IKEA effect Concepts

Meet the Frugalwoods: Achieving Financial Independence Through Simple Living

by Elizabeth Willard Thames · 6 Mar 2018 · 179pp · 59,704 words

if we’d hired someone. In addition to spending only $183.45 (versus the $2,000), we were the beneficiaries of what researchers call the “IKEA effect.” It’s proven that people experience greater satisfaction with projects they do themselves, even if the result is subpar, than with projects they pay other

Shadow Work: The Unpaid, Unseen Jobs That Fill Your Day

by Craig Lambert · 30 Apr 2015 · 229pp · 72,431 words

2011, Michael Norton of Harvard Business School, in collaboration with Daniel Mochon and Dan Ariely, published a series of experiments in a paper called “The Ikea Effect: When Labor Leads to Love.” Their subjects assembled furniture from Ikea kits, folded paper in the style of Japanese origami, and constructed objects from sets

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to share their opinions.” Making things boosts the user’s feeling of pride and competence. It also creates a showpiece that advertises your expertise. The Ikea effect comes packed with rewards. SUCH EMOTIONAL PAYOFFS have always made DIY endeavors attractive, at least to a certain audience. The magazines Popular Science (founded 1872

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. The closer bond may help businesses cultivate a consumer base with a friendlier attitude toward corporations, as the two camps develop an informal partnership. The “Ikea effect” may also strengthen brand loyalty for products that consumers have helped design and build. In many sectors, customers will look for more personalized goods and

Frugal Innovation: How to Do Better With Less

by Jaideep Prabhu Navi Radjou · 15 Feb 2015 · 400pp · 88,647 words

, labour and money affects how people value products and people.3 Norton’s 2012 study with Daniel Mochon and Dan Ariely on the so-called IKEA effect shows that people value products much more when they assemble the products themselves.4 Customers are increasingly able to express their creativity and emotional investment

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24th 2013. 3Dunn, E. and Norton, M., Happy Money: The Science of Smarter Spending, Simon & Schuster, 2013. 4Norton, M., Ariely, D. and Mochon, D., “The IKEA effect: When labor leads to love”, Journal of Consumer Psychology, Vol. 22, 2012, pp. 453–60. 5Coase, R., “The Nature of the Firm”, Economica (Blackwell Publishing

The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home

by Dan Ariely · 31 May 2010 · 324pp · 93,175 words

Big Bonuses Don��t Always Work Chapter 2 - The Meaning of Labor: What Legos Can Teach Us about the Joy of Work Chapter 3 - The IKEA Effect: Why We Overvalue What We Make Chapter 4 - The Not-Invented-Here Bias: Why “My” Ideas Are Better than “Yours” Chapter 5 - The Case for

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of two things—to help, or at least do no harm” are as important in the workplace as they are in medicine. Chapter 3 The IKEA Effect Why We Overvalue What We Make Every time I walk into IKEA, my mind overflows with home improvement ideas. The gigantic discount build-it-yourself

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with a code name for the effect. In honor of the inspiration for the study, we decided to call the overvaluation resulting from labor “the IKEA effect.” But simply documenting the IKEA effect was not what we were after. We wanted to find out whether the greater perceived value resulting from the

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IKEA effect might be based on sentimental attachment (“It’s crooked and barely strong enough to hold my books, but it’s my bookshelf!”) or on self-

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your part. As cool as this may sound, if you used such an efficient tailoring process, you would miss out on the benefits of the IKEA effect, in which, through investment of thought and effort, we come to love our creations much more. Does this mean that companies should always require their

…

-numbers approach to shoes or a jigsaw-puzzle-style toy chest strikes the right balance; anything less would not tap into my desire for the IKEA effect, and anything more would make me give up. As companies start to understand the true benefits of customization, they might start generating products that allow

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center make me wonder if it is important to complete a project in order to overvalue it. In other words, in order to enjoy the IKEA effect, is it necessary for our efforts to result in success, even if that success simply means that the project was finished? According to our reasoning

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behind the IKEA effect, more effort imbues greater valuation and appreciation. This means that to increase your feelings of pride and ownership in your daily life, you should take

…

.” Any Solution, as Long as It’s Mine With our understanding of human attachment to self-made physical goods (see the previous chapter on the IKEA effect), Stephen Spiller (a doctoral student at Duke University), Racheli Barkan, and I decided to examine the process by which we become attached to ideas. Specifically

