The Experience Economy and Commercial Experiences Export

@article{citeulike:25419, abstract = {Commercial experiences are getting increasingly plentiful in their own right as a product offering and in conjunction with products and services as a means to provide added value to consumers. Yet, there is scant understanding of what constitutes a commercial experience. The definition of an experience is nowhere to be found in marketing literature. This paper seeks to broaden our comprehension of what constitutes a commercial experience. By providing an operational definition of the experience phenomenon, this paper separates the experience offering from the offering of goods and services. It also discusses how experiences create value for consumers. For an experience to provide meaningful utility, it should be perceived as personally relevant and should include elements of novelty, surprise, learning, and engagement. The authors conclude this discussion by stating that not all goods and services should be marketed as experiences in order to be successful in the marketplace.}, author = {Poulsson, Susanne H. G. and Kale, Sudhir H.}, citeulike-article-id = {25419}, citeulike-linkout-0 = {http://dx.doi.org/10.1362/1469347042223445}, citeulike-linkout-1 = {http://www.ingentaconnect.com/content/westburn/tmr/2004/00000004/00000003/art00003}, comment = {What do commercial providers need to incorporate in their product offering in order for that offering to qualify as an experience? More importantly, what are the ingredients of a commercial experience that are most likely to provide product differentiation and competitive advantage? p. 268 ---=note-separator=--- The "experience aspect" of selling... p. 269 ---=note-separator=--- While it is easy to find numerous examples of a commercial experience, it has been much harder to find a clear definition of what constitutes an experience, let alone a commercial experience. ...We need an understanding of what exactly experiences are, how they differ from services and goods, and in what way they create value for companies and customers. p.270 ---=note-separator=--- We define a commercial experience as, "an engaging act of co-creation between a provider and a consumer wherein the consumer perceives value in the encounter and in the subsequent memory of that encounter." p. 270 ---=note-separator=--- The so-called experience economy can be legitimately considered a part of the service sector as it meets all the criteria constituting a service (intangibility, perishability, etc.) However, there are important differences. A service is something that is done for you; whether that service involves work on your body (a hair cut), or on your property (having your lawn cut) or a task carried out on your behalf (filing a tax return). An experience on the other hand is a product that does something to you (entertain, educate, or engage), and what you typically walk away with is memory of the encounter. Purchase of a good leaves you with a physical object to keep, and a service will leave you with something done for you or your possessions or on your behalf. With an experience, however, what is of essence is only what happens between the customer and the experience provider in that extended and intensified consumption phase, and the memory of the encounter. p. 271 ---=note-separator=--- an experience is a result of the interaction between a subject (the customer) and an object (the experience provider), and the act of co-creation between the two. In explaining experiences, on the consumer side of the dyad, we need to consider the antecedent conditions the consumer brings to the experience and feelings and sensations that take place in the customer during the experience encounter. On the provider side, the tools and processes that are used by the experience provider to create those feelings and sensations need to be examined. Doing so will assist practitioners in providing meaningful and relevant experiences. p. 271 ---=note-separator=--- We argue that for an encounter to be labelled as an experience, one or more of the following sensations and feelings need to be apprehended by the customer: personal relevance, novelty, surprise, learning, and engagement. ...the greater the assortment of these sensations, the more will be the intensity of the experience. pp. 271-272 Personal relevance is the individual's internal state of arousal, activation, and preparedness to engage in a specific experience. Personal relevance will have a direct impact on involvement with the experience, and hence influence the person's level of engagement with the experience. Firat (1991, p.72) writes that "consumption can be a means of producing one's self and self-image" and personal relevance will, therefore, directly impact the quality of the perceived experience. p. 272 Novelty can be defined as "a change in stimulus conditions from previous experience." The novelty principle is based on the finding people are attentive and attracted to something that is new and different. ...When considering the element of novelty, it is important to note that it is not whether the entity itself is novel that matters, but whether it is novel to the customer. ...For an experience to possess novelty utility, the range of novelty should not exceed the "approach zone" of the consumer. p. 272 An experience will be considered