The Ikea Effect

The world’s largest furniture retailer knows we tend to place more value on the things when we’ve put personal effort into. It’s called the Power of Personal Investment.

Did you know that Betty Crocker cake mix didn’t always require an egg? When the company introduced its newest line of instant cake mixes in the 1950’s all the wet ingredients were included in powdered form. All a busy housewife had to do was add water. The product flopped. Consumer researchers soon discovered that homemakers didn’t feel they were “doing enough” to make their lemon loaves and so Betty Crocker altered the recipe to require the addition of a pair of fresh eggs. With more work, the pride of baking a cake was restored. Psychologists look to this as an example of the Power of Personal Investment. The same principle applies to that frustrating IKEA shelf of yours. In studies, people have been shown to place a higher resale value on a Billy bookcase only after they’ve cursed their way through the process of assembling one.

Use this knowledge: Looking to curb your lunch money budget? Go ahead and prepare some Pinterest-inspired lunch hacks. You’re less likely to let an elaborately built salad languish in the fridge once you’ve put some personal effort into it.