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[B] WSJ: The 'IKEA Effect:' Behind the Company's Unique Business Model

LET'S UNLOCK WORDS AND PHRASES 🔐

winding

[ 'wahyn-ding ]

adjective

- a winding path, road, river, etc. repeatedly turns in different directions

The road to the mountaintop was long and winding.

runaway

[ 'ruhn-uh-wey ]

adjective

- surprisingly sudden or great

The company experienced runaway success after launching its innovative product.

revolutionize

[ rev-uh-'loo-shuh-nahyz ]

verb

- to completely change something so that it is much better

The new technology has the potential to revolutionize the healthcare industry.

deconstruct

[ dee-kuhn-'struhkt ]

verb

- to break something down into its separate parts

We need to deconstruct the old building before we can start construction on the new one.

lay out

phrasal verb

- to design or arrange something in a useful way

The architect will lay out the plans for the new building tomorrow.

LET'S TAKE A LOOK! [ FULL CLIP ]

What is the video all about? Choose two statements that refer to the main ideas of the video.


1. IKEA's store layout is designed as a fixed path, guiding customers through various rooms and encouraging them to spend time envisioning their ideal living spaces.

2. The concept of the "IKEA effect" suggests that consumers feel more attached to and value items they have assembled themselves, contributing to IKEA's unique appeal.

3. IKEA's store layout allows customers to freely navigate through the store, encouraging quick shopping trips rather than spending a whole day exploring.

4. The "IKEA effect" refers to consumers' tendency to feel less attached to items they have assembled themselves, contradicting the appeal of IKEA's self-assembled furniture.

LET'S TRY IT! - FIRST CUT

A. Script Completion

Direction: Watch the first cut of the video and complete the following lines below with the missing words. Write or type down your answers while listening.

⏱ 00:08 - 01:00

  1. "If you've ever visited an IKEA, you've likely encountered their store's floor plan."

  2. "IKEA may be the biggest furniture retailer on the planet but it's ."

  3. "The Swedish furniture giant asks its customers to build their own products and it stores and distributes those products in packed boxes. "

  4. "So, how have these retail strategies, as well as their contributed to the company's runaway success?"

  5. "When you step into an IKEA, you immediately sort of are put into this of different rooms."

LET'S PRACTICE - SECOND CUT

A. Script Completion

Direction: Watch the second cut of the video and complete the following lines below with the missing phrases.

⏱ 01:27 - 03:09

The floor plan of most IKEA stores (1) that curves about every 50 feet to keep customers curios about what comes next. Since an average IKEA store is around (2) or five American football fields, that means a lot of walking. "An IKEA is to some frustratingly winding but really it's (3) to get you to buy more." IKEA is famous for putting its customers to work unlike most furniture retailers that sell products (4) , many of IKEA's pieces have to be built by their customers. But why? As many couples and their therapsits will know, building your won IKEA cabinet can be challenging. "The big idea behind the IKEA effect is consumers are more attached to have more positive feelings towards objects or things that we've put effort into. And that we actually think that they're more valuable because of that." The term IKEA effect was first coined in 2011 by researchers who notices a (5) in other products and businesses. When instant cak mix were first introduced in the 1950s, they didn't sell well. "And then they said, "Let's add a fresh egg." It was this idea that we wanna feel like we're just participating enough not to (6) ." "When you make a cake from a mix, which do you want, a fressh egg cake or a cake made with dried eggs? A higher, lighter, tastier, cake, why fresh eggs of course." "The idea that we should love building products isn't necessarily what IKEA intended." If you've ever shopped at one of IKEA's (7) , you're likely aware of the unconventional product names but what you may not realize is that in creating these items IKEA sometimes comes up with the price tag first. "Sort of a classic example that they could talk about all the time is the $1 light bulb. But they had this idea that a $1 LED light bulb, you know this new type of light bulb would be hard to achieve, but if they could achieve it, lots of people would buy LED light bulbs. So they just sort of designed backward (8) ."

LET'S DO THE CHALLENGE - FULL CLIP

Direction: Answer the following questions by giving your opinion.


  1. How does IKEA's store layout differ from traditional retail stores, and what is its purpose?

  2. What is the "IKEA effect," and how does it contribute to the company's success?

  3. How did IKEA's flat packing innovation revolutionize the furniture industry?

  4. What role does price play in IKEA's product development strategy?

  5. What are some advantages and disadvantages of IKEA's pricing strategy, where they sometimes come up with the price tag first for their products?

LET'S RECAP!

Active-Listening Let-s-Recap-2

1. Which new words/phrases were easiest to remember? Give three.

どの語句/文が覚えやすかったですか?3つ挙げてください。


2. Which words/phrases were you having a hard time to speak/understand? Give three.

どの語句/文が話したり理解するのに難しかったですか?3つ挙げてください。

winding

[ 'wahyn-ding ]

adjective

- a winding path, road, river, etc. repeatedly turns in different directions

The road to the mountaintop was long and winding.

runaway

[ 'ruhn-uh-wey ]

adjective

- surprisingly sudden or great

The company experienced runaway success after launching its innovative product.

revolutionize

[ rev-uh-'loo-shuh-nahyz ]

verb

- to completely change something so that it is much better

The new technology has the potential to revolutionize the healthcare industry.

deconstruct

[ dee-kuhn-'struhkt ]

verb

- to break something down into its separate parts

We need to deconstruct the old building before we can start construction on the new one.

lay out

phrasal verb

- to design or arrange something in a useful way

The architect will lay out the plans for the new building tomorrow.