surprising if it contains outcomes that are unexpected, and these unexpected outcomes contrast with dominant expectancies of the consumer. ...In designing appropriate surprises in an experience offering, it is important that the experience provider assesses and orchestrates consumer expectations about the experience. p. 273 Learning adds to the richness of experience when the perceived challenge of the task and skills of the consumer are high and in balance, when the issue or activity is personally relevant, and when the learning environment is under the control of the experiencer (Shernoff, et al. 2003). When thus presented, learning leads to engagement. p. 273 Engagement can be induced in an experience through interacting with the customer. By actively involving the customer through customer inputs and by providing her with effective feedback, the customer's engagement with an experience can increase. ...It appears that engagement results, at least partially, from personal relevance and the level of interactivity perceived in the experience. p. 273 ---=note-separator=--- Increasingly, marketing practitioners will be expected to create experiences as one of the means to survive in the competitive marketplace. They need an understanding of what is involved in an experience and an outline that identifies the elements of an effective experience. ...The five main elements of experience discussed in this article could act as a checklist for experience designers. ---=note-separator=--- We wish to conclude by pointing out that while incorporating an experience in a product offering does provide a competitive advantage, not all product offerings need to take the "experience route" to survive or prosper in today's economy. Pine and Gilmore's (2001) tall pronouncements notwithstanding, discount retailers as well as middle-of-the-road merchandisers such as Walmart, Sears, and Target will continue to offer relevant utility to many consumers. ...Not all consumers are looking for memorable experiences in all transactions. ...Not all of us relish the idea of a computer mechanic entertaining us with his comic routine and clown suit when all we want is to have the machine fixed so that we can finish that report by tomorrow's deadline. When buying groceries, time and convenience are often of greater essence than an engaging grocery shopping experience. ...Products offer functional as well as hedonic utilities and the commercial space will be dominated by an accent on the functional in the foreseeable future. p. 275}, doi = {10.1362/1469347042223445}, issn = {1469-347X}, journal = {The Marketing Review}, keywords = {co\_creation, experience, experience\_economy, retail}, number = {3}, pages = {267--277}, posted-at = {2006-08-14 20:44:01}, priority = {0}, publisher = {Westburn Publishers Ltd}, title = {The Experience Economy and Commercial Experiences}, url = {http://dx.doi.org/10.1362/1469347042223445}, volume = {4}, year = {2004} }

TY - JOUR ID - citeulike:25419 L3 - citeulike-article-id:25419 N2 - Commercial experiences are getting increasingly plentiful in their own right as a product offering and in conjunction with products and services as a means to provide added value to consumers. Yet, there is scant understanding of what constitutes a commercial experience. The definition of an experience is nowhere to be found in marketing literature. This paper seeks to broaden our comprehension of what constitutes a commercial experience. By providing an operational definition of the experience phenomenon, this paper separates the experience offering from the offering of goods and services. It also discusses how experiences create value for consumers. For an experience to provide meaningful utility, it should be perceived as personally relevant and should include elements of novelty, surprise, learning, and engagement. The authors conclude this discussion by stating that not all goods and services should be marketed as experiences in order to be successful in the marketplace. IS - 3 JF - The Marketing Review SN - 1469-347X EP - 277 TI - The Experience Economy and Commercial Experiences PB - Westburn Publishers Ltd VL - 4 SP - 267 KW - co_creation KW - experience KW - experience_economy KW - retail N1 - What do commercial providers need to incorporate in their product offering in order for that offering to qualify as an experience? More importantly, what are the ingredients of a commercial experience that are most likely to provide product differentiation and competitive advantage? p. 268 N1 - The "experience aspect" of selling... p. 269 N1 - While it is easy to find numerous examples of a commercial experience, it has been much harder to find a clear definition of what constitutes an experience, let alone a commercial experience. ...We need an understanding of what exactly experiences are, how they differ from services and goods, and in what way they create value for companies and customers. p.270 N1 - We define a commercial experience as, "an engaging act of co-creation between a provider and a consumer wherein the consumer perceives value in the encounter and in the subsequent memory of that encounter." p. 270 N1 - The so-called experience economy can be legitimately considered a part of the service sector as it meets all the criteria constituting a service (intangibility, perishability, etc.) However, there are important