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Group C-4
Experience Economy: The page discusses the evolution of forms of economic value over years. At the
onset of the 21st century, with IT industry boom and opening up of economies, businesses have to
operate in hyper-competitive environment. To succeed in this competitive environment, businesses
have to move to the next level of economic value- Experience.
Nature of Experience:
1. Memorable and personalised in nature: An experience occurs when a company intentionally use
services as the stage, and goods as props, to engage individual customers in a way that creates a
memorable event.
2. Guest-Stager relationship: The experience provider has to ‘stage’ the experience to the potential
customer who is termed as a ‘guest’ who will receive a unique and personalised experience.
3. Revealed over a duration: Giving experience to a customer is an event in which the customer is
aimed to be engaged throughout in itself and is not a one-time transaction unlike goods and services.
4. The rational way to monetise an experience is to charge a ticket price or admission price since in this
way you directly link the experience with the revenue stream. However, in order to do this, the
experience must be worth the ticket price and so needs to be varied, immersive and memorable.
Characteristics of experiences:
The characteristics of experience can be shown on a two-dimensional grid: Participation and Connection as
shown below:
Experience economy: An analysis of ‘Welcome to experience economy’ paper
Group C-4
Absorption
Entertainment: Educational:
customers participate tend to involve more
more passively; their active participation,
connection with the but customers are still
event is more likely not fully immersed.
one of absorption
Esthetic:
teach as much as Escapist:
Entertainment and Customers are
Educational immersed in the
experiences but they activity but have little
involve greater or no effect on it
customer immersion