to bake. But sales struggles led parent company General Mills to seek outside help.

Researchers discovered that a totally instant cake mix was too easy. Home bakers of the time felt it undervalued the skill of making a cake. “Remove the powdered egg,” they advised, “and have bakers add a fresh egg themselves. Give the baker more ownership of the final result.” General Mills reworked the recipe. Soon, sales of Betty Crocker’s semi-instant cake mix were through the roof. All because they asked customers to become co-creators of an instant mix cake. (source)

Example Vault: IKEA Effect

IKEA Effect: My Starbucks Idea
IKEA Effect: IKEA Furniture