Proposal on experience economy bu sudip ghimire

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SCOPING NEPAL AS A SOURCE COUNTRY IN EXPERIENCE ECONOMY A
STUDY OF HOSPITALITY PERSPECTIVES
CHAPTER 1
INTRODUCTION
1.1. Background of the Study
In today's hospitality market, every product and service has been aimed to develop a
distinct profile to attract tourists. One new means increasingly used to attain such
distinction is to brand this sector as memorable experiencing stage (Gilmore, & Pine,
2002), on top of convenience of production, product quality as well as selling, marketing,
customer and societal considerations (Kotler, & Armstrong, 2014; & Kotler, & Keller,
2006).
Today, hospitality sector is strategically conceived as the main factor for promoting
Nepal's vast blend of uniqueness. Hopefully, it can be the keystone of success if the
experience options and services offered by this sector exponentially meet the rising bar of
tourist expectations. This paper applies an experience economy framework to analyze the
country of Nepal as a universal source destination of experiencing the Experience
Economy from the perspective of the world of hospitality so as to create potentially
transformative and innovative practices, helping re-imagine hospitality sector and reshape
the identity of the country.
The aim of marketing is to make selling superfluous (Drucker, 1964; as cited in Gilmore,
& Pine, 2002). On recognizing the early contribution of Drucker, these scholars have
further stated, "We add the aim of experience is to make marketing superfluous”
(Gilmore, & Pine, 2002). These arguments confirm the relationship and importance of the
philosophical concepts of selling, marketing and experience in service industry,
especially in the case of marketing and promotion of tourism products.

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Pine and Gilmore (2002) have contributed with one step forward on the concept
propagated by Drucker (1964; as cited in Pine, & Gilmore, 2002) who considered
marketing as one of the essential tools for making selling superfluous. In fact, selling
concept of marketing follows a historical rooting along the philosophical evolutionary
system of production and then the product concepts of marketing that emerged as
instrumental pillars amid the development of marketing as a separate business discipline,
following the global industrial revolution (Kotler, & Keller, 2006) and, as the discipline
became able to rule the world of business in the late 1990s witnessing an equal emphasis
on holistic and customer concepts which emerged along the dawn of 2000s, eventually
welcoming the societal marketing concept -- all serving as the foundation for the
emergence of experience economy as another new discipline, especially with focus on
marketing of 'experience' as a product (Pine, & Gilmore, 2002).
Pine and Gilmore (1999) have stated that some of the fastest growing sectors of the
global economy are broadly related to the consumption of experiences. According to Pine
and Gilmore (1999; as cited in Gilmore, & Pine, 2002a, 2002b), in the emerging
experience economy, consumers seek unique experiences beyond merely consuming
products and services because the consistent, high level of product and service quality
can no longer be used to differentiate the choices for consumers. This new demand for
unique and memorable experiences requires the firms to develop a distinct value-added
provision for products and services that have already achieved a consistent, high level of
functional quality. For instance, a cooking demonstration or a themed guestroom at a
rural bed-and-breakfast facility may offer the guests with educational, entertaining, and
esthetic experiences, or forms of experiential value added to its highly personalized and
professionally managed lodging facility.
Earlier, Pine and Gilmore (1999) argued that businesses need to shift their paradigm from
the delivery-focused service economy that emphasizes high quality offerings to the
experience-focused memorable stage economy that creates a mind-full, lasting memory
of consumption experiences.

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Tourism has been at the leading position of staging experience as Sternberg (1997, pp.
952 & 954) concisely put, “Tourism primarily sells a ‘staged’ experience... tourism’s
central productive activity is the creation of the touristic experience.” Visiting a particular
tourist destination is typically motivated less by the elaborated physical characteristics of
the site than by the powerful mental and emotional image or pre-experience expectation
the tourist has about the offering of the destination or institution.
On the other hand, each nation must have its defined priorities for business development
and promotion. As per the geo-political, socio-economic structure of Nepal, production
economy is not viable and there are no big trade partners for Nepal in import and export
business though Nepal is considered as a transit nation between India and China for the
trading of goods and services (Rijal, C. P., 2015; based on personal conversation with the
scholar on dated January 7, 2015). This scholar further retreated that also the internal
consumption requirement of goods and services for this country is also minimal. At the
same time, there are ample nature gifted mountains, rivers, lakes, forests, wildlife, flora
and fauna which do not need be produced or transported, and at the same time, may keep
on earning revenue for tourism economy of the nation. Thus, service industry seems to be
more favorable as Nepal's identity of travel atmosphere, hospitality, diverse pattern of
culture, amazing arts, crafts and architecture, socio-cultural value system, ancient
civilization, spiritual doctrines depicts the indigenous ambience, agrees Kunwar (2015;
based on personal conversation with Kunwar, R. R. on dated January 12, 2015).
Considering this, the present researcher observed a great scope for promoting Nepal as a
source country in a number of experience economy of Nepalese hospitality industry and
also found that such a research was overdue till date. Thus, the present researcher saw the
nature gifted resources, cost effective promotion of indigenous sources and other
fundamental elements of Nepal's experience economy and its broader spectrum of
services, destinations, events, traditions, cultures, and many others needed to be outlined
as source destination in the world communities.

