Welcome to the experience economy (Pine & Gilmore, 1998) Course 5082 Media Management Group 8

Pricing Competitive position The progression of economic value Commodities Goods Services EXPERIENCES! (Pine & Gilmore, 1998)

Experiences ≠ Services ” An experience occurs when the company intentionally uses services as the stage, goods as props to engage individual customers in a way that creates a memorable event” (page 98) Commodities are Fungible (cake ingredients) Goods are Tangible (cake mix) Services are Intangible (order cake) EXPERIENCES are MEMORABLE (outsourced B-day event) (Pine & Gilmore, 1998)

Theaters, amusement parks Then… (Pine & Gilmore, 1998)

NOW… New technology creates new genres of experiences like interactive multiplayer games, chat rooms. Interactive stores, involving the customer as the guest in an experience, with less stress on sales of the physical product. (Pine & Gilmore, 1998)

X: Customer participation (Passive-Active) Y: Connection (Immersion-Absorption) Two dimensions create four realms of experience (Pine & Gilmore, 1998) Television Lecture Acting in a play Art Gallery

Designing experiences One Effective Theme Organizes the memory of impressions Concise and appealing, implicit or explicit Cues Harmonize impressions Eliminating negative cues Memorabilia Engaging all five senses

One Effective Theme

Organizes the memory of impressions

Concise and appealing, implicit or explicit

Cues

Harmonize impressions

Eliminating negative cues

Memorabilia

Engaging all five senses