What Is The IKEA Effect? (Episode 91)

Updated: October 12, 2021

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What you’ll hear in this episode:

In this episode, we’ll talk about the IKEA Effect. I’ll explain what it is and how businesses use this cognitive bias to make us spend more.

I’ll share a study about origami and why we tend to overvalue the things that we create.

Finally, I’ll give tips on how we can get some benefits from the IKEA Effect

Excerpts and Highlights:

Labor leads to love.

The main explanation for the IKEA effect seems to be connected to a person’s desire to feel competent.

The quality and the utility of the product come first, and whatever added value that we get from customization or personalization should just be a secondary fact, especially when that comes with additional costs.

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  1. The IKEA effect, when you break it down and really look at the concept, makes since. Going back to my youth, I now realize why my contemporaries would gladly pay my asking price for certain items I made because they did not have the skills to do the same. Then, on the flip side, other hand made creations of mine would be “negotiated” downward or even totally rejected. The reason, my buyers were happy with their own attempt even if it was a much inferior result. I now see and understand the value they placed on their own work product. Great podcast Fitz

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