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1.2. The Missing Link
The concept of experience economy and its techniques are more applicable in the
hospitality sector as compared with other sectors. Overall, Nepal's richness in terms of
experiential attributes in hospitality sectors are paramount and may need serious
exploration, keeping in view the national economic dependence in such sectors.
As the present researcher could observe that both the knowledge as well as business
community lacked considerable attention on scoping Nepal's prospect for promoting as
an indigenous source country for a number of hospitality experiences, making vision of
such a research emerged as a conviction of the present researcher. The present researcher
firmly believed that such an idea was not only an innovative initiative, but also an
inevitable step to be taken sooner or later keeping in view the sustainable economic
development of the nation.
Moreover, the present researcher intends to take this opportunity as a platform for
developing career goal in the same field. The present researcher firmly believes that it
will surely lay down the foundation for the further exploration of Nepalese hospitality
business scoping. This would also help the entrepreneurs to consider subjective
characteristics in their new product exploration or development, as they will have a better
understanding of the impact of subjective characteristics on consumers’ preferences
regarding experience products, and can then incorporate this consideration when
designing an optimal experience product that has a maximum price premium.
1.3. Objectives of the Study
The main purpose of this research will be to explore the potential of promoting Nepal as
one of the source countries of selected hospitality culture, tradition, events, places and
ways of services -- all keeping in view the essence of experience economy framework.
The research is expected to investigate and compare the perceptions of the visitors and
the providers of the different hospitality services in Nepalese context with an emphasis
on the customer experience model derived from Pine and Gilmore (1999) and,

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specifically, the model’s four realms of experience -- education, escapist, esthetics, and
entertainment, i.e., 4Es.
To attain the above stated purpose, the present researcher will be further interested to
field the study with following specific aims:
 Identify various subjective and objective attributes of hospitality experience
products and their innovative value propositions in Nepal and to understand the
reasons why the premium travelers are more influenced towards subjective
attributes over objective ones.
 Understand and evaluate experiential consumptions of hospitality seeking tourists
across various hospitality industries and their products in Nepal.
 Explore what it takes to create the desired impression and loyalty for the
hospitality product and services for the customers.
 Prove that realization of memorable staging of the experiences is more valuable to
the customers in hospitality sector.
 Locate and clearly understand the major hospitality seekers' selection of sources
of experience in Nepal, may it be the tourist spots, hotels, lodges, rural
destinations, social institutions, traditional and cultural activities, etc. that are
profound in delivering indigenous Nepalese experiences.
1.4. Statement of the Problem
The specific consequences of tourist experiences have drawn less research attention in
Nepal. While it is apparent that internalized benefits from these sources are paramount
which might have inspired several foreign researchers to study and take benefits but the
Nepalese scholars are still way behind taking up such opportunities of initiating valuable
research endeavors worth promoting Nepal and its indigenous hospitality products and
services. In this context, the present researcher is interested to undertake a systematic
inquiry with an aim to confirm the scope of promoting Nepal as a source country of a
select variety of hospitality products and services.

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In this respect, the present researcher is interested to uncover the reality being guided by
a single statement of problem which reads as -- How is the prospect of scoping Nepal as a
source country of selected hospitality products and services as part of Nepal's indigenous
elements of experience economy?
1.5. Research Questions
Taking into consideration, the missing link, objectives and statement of the problem, the
present researcher composed a set of five Research Questions (RQs) which are as
follows:
RQ1: Scoping the business
In context of Nepal in the world of experience based business, what could be the
Nepalese typical indigenous products/services that could be promoted in original form to
the rest of the world?
RQ2: Prospects and Problems
What are the underlying problems, issues, challenges, and prospects of promoting these
hospitality products or services through indigenous Nepalese branding?
RQ3: Visitor's Perception
How does the visitor community perceive the indigenous Nepalese Hospitality services to
be promoted as indigenous offer from Nepal?
RQ4: Strategic courses of action
What strategic moves should be initiated to promote the indigenous Nepalese hospitality
services to the world of visitor community?
RQ5: Major attributes of Hospitality Experience features of Nepal
What are the several attributes such as unique pattern of activities like music, dances,
artistic performance, cultural attributes, painting, etc. that can be considered as
experience feature in order to add the value to the hospitality services.

