Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
The Empirical Analysis of Consumers’ Attitudes towards
Experience Realms
Agnieszka Kacprzak*, Katarzyna Dziewanowska** and Monika Skorek***
Recently the consumer experience has become the concept of major interest
in the field of marketing science. According to the foundations of experience
economy business organizations should focus on delivering memorable,
unique and unforgettable experiences to their customers instead of focusing
on basic product or service features. The question arise what kind of
experiences do consumers seek? The aim of the study presented in this
article was to conduct the segmentation of Polish consumers on the basis of
their preference for active/passive and absorbable/immersing experiences.
The concept of Pine and Gilmore’s (1999, 2011) experience realms was
used to divide the market into four segments: Entertaining, Esthetic, Escapist
and Educational. The research method used was CATI (Computer Assisted
Telephone Interview) conducted on the representative sample of 1045
Polish consumers. The statistically significant relationships between
demographic variables and the preferred type of experience were found.
Female, older and less affluent consumers favor more passive experiences
than male, younger and richer customers. Residents of large cities seek
higher levels of immersion than respondents from small towns and villages.
JEL Codes: M30, M31
1. Introduction1
The economy of experiences is a new paradigm in marketing that puts customer
experience at the centre of attention. Companies are constantly seeking new sources of
creating a competitive advantage. As Maklan and Klaus (2011) have noted, over the last
years, the interest of theorists and practitioners of marketing has shifted from fast
moving goods towards building relationships based on service, and has finally rested on
creating captivating and enthralling experiences. Initially, companies focused on
differentiating an offer that encompassed primarily durable goods. In the 1970's the
possibility of differentiation on the basis of physical goods reached its limit. Offers
contained comparable attributes and similar quality and companies transferred their
interest to services, which, due to their specificity, allowed for greater diversity and
personalization. With time, however, the possibility of differentiation of service also
reached its ceiling, which moved focus towards building and maintaining of long-term
relationships with consumers. Today, however, the relationship marketing paradigm is
facing criticism. This concept is accused of ignoring emotions and their impact on
*
Dr. Agnieszka Kacprzak – Department of Managerial Psychology and Sociology, University of Warsaw,
Poland, Email: akacprzak@wz.uw.edu.pl
** Dr. Katarzyna Dziewanowska – Department of Marketing, University of Warsaw, Poland,
Email:kdziewanowska@wz.uw.edu.pl
*** Dr. Monika Skorek – Department of Marketing, University of Warsaw, Poland,
Email:mskorek@wz.uw.edu.pl
Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
consumer behaviour and on the stability of relationships. The answer seems to be
marketing based on the experience of the consumer and the value it generates (Palmer,
2010, Christopher et al., 1991).
This article focuses on the search for answers to the questions of what experiences
consumers are looking for and what influence do their demographic characteristics have
on the type searched experiences. The starting point for our analysis is Pine and
Gilmore's (1999) experience realms concept.
2. Literature review
2.1. Classifications of consumer experience
In the literature of the subject, many different classifications of experiences have been
proposed. The first of them were quite simple, as the distinction between ordinary and
extraordinary experience (Abrahams, 1986), or the division into fantasies, feelings and
fun (Holbrook and Hirschman, 1982). Later there were more complex, multidimensional
classifications, such as, for example, O'Sullivan and Sprangler's (1998) sixteen
combinations of experience designated around the axis of reality and virtuality, originality
and mediocrity, mass production and customization and the level of intensity of the
interaction with other people. On the other hand, Schmitt (1999) is the author of a five
element set of strategic experience modules that include sensual, emotional, intellectual,
behavioural and relational sensations. This proposal was later extended by Gentile,
Spiller and Noci (2007) to six components of experience: sensory (sensual sensations),
emotional (mood, emotions and feelings), cognitive (conscious mental processes),
pragmatic (physical function and usability) concerning lifestyle (values and personal
beliefs) and relational (belonging to a community and social identity confirmation). For
the purpose of this study the classification of experiences proposed by Pine and Gilmore
(1999, 2011) was selected, in which they divide them into four possible experience
realms.
2.2.