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as cameras that weren’t compatible with the most popular forms of memory storage.8 Opposing Currents The experiments we carried out to test the IKEA effect showed that when we make things ourselves, we value them more. Our experiments testing the Not-Invented-Here bias demonstrated that the same thing happens

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): 311–328. Anne Preston, “The Nonprofit Worker in a For-Profit World,” Journal of Labor Economics 7, no. 4 (1989): 438–463. Chapter 3: The IKEA Effect: Why We Overvalue What We Make Based on Gary Becker, Morris H. DeGroot, and Jacob Marschak, “An Experimental Study of Some Stochastic Models for Wagers

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, “The ‘I Designed It Myself’ Effect in Mass Customization,” Management Science 56, no. 1 (2009): 125–140. Michael Norton, Daniel Mochon, and Dan Ariely, “The IKEA Effect: When Labor Leads to Love,” manuscript, Harvard University, 2010. Additional readings Hal Arkes and Catherine Blumer, “The Psychology of Sunk Cost,” Organizational Behavior and Human

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and, 205–10 Atchison, Shane, 140–41, 146 attachment: to one’s own ideas, see Not-Invented-Here (NIH) bias to self-made goods, see IKEA effect attractiveness, assortative mating and, 191–212 see also assortative mating auctions, first-price vs. second-price, 98–99 Audi customer service, author’s experience with

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, 282–83 Count of Monte Cristo, The (Dumas), 123 creation, pride of: ideas and, see Not-Invented-Here (NIH) bias self-made goods and, see IKEA effect creativity, bonuses and improvements in, 47–48 Csíkszentmihályi, Mihály, 49 cultures, organizational: acronyms and, 120 Not-Invented-Here bias and, 119–21 customer revenge, 131

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and, 79 Smith’s observations on, 77–78 divorce, foreseeing outcome of, 173 Dodson, John, 18–20, 22, 31, 47 do-it-yourself projects, see IKEA effect Donath, Judith, 225 Dostoyevsky, Fyodor, 157 Doubletree Club, Houston, 140–41, 146 dreams, author’s self-image in, 182–83 DreamWorks SKG, 154 driving: momentary

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, 123 E Eastwick, Paul, 172–73 Edison, Thomas, 117–19, 122 effort: increase in value related to, 89, 90, 95–96, 105–6; see also IKEA effect joy derived from activity and, 71–72 meaningful work conditions and, 72 ownership of ideas and, 114–16 see also labor egg theory, 86–88

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and, 241–42 identity, connection between work and, 53–55, 79 idiosyncratic fit, ideas and, 111–12 ignoring workers, 74–76 IKEA, 83–84, 106 IKEA effect, 83–106 author’s creations in rehabilitation center and, 100–101 completion of project and, 101–4, 105 do-it-yourself furniture and, 83–84

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and, 60–63 economic model of, 55, 62–63, 105 financial incentives and, see bonuses meaning of, see meaning of labor overvaluation resulting from, see IKEA effect on projects without meaning, 56–57, 63–72 Labyrinth game, 23 Lee, Leonard, 132, 134, 197, 201–2, 301–2 Lee, Sandra, 87–88 leeches

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, medicinal use of, 290–91 Legos experiments: on IKEA effect, 96, 97 on reducing meaningfulness of work, 66–74, 77, 80 letter-pairs experiment, 74–76, 80 life-altering events, hedonic adaptation and, 170 Life

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’s belief in superiority of DC electricity and, 117–19 effort expended and, 114–16 FedEx commercial and, 108–9 idiosyncratic fit and, 111–12 IKEA effect and, 109–10, 121 objective merits of ideas and, 111–12, 117 organizational cultures and, 119–21 ownership component of, 111–16 practical implications of

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vs. second-price auctions, 98–99 outsourcing, 146 overvaluation: of one’s own ideas, see Not-Invented-Here (NIH) bias of self-made goods, see IKEA effect P Packing Quarters puzzle, 22–23 pain, 160–67 of battlefield vs. civilian injuries, 167 of disease vs. injury, 165–67 experiments on thresholds and

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–60, 303 preventative health care, 251, 256 pride of creation and ownership: ideas and, see Not-Invented-Here (NIH) bias self-made goods and, see IKEA effect procrastination, 1–5 long-term objectives vs. short-term enjoyments and, 4–5 medical side effects and, 1–5 rational economics and, 5–6 proximity

