The IKEA Effect is a type of the Ownership Effect. People tend to become more attached to owning an item than borrowing it. Additionally, putting effort into their possessions enhances this attachment. However, if the effort is too much, it can have the opposite effect. IKEA intentionally does not sell furniture as finished products. Instead, it uses a sales method that encourages customers to assemble their furniture, which increases their satisfaction with the final piece. Furniture is not just a temporary consumer product but an experiential item that is visible and used regularly over time. When owners value their furniture, they see it as a vital part of their lives and a reflection of their family relationships, rather than simply a product that meets their needs. Customers who experience this tend to desire more than just furniture; they seek a symbol that fosters family bonds. However, this sales approach may not be suitable for all types of products. - Joseph’s “just my though...
Let’s say I’m a potato farmer. Assuming that I can survive by eating only potatoes, I become wealthy when I work hard to increase potato production. However, to survive, we also need shelter and clothing. No matter how much money we have, we cannot eat the money itself as food. In other words, exchange is vital for survival. This means that if we have to rely on one job, we can only survive by trading needs, apart from potatoes, with other producers, using the output we gain from that job. In an agricultural society, production determined wealth, but in a modern society where industrial products have taken the place of other needs, the greater the potential for exchange between ourselves and others, the more advantageous it is for survival and the greater the potential for wealth. This is known as the power of distribution. The more sales channels you have, the stronger your business competitiveness and market influence. The ability to sell a lot is paramount. - Joseph’s “just my thoug...