The IKEA effect is a cognitive bias where consumers assign a higher value to products they have a hand in creating, especially through effortful assembly. This term is aptly named after the Swedish furniture retailer IKEA, which famously offers ready-to-assemble furniture. Studies indicate that people are willing to pay significantly more for items they assembled themselves than for identical pre-assembled products.
For instance, a study found that people were willing to pay 63% more for furniture they assembled themselves compared to similar pre-assembled items, demonstrating this bias.
To counter the IKEA effect, individuals can focus on objectively assessing value based on product quality and functionality rather than personal effort or input.