What Is the IKEA Effect? A Marketer’s Guide to Leveraging Buyer Psychology

Have you ever found yourself valuing a wobbly table you put together yourself more than a sleek one from a showroom? That’s what we call the IKEA effect. It’s a cognitive bias that explains why people tend to place a higher worth on items they’ve invested effort into creating.

But this concept isn’t limited to just furniture. For marketers, psychologists, and brand strategists, the IKEA effect is a powerful tool to enhance engagement, foster loyalty, and elevate perceived value. In this article, we’ll delve into what the IKEA effect is, the science behind it, and how you can use it strategically in your marketing to build lasting connections with consumers.

What Is the IKEA Effect?

The IKEA effect is a quirky cognitive bias in which people tend to value products they’ve helped build or personalise, even if their contribution was small or the result wasn’t perfect.

This term was created by behavioural economists Michael Norton, Dan Ariely, and Daniel Mochon, who studied how individuals would spend up to 63% more on self-assembled furniture or five times as much for DIY origami compared to similar pre-made options.

Why the IKEA Effect Happened?

Effort Justification: Making Hard Work Feel Worth It

Effort justification, grounded in cognitive dissonance theory, describes how we often rationalise the time and energy we invest in a task by convincing ourselves that the outcome is more valuable than it is. For example, if you spent two hours assembling a shelf, your mind might lead you to believe that the shelf must be worth more because of the effort you put into it.

Competence and Pride: “I Made This” Matters

When we create something ourselves, it connects with our fundamental need for effectance, the feeling that we can influence what happens around us. This sense of mastery brings about pride, which deepens our attachment and appreciation for what we’ve created.

Psychological Ownership: It Feels Like Mine

Creating something yourself goes beyond just owning it; it creates a sense of psychological ownership. Unlike the endowment effect, which is simply about having something, the IKEA effect comes from your effort. When you contribute to making a product, it becomes a part of your identity.

How Brands Leverage the IKEA Effect in Marketing

The IKEA effect goes beyond a simple curiosity in consumer psychology; it’s a smart strategy that brands use to connect with customers, enhance the perceived value of their products, and foster customer loyalty. By integrating elements like effort, choice, and contribution into the customer experience, companies can leverage this powerful bias to their benefit.

In the following sections, we’ll look at key strategies brands employ to harness the IKEA effect, with clear explanations and practical examples.

Customisation Builds Emotional Ownership

Giving customers the ability to personalise a product, even in small ways, boosts their emotional connection. Whether it’s picking colours, layouts, or specific features, this feeling of control turns an ordinary item into a unique “creation.” It sparks a sense of ownership and pride, which is the essence of the IKEA effect.

Today’s consumers aren’t just looking for any product; they want their own version. This approach caters to their psychological need for autonomy and self-expression, which helps build loyalty and can even make them willing to pay a bit more.

So, why does personalisation work? It adds relevance, uniqueness, and a sense of pride, making the product feel more like “mine” even before it arrives at their doorstep.

Examples:

• Nike By You: Custom sneakers with user-defined colours and materials.
• M&M’s “My M&M’s”: Consumers add personalised messages or colours.
• Custom planners, greeting cards, or even shampoo formulas online.

Key Takeaways:

• Boosts sense of psychological ownership.
• Increases product satisfaction and brand recall.
• Encourages higher price tolerance.
• Works especially well in fashion, food, stationery, and tech accessories.

DIY and Co-Creation Turn Effort into Loyalty

When customers help build the final product, whether putting together furniture or mixing ingredients, they tend to appreciate and recommend it more. DIY approaches save companies on labour costs and create an engaging experience that helps the product stick in the user’s memory.

So why does this work? It all comes down to how we think. People convince themselves that when they put in effort, the result feels more valuable (this is known as effort justification), and successfully finishing a task gives them a sense of pride.

