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The Ikea Effect: The Genius Behind Ikea’s Business Model

Why is Ikea so successful?
They took consumer psychology into consideration,
Not just the consumer's wallet.
They learned that over 50% of consumer purchases are impulse buys.
Therefore, they designed their stores to encourage as many impulse buys as possible.
Standard layout vs. Ikea layout
Consumers must walk through the whole store to reach the checkout.