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What if companies try to combine the IKEA and Trophy winner effects? The purpose of this study is to understand the similarities and differences between both effects. This is not only theoretically but also practically important for the way that companies interact with their customers.

Successful work – invested either to create or to obtain a product – increases the customers’ valuation of the product. This phenomenon known as the IKEA or Trophy winner effect. This study directly compares both effects using experiments with two different products (paper planes and 3D puzzles). Moreover, this study tests whether they reinforce each other.

The Trophy winner effect looms larger than the IKEA effect for inexpensive items. For slightly more expensive products, this study finds a Trophy loser effect. Positive emotions of trophy winners drive the results for inexpensive products, whereas negative emotions of trophy losers drive the results for slightly more expensive products.

The relevance of the IKEA and Trophy effects is influenced by the type of product. Customers’ labor invested in the product itself is of greater importance the more expensive the product is. As soon as customers interpret the interaction with other customers as competition, the effect on valuation can be substantial even for inexpensive products. Future studies could try to replicate our results with different product categories.

Although the IKEA and Trophy effects are no new phenomena in consumer psychology and behavioral economics, they have not been compared to each other or combined yet. The results are useful for researchers and practitioners alike. They yield implications for product customization and customer empowerment.

The purpose of this paper is to test whether the IKEA-effect (Norton et al., 2012) – better liking for self-crafted products than for identical products crafted by others – can be exploited to increase liking and consumption of vegetable snacks in children.

A between-subjects experiment was conducted at an after school care facility. In total, 86 children aged four to six either crafted a peacock with vegetables or with non-food objects following an example. After the task, children ate snack vegetables ad libitum, and rated their liking for the vegetables and pride in crafting the peacock.

No significant main effect of the vegetable snack creation on consumption and liking was observed. Also, perceived pride did not mediate the effect of self-crafting vegetable snacks on consumption of and liking for vegetables.

Vegetable consumption did not differ between children who were either simply exposed to vegetable snacks while crafting or those who were crafting the vegetable snacks themselves. The equal consumption might suggest that this is caused by simple exposure, but more research is needed comparing self-crafting and exposure to a condition where there is no initial exposure to vegetables.

Although the IKEA-effect has been demonstrated in adults, this is one of the first studies evaluating the IKEA-effect in children and as a means to increase liking for a generally disliked product in this target group, i.e. vegetables. The IKEA-effect could not be replicated under these more stringent conditions, where the experimental set-up enabled disentangling exposure and crafting effects.

The purpose of this paper is to analyse the prerequisites and effects of centralised supply chain planning at IKEA, and to explore how the planning process, planning system, and planning organization make up a centralised planning approach.

The paper is based on a longitudinal case study of IKEA's implementation of global supply chain planning. The literature review generated a framework which identifies prerequisites for, approaches to, and the effects of and obstacles to centralised supply chain planning. This framework was used to analyse IKEA's supply chain planning before and after the implementation. Finally, the authors reflected upon the learning from IKEA and refined the framework.

A number of prerequisites for centralised supply chain planning were identified: functional products, vertical integration, a dominating organization possessing the power and competence to enforce the implementation, and the use of one planning domain possessing all critical planning information. The direct effects of centralised supply chain planning were related to supply chain integration, standardisation, specialisation, and learning effects. Implementing centralised supply chain planning in an appropriate planning context led to several operational performance improvements. Obstacles were mainly related to human and organizational, as well as to software and data issues.

This is a first approach towards development of a framework of how to design, use and benefit from centralised supply chain planning. The developed conceptual model, which is refined through the case study, offers some generalizability in researching centralised supply chain planning.

The findings show that centralised supply chain planning is a necessity for a large and growing, global supply chain striving for low‐cost production and efficiency.

IKEA is a unique case with its supply chain characteristics and recently implemented planning concept.

This study aims to understand the underlying mechanism and boundary conditions of the IKEA effect in self-expressive mass customization (MC). It examines the effect of the extent of choice in MC toolkits in terms of perceived value of self-designed products, as well as how self-expression mediates this effect and what kind of consumers are more inclined to experience such effect.

Two experiments were conducted, using online MC toolkits. In total, 393 consumers participated in the experiments. Data collected were analyzed using t-tests, analyses of variance, path analyses, bootstrap analyses and spotlight tests.

The results show that offering a greater extent of choice in MC toolkits to consumers provides a greater opportunity for self-expression, resulting in higher product valuation. Further, consumers who have high romanticism in aesthetic preference and high self-esteem are more inclined to influences associated with this effect.