Concept of experience realms (4E)
This theory divides the experiences that are possible to be provided to consumers into
four types according to the level of activity required of the consumer and the level of
immersion in the offered experience. The degree of activity speaks of to what extent a
consumer in a given situation is expected to remain only a passive observer, and to
what extent he is to become an active participant (Pine and Gilmore, 2011). At a low
level of participation the consumer has no influence on the course of the experience,
whereas at a high level of participation he can actively affect its scenario (Caru and
Cova, 2003). In turn, the degree of immersion refers to the link between the consumer
and the experience. Absorption is assumed to consist of only watching from a distance,
while immersion means physical or virtual engagement in the offered experience. These
dimensions are shown in Figure 1.
Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
Figure 1 Experience realms
Source: Pine and Gilmore (2011)
The authors of this concept (Pine and Gilmore, 2011) characterize entertainment
experience, as such, in which consumers participate in a passive way and which is
associated with absorption. The participants of these experiences absorb the events
through their senses while not engaging in them (e.g. watching TV). The aim of
participation in this type of experience is good fun that does not require too much activity
and commitment. In turn, an esthetic experience allows consumers to immerse
themselves in sensations, but do not require participation from their side. An example
would be a tourist admiring a mountain panorama. The aim of participation in this type of
experience is simply to be and to forget oneself in the appreciation of what you seeing.
The third type of experience constitutes educational experiences that require active
participation, but consumers themselves do not have a major impact on their script. An
example of such experiences can be a snowboarding lesson. The goal of a participant is
to learn something. Finally, escapist experience requires consumers to both immerse
themselves in the experience and to actively influence its course. One example is a
person playing a computer game. The goal of the participant of this type of experience is
to "go and do something" (Pine and Gilmore, 1999).
But do all consumers want to actively participate and immerse in experiences offered by
commercial companies as Pine and Gilmore (1999, 2011) assume? Maybe simple
entertainment is enough for some of them?
Proceedings of Annual Paris Business Research Conference
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ISBN: 978-1-922069-82-5
2.3.
Existing studies using experience realms concept
One of the main themes of previous studies using this concept is whether the types of
experiences belonging to experience realms should be treated separately or as a whole.
Pine and Gilmore (1999) believed it is best to engage all four areas in the creation of a
single offer. Locating an offer in the middle of the framework, the so-called 'sweet spot',
allows, in their opinion, the attainment of the richest and most positively perceived
experience.
The first scale to measure 4E was devised and applied in the tourism sector by Oh et al..
(2007) treating each of the experience realms separately. They linked types of consumer
experiences with his satisfaction, arousal, memories and quality assessment. The
biggest impact on marketing effects turned out to have the esthetic dimension of
experience. The dimensions of experience were also separately approached in the Keng
et al. (2014), study, which looked at how successive experience realms influence
product knowledge and brand attitude on the mp3 players market. According to the
results achieved by them the greatest impact has the escapist dimension while the
smallest has education. Manthiou et al. (2014) conducted quantitative research about
which experience realm has the greatest influence on the customer loyalty in case of
festivals. They found that only the esthetic and entertainment realms have an impact
that is statistically significant. Gram (2011), also approached the subject of experience
realms separately: she examined a 40-year history of theme park ads targeted to
children. In her opinion, there was a shift from the view of esthetic experiences as most
appropriate for children towards escapist ones. Jeong et al. (2009), studying the impact
of 4E on consumer response in retail did not find empirical evidence for the existence of
Pine and Gilmore's (1999) experience „sweet spot‟. According to the results of their
analyses, the consumer does not have to come into contact with all four realms in order
to obtain a positive effect. In the case of a site selling clothes that was examined by
them, the dimensions of entertainment and esthetic were sufficient to evoke pleasure
and arousal in the consumer, as well as the desire to re-visit the site and recommend it
to others. The educational dimension had no bearing at all on the achievement of these
results, and the escapist dimension only on the excitation of pleasure.
