IKEA EFFECT: CREATING CUSTOMER VALUE THROUGH CUSTOMER ENGAGEMENT

Abstract

There are some anecdotes that are so good that they appear in practically every story on a particular economic idea. According to legend, in the 1950s, General Mills was looking for ways to increase sales of their Betty Crocker cake mixes. It enlisted the help of Ernest Ditcher, the "Father of Motivational Research." Ditcher was in charge of focus groups. He then urged the corporation to change the recipe. Replace the requirement for fresh eggs in the cake mix with powdered eggs. Baking with an all-instant cake mix is far too simple. It undervalues the cake maker's labour and ability. Give the baker a bigger stake in the end product. Making things more difficult to get customers to appreciate them more is a tried and true marketing strategy some seven decades later. The "IKEA impact" is now well-known. The IKEA impact may be a cognitive predisposition in which individuals put an excessively tall esteem on things that they made a difference to design. In this paper we try to addresses the following questions: 1) How do business comprehend IKEA effect? 2) How consumer measure perceived value. 3) How to identify, analyse, and synthesize customer-focused culture? Customers' involvement in the esteem creation handle, his impacts in this range, and his endeavours to co-create esteem are all combined beneath the heading of Client Engagement. Different studies have defined it differently, and a globally acceptable definition has yet to be developed. It has developed beyond traditional marketing and customer behaviour notions, evolving from relationship marketing and the service dominant rationale. Customer interaction has a broad and diversified scope, as do its aspects. The proactive client represents both a huge potential and a persistent threat. Customer interaction is much more important in India, which is young, competitive, consumptive, and highly connected.