Diderot Effect

The Diderot effect illustrates the scenario of purchasing something new and replacing our old
assets with stuff that match the new one, even if this results in an empty bank account.
According to the Diderot Effect, acquiring a new possession frequently triggers a cycle of
consumption that leads to the acquisition of even more new goods. As a result, we wind up
purchasing items that our former selves never required to be happy or fulfilled. It means that
purchasing something new might set off a chain reaction of purchasing more and more things
since the new item makes one feel as if other items are required to accompany or keep up
with it. This might lead to overspending and gathering more goods than you need or use.

How Amazon use AI to personalize the shopping experience and play on the
Diderot effect

Amazon analyses your purchasing and browsing history and utilises that information to offer
comparable products. For example, if you just purchased a new coffee machine, Amazon may
recommend coffee beans, filters, or mugs.

Search history: Amazon keeps track of what you search for on its website. This information
can be used to tailor the results you get in subsequent searches. For example, if you recently
looked for a new pair of running shoes, Amazon may display more running shoes when you
search for other items such as socks or gym gear.
Amazon also considers the reviews and ratings you leave on products. This information can
be used to suggest products that other customers with similar preferences have loved.

Diderot Effect in Amazon

Amazon employs artificial intelligence to personalise the buying experience, perhaps
triggering the Diderot effect. Amazon can increase your likelihood of purchasing products
that are linked to ones you've already purchased or looked at. This is just one example of how
Amazon employs artificial intelligence to personalise the buying experience. AI also powers
Amazon Prime Air, a drone delivery service, and Amazon Echo, a voice-activated speaker.

https://dmexco.com/stories/using-ai-to-create-a-personalized-shopping-experience-in-online-
retail/

Ikea using AI to personalize shopping experience and plays with Diderot effect:

Ikea uses AI to personalize the shopping experience and potentially trigger the Diderot effect,
where a new purchase inspires the need for additional items.
The company offers online room planning tools that allow users to virtually create a layout of
their space using digital Ikea furniture models. These tools suggest furniture arrangements or
product recommendations based on the dimensions and layout of the room, potentially
triggering the Diderot effect and encouraging additional purchases.
Ikea also offers mobile apps with augmented reality (AR) features, allowing users to visualize
furniture models in their environment, personalizing them with different colors or finishes.
This visualization can lead to more purchases.

Ikea also uses AI to analyze browsing history or past purchases on their website or app,
suggesting additional products that complement initial selections or fit the overall design
style. For example, if a user purchases a bed frame, the AI might suggest mattresses, pillows,
comforters, and bedsheets, playing on the Diderot effect.

Lastly, Ikea uses AI to personalize marketing campaigns and email blasts, showcasing
curated furniture collections, inspirational home decor ideas, or targeted promotions based on
past browsing behavior or purchases. This personalized approach can potentially lead to
additional purchases beyond initial needs.

https://www.ikea.com/us/en/newsroom/corporate-news/ikea-launches-new-ai-powered-
digital-experience-empowering-customers-to-create-lifelike-room-designs-pub58c94890

https://cio.economictimes.indiatimes.com/news/next-gen-technologies/ikea-is-bringing-in-
store-experience-to-online-shopping-with-ai/84627211

CONCLUSION

In conclusion, the Diderot effect, as illustrated by Amazon and Ikea, shows how acquiring
new possessions can lead to a cycle of consumption and the purchase of additional items that
were not initially needed for happiness or fulfillment. Both companies use artificial
intelligence to personalize the shopping experience, potentially triggering this effect by
recommending products based on past purchases or browsing history.