The Ikea Effect: Signaling and Restoring Feelings of Competence

Daniel Mochon, Tulane University, USA
Michael Norton, Harvard Business School, USA
Dan Ariely, Duke University, USA
We argue that the IKEA effect – consumers’ willingness to pay more for self-made products – is driven by these products’ ability to signal competence. We demonstrate that threatening consumers’ sense of competence increases their propensity to make things themselves, while affirming their competence decreases the value they derive from their creations.
[ to cite ]:
Daniel Mochon, Michael Norton, and Dan Ariely (2012) ,"The Ikea Effect: Signaling and Restoring Feelings of Competence ", in NA - Advances in Consumer Research Volume 40, eds. Zeynep Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 53-57.