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1.6. Scope of the Works
The present researcher, while conducting this research observed various social
institutions such as hospitality products, religious components such as religious symbols,
socio-anthropological prospects, historical mythology and legends, tradition and
celebration, lifestyles, caste, rituals, festivals, art, architecture, paintings and other several
specialties such as cuisines, Nepalese musical instruments as a platform to create the
richest experiences to the visitors seeking hospitality. Moreover, there are ample factors
which can be used to innovate and develop as a genius product and which touches the
four dimensions of experience.
1.7. Expected Outcomes of the Study
In this respect, the present researcher proposes at least three level of future implication
from policy level, market offering level and culture of inquiry background. This research
will definitely serve in developing the required framework and will lay down the
foundation for strategic improvements in above stated level.
Obviously, the experience economy can be the best development policy for the local and
government authorities in order to promote Nepalese tourism and hospitality industry
although the problem lies in research and knowledge in this area. Investment in the
experience economy are also more political driven than a knowledge driven (Birch,
2008). Thus, in this scenario of difficulties for taking right step and policy, the present
research will definitely help in the realignment of the policy to favor tourist attraction
based on the experience economy concept.
This research will definitely help in finding the necessary models and clues for
identification, protection and promotion of experience economy in tourism and
hospitality field. Moreover, this research will depict the major visitor exclusive
indigenous products of Nepal which can be used for staging experience thus the benefits
of such outcomes will reach to internal and external stakeholder for new product
development.

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The present research will also deserve the attention from the inquirer to study this field in
broader perspectives which will broaden the research boundary from marketing and
socio-cultural dimension.
1.8. Definition of Key Terms
For the purpose of making it simple to the readers of this report, the present researcher
has defined a number of key terminologies in this section.
Epistemology:
The process of acquiring different forms of knowledge of the selected field of reality and
nature of relationship that exists between the researcher and the subjects of interest of the
inquiry is known as the epistemology in research.
Experience economy:
The term coined by B. Joseph Pine II and James H. Gilmore, in 1999 in a book titled
“The Experience Economy”. The authors describe the experience economy, as the ‘next
economy’ following the agrarian economy, the industrial economy and the most recent
service economy. This notion points to a larger perspective on ‘the experience’ such as
entertainment, edutainment and cultural values in the making and marketing of new
consumer products.
Methodology:
The methodology is the general research strategy that outlines the way in which research
is to be undertaken and, among other things, identifies the methods to be used in it.
Ontology:
The ways of constructing the reality and portraying how things really work or exist is
referred to as ontology in research.
Tharu:

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Tharu is an ethnic group indigenous to the Terai, the southern foothills of the Himalayas
in Nepal and India. The Tharus are recognized as an official nationality by the
Government of Nepal and India.
1.9. Development of Conceptual Framework of the Study
Finally, the fifth chapter will conclude the thesis by summarizing the key findings in the
scope of the hospitality experience in Nepal. The practical and theoretical contributions
emanating from the study will be discussed. The chapter will be finishes by discussing
the limitation and recommendation of the work whilst also providing possible directions
for future studies.
Figure 2.3: Conceptual Framework of the Study
Exploration of Assessment of 4 Realms of Experience
1. Education: Absorption of knowledge, Engaging the intellect, About learning
2. Esthetic: Passive immersion, Special moments to remember, About being there
3. Escapism: Active Immersion, Participation, Forgetting time, About doing
4. Entertainment: Passive absorption, Seeing and listening, About sensing
Confirmation of Scoping Potential for Nepal as a Source Country of Selected
Hospitality Experiences
Education:
1. Different tribes, Caste with their lifestyles, Traditions and different Food habits
2. Rural lifestyles, and activities such as traditional farming.
3. Ethnic languages, Dresses and Ornaments
4. Tharu-Mithila art galleries and other Historical-Cultural museums and places.