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negative emotions as input for, 263–64 specific and general versions of, 271–74 ultimatum game and, 270–74 self-made goods, attachment to, see IKEA effect senses, adaptive ability of, 158–60 “Sensuous Chocolate Truffles,” Sandra Lee’s recipe for, 87–88 serendipity, enjoyment heightened by, 188 “70/30 Semi-Homemade

Payoff: The Hidden Logic That Shapes Our Motivations

by Dan Ariely · 15 Nov 2016 · 83pp · 26,097 words

University), Daniel Mochon (a professor at Tulane University), and I described the general over-fondness we have for stuff we’ve made ourselves as the “IKEA effect.” And while IKEA inspired our original research, IKEA was hardly the first to understand the value of self-assembly. Consider the history of cake mixes

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time and effort, we feel a greater sense of ownership and thus enjoy more the fruits of our efforts. My Beautiful Creature To examine the “IKEA effect” in a more controlled, experimental way, Daniel, Mike, and I asked participants to work for us by making some origami creations in exchange for an

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Invention That Redefined ‘Baking,’ ” http://www.bonappetit.com/entertaining-style/pop-culture/article/cake-mix-history. 9 Mike Norton, Daniel Mochon, and Dan Ariely “The IKEA Effect: When Labor Leads to Love,” Journal of Consumer Psychology (2012). Daniel Mochon, Mike Norton, and Dan Ariely, “Bolstering and Restoring Feelings of Competence via the

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IKEA Effect,” International Journal of Research in Marketing (2012). 10 I wrote about this in Irrationally Yours (New York: HarperCollins, 2015). 11 Alex Shaw, Vivian Li, and

The Irrational Bundle

by Dan Ariely · 3 Apr 2013 · 898pp · 266,274 words

, and tucked away in the crib. My friend and colleague Mike Norton (a professor at Harvard) and I have a term for this phenomenon: the “Ikea effect.” Another peculiarity is that we can begin to feel ownership even before we own something. Think about the last time you entered an online auction

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Big Bonuses Don’t Always Work Chapter 2 - The Meaning of Labor: What Legos Can Teach Us about the Joy of Work Chapter 3 - The IKEA Effect: Why We Overvalue What We Make Chapter 4 - The Not-Invented-Here Bias: Why “My” Ideas Are Better than “Yours” Chapter 5 - The Case for

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of two things—to help, or at least do no harm” are as important in the workplace as they are in medicine. Chapter 3 The IKEA Effect Why We Overvalue What We Make Every time I walk into IKEA, my mind overflows with home improvement ideas. The gigantic discount build-it-yourself

…

with a code name for the effect. In honor of the inspiration for the study, we decided to call the overvaluation resulting from labor “the IKEA effect.” But simply documenting the IKEA effect was not what we were after. We wanted to find out whether the greater perceived value resulting from the

…

IKEA effect might be based on sentimental attachment (“It’s crooked and barely strong enough to hold my books, but it’s my bookshelf!”) or on self-

…

your part. As cool as this may sound, if you used such an efficient tailoring process, you would miss out on the benefits of the IKEA effect, in which, through investment of thought and effort, we come to love our creations much more. Does this mean that companies should always require their

…

-numbers approach to shoes or a jigsaw-puzzle-style toy chest strikes the right balance; anything less would not tap into my desire for the IKEA effect, and anything more would make me give up. As companies start to understand the true benefits of customization, they might start generating products that allow

…

center make me wonder if it is important to complete a project in order to overvalue it. In other words, in order to enjoy the IKEA effect, is it necessary for our efforts to result in success, even if that success simply means that the project was finished? According to our reasoning

…

behind the IKEA effect, more effort imbues greater valuation and appreciation. This means that to increase your feelings of pride and ownership in your daily life, you should take

…

.” Any Solution, as Long as It’s Mine With our understanding of human attachment to self-made physical goods (see the previous chapter on the IKEA effect), Stephen Spiller (a doctoral student at Duke University), Racheli Barkan, and I decided to examine the process by which we become attached to ideas. Specifically

…

as cameras that weren’t compatible with the most popular forms of memory storage.8 Opposing Currents The experiments we carried out to test the IKEA effect showed that when we make things ourselves, we value them more. Our experiments testing the Not-Invented-Here bias demonstrated that the same thing happens

…

): 311–328. Anne Preston, “The Nonprofit Worker in a For-Profit World,” Journal of Labor Economics 7, no. 4 (1989): 438–463. Chapter 3: The IKEA Effect: Why We Overvalue What We Make Based on Gary Becker, Morris H. DeGroot, and Jacob Marschak, “An Experimental Study of Some Stochastic Models for Wagers