This research adds to the literature on the IKEA effect in self-expressive MC by identifying a key antecedent (extent of choice), its underlying mechanism (self-expression), and two boundary conditions (aesthetic preference and self-esteem). The results of this study provide firms with a better understanding of how they can improve their self-expressive MC strategies.

Marketing and Strategy.

BA level.

The case deals with IKEA’s unique service experience, and the company’s plans to expand into India. The question that is dealt with primarily is, “Can IKEA successfully introduce and adapt its service experience to the Indian market”. IKEA’s service experience is critically explored, as well as the concept of “service” in India.

After studying the case, it is expected that students will have a better understanding of what is a “service experience”, as well as how it can give a company a competitive advantage. It is also expected that students will have a better understanding of the retail market and consumer behavior in India.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

The purpose of this paper is to present a model for values‐based service brands grounded in values‐based service management. In undertaking this task, the paper addresses two research questions: “What is the role of values in creating customer value and corporate identity?” and “How can values and corporate identity be communicated to customers and thus contribute to customer‐perceived service value?”.

Based on five narratives from a value‐driven company, IKEA, the paper proposes a model of values‐based service brands in action. The model is based on interpretations of how IKEA manages and communicates values in practising values‐based service management.

The study distinguishes four types of “values” in the example of IKEA: economic, social, environmental, and communication‐based. These are incorporated into the model.

This is the first study of the role of values‐based service brands in creating value in use for customers.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by independent writers who add their own impartial comments and place the articles in context.

Falling in love with one’s own product is not rational behavior and could be misleading, as it blinds people to strategic foresight. Products should be designed with a strategic focus that is both innovation- and customer-centric.

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The purpose of this paper is to examine the accelerated growth within the Australian do-it-yourself (DIY) market and discusses the factors and drivers affecting consumer motivations to engage in such assembly tasks.

Using a case study approach, evaluations and critical analysis of the DIY industry was being formulated by drawing on real life brands and examples. An analysis of various DIY retail strategies and DIY decking companies was synthesised to provide insights into the DIY industry.

The insights into the industry outlines the changing consumer attitudes and motivations towards DIY and decking tasks. The findings on an evolving DIY industry, in particular the decking market demonstrate useful implications for academics, policy makers and brand practitioners.

There have been little industry studies that delve into specifically decking products. Considering the vast increase in homeware, renovations, and gardening, the study provides insights from various case studies into the strategies undertaken by Australian and global companies. In addition, the majority of studies undertaken have also been concerned with the intrinsic motivations of consumers and not necessarily the extrinsic effect that brands and retailers advertently and inadvertently communicate and signal to consumers of DIY products.

The purpose of this paper is to examine the effect of manufacturers’ co-production strategy on market segmentation and channel performance under retail competition.

It differs from previous empirical studies by primarily focusing on the increment in consumer value accompanying co-production. The authors establish a game-theoretical model to analyze the impact of co-production on market segmentation and the profitability of channel members in a competitive retail environment.

The results reveal that manufacturers introducing co-production expand market coverage and benefit all channel members, when the intensity of competition is sufficiently high, especially for retailers with low-quality levels, who are out of the market without co-production. Furthermore, with the increase in customer valuation through co-production, employing a co-production strategy is always a dominant strategy for manufacturers.

First, although the authors assume a monopoly manufacturer and two duopoly retailers, adding competition between manufacturers should enrich the model. Multiple products with vertical or horizontal differentiation could also be introduced into the model. Second, the authors use the multiplicative utility function to model the value co-creation effect on consumers; however, different utility functions may yield significantly different results and implications. Third, the authors model a one-shot game in a single product selling period; future studies may employ multi-period games to obtain further insight into co-production strategy. Finally, the model assumes that all consumers are homogenous in the extent of value creation and hassle cost. Future research may find it interesting to consider heterogeneity in these characteristics.

The business world today already sees the power of leadership in a supply chain to have shifted from manufacturers to retail giants such as Walmart, Home Depot and Best Buy. The findings also propose a new route to counteract the emergence and rise of dominant retailers. On the other hand, with the application of new technology in the retail industry such as 3D avatar, AR/VR, Internet of Things, consumers are more likely to participate in various forms of co-production activities, how to execute the co-production strategy has become more and more important for managers.

The conclusion of this study points out the way to achieve a win–win outcome under which both channel members including manufacturer and retailers and consumers can be better off, that is, the channel can reach Pareto improvement, so the social welfare is increased accordingly.

The authors propose an analytical framework to examine the effects of co-production and competition on market segmentation and profitability, and prove that co-production is a powerful marketing tool that can attract consumers and increase profitability, which manufacturers can incorporate into their products even in a competitive environment.