The Swedish company IKEA is famous across the globe for its meatballs and its wide array of furniture that customers must assemble at home. This video looks at how the retailer encourages sales by creating the “IKEA effect” with its winding floor plan that causes customers to snake through a series of product showrooms. 

Questions:

1. What sort of strategies does IKEA use to keep costs low?
2. How does the “IKEA effect” encourage customers to purchase furniture and home goods?