Have you ever noticed you tend to feel more attached to something that you built yourself, even if it’s not perfect? This psychological phenomenon is called the IKEA Effect—named after the furniture giant that requires assembly for most of their products. But this effect isn’t just about furniture; it can also be a powerful branding tool. When customers invest effort into a product or experience, they value it more. Let’s take a closer look at how the IKEA Effect applies to branding and how companies can use the IKEA effect to build up their brand.
What Is the IKEA Effect?
First of all, what is the IKEA Effect? The IKEA Effect describes a cognitive bias in which people place higher value on things they helped create. Behavioral economists first identified this phenomenon in studies where participants built simple IKEA furniture. Despite the effort and frustration involved, they perceived their self-assembled pieces as more valuable than identical pre-assembled versions. A 2011 study found that people were willing to pay 63% more for furniture they had assembled themselves compared to equivalent pre-assembled items
This effect isn’t just about furniture—it’s about effort and ownership. The more time and effort we put into something, the more we feel it belongs to us. Brands that harness this effect can turn passive consumers into engaged participants, building stronger emotional connections in the process.
The IKEA Effect and Branding
The IKEA Effect can also make customers feel more connected to your brand. By involving your customers more in your brand and the customer experience, customers will feel more connected to your brand. They’ll also feel more ownership over their own experience. Let’s take a closer look at how to use the IKEA effect in branding.
1. User-Generated Content (UGC)
Encouraging customers to create and share content related to your brand encourages emotional investment. Brands like GoPro thrive on UGC by showcasing customer-shot videos, making users feel like part of the brand’s story.
2. Customization & Personalization
When customers can personalize a product, they value it more. Nike’s “Nike By You” program allows customers to design their own sneakers, creating a deeper emotional bond with the brand.
3. Gamification & Progress Tracking
Apps like Duolingo and fitness trackers keep users engaged by making them work toward achievements. By rewarding progress, these brands ensure users stay committed and invested in their particular product, and less likely to switch.
4. DIY & Assembly Experiences
Just like IKEA, brands that encourage hands-on involvement create stronger customer connections. LEGO, for example, lets users build their own masterpieces. Build-a-Bear similarly fosters a stronger connection between consumers and stuffed animals by encouraging them to build their stuffed friend themselves.
5. Community Involvement & Crowdsourcing
Brands that involve customers in product creation or decision-making see increased loyalty. Kickstarter campaigns and beta testing programs allow early adopters to shape a brand’s future, creating a sense of ownership and investment.
How to Use the IKEA Effect to Build Up Your Brand
The IKEA Effect can help users feel more connected to and loyal to your brand. However, it’s important to apply this in the right way, so it feels natural and enjoyable. Let’s take a look at a few ways you can apply the IKEA Effect to build up your brand and make your customers feel more invested.
1. Offer Customization Options
Letting customers tweak colors, features, or designs—even in minor ways—enhances their emotional connection to the product. Whether it’s a custom engraving, a tailored software interface, or a build-your-own meal option, even small personal touches increase perceived value.
2. Encourage UGC Creation
Create contests, challenges, or social media campaigns that invite customers to share their experiences, reviews, or creative uses of your product. When customers see their contributions highlighted, they feel more engaged and valued.
3. Use Gamification
Implementing loyalty programs, badges, or achievement milestones keeps customers motivated and invested. Whether it’s a fitness app tracking progress, a coffee shop offering rewards for frequent visits, or a language-learning app celebrating streaks, gamification fosters continued engagement.
4. Involve Customers in Product Creation
Crowdsourcing ideas for new features, designs, or flavors makes customers feel like stakeholders in your brand’s evolution. Brands that ask for feedback and implement user suggestions create stronger customer loyalty because people feel heard and appreciated.
5. Use Interactive Engagement
Providing hands-on experiences, DIY kits, or interactive brand elements strengthens a customer’s emotional ties to the product. Whether it’s assembling a physical product, configuring software, or participating in exclusive beta tests, giving customers a role in the creative process increases their commitment to your brand.
The IKEA Effect shows that effort leads to stronger emotional connections. When customers feel like co-creators rather than just buyers, they become more loyal to a brand. By incorporating elements of customization, gamification, and community involvement, brands can transform passive consumers into deeply engaged advocates.