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Source: hbs.edu/ris/Publication%20Files/11-091.pdf
The IKEA effect is a psychological bias where people value items more when they partially create or assemble them. It is named after IKEA, which sells furniture that requires assembly.
A Harvard study found that labour increased the valuation of completed products. This was true not just for DIY enthusiasts, but also for those with little interest in such projects.
In a study, researchers asked one set of participants to fold origami papers and found that they valued their hand-made origami more highly or equal to the identical preassembled product.
Non-builder participants rated the DIY origami much lower than the pre-assembled ones. Showing that people tend to overvalue something they made themselves!
This effect has also been observed in other areas of life. For instance, in the 1950s, American food brand Betty Crocker wanted to find out why sales of its cake mixes were falling.
The instant cake mixes were initially resisted by American housewives, as they felt it undervalued their labour.
The company then modified the recipe and required the user to add an egg to the mix. This made the task feel more involved, leading to the cake mixes flying off the shelves.
This effect is also seen in how much people value their money. One study found that people tend to be more frugal with their hard-earned money than the money they won in a lottery.
It's clear, when people put more labour into something they tend to love it more.
Thanks for reading!
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