There are also studies, both qualitative and quantitative, confirming the assumption of
Pine and Gilmore (1999, 2011) about the need for delivering of all types of experiences
at the same time. Fulgsang et al.(2011) emphasized the holistic nature of experience. As
a result of the analysis of surveys conducted in Danish companies they found that those
that try to combine in their offers various experience realms are more innovative. The
qualitative research conducted by Petermans et al. (2013) in the form of interviews with
shop designers showed how they tried to refer in their designs to all four dimensions of
experience at the same time. The tourism sector was the subject of the investigation by
lyanna et al. (2012), who used the concept of four realms to analyse the experience to
consumers during travel. They applied netnography in the form of blog analysis as a
research method. They found that different consumers might interpret the same
experience differently, which testifies to the fact that they are idiosyncratic. Jurkowski
(2009) also noted fluid boundaries between types of experiences on the basis of surveys
Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
conducted among clients of an American theme park. The study found that participation
in one realm does not preclude participation in another - opposing realm. The author
assumed that those who participate in escapism experience (e.g. rock climbing) would
not select entertainment (e.g. scenic train), and those who will take part in the esthetic
experience (e.g. visiting a national park) will not choose education (e.g. visiting a
winery). This study did not check, however, whether the level of satisfaction with
participation in these types of opposing experiences was similar.
It should be noted that most of the cited studies concerned the tourism industry,
because there it is the easiest to implement the concepts of experience marketing.
Holiday trips always involves a search by the consumer for unforgettable and unique
experiences. This study addresses this knowledge gap by going beyond the tourism
sector.
As a result of analysis of the literature presented above we assume that not all
consumers prefer equally all types of experiences and the looking for a 'sweet spot' is
not always the optimal solution. Our research hypothesis is as follows:
H1: There occur statistically significant relationships between a consumer's gender, age,
place of residence and income and the type of experiences favoured by him.
3. Methodology
3.1.
Data collection
The presented study was part of a wider project analysing the determinants of the
development of the experience economy in Poland. Computer-assisted telephone
interviews (CATI) were conducted on a randomly chosen representative sample of 1,045
adult Polish consumers. The characteristics of the studied sample are shown in Table 1.
Table 1 Demographic characteristics of the research sample
Variable
N
%
Gender
female
564
54 %
male
481
46 %
Age
18-34
328
31 %
35-49
249
24 %
50-64
281
27 %
65 and more
187
18 %
Household income
≤1000 PLN
562
54 %
per capita
>1000 PLN
483
46 %
Size of place of
up to 10.000
359
35%
residence
inhabitants
10.000 to 99,999
430
41%
inhabitants
100,000 to 499,999 169
15%
inhabitants
Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
above 500,000
inhabitants
Source: own research, N=1045
3.2.
87
8%
Confirmatory factor analysis
To measure the propensity of consumers to prefer passive / active experience and
immersive / absorption experiences two indexes were created. Statements included in
their composition are shown in Table 2.
Table 2 Indices to measure the inclination to participate in passive / active and
immersive / absorption experiences
Standardized
Standard
regression
Mean Deviation
weights
Index of the tendency to choose passive experiences
I prefer to look on from a distance than to take direct
3,9847 1,37219
0,386
part in games and competitions.
I most like to spend free time relaxing in the comfort of
4,0967 1,36921
0,399
my own home.
I very much do not like when someone tries to
persuade me to actively engage in some kind of
3,3665 1,64777
0,495
entertainment.
I choose such forms of entertainment that do not
3,0679 1,64240
0,645
require too much activity from me.
Observing other people's participation in organized
pastimes gives me more pleasure than participating in 3,3627 1,55288
0,604
them myself.
Index of the tendency to choose immersive
experiences
While admiring nature, interiors and objects I can
3,4344 1,63907
0,432
completely forget about the passing of time.
I get the greatest pleasure from such forms of
entertainment that allow me to forget about the whole 3,6890 1,52248
0,543
world.
I prefer such forms of entertainment, during which I
4,1330 1,23739
0,388
can decide on their course by myself.
I have a hobby that completely consumes my time
3,4383 1,66070
0,855
and attention.
Source: own research, N=1045
*where 1 indicates “ totally disagree” and 5 “totally agree”.
The Cronbach Alpha statistics for the index measuring the passivity / activity level is at
0.622, and for index measuring the immersion / absorption level at 0.627, which is an
Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
accepted result for newly constructed indicators (Churchill and Peter, 1984, Nunnally,
1978). In order to verify the assumed measurement model, a confirmatory factor
analysis was undertaken using the AMOS ver. 22. As shown in table 2, the standardized
regression weights ranged from 0.39 to 0.64 for the passivity index and from 0.39 to
0.86 for the immersion index. The model fit measures are on actable levels (CMIN/df=
2,977, RMSEA= 0,044, GFI+0,984, CFI= 0,953, SRMR= 0,0357).
