The IKEA Effect

The IKEA Effect

The IKEA Effect

The IKEA Effect: Why We Love What We Help Create

Have you ever bought a product from IKEA and assembled it yourself?

Chances are, once that bookshelf or wardrobe came to life under your hands, it didn’t just serve a function, it kind of became a small badge of pride. You might have even shown it off a little.
That feeling? That’s the IKEA Effect in action.

What Is the IKEA Effect?

Coined after the iconic Swedish furniture brand, the IKEA Effect describes a psychological bias where people place ridiculously high value on products they’ve had a hand in creating.

A 2011 study confirmed that people were willing to pay 63% more for furniture they assembled themselves compared to pre-assembled versions.

"Why", you ask?
Because the effort made it theirs.

It’s not just about the function, it’s more about pride, ownership, and emotional investment.

Why It Works?

The IKEA effect is powered by confidence and contribution. When people build or customise something themselves, they become more attached to the outcome, its basic psychology. It taps into identity, a sense of accomplishment, and even status (“I built that myself”).

This psychological ownership often leads to:

  • Higher perceived value

  • Increased satisfaction

  • Free word-of-mouth marketing (because people love sharing what they’ve built)

How Designers & Brands Are Leveraging It?

Consumers today crave personalisation and empowerment, brands across industries are diving into the IKEA effect to co-create experiences with their users. Let’s take a look at a few brands doing it right:

1. Nike: Nike By You

Nike’s custom sneaker platform lets users design their own shoes. From the outsole to the swoosh. The result? Not just a product, but a personal fashion statement.

This deep level of customisation makes customers feel like designers themselves, and their self-made sneakers instantly feel more valuable than any off-the-shelf pair.

2. Build-A-Bear Workshop

By now, you must have realised, It’s more than just buying a stuffed toy, it’s about building your own. Kids go through a step-by-step process of choosing the bear, stuffing it, adding outfits, and even giving it a name.

Studies show that children value their customised bears more than store-bought ones, since it becomes their creation and not just another toy on their shelf.

3. Coca-Cola: Share a Coke Campaign

In 2011, Coca-Cola launched its "Share a Coke" campaign in Australia, replacing its logo with 150 popular names. Consumers could also personalise their own bottles online.

The result? Over 6 million personalised bottles created. People didn’t just drink Coke, they connected with it, gifted it, and shared it widely across social media.

What It Means for Designers & Marketers?

The IKEA Effect is a powerful reminder that people want to feel what its like to be a part of the process, they want to feel included and crave a sense of accomplishment.

For designers, this means:

  • Creating opportunities for user input or personalisation

  • Designing experiences that celebrate effort, not eliminate it

  • Letting people "co-create" with your product or brand

The more involved someone feels, the more likely they are to love, value, and recommend your offering.