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The IKEA Effect: Why we overvalue what we make and what that means for CPG

Written by Jordan Hussian | Aug 21, 2026, 2:30:01 PM

Build something like a side table yourself, and you’ll probably love it more than the exact same thing store-bought. Even if it’s a little crooked and wobbly. 

Think about what it took to get there. The 20-page manual you skimmed through. The piece you installed backwards and didn't catch until seven steps later, when everything else stopped fitting. The back-tracking and problem-solving. The particle board sliver that drew actual blood, sweat and tears.

You realize all of that wasn’t just for nothing. You built that. And it makes you feel like you could be an engineer.

It's the same reason a meal kit turns anyone into the next Gordon Ramsay, or why Betty Crocker asks you to add an egg to their brownie mix. You didn't just cook — you followed a recipe. And suddenly it tastes better than takeout.

Psychologists have a name for this: the IKEA effect.

What it is, and why it happens

The IKEA effect is the tendency to place more value on things we make ourselves — even when the finished product is close to something pre-made.  

The term comes from a 2011 study by Harvard researchers, who had consumers assemble IKEA boxes, fold origami, and snap together Lego sets. They then compared how much participants valued their own creations. People saw their own amateurish, slightly-lopsided work worth the same as an expert's — and assumed everyone else would agree.

What’s interesting is that it’s not just about ownership or effort. They found labor led to love only when labor resulted in a successful completion of a task. When people built something and watched it get destroyed, the love disappeared entirely. It comes down to a basic need to feel effective. Set out to make something and actually get there. That need, more than the sweat itself, is what turns a side table made of particle board into something worth bragging about.

Why it happens and how it shapes purchase intent 

Most purchase decisions aren't rational, they're emotional –– the same way a scroll-stopping post beats a well-reasoned ad. 

The IKEA effect is emotion hiding in plain sight. It's not "I like this product." It's "I made this, and that means something." You couldn’t capture something like that in a survey, because people can't self-report a feeling they don't know they're having. They'll call the meal kit "convenient" and never mention that plating it themselves is half the appeal. 

That's what makes the IKEA effect so powerful for purchase intent. People don’t just make like what they made. It makes them willing to pay more for it, keep it longer, and recommend it more readily, all without realizing why. The value isn't in the product. It's in the fact that they're the one who finished it. 

Find out what's actually worth building

The IKEA effect is everywhere in CPG, food and beverage, the beauty space and beyond.

You’ll see it in meal kits, build-your-own hot pot and BBQ, at-home hair dye, skincare regimens, custom PC builds, mechanical keyboards. None of these are cheaper or easier than the finished alternative. That's the point, and it's also the risk. The category proof is everywhere, which makes it tempting to slap "customizable" on anything and call it strategy. 

But not every build-it-yourself idea is worth the extra steps. Some feel purposeful. Others just feel like extra work. You won't find out which is which by asking people. Ask if they'd want to build their own skincare regimen, and almost everyone says yes. Control and customization both sound appealing in theory. Whether they actually finish building it or bail halfway through and grab the pre-made version is a different question entirely.  

Testing in the wild answers that. 

Orchard Seed™ tells you if "I made this" is even a spark worth chasing in your category before you build anything.

Orchard Shape™ finds the sweet spot: how much choice, how many steps, where effort still feels like accomplishment instead of hassle.

Orchard Activate™ validates it holds up under real market conditions before you launch.

The night stand only earns its bragging rights once it’s built. Your category has a version of that moment too, you just haven't found it yet.