differences. A service is something that is done for you; whether that service involves work on your body (a hair cut), or on your property (having your lawn cut) or a task carried out on your behalf (filing a tax return). An experience on the other hand is a product that does something to you (entertain, educate, or engage), and what you typically walk away with is memory of the encounter. Purchase of a good leaves you with a physical object to keep, and a service will leave you with something done for you or your possessions or on your behalf. With an experience, however, what is of essence is only what happens between the customer and the experience provider in that extended and intensified consumption phase, and the memory of the encounter. p. 271 N1 - an experience is a result of the interaction between a subject (the customer) and an object (the experience provider), and the act of co-creation between the two. In explaining experiences, on the consumer side of the dyad, we need to consider the antecedent conditions the consumer brings to the experience and feelings and sensations that take place in the customer during the experience encounter. On the provider side, the tools and processes that are used by the experience provider to create those feelings and sensations need to be examined. Doing so will assist practitioners in providing meaningful and relevant experiences. p. 271 N1 - We argue that for an encounter to be labelled as an experience, one or more of the following sensations and feelings need to be apprehended by the customer: personal relevance, novelty, surprise, learning, and engagement. ...the greater the assortment of these sensations, the more will be the intensity of the experience. pp. 271-272 Personal relevance is the individual's internal state of arousal, activation, and preparedness to engage in a specific experience. Personal relevance will have a direct impact on involvement with the experience, and hence influence the person's level of engagement with the experience. Firat (1991, p.72) writes that "consumption can be a means of producing one's self and self-image" and personal relevance will, therefore, directly impact the quality of the perceived experience. p. 272 Novelty can be defined as "a change in stimulus conditions from previous experience." The novelty principle is based on the finding people are attentive and attracted to something that is new and different. ...When considering the element of novelty, it is important to note that it is not whether the entity itself is novel that matters, but whether it is novel to the customer. ...For an experience to possess novelty utility, the range of novelty should not exceed the "approach zone" of the consumer. p. 272 An experience will be considered surprising if it contains outcomes that are unexpected, and these unexpected outcomes contrast with dominant expectancies of the consumer. ...In designing appropriate surprises in an experience offering, it is important that the experience provider assesses and orchestrates consumer expectations about the experience. p. 273 Learning adds to the richness of experience when the perceived challenge of the task and skills of the consumer are high and in balance, when the issue or activity is personally relevant, and when the learning environment is under the control of the experiencer (Shernoff, et al. 2003). When thus presented, learning leads to engagement. p. 273 Engagement can be induced in an experience through interacting with the customer. By actively involving the customer through customer inputs and by providing her with effective feedback, the customer's engagement with an experience can increase. ...It appears that engagement results, at least partially, from personal relevance and the level of interactivity perceived in the experience. p. 273 N1 - Increasingly, marketing practitioners will be expected to create experiences as one of the means to survive in the competitive marketplace. They need an understanding of what is involved in an experience and an outline that identifies the elements of an effective experience. ...The five main elements of experience discussed in this article could act as a checklist for experience designers. N1 - We wish to conclude by pointing out that while incorporating an experience in a product offering does provide a competitive advantage, not all product offerings need to take the "experience route" to survive or prosper in today's economy. Pine and Gilmore's (2001) tall pronouncements notwithstanding, discount retailers as well as middle-of-the-road merchandisers such as Walmart, Sears, and Target will continue to offer relevant utility to many consumers. ...Not all consumers are looking for memorable experiences in all transactions. ...Not all of us relish the idea of a computer mechanic entertaining us with his comic routine and clown suit when all we want is to have the machine fixed so that we can finish that report by tomorrow's deadline. When buying groceries, time and convenience are often of greater essence than an engaging grocery shopping experience. ...Products offer functional as well as hedonic utilities and the commercial space will be dominated by an accent on the functional in the foreseeable future. p. 275 AU - Poulsson, Susanne AU - Kale, Sudhir PY - 2004/// UR - http://dx.doi.org/10.1362/1469347042223445 ER -