Let’s start this blog with a question.
Why do homemade cakes taste better than store-bought ones?
Well the answer lies in a psychological phenomenon known as the IKEA effect. Named after the furniture giant IKEA, which uses this principle brilliantly,
The IKEA effect suggests that people attach greater value to items they've actively participated in creating.
Think about it – when you've baked a cake from scratch, you've invested your time, effort, and creativity into it. As a result, you tend to favour it more than a cake you simply picked up from a bakery.
If you've ever assembled an IKEA piece of furniture, you've likely experienced this firsthand. IKEA designs its products with assembly in mind, requiring customers to invest their time and labor. This intentional design choice creates a deeper connection between the customer and the final product.
So, the next time you enjoy a homemade cake or assemble an IKEA bookshelf, remember the IKEA effect at play, making your creations all the more special.
Let's dive deeper into the IKEA effect with additional examples to help you connect with this fascinating phenomenon.
Example 1: Think about your visits to Subway. There, you have the opportunity to customize your sub sandwich with your choice of bread, sauces, and toppings. Your sub is prepared according to your preferences, and you invest a few minutes in the process. This customization experience enhances your satisfaction because you actively participate in creating your meal.
Example 2: Recall Coca-Cola's campaign where you could personalise the label with your name. This campaign tapped into the IKEA effect by allowing customers to create a unique product. Many people cherished their personalised bottles as keepsakes, demonstrating the emotional connection the IKEA effect fosters.
Example 3: Ever heard of customising your notebook? Brands like Classmate offer this service through their websites, allowing customers to design notebooks according to their preferences. These examples illustrate how the IKEA effect isn't limited to physical assembly but extends to customisation experiences offered by various industries.
Understanding these examples sheds light on how and where marketers apply the IKEA effect to their advantage.
Diving Deep into the examples
Let me elaborate how companies actually create the IKEA effect , we will continue with the example of SUBWAY.
The customisation experience at Subway not only increases customer satisfaction but also exhibits elements of what can be referred to as the "IKEA effect." Let's break down how this phenomenon enhances satisfaction and relates to the IKEA effect:
1. Personalization and Satisfaction:
When you customise your sub sandwich at Subway, you actively select your preferred bread, sauces, and toppings. This personalisation allows you to create a meal tailored to your specific taste and dietary preferences.
This sense of personalisation leads to increased satisfaction as you get precisely what you desire in terms of flavour, ingredients, and portion sizes.
2. Active Participation:
The act of actively participating in the creation of your sub sandwich involves making choices, such as selecting ingredients, watching them being prepared, and interacting with the staff during the process.
This involvement can enhance your overall dining experience by giving you a sense of control and engagement in the meal preparation.
3. Sense of Ownership:
The "IKEA effect" is a psychological phenomenon where people tend to attach more value to products they have partially created or assembled themselves. In the context of Subway, you are not assembling the sub, but you are certainly designing it.
As you choose the bread, sauces, and toppings, you develop a sense of ownership over your meal. This feeling of ownership can lead to a stronger emotional connection to the food and brand, similar to how people feel a connection to furniture they assemble themselves from IKEA.
4. Reduced Regret and Surprises:
With customization, you have control over your choices, reducing the chances of regret or dissatisfaction with your meal. You get exactly what you expect, without unpleasant surprises.
5. Variety and Freshness:
The option to customise allows you to explore different combinations of ingredients with each visit, adding variety to your dining experience.
Subway's "fresh assembly" approach, where you witness the preparation of your sub, ensures the freshness of the meal. This transparency can install confidence in the quality of the food.
In summary, the customisation experience at Subway increases customer satisfaction by
providing a personalised, engaging, and emotionally rewarding dining experience. It resonates with the IKEA effect by allowing customers to take an active role in shaping their meal, creating a sense of ownership, and fostering a deeper connection to the brand. This approach ultimately contributes to higher customer satisfaction and loyalty.
Companies benefit in several ways:
Cost Reduction: Incorporating self-assembly can reduce production and logistics costs.
Customer Satisfaction: The IKEA effect leads to greater customer satisfaction, which can translate into long-term profits.
As a marketer, you can harness this effect:
Prioritise Self-Assembly: Design your products so customers spend some time assembling them. Ensure the assembly process is straightforward to avoid customer dissatisfaction.
Gamify the Process: Enhance the assembly experience by gamifying it. Use progress bars, completion indicators, or satisfying sound effects to make the process engaging.
Conclusion
By applying the IKEA effect wisely, marketers can create stronger bonds between customers and their products, ultimately benefiting both parties the customer through satisfaction and the marketer through increased profits.