The IKEA Effect

The IKEA Effect is a psychological phenomenon describing the tendency of individuals to assign higher value to products they have actively participated in creating or assembling. Coined after the renowned furniture retailer IKEA, where customers often assemble their own furniture, this effect suggests that the investment of effort in a task leads to an increased emotional attachment and perceived worth of the end product. Research indicates that people tend to overvalue self-made items, viewing them as more valuable or desirable than identical items assembled by others. This cognitive bias highlights the emotional significance of personal involvement in creating or building, influencing perceptions of ownership and satisfaction. The IKEA Effect has implications in various fields, from marketing strategies that encourage customer engagement to a deeper understanding of consumer behavior and the underlying factors shaping our perceptions of value.