Kit-Hindin-ProfileKit-Hindin-ProfileKit-Hindin-ProfileKit-Hindin-Profile
  • home
  • kit who?
  • facilitation
    • end-to-end facilitation
    • futurism & foresight workshop
    • LGBTQIA+ rainbow identities workshop
    • diversity & inclusion workshop
    • facilitation tools and exercises
  • futures
  • contact
  • food
✕
    • Categories
    • Products
    • Posts
    • Pages
    • Portfolio
No results See all results

IKEA Effect Framework

Categories
  • facilitation
Tags
  • frameworks
  • ideation

Ikea Effect

With a name inspired by the Swedish self-assembly furniture giant, this effect can help explain the growing popularity of ‘meal-kit’ services; the trend towards co-designing solutions in business; and house-hunters repeatedly paying top dollar for ‘fixer uppers’.

The IKEA Effect is a cognitive heuristic or bias that leads you to overvalue things that you’ve helped to partially create.

IMPLICATIONS FOR YOU. 

This effect is quite intuitive. You’ve likely experienced the hollow feeling when something was simply handed to you, compared to the satisfaction of truly earning it. In addition, helping to create something can contribute to your self-beliefs of competency and impact.

In practical terms, the IKEA Effect can lead you to pay more for products that have a do-it-yourself element. Linked to that, the effect will lead you to overvalue those items once they have been constructed. See the Origins tab below for the fascinating Origami example from the paper that coined this term.

Dan Ariely, one of the originators of the term pushes the effect to its extremes, pointing out that if you have children, they generally represent “the ultimate IKEA Effect.” That is, you will value your own child, who you’ve put tremendous effort into over years, more than an equivalent child that you’ve not invested in. The IKEA Effect also explains why you tend to believe that everyone else should value your children as much as you.

IMPLICATIONS FOR BUSINESS STRATEGY. 

Running a business or launching a new product? Consider how you might charge higher prices for assembly-based products, even though consumers are investing their own labour into the product’s completion. Importantly, this effect goes beyond the simple personalisation of choosing colours or options in a product, and instead must involve tangible effort to help create or build it.

More on this framework at Modelthinkers.com

Kit Hindin
Kit Hindin
Activator, facilitator, entrepreneur, futurist, designer and strategic thinking partner.

Leave a Reply Cancel reply

You must be logged in to post a comment.

business chart communication conflict creativity critic crowd-sourced discussion energiser EQ exercise exercises frameworks fun future futures gentle how to ice-breaker ideation influence intimacy leadership listening meet-n-greet meeting personal-development physical presentation problem-solving purpose relationships remote signals sound state-change storytelling strategy team teamwork trends trust virtual warm-up writing

✕

Social

 

Get in touch

kit@kithindin.com