…

, “The ‘I Designed It Myself’ Effect in Mass Customization,” Management Science 56, no. 1 (2009): 125–140. Michael Norton, Daniel Mochon, and Dan Ariely, “The IKEA Effect: When Labor Leads to Love,” manuscript, Harvard University, 2010. Additional readings Hal Arkes and Catherine Blumer, “The Psychology of Sunk Cost,” Organizational Behavior and Human

…

and, 205–10 Atchison, Shane, 140–41, 146 attachment: to one’s own ideas, see Not-Invented-Here (NIH) bias to self-made goods, see IKEA effect attractiveness, assortative mating and, 191–212 see also assortative mating auctions, first-price vs. second-price, 98–99 Audi customer service, author’s experience with

…

, 282–83 Count of Monte Cristo, The (Dumas), 123 creation, pride of: ideas and, see Not-Invented-Here (NIH) bias self-made goods and, see IKEA effect creativity, bonuses and improvements in, 47–48 Csíkszentmihályi, Mihály, 49 cultures, organizational: acronyms and, 120 Not-Invented-Here bias and, 119–21 customer revenge, 131

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and, 79 Smith’s observations on, 77–78 divorce, foreseeing outcome of, 173 Dodson, John, 18–20, 22, 31, 47 do-it-yourself projects, see IKEA effect Donath, Judith, 225 Dostoyevsky, Fyodor, 157 Doubletree Club, Houston, 140–41, 146 dreams, author’s self-image in, 182–83 DreamWorks SKG, 154 driving: momentary

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, 123 E Eastwick, Paul, 172–73 Edison, Thomas, 117–19, 122 effort: increase in value related to, 89, 90, 95–96, 105–6; see also IKEA effect joy derived from activity and, 71–72 meaningful work conditions and, 72 ownership of ideas and, 114–16 see also labor egg theory, 86–88

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and, 241–42 identity, connection between work and, 53–55, 79 idiosyncratic fit, ideas and, 111–12 ignoring workers, 74–76 IKEA, 83–84, 106 IKEA effect, 83–106 author’s creations in rehabilitation center and, 100–101 completion of project and, 101–4, 105 do-it-yourself furniture and, 83–84

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and, 60–63 economic model of, 55, 62–63, 105 financial incentives and, see bonuses meaning of, see meaning of labor overvaluation resulting from, see IKEA effect on projects without meaning, 56–57, 63–72 Labyrinth game, 23 Lee, Leonard, 132, 134, 197, 201–2, 301–2 Lee, Sandra, 87–88 leeches

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, medicinal use of, 290–91 Legos experiments: on IKEA effect, 96, 97 on reducing meaningfulness of work, 66–74, 77, 80 letter-pairs experiment, 74–76, 80 life-altering events, hedonic adaptation and, 170 Life

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’s belief in superiority of DC electricity and, 117–19 effort expended and, 114–16 FedEx commercial and, 108–9 idiosyncratic fit and, 111–12 IKEA effect and, 109–10, 121 objective merits of ideas and, 111–12, 117 organizational cultures and, 119–21 ownership component of, 111–16 practical implications of

…

vs. second-price auctions, 98–99 outsourcing, 146 overvaluation: of one’s own ideas, see Not-Invented-Here (NIH) bias of self-made goods, see IKEA effect P Packing Quarters puzzle, 22–23 pain, 160–67 of battlefield vs. civilian injuries, 167 of disease vs. injury, 165–67 experiments on thresholds and

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–60, 303 preventative health care, 251, 256 pride of creation and ownership: ideas and, see Not-Invented-Here (NIH) bias self-made goods and, see IKEA effect procrastination, 1–5 long-term objectives vs. short-term enjoyments and, 4–5 medical side effects and, 1–5 rational economics and, 5–6 proximity

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negative emotions as input for, 263–64 specific and general versions of, 271–74 ultimatum game and, 270–74 self-made goods, attachment to, see IKEA effect senses, adaptive ability of, 158–60 “Sensuous Chocolate Truffles,” Sandra Lee’s recipe for, 87–88 serendipity, enjoyment heightened by, 188 “70/30 Semi-Homemade

Makers

by Chris Anderson · 1 Oct 2012 · 238pp · 73,824 words

they feel they have had a hand in their creation, whether assembling a kit or just encouraging the creators themselves online. Researchers call this “the IKEA Effect,” and it dates all the way back to the Home Economics movement. As Duke University behavioral economist Dan Ariely and his colleagues write in a

