[Post 135] The economic of IKEA:How they keep you in it's store? | WSJ

Summary

Counterintuitive though it may seem, part of furniture giant IKEA’s success stems from its policy requiring its customers to build its products. In this video, WSJ explains the behavioral psychology behind the “IKEA effect.”

Personal Takeaway

1.Flat furniture packing to reduce shipping and transportation costs

2.Design of the store layout to allow customers to spend the day testing out the product.

3.Affordable and low-cost furniture

4.When a customer builds something themselves, they become more attached to it.