SHE WORKS HARD FOR THE MONEY
IKEA EFFECT
A tendency to overvalue items that we have customized or built ourselves.
Consumers favor things they’ve helped create. We have a psychological need to feel competent, so opportunities to show off our abilities feel rewarding and are thus more desirable. They’re worth more to our wallets, too.
In the 1950’s, Betty Crocker relaunched their cake mixes to require the addition of an egg, exponentially boosting sales. The IKEA effect also propelled meal-kit services, Legos, and even “paint and sip” class franchises.
Ironically, people prefer - and will even pay more for - products and experiences that require them to put in some sweat equity.
SO WHAT
Consumers place greater value on things they have worked to create.
NOW WHAT
Insert simple tasks into the buying pathway, such as pressing buttons, creating lists, or customizing packaging.
Messaging that promotes a sense of self-sufficiency (“You can do it, we can help!”) drives affinity and attachment.
MARKETING IMPLICATION
Finding customers who will do most of the work, feel great about it, and at the same time perceive they have attained “greater value for money” is a the holy grail. Is your target audience driven by self-satisfaction and the need to achieve? Or something else?
Once you carry your own water, you will learn the value of every drop.
- African proverb