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Summary economy of experiences chapter 1-10
Summary of economy of experiences chapter 1-10.
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ECONOMY OF EXPERIENCESSUMMARY
,Chapter 1. Development of the
experience economy.
1.1 Origin and relevance: an inventory
1.1.2 The economic and management sciences (re)discover
the experience economy.
As soon as a certain level of prosperity in a country is reached, the interest shifts from goods
and services to ‘experiences’. The growing surplus of supply leads to a lowering of prices and
a general ‘commoditization’ of products. The experience economy can be seen as the ‘fourth
economic proposition’. It is seen that experiences are being different from services as goods
are from services. A person who buys a service ensures that certain non-material actions are
performed in his interest. Yet someone buying an experience pays for the time in which that
experience takes place and the time the organization in question spent coordinating and
staging it.
For experiences, it is almost impossible to assign a monetary value. An experience is
consequently a unique personal offer through which the company can differentiate itself and
for which a premium can be charged.
1.1.3 How the hype took off.
A large component of consumer growth will focus increasingly on non-material features and
the ‘story’ that surrounds the product will play an important part in any decision to make a
purchase.
Business should not only concentrate on the functions of what they are offering, but also try
to satisfy the emotions of the group or individual. Emotional needs are translated to markets
in the form of security, romance, identity, meaning and authenticity. Playing with moods
creates similar opportunities.
1.2 A new look at the experience economy
Industry’s classical top-down way of communicating with the consumer has broken down.
Consumers want to be involved. They want to create in conjunction with the organization.
They want to move away from and opaque, inexhaustible variety of goods from which it is
well-nigh impossible to choose. They need personal interaction with the business leading to
the creation of a value proposition that is meaningful and specifically devised for each
consumer, both in their own particular situations and in relation to others.
The roles from the supplier and the individual in the creation of an experience are changing.
We divide three stages:
1. Classical supply driven way of marketing and producing goods and services
2. Start communicating with customers, in several ways by making use of co-creation.
3. Self-directed, when you clients and guests become part of the experience where they
do most things their selves.
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, 1.3 Meaningful experiences and their
significance.
‘Experience’ is described as a ‘sensation or feeling; the act of encountering something or
somebody and undergoing something’, specifically with the reference to ‘undergoing’. It is
generally accepted in the business world that once a customer has experienced a product he
or she is more likely to make a purchase.
It is generally accepted that people absorb new ideas much more quickly and remember
them better when ideas have been experienced first-hand.
Chapter 2. Value creation: the
Arenas.
2.1 Arenas for creating intangible value
2.1.2. Retail, shopping and retail tourism.
Shopping is a domain that has traditionally paid a lot of attention to the experiences. The
retail trade uses advanced techniques (sound, light and smells) in an attempt to influence
the senses and thereby the purchasing behavior of the public.
2.1.3 The hospitality industry.
The objective of the hospitality industry is to make guests as comfortable as possible,
whether they are on holiday, having a day out or busy doing business. It is important that
they have a ‘home away from home’ feeling. In this sector, providing personalized service- as
well as the experience and (business) pampering – is of paramount importance. The capacity
of businesses to distinguish themselves and be competitive is sought in boundary-stretching
levels of service and personalization in combination with the design of the surroundings.
Apart from the more traditional, highly authentic concepts, new concepts are making their
way into the hotel business. Alongside full-service, all-in arrangements, there are also theme
hotels, like the ice hotel in Sweden.
2.1.4. Entertainment and theatre
A sector traditionally very involve in experience is of course the theatre and entertainment
sector. Forms are being created in which entertainers try to get maximum audience
participation in the entire theatre happening.
2.1.7. Airports and passenger experience.
Airports have embraced the concept of the passenger experience from the point of view of
‘what can we provide in order to attract passengers and make traveling as convenient as
possible for them’. Amsterdam airport invented the concept ‘building airport cities’, where
you can actually find and buy everything that you can find when experiencing shopping in a
city. Airports are making deep analyses of the needs of passengers and investing in order to
service the passenger at his dominant touch-points.
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