The Ikea Effect

In a series of studies in which consumers assembled IKEA boxes, folded origami, and built sets of Legos, we demonstrate and investigate the boundary conditions for what we term the “IKEA effect” – the increase in valuation of self-made products. Participants saw their amateurish creations – of both utilitarian and hedonic products – as similar in value to the creations of experts, and expected others to share their opinions. Our account suggests that labor leads to increased valuation only when labor results in successful completion of tasks; thus when participants built and then destroyed their creations, or failed to complete them, the IKEA effect dissipated. Finally, we show that labor increases valuation of completed products not just for consumers who profess an interest in “do-it-yourself” projects, but even for those who are relatively uninterested. These results have implications for firms seeking to maximize customer satisfaction. The challenge for marketers lies in convincing consumers to engage in the kinds of labor that will lead them to value products more highly, especially given this general aversion to such pursuits. The traditional means of encouraging consumers to assume production costs such as speed of service are clearly one avenue already in use. Another intriguing possibility comes from Gibbs and Drolet (2003), who show that elevating consumer energy levels (for example, by giving them caffeine) can induce consumers to choose consumption experiences that require more effort, such as watching movies with foreign subtitles. At the same time, however, companies should also be careful to create tasks that are not too difficult as to lead to an inability to complete the task: Again, our account suggests, and our results demonstrate, labor leads to love only when that labor is successful." (Norton et al., 2011).

I thought that this article was very interesting for the problem space given to us by Marble Plastics. The IKEA effect is relevant because it introduces participation in the making of the product as a source of value. The research suggests that people are able to place more value in something that they help create or make. A very important variable to consider is that the inverse of this is also true: the effect weakened when participants failed to complete the task. This has a strong connection to the concept of creating prefabricated kits for people to assemble themselves. This additional layer of making could create another level of emotional connection with the recycled material. Another key aspect that this article pointed out was that participation only adds value when it can be completed. It shifts the framing from simply buying something recycled towards participating in giving the material a second life.

References:

Norton, M. I., Mochon, D., & Ariely, D. (2011). The “IKEA effect”: When labor leads to love (Harvard Business School Working Paper No. 11-091). Harvard Business School. https://www.hbs.edu/ris/Publication%20Files/11-091.pdf