The Economy

Group A3

The

EconomyDanai GiwaJanuary 22nd , 2014

EXPERIENCE1WHAT is the experience economy?The next economy following the agrarian economy, the industrial economy, and the service economy.

Products need to create meaning, experience, and some sort of memory for consumers.

The highest-value economic offerings are experiences2WHAT are experiences?From a marketing perspective, experiences are defined as a type of offering that can be added to commodities, goods or services to create a fourth product category that satisfy and extract value from the desire of postmodern consumersSource: Car and Cova 2003; Schmitt 1999; Gupta and Vajic 2000; Pine and Gilmore, 1999 3WHAT is the experience economy?

B. Joseph Pine II and James H. Gilmore

In their 1999 release

The Experience EconomyWork is Theatre & Every Business a Stage

Popularized by B. Joseph Pine II and James H. Gilmore

Work is Theatre & Every Business a Stage

I think the last part is especially important because the book describes how you have to use your business as a stage through which experiences are created4WHAT is the experience economy?

http://www.youtube.com/watch?v=70sX4Ghz8Ro

5HISTORICAL CONTEXT behindthe experience economyPeople in the future will be willing to allocate high percentages of their salaries to live amazing experiences Alvin Toffler, Future Shock, 1971

We will aim to analyze how emotional experiences are linked to products and services Holbrook and Hirschman, "The Experiential Aspects of Consumption, 1982

I argue for the existence of the experience society Gerhard Schulze, The Experience Society,1992

Before Pine & Gilmore6HISTORICAL CONTEXT behindthe experience economyPost-war, the primary producers were transformed into the key consumers by an affluent capitalist society

Full employment, wage increases, and more leisure time impacted consumer desires

Consumers became a key facet of late capitalism

Shift from occupational (class-based) forms of identification to lifestyle associations

7HISTORICAL CONTEXT behindthe experience economy

Source: Pine and Gilmore, 19988HISTORICAL CONTEXT behindthe experience economy

Source: http://management-class.co.uk/images/prod-development-ux-team-plan-2008pptx1.jpg

The coffee bean is a commodity that sells for penniesTransformed into a good (roasted beans) that sells for slightly higherBecomes a service when sold by retailers such as Tim Hortons for $1 or $2, but then is marketed as an experience by Starbucks and sold for $4-$6.

Its not that weve left commodities, goods, or services behind, but that their profitability has been limited.(Although they provide no empirical evidence in the book that it is true.)

9HISTORICAL CONTEXT behindthe experience economyType of Economic Offering Commodities Goods Services ExperiencesEconomyagrarian manufacturing service experience Nature of Offeringfungible tangibleintangible memorable Factors Influencing Demand characteristicsfeaturesbenefitssensations Source: Pine and Gilmore, 199810FOUR REALMSof an experience

Source: Pine and Gilmore, 199811EXAMPLES of experiences

12EXAMPLES of experiences







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EXAMPLES of experienceshttp://www.youtube.com/watch?v=pvdCFYLf_JI

20CONCLUSION/QUESTIONS?21SOURCESCar and Cova 2003; Schmitt 1999; Gupta and Vajic 2000; Pine and Gilmore, 1999

Pine, B. Joseph, and James H. Gilmore. The Experience Economy Work Is Theatre & Every Business A Stage. Boston: Harvard Business School Press, 1999. eBook Collection (EBSCOhost). Web. 16 Sept. 2013.

Pine, B. Joseph, and James H. Gilmore. "Welcome to the experience economy." Harvard business review 76 (1998): 97-105.

http://www.youtube.com/watch?v=70sX4Ghz8Ro

http://www.youtube.com/watch?v=pvdCFYLf_JI

http://www.youtube.com/watch?v=jGLJRTlHR9A

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The Economy

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