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...
The Japanese restaurant “Hyakushokuya” doesn’t hire passionate people. The first recruiter was someone who left his resume out. There are only three menus, and only 100 bowls are sold daily. It’s simple, so you can learn things in a week even if you’re not an expert. Still, the average daily revenue is 130,000 yen. The book titled “Let’s Reduce Sales” by founder Akemi Nakamura addresses performance-oriented management policies. They want reasonable management activities suitable for fractions without overdoing it. However, it was the best-selling company during the COVID-19 pandemic crisis. - Joseph’s “just my thoughts”