The ‘IKEA Effect:’ Behind the Company’s Unique Business Model | WSJ The Economics Of

A large part of IKEA’s success stems from its policy requiring its customers to build their own furniture. Given how ubiquitous IKEA is today, it can be difficult to appreciate just how innovative some of its business practices were when they were first introduced. WSJ explores some of the strategies the Swedish company has used to become the world’s biggest furniture retailer including the behavioral psychology behind the ‘IKEA effect.’ 0:00 Build-your-own products 0:46 Store layout 1:53 The ‘IKEA effect’ 3:08 Mass market appeal 4:23 Democratic design The Economics Of How do the world’s most successful companies generate revenue? In this explainer series, we’ll dive into the surprising stories behind how businesses work--exploring everything from Costco’s “treasure-hunt“ model to the economics behind Amazon’s AWS. #IKEA #Furniture #WSJ