The IKEA Effect: Why We Value What We Build?

When I first entered the world of psychology and consumer behaviour, it was a vast sea of “whats” and “whys.”

Why do people act the way they do?

What triggers a specific behaviour?

It’s like entering a candy store, overwhelmed with colourful choices. From the IKEA Effect to the Paradox of Choice, these terms would fly around in conversations, and I’d nod in agreement as if truly grasping their depths.

But as I moved further into my late twenties and began to focus on the deeper layers of understanding, I realized there’s more to these phenomena than catchy names.

So, this is where this new exploring journey starts. Over the next months, I’ll be breaking down these intriguing concepts we all think we know.

But do we truly?

Do we understand the heartbeats and the stories behind them?

Do we appreciate the history, the researchers who coined them, the experiments that proved them?

Let’s explore together, and try to unveil not just the what but the why and the how of phenomena like the IKEA Effect, The Anchoring Effect, The Foot-in-the-Door Technique, The Paradox of Choice and more.

Today, we’re gonna look into the IKEA Effect and why is it such an interesting psychology concept.

the ikea effect

Understanding the IKEA Effect

As a kid, I often helped my father on the weekends. He was a skilled woodworker, transforming wood into many useful and beautiful things.

One of my fondest memories was helping him craft our new kitchen.

It was during those hours, amidst the sawdust and the rich scent of wood, that I felt a deep connection not only with my father but also with the craft.

There was an intrinsic satisfaction in witnessing plain wooden planks evolve into cabinets and counters.

Fast forward to my twenties, and IKEA became a familiar name.

Assembling those flat-packed pieces brought a rush of nostalgia. It wasn’t just about building furniture; it was the pride and connection I felt.

Ever felt that way?

Built something with your own two hands, even if it was just following a set of instructions, and suddenly it meant so much more to you?

Well, It’s not just you. That’s the IKEA Effect at play.

Let’s rewind a bit and understand where this quirky name came from.

No prizes for guessing, it’s indeed named after the Swedish furniture giant, IKEA. Researchers observed that people tend to value things they’ve personally laboured on far more than objects they haven’t.

Essentially, when you put sweat, time, and perhaps a tiny bit of frustration (who hasn’t felt that with an IKEA manual, right?) into creating something, it suddenly feels… more yours. More valuable.

Now, you might wonder why?

Why does a bookshelf I fumbled with for hours feel more precious than a designer one I bought ready-made? The answer lies deep within our psyche.

In my twenties, when I began shifting my focus from the what to the why of things, I stumbled upon some psychological cornerstones that underpin this phenomenon.

Firstly, there’s the undeniable human need for achievement. We’re wired to crave success, no matter how small.

Every tiny win, like fitting in the last piece of a puzzle or hammering down that final nail, boosts our self-esteem. We, then, aren’t just valuing the object, but the achievement it symbolizes.

But that’s not where it stops.

There’s more to this than just feeling good about accomplishing a task. It’s also about reconciling our efforts.

Our brains don’t like it when things don’t add up.

Cognitive dissonance, as the experts call it. If I spent an entire Sunday afternoon putting together a chair, and it turns out wobbly, my mind tries to justify the effort. “Sure, it’s not perfect, but it’s mine. And that’s what makes it special.”

To get some historical context, this isn’t just a modern phenomenon brought on by the flat-pack furniture era.

This has roots that trace back ages. Historically, crafting and creating were essential life skills. The value wasn’t just in the product but in the art of creation.

Over time, as life got more commercial and convenience became the name of the game, the balance shifted.

Yet, when presented with opportunities to create, our brains still lean into that primal sense of satisfaction.

Initial findings on the IKEA Effect reaffirmed this. Studies found that participants were willing to pay more for furniture they had a hand in assembling versus identical pre-assembled pieces.

The conclusion? Our personal investment in creation doesn’t just alter our perception of value; it tangibly affects our valuation.

The thing is, life isn’t always about the ready-made, shiny, perfect things.

Sometimes, it’s about the scratched tables, the unevenly baked cookies, and the hand-drawn cards. Because, at the end of the day, it’s about who we become in the process of creating them.

How the IKEA Effect Shapes Everyday Life and Business?

I remember walking through the vast aisles of an IKEA store for the first time. It was in Italy actually, since Ikea came to Slovenia just recently.

All around me were these neatly packed boxes, promising the allure of a piece of furniture, waiting for someone to breathe life into it.

I picked up a few, imagining the sense of accomplishment when I’d finally put them together. But why? Why did I feel so drawn to this concept, this “DIY culture”?

That’s the IKEA Effect!

You see, as we grow and evolve, most of us want more than just to consume. We yearn to create, to be part of a process.

When we buy that flat-packed furniture and spend hours assembling it, we’re not just building a bookshelf or a table; we’re constructing a narrative of achievement.

This isn’t just about furniture, it’s about the pride, the self-esteem boost, and a story we get to tell every time someone compliments that wobbly table in the corner of our living room.

But here’s where it gets even more interesting.

Businesses caught onto this long before many of us realized it. It’s no accident that DIY culture has blossomed in the past few decades.

Companies realise that when customers invest their time and effort into a product, not only do they value it more, but they also become more loyal to the brand.

Think about it: how many of us have sworn by a brand simply because of the memories and experiences tied to it? The sweat, the occasional tears, the triumphant final product – it’s all a masterstroke of business strategy.

And it doesn’t stop with furniture or DIY crafts.

This idea extends to so many areas of our lives. Ever wonder why customizing a product feels so satisfying?

Or why do we place such immense value on things we’ve personalized or had a hand in creating?

That’s the IKEA Effect, stretching its influence beyond the confines of consumer behaviour.

But let’s drift away from products for a moment.

Remember that time when you and your friends decided to cook a meal from scratch? Even if the results were, let’s say, less than gourmet, there was a charm in eating it, right?

A certain pride in knowing that you made it. It tasted better, felt more special. That is the IKEA Effect dancing in our personal relationships and shaping our self-perception.

It’s fascinating to think about how something as simple as assembling furniture can have such profound implications on our behaviour, our relationships, and our self-worth.

As I’ve dug deeper, I’ve realized that the IKEA Effect isn’t just a theory tucked away in a psychology textbook; it’s a living, breathing phenomenon that plays out in our lives, day in and day out.

Looking at my own life, as I evolve, I’ve begun to see the patterns.

And now, I can’t help but wonder: Where else does the IKEA Effect show up for me? For you? How can understanding it better shape our choices and our future?

Photo credit: zheka_kapusta

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