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Kamprad’s insight about adding consumer effort to increase the estimation of value is called the Ikea effect -- though perhaps it should really be called the Betty Crocker effect. Back in the 1950s, General Mills launched a line of cake mixes under the Betty Crocker brand. All you needed to do was add water; what could go wrong? However, this miracle product did not sell well. General Mills brought in a team of psychologists to find out why, and they pointed to guilt: The product was so damned easy to make, people felt they were cheating. The “cook” felt awkward about getting more credit than he or she had earned. In response, General Mills revised the mix to require both water and an egg. When they relaunched with the slogan “Just add an egg,” sales shot up.Share
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