IKEA effect
the proven way to create value for your customers
IKEA effect is the increase in
valuation of self-made products
People tend to OVERVALUE the things they've worked on subconsciously.
Love for the product of labor arises if the work is completed and the result is successful.
Love for the product of labor arises if the work is completed and the result is successful.
EXAMPLE:
Betty Crockers’ Cakes
Instant cake mixes were introduced in the 1950s and aimed to ease cooking.
But housewives felt their effort was undervalued by the simplicity.
So the product’s sales were low. Marketers tweaked the mix to include adding an egg.
This simple change added a touch of personal effort. And boosted sales.
But housewives felt their effort was undervalued by the simplicity.
So the product’s sales were low. Marketers tweaked the mix to include adding an egg.
This simple change added a touch of personal effort. And boosted sales.
EXAMPLE:
YouTube Content
Google uses AI-algorithm to suggest content based on viewers preferences.
Thus, viewers customize what they watch.
They get not just content but curated content.
Thus, viewers customize what they watch.
They get not just content but curated content.
EXAMPLE:
Nike by you
Nike co-creation service allows customers to choose the model and customize the sneakers in the most creative way.
EXAMPLE:
Home Chef
Meal kits, complete with pre-portioned ingredients and detailed recipes, make home cooking as effortless as if you were a chef.
The restaurant-quality results lead to high satisfaction.
This product is the key to achieving these result.
The restaurant-quality results lead to high satisfaction.
This product is the key to achieving these result.
EXAMPLE:
Influencers and viewers as co-creators
Creators build strong ties with their audience by asking for content suggestions, receiving feedback through comments and response videos.
This interaction not only boosts engagement but also makes upcoming content more personally relevant for viewers.
This interaction not only boosts engagement but also makes upcoming content more personally relevant for viewers.
THE MARKETING LESSON
These examples show that making customers a part of creating the product can increase its value.
This leads to customers willing to pay more and becoming loyal, as they enjoy being involved and love the end result.
Written by Natasha Savicheva
All rights for images and videos belong to their authors.
All rights for images and videos belong to their authors.
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