Dollars and Sense: How We Misthink Money and How to Spend Smarter

by Dr. Dan Ariely and Jeff Kreisler · 7 Nov 2017 · 302pp · 87,776 words

we had some part in creating it, and our love for it increases even more. Mike Norton, Daniel Mochon, and Dan named this phenomenon THE IKEA EFFECT—so named after the meatball restaurant/umlaut factory/children’s playland that moonlights as a furniture store. Think about what it takes to create a

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is our thing; we made it! We’re sure as heck not going to just toss it aside for a few pennies. That’s the Ikea effect.2 Think about all the work the Bradleys put into their house. The open floor plan. The pictures. The bike rack chandelier. All of that

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of Experimental Economics Results (2008). 2. Michael I. Norton (Harvard Business School), Daniel Mochon (University of California, San Diego), and Dan Ariely (Duke University), “The IKEA Effect: When Labor Leads to Love,” Journal of Consumer Psychology 22, no. 3 (2012): 453-460. 3. Ziv Carmon (INSEAD) and Dan Ariely (MIT), “Focusing on

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creating expectations experiment, 175–76 data recovery value research, 141 endowment effect experiments, 117 hepatitis C treatment, 235 high price as high value research, 199 Ikea effect experiments, 116 on intelligence and decision making, 34–36 mobile money-saving system experiment in Kenya, 242–44 opportunity cost research at Toyota dealership, 11

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perceived unfairness, 131–34, 135–39 Ten Financial Sins, 52 tunnel vision, 11–12 See also feelings and emotions human resources (HR) office, 228–29 Ikea effect, 116 illusion of wealth, 249–51 I’m Telling You for the Last Time (Seinfeld), 68–69 infomercials, 126 integrative creative accounting, 55–56 internal

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of experiences vs., 207–8 value in uncertain situations, 200–205 worrying about, 208–9 ownership and value, 111–30 overview, 219 effort and ownership/Ikea effect, 115–17 endowment effect, 114–15, 120–23, 158 hands-on ownership, 117–18 loss aversion, 120–25, 219, 241, 243, 246–47, 249 matching

Plenitude: The New Economics of True Wealth

by Juliet B. Schor · 12 May 2010 · 309pp · 78,361 words

of all the furniture imported into the United States rose 155 percent, from 4,671 million kilograms to 11,894 million. Anecdotal evidence suggests an IKEA effect. IKEA, a low-cost Swedish producer specializing in up-to-date design at bargain prices, opened its first U.S. store in 1985 and subsequently

People Powered: How Communities Can Supercharge Your Business, Brand, and Teams

by Jono Bacon · 12 Nov 2019 · 302pp · 73,946 words

do these things anyway. Interestingly, many of us consistently make the same irrational decisions based on the same stimuli. As an example, there is the Ikea Effect.1 If you and I were to each go and buy a MÖRBYLÅNGA table from Ikea, then go home and put it together, you would

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ramifications for communities and companies that have people working together and reviewing each other’s work. As one example, if we are mindful of the Ikea Effect, we can design peer review in communities to be more objective and avoid the risk of people getting frustrated because other people don’t share

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, accessed November 26, 2018, https://www.merriam-webster.com/dictionary/value. 4: HUMANS ARE WEIRD 1. Michael I. Norton, Daniel Mochon, and Dan Ariely, The “IKEA Effect”: When Labor Leads to Love, (working paper, Harvard Business School, 2011), https://www.hbs.edu/faculty/Publication%20Files/11-091.pdf. 2. Daniel Kahneman, Thinking

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, 152 HomeRecording.com community, 81 humility, 187, 257 hypothesis testing, 207–8, 271–72 IBM, 6 idealism, 153–54 IGN (Imagine Games Network), 47–48 Ikea Effect, 101–2 impact in Community Belonging Path, 18 and Engagement Strategy, 199 multiplying, with communities, 2, 3, 9 imperfections, 188 imposter syndrome, 142 inauthentic participation

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defining your, in community building, 33, 77–78 demonstrating, in Why Participate? stage, 132, 135 generating, by communities, 19–29 in great experiences, 127 and Ikea Effect, 101–2 individual, 164–67 leadership, 165, 167 for organization, 84–88 peer, 164–67 tangible vs. intangible, 78–79 value statements, 32, see also