Danai Giwa
January
22 nd
, 2014

WHAT 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 experiences

WHAT 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 consumers”
Source: Carù and Cova 2003; Schmitt 1999; Gupta and Vajic 2000; Pine and Gilmore, 1999

WHAT is the experience economy?
Popularized by
B. Joseph Pine II and James H. Gilmore
In their 1999 release
The Experience Economy… Work is
Theatre & Every Business a Stage

WHAT is the experience economy?
http://www.youtube.com/watch?v=70sX4Ghz8Ro

HISTORICAL CONTEXT behind the experience economy
Before Pine & Gilmore…
“People 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

HISTORICAL CONTEXT behind the experience economy
• Post-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

HISTORICAL CONTEXT behind the experience economy
Source: Pine and Gilmore, 1998

HISTORICAL CONTEXT behind the experience economy
Source: http://management-class.co.uk/images/prod-development-ux-team-plan-2008pptx1.jpg

HISTORICAL CONTEXT behind the experience economy
Type of Economic
Offering
Commodities Goods
Economy agrarian
Services manufacturing service
Experiences experience intangible memorable Nature of Offering fungible tangible
Factors Influencing
Demand characteristics features
Source: Pine and Gilmore, 1998 benefits sensations

FOUR REALMS of an experience
Source: Pine and Gilmore, 1998

EXAMPLES of experiences

EXAMPLES of experiences

EXAMPLES of experiences

EXAMPLES of experiences

EXAMPLES of experiences

EXAMPLES of experiences

EXAMPLES of experiences

EXAMPLES of experiences

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

CONCLUSION/QUESTIONS?

SOURCES
• Carù 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