Experience and Experience Economy

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3.1.1 Experiences Creation as a business edge

- The creation for experiences does not have any sole and straightforward recipe. It is a sophisticated process with many stages. To be able to create a unique and memorable experience, businesses must take the process into multi-perspective consideration. It is an important task to identify all the aspects playing significant role in a single experience. Every experience must include the two factors: interpretative framework and physical arrangements. For example, the experience is watching a movie in a cinema; the interpretative framework is the movie quality including the film’s plot, the actors’ performances, music, etc.; and the physical arrangements are the lighting, the cinema, the snacks and even the reviews from critics play an important role in the construction of experiences.

- In order to serve the customers with the best experience, it is a must for businesses to understand the customers’ needs for different kinds of experiences. On the other hand, customer participation is also necessary to be considered. According to Harvard Business Reviews, the customers’ participation can be viewed as a spectrum. At one end of the spectrum is the passive participation, “in which customers don’t affect the performance at all”, for example, the observation at the art gallery. The other end is the active participation, in which customers have major impact on the experience.

3.1.2 Designing a memorable experience

- However, a unique experience is never enough. To be able to integrate an experience into a business edge, the experience must be valuable to the costumers. Therefore, designing an experience must strictly follows key principles.

- There are five key principles for designing a valuable experience as stated in Welcome to the Experience Economy :

- Theme the experience

- Harmonize impressions with positive cues

- Eliminate negative cues

- Mix in memorabilia

- Engage al five senses

3.1.3 Experience Production

- Since the experience is considered as an economic offer, businesses must efficiently and continuously produce experiences. “Experience production has become more businesslike, and less artistic.” (Jon Sundbo and Per Darmer)

- Experiences are produced and has become a necessity in almost every industries. However, in different industries, the required experience are different. Experiences production should be divided for two different kinds of experiences.

- The “frontstage”

According to Jon Sundbo and Peter Hagedorn-Rasmussen, “frontstaging” experiences are those straightforwardly define the value of the business’s offering. Take an example of an experience “having a coffee in France”. Apparently, coffee is a common experience everyone has in their life. However, “in France” isn’t an experience everyone can be offered. “Having a cup of coffee on one of the most famous streets in Paris” can be considered as a real fancy experience which create a memorable “French experience” for the customers. Usually, coffee costs around one or two dollars. However, “coffee in France” costs tribble. Yet the customers are still willing to pay for the experience. The background of the coffee shop plays a major role in the customers’ experience and so called the frontstage. The example is taken in “Imagineering: Innovation in the Experience Economy”.

- The “backstage”

Although it is undeniable about the importance of customers’ experiences in nowadays economy and market, experiences do not play the dominant role in every industry. However, in time, the businesses will eventually recognize the experience’s importance as a real offer and they strive to include it in their products. And the experiences become the “backstaging” props to enhance the products’ competitive edge.

- By integrating the two aspects, experience production become a business strategy.

- Entering the Experience Economy

- Since experience has become an officially business offer, “the concepts of selling experiences is spreading beyond theaters and theme parks” (Joseph Pine & James H.Gilmore, 1999). Many companies include experiences in their products:

“At theme restaurants such as Hard Rock Café, Planet Hollywood, or the House of Blues, the food is just a prop for what’s known as “eatertainment” And stores such as Niketown, Cabella’s, and Recreational Equipment Incorporated draw consumers in by offering fun activities, fascinating displays, and promotional events (sometimes labeled “shoppertainment” or “entertailing”)” (Joseph Pine & James H.Gilmore,Welcome to the Experience Economy, 1999)

- However,not many businesses recognize the presence of the Experience Economy and its importance.

- The question is: how to integrate experience into the business model and actually sell them as an economic offer? Joseph Pine and James H.Gilmore’s answer was “No company sells experience as its economic offering unless it actually charges guests an admission fee”. Walt Disney Company is considered one of the pioneers in blooming the Experience Economy. Disney theme parks are recreational parks provide guests with unique and themed experiences. Disney started as a cartoon and film studio. The cartoons and their characters have gone global, every kids wish for one chance in their life to visit their dream land. And the Disneyland was born. Disneyland is themed with their own characters and entertainment. However, Disney doesn’t stop at the theme parks. Inside Disneyland, there are many plays, shows conducted; there are also food-and-drink services. Much more value is added such as gift shops and other services. Combining all the factors, guests can’t resist from the desire of going to Disneyland. However, don’t mistaken that Disney only sells experience in the theme parks, services and goods are also sold and play main role in creating completed experiences for customers.

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CONCLUSION

In spite of the fact that Experience Economy is blooming, nowadays, there are many companies not yet realize the importance of accessing the Experience Economy or find their