IKEA Effect and Meal Kit
Have you ever tried making pancakes at home? Which do you think would taste better: just using the mix from the box, or adding some extra ingredients and a bit more of your own effort? Back in the 1950s, General Mills introduced the ‘Betty Crocker’ instant cake mix and saw a big increase in sales by making a small tweak to the recipe. Thanks to the advice of psychologist Ernest Dichter, they suggested using fresh eggs instead of egg powder.
This small change required a bit more effort from the consumer, but it played a crucial role in increasing their satisfaction with the final product. This ties into the core principle of the 'IKEA effect'. Introduced in 2011 by Michael Norton, Daniel Mochon, and Dan Ariely, the 'IKEA effect' describes how people value products more highly when they have put effort into creating them.
Psychologists have proven this effect through experiments. For instance, participants were asked to fold paper frogs and then sell their creations in an auction. They tended to value their own work more highly, even when there were pieces made by experts included in the mix.
Recently, the popularity of meal kits has been on the rise not only in Korea but globally. Initially, it was expected that demand would drop after the COVID-19 pandemic, but instead, it has surged. Various reasons are cited for the popularity of meal kits, including their affordable prices amidst high inflation, the increase in single-person households, convenience, and time-saving aspects.
Moreover, meal kits follow a similar principle to the IKEA effect. By providing all the necessary ingredients and recipes in one box, consumers can cook the meal themselves, enjoying the process and the sense of accomplishment. Today’s MZ generation values new experiences and innovation more than any other generation. Offering meal kits that provide the joy of participation, new recipes, and the freedom to add personal style might just set you apart in a competitive market, don’t you think?
Ref. BBC NEWS Korea