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5. Paintings related to Historical Myths and Legends
6. Nepalese Art and Craft, Architecture and Religious symbols
7. Hospitality Events
Esthetic:
1. Trekking, Hiking, Sightseeing of Mountains, Rivers, Lakes, etc.
2. Nepal's Cultural, Historical sites and Ethnic background and its uniqueness
3. Holy Pilgrimages, Religious destinations.
4. National Parks, Plants, Birds and Wild habitat
Escapism:
1. Trekking, Hiking, Mountaineering and other Adventurous tourism activities
2. Safari
3. Sports
Entertainment:
1. Touring in traditional vehicles,
2. Hospitality Events
1.10. Limitation and Delimitation of the Study
This research will be focused only in finding the available resources that are present in
the core of countries and their suitability for meeting the needs of four dimension of
experience wherefore, the application scope of the findings is limited. This research will
not be primarily focused on any location, particular product, sites but only with the
examination of overall available sources that it can be considered as the elements for
innovating experience products. There will be no any guarantee that the usability of the
findings of the research and their application will help in meeting all type of experience
expectation of the customers. Thus, this research can only prove that there are ample
sources to be considered or can be taken for developing the experience products.
The present research will be heavily confined only in finding the major source and
elements to be considered as the experience products or can be innovated for developing
experience products that are available in the countries due to the less time and resources.

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Several elements of Nepalese hospitality which are less considered in promoting
experiential hospitality business will not be taken in research considering the vastness of
the research topic and due to the time constraints. So, the present research will be
confined within the four walls of experience-- education, escapist, esthetics, and
entertainment considering the core elements of Nepalese hospitality.
1.11. Organization of Thesis Report
This thesis report will be organized in five distinctive chapters. The following brief
discussion has been prepared to project the respective chapter-wise contents of the
manuscript:
There is a brief background of the study with its introduction and the subject matter in
first chapter. The chapter closes with a presentation of the research aims and objectives
and the indication of the methodology to be employed in achieving them along with the
research limitation and de-limitation.
The second chapter will provide the overall information about the major components of
the Nepalese hospitality industry based on the theoretical benchmark of experience
economy and its principles.
Chapter three will present the series of choices which inform the researcher's
methodology. This chapter will seek to explain the researcher approach to this study and
details the methodology applied. It is concerned with examining the scope of hospitality
experience as well as exploring the process whereby experience can be developed in
hospitality enterprises in Nepal. Based on a review of product and service development
literature a conceptual framework is presented which outlines the key stage, activities,
participants and outputs to be followed for new experience development. A number of
antecedents which underpin a scope of hospitality experience and its development
process are also identified and discussed.

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Fourth chapter will present the findings from the data and analysis stage of the research.
The tools and techniques that will be employed to analyze data in an objective, uniform
fashion, adding to the overall reliability and rigor of the research process will be
indicated in this chapter. It will consist of a comprehensive discussion of the research
findings on the nature of hospitality experiences and the manner by which they will be
developed. The discussion allows the refinement of the conceptual development
framework presented in the earlier chapter.
Finally, the fifth chapter concluded the thesis by summarizing the key findings in the
scope of the hospitality experience in Nepal. The practical and theoretical contributions
emanating from the study are discussed. The chapter finishes by discussing the limitation
and recommendation of the work whilst also providing possible directions for future
studies.

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CHAPTER 2
REVIEW OF LITERATURE
2.1. Introduction
The primary purpose of conducting review of literature was to get acquainted with
required theoretical and conceptual knowledge of the field of interest of the present study.
For this, the chapter as a whole has been developed in four distinctive sections where the
first section presents with the review of related theoretical and conceptual perspectives
followed by review of important policy documents related to present study in the second
section of the chapter. Similarly, the third section of the chapter contains review of other
similar studies conducted in the Nepalese and international context. Finally, on the basis
of overall learning imports gained through review of various literatures, the present
researcher has made a conceptual framework of the study in the fourth section of the
chapter. This conceptual framework of the study serves as the basis of governing the
overall ongoing study.
2.2. Review of Theoretical Perspectives
As the main part of review of literature, this section provides with a closer study of
various theoretical and conceptual aspects related to the hospitality experience primarily
focusing on four realm of experience.
The core philosophy of the experience economy is that customers are in a search of new
aspects of products and services which shapes their demands. They want to experience
something which challenges the producers to offer something––such as added value
through additional services or the core product or services (Pine & Gilmore, 1999;
Jensen, 1999; Tarassanen, & Kylanen, 2005). The nature of competition also changes as a
result of this trend on the demand side. Thus, in present day hospitality business, there is
a serious concern for consumer's attention. For example, the hotels are marketed as
design hotels, and meals are served in restaurants by waiters singing opera. Hotels such
as the Atlantis and Burj Al Arab of United Arab Emirates (UAE) have unique ability of
using internet to build 'experiences' through interactivity, pictures, videos and sounds.