3.3.
Cluster analysis
The next step after calculating the means of indices of the preference for passive and
immersive experience for each respondent was to conduct a cluster analysis using the
k-means procedure. This non-hierarchical method is characterized by the high usability
of its obtained segmentation results (Wedel and Kamakura, 2003). Initial clusters
centres were established in accordance with the theoretical concept. The final cluster
centres were achieved after 8 iterations (see: Table 3).
Table 3 Initial and final cluster centres
Clusters
Education
Escapist
Entertainment
Factors*
Initial
Final
Initial
Final
Initial
Final
Passivity
1
2,88
1
2,46
5
4,34
Immersion
1
2,71
5
4,39
1
2,24
Source: own research, N=1045
*where 1 indicates “ totally disagree” and 5 “totally agree”.
Esthetic
Initial
Final
5
4,25
5
4,32
4. Findings
The results of cluster analysis showed that most respondents were classified as
preferring esthetic experience (38.3%), with escapist experience (25.6%) in second
place. Less people were included in the educational (19.7%) or entertainment (16.4%)
segments (see Table 4). Average values of indices for the entire sample show that
Polish consumers rather prefer immersive than absorption experience (mean for the
immersion index = 3.47) and do not require active participation (mean for the passivity
index = 3.57). They do not want to just watch the offered experiences from a distance
but rather to fully immerse themselves in them, while at the same time not being
interested in actively influencing their course.
Table 4 Membership in segments according to preferred type of experience.
Segment
N
%
Eductaion
262
25,1%
Escapist
205
19,6%
Entertainment
228
21,8%
Esthetic
350
33,5%
total
1045
100%
Source: own research, N=1045
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As can be seen from the statistical analysis, the variables of which the relationship with
belonging to the segments is statistically significant are: gender, age and income of the
respondent (see Table 5).
Table 5 The chi-square test for the relationship between belonging to the segments and
demographic variables
Variable
χ2 value
df
p*
Gender
18,456
3
0,0001
Age
88,744
9
0,0001
Income
8,488
3
0,037
Size of place of
7,686
9
0,556
residence
Source: own research, N=1045, p≤0,05
*statistically significant results were bolded
The youngest respondents most frequently opt for escapist experience, while in the
older age groups esthetic experience is in the first place. This reproduces a higher mean
for active involvement in experiences offered as characterized by the youngest age
group (F = 35.603, df = 3, p =. 0001). Men are also more likely to choose active
experience (t = 4.603, df = 1,043, p = 0.0001) as are persons obtaining an income
above the national average (t = 2.863, df = 1,043, p = 0.004). In turn, the immersion
level depends in a statistically significant way upon the size of the place of residence (F
= 2.743, df = 3, p = 0.042) in such a way that residents of major cities have a higher
propensity to choose this type of experience than those living in rural areas and small
towns.
If we look at the demographic characteristics of segments presented in Table 6, we see
that women predominate among lovers of entertainment (62.7%) and esthetic (57.7%)
experiences, and men in the segments of education (52.7%) and escapist (53.7%)
experiences. There is a similar situation concerning income, where poorer people are
more likely to belong to the segment of entertainment and esthetics, and richer to those
of education and escape. When it comes to age, almost half of those that qualified for
the escapist segment are the youngest respondents (18-34 years). Persons under 50
years of age also constitute 67.1% of those qualified for the education segment.
Respondents, aged 50-64, constitute the largest group within the esthetic (31.1%) and
entertainment (30.3%) cluster, in which the oldest age group (over 64 years) is
represented more numerously than the groups aged 18 -34 and 35-49.