Examples:

• IKEA: Self-assembled furniture turns buyers into builders.
• Build-a-Bear: Kids design and “bring to life” their own teddy bear.
• HelloFresh: Users prep meals from kits and feel they “cooked it themselves.”

Key Takeaways:

• Converts customers into creators, not just consumers.
• Taps into intrinsic motivation and competence.
• Adds perceived value to lower-cost base materials.
• Encourages repeat purchases through accomplishment-based attachment.

User-Generated Content Creates Identity Investment

When users share their content about a brand, they are not just showcasing the product but also expressing their connection to it. User-generated content (UGC) taps into what’s known as the IKEA effect, where users feel like co-authors in the brand’s narrative.

So, why does this approach resonate? It’s simple: people become emotionally tied to a brand when they play a part in enhancing its visibility or culture. They strengthen their relationship with the brand by sharing photos, writing reviews, or showcasing their designs.

Key Takeaways:

• Transforms brand consumption into self-expression.
• Boosts community feeling and word-of-mouth exposure.
• Cost-effective marketing that drives trust and authenticity.
• Best used with visually friendly products and lifestyle brands.

Gamification Sustains Effort-Based Engagement

Gamification enhances the IKEA effect by providing clear goals and feedback loops. Every completed task or milestone gives users a little “success experience,” reinforcing the idea that effort leads to value over time.

So, why does this work? By turning interactions into a game-like experience, brands motivate users to keep engaging, which deepens their investment in the product or service.

Key Takeaways:

• Encourages evangelism and brand advocacy.
• Reduces development risks via real-world feedback.
• Works across product design, content, and even policy creation.
• Ideal for brands seeking a collaborative brand image.

How to Avoid the IKEA Effect

Building something yourself can be incredibly rewarding, but it’s important to watch out for the IKEA effect: the tendency to overvalue your creations. This can sometimes lead to spending more money, losing objectivity, or missing out on better options. For consumers, recognising this bias is the first step toward making smarter, more balanced choices. Here are some practical tips to help you avoid the trap of overestimating your DIY projects or experiences.

Get a Second Opinion

One of the easiest ways to counteract the IKEA effect is to get feedback from someone who wasn’t part of the process. An outsider’s perspective, whether a friend, a professional, or even a review platform, can help you assess whether your creation is as valuable as you think.

Consider Time as Part of the Cost

Don’t just focus on the price. Consider how much your time is worth. If putting together a bookshelf takes three hours and saves you £30 compared to a ready-made one, you’re effectively working for £10 an hour. Does that align with your expectations or goals?

Compare Objectively with Similar Alternatives

Before you get too attached, it’s worth comparing the item you’re considering creating or personalising with some ready-made alternatives. Factors like features, durability, warranty, and overall cost should come into play. Consider using comparison charts or tools to ensure your evaluation is based on data rather than emotions.

Reflect on Motivation: Satisfaction or Justification?

It’s also a good idea to pause and reflect: Are you choosing this DIY option because you genuinely want the experience, or are you trying to convince yourself it’s a better choice simply because you’ve already invested time or money? This kind of reflection can help you see whether you’re valuing something more to justify your efforts than for its actual usefulness.

Document, Don’t Justify

If you’re proud of your efforts (and you absolutely should be!), take some time to capture that sense of achievement in photos, journals, or by sharing on social media. Remember to keep your pride separate from how you evaluate the outcome. You can enjoy the memory without inflating the results more than they deserve.

Conclusion

The IKEA effect offers an intriguing insight: when customers put effort into a product or experience, they value it more highly. For marketers and brand strategists, this is more than a quirky psychological phenomenon; it’s a tried-and-tested way to enhance engagement, increase perceived value, and foster lasting loyalty. Whether through personalisation, co-creation, user-generated content, or gamification, harnessing the IKEA effect empowers brands to turn passive consumers into enthusiastic advocates. By carefully embedding effort into the customer journey, you’re not just selling a product but encouraging people to take pride in what they’ve helped create.

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