Proceedings of Annual Paris Business Research Conference
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Table 6. Belonging to the segments according to gender, age and income
Variable
Education
Escapist
Entertainment
Esthetic
Gender
female
47,3%
46,3%
62,7%
57,7%
male
52,7%
53,7%
37,3%
42,3%
total
100%
100%
100%
100%
Age
18-34
34,7%
48,8%
22,8%
24,3%
35-49
32,4%
22,4%
21,5%
19,7%
50-64
22,1%
22,0%
30,3%
31.1%
65 and
10,7%
6,8%
25,4%
24,9%
more
total
100%
100%
100%
100%
Household ≤1000
49,2%
48,8%
55,3%
59,1%
income
PLN
per capita >1000
50,8%
51,2%
44,7%
40,9%
PLN
total
100%
100%
100%
100%
Source: own research, N=1045
5. Discussion
The presented results of the quantitative study partly confirmed the research hypothesis
(H1) about the relationship between demographic variables and the type of preferred
experience. It turned out, that the relationship between the preferred type of experience
and variables such as age, gender and income of the respondent are statistically
important. The size of the place of residence turned out to be statistically insignificant.
Younger respondents most often chose escapist experiences, which can be explained
by the fact that representatives of Generation Y count themselves as members of the
group known as netizens, namely people whose main mean of communication is the
Internet (Tapscott, 2008). This medium is characterized by providing opportunities for
immersion at a high level and for requiring activity from its users. Traditional media, such
as radio, newspapers and television have focused on providing a more passive
experience, which can explain the greater popularity of esthetic or entertainment
experience amongst older age groups. According to the results of our study women
declared themselves less likely than men to participate in experiences that require
activity from them. It may stem from the fact that Polish society is fairly traditional and in
the process of socialization, boys are encouraged to be more active (Röder and
Mühlau, 2014). A smaller tendency to choose active experiences (education, escapist)
amongst poorer people may stem from the need to approach shopping in a more
utilitarian way and an inability on their part to pay the extra price for a truly unique
experience provided by a company.
Our study proves that Pine and Gilmore (1999) were wrong when they wrote that the
optimal type of experience is a „sweet spot‟ located at the intersection of four realms of
experience. According to their concept there should be no relationships between
demographic variables and the preferred type of experience. However, it turns out that
consumers have different tastes. For example, participation in events in a store is a
Proceedings of Annual Paris Business Research Conference
13 - 14 August 2015, Crowne Plaza Hotel Republique, Paris, France
ISBN: 978-1-922069-82-5
pleasurable experience for some and an uncomfortable or embarrassing experience for
others; self-service checkouts for some will be an interesting variation, and for others it
will mean problems with service. The achieved results are consistent with the findings of
Oh et al. (2007) and Jeong et al. (2009), who also emphasized the disjunctive nature of
experience realms. The experience must be adjusted to the consumer, or we have to
allow the consumer himself to adjust it to him. As Ek et al. (2008) states, the consumer
should be rather a 'co -producer' of experiences and not their passive recipient. Also,
according to Prahalad and Ramaswamy (2004) companies should offer only platforms of
goods and services on the basis of which consumers can create their own unique
experience. This new form of personalized experience economy provides the basis for
the co-creation (value and significant experiences) that takes place between the
company and the consumer (Vargo and Lusch, 2008).
6. Conclusions
As far as managerial implications are concerned, our research suggests that
entrepreneurs should match the experience offered to the target market and its
expectations. Engaging the consumer 'by force' in a retail experience in which he does
not want to participate in the name of achieving „sweet point‟ can be counterproductive.
This is confirmed by data presented by Meyer and Schwager (2007), according to which
80% of companies believed that the experience they provide is superior, while only 8%
of consumers were of the same opinion.
The presented research contributes to the discussion on understanding consumer
experience and its components and dimensions. It shows that some consumer groups
are not interested in immersion or in active participation in the purchasing experiences,
and treat them rather in an utilitarian fashion, as a source of needed products or
services and related basic utilities. Participants in our study were from Poland and it is
an open question whether their revealed reluctance to actively participate in purchase
experiences is cultural specific or whether similar results would be achieved - particularly
in reference to women, the elderly and the poor - in other societies. Further research
may also concern analysis as to how the preference for certain experience realms relate
to psychographic variables such as the temperament or personality of the consumer.
Acknowledgements
This article was based on research conducted as part of a project funded by Narodowe
Centrum Nauki (National Science Centre): decision number DEC-2012/05/B/HS4/04213
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