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Recently, In Nepal, traditional homes have acquired best choices of the tourists for
accommodation than others because it gives them a unique experience of the beauty and
traditional culture.
Pine and Gilmore's model (1999) illustrates how staging experiences constitutes a new
source of value creation and represent the final stage in the development of
Figure 2.1: The Progression of Economic Value (Pine & Gilmore. p. 22).
Differentiated
Competitive
Position
Undifferentiated
Market Pricing Premium
economic values for enhancing customer experience while delivering service to them. It
shows how staging experience in line with customers' needs is crucial. It is not so much
the product or service itself as it is the enveloping experience that matters. Guests obtain
memorable experience when a company intentionally uses services as the stage and
goods as props to engage individual customers in inherently personal way" (Gilmore, &
Pine, 2002, p. 88).
Stage
ExperiencesCustomization
Deliver
Services
Make
Goods
Extract
Commodities
Commoditization

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Pine and Gilmore (1999) are less concerned with specific elements of what creates an
experience, instead they have suggested four main dimensions of experiences along two
axes – i. the customer’s level of participation, and ii. The customer’s connection with the
environment or surroundings.
According to these scholars, the customer’s participation varies between active and
passive participation. Being active is closely related to seeing the customer as a
“prosumer” (Toffler, 1980), that is, one who both consumers and produces the service. In
these cases the production or creation of the experiences will depend on the customer’s
active participation, such as in rafting and amusement or activity parks. With passive
participation, however, the customers do not affect the performance at all, and have more
of a mental presence, as it were, which is the case when one visits a theatre, cinema or
museum, for example. On the other axis, experience relates to the extent to which a
customer is connected with the environment. At one end of the continuum of connection
lies absorption and at the other end lies immersion (Pine, & Gilmore, 1998). Absorption
suggests that the customer has a certain distance to the stage or the experience (e.g.,
watching a movie) while immersion indicates that the customer gets “drawn in” the
experience; that is, the distinction is that of passive versus active participation. The two
categories are not mutually exclusive, but differ in degrees, which is depicted in Figure
2.2 illustrating the four main experiential dimensions of Pine and Gilmore (1999).
Figure 2.2: Pine & Gilmore, 1999. The four dimensions of an experience (p. 30).
Absorption
Passive Active
Participation Participation
Immersion
Entertain Educati
ment on
Esthetic Escapist

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According to these scholars, as presented in figure 2.2, entertainment represents the
dimension in which the participant passively absorbs what is happening, such as folk
dance performance like Chandi Dance, Kumari Dance etc and theatre performances of
Tharu cultural shows in Chitwan.
Pine and Gilmore (1999) have further suggested that the esthetic dimension involves
passive participation, but with a greater depth and immersion with respect to what is seen
or experienced. Examples of this dimension may be a visit to a museum or experiencing
the breathtaking scenery of Mount Everest.
Education represents an experience that is absorbed as it happens but also requires active
participation, such as paragliding and sky diving.
The final dimension, escapism, represents experiences where the participant both
becomes engaged in what is happening and participates actively, for example, by rafting
or playing in a casino.
In sum, we could say that the entertainment experience is about feeling, the educational
experience learning, the esthetic experience presence, and the escapist experience doing
(Mossberg, 2003). An experience is not necessarily solely related to one of the four
dimensions. Even if one dimension is emphasized, the experience will (often) have
elements of all four dimensions. It is when the customers perceive that they feel, learn,
and become immersed by just being there, or do something actively, that all the senses
become involved and the experience feels meaningful or extraordinary (Pine, & Gilmore,
1999; Mossberg, 2003; Boswijk et al., 2007). Pine and Gilmore (1999) describe this as
the “sweet spot,” and this is what gives the richest experiences. Some attractions, such as
amusement parks and museums, develop a product that includes different kinds of
elements of experiences. These again trigger different experiential dimensions (as seen
from the customer) which then conform to the “sweetspot” principle. For destinations, it
is important to offer experiences that touch all four dimensions. The issues become those

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of customization and of how the destinations may meet the widest diversity of needs and
wishes as possible (Stamboulis, & Skayannis, 2003).
2.3. Review of Related Policy Development
The budget speech of Fiscal year 2014/2015 for tourism sector has more emphasis on
promoting Nepal's tangible and intangible cultural heritages through exploration and
protection. Thus total budget of 3.92 billion has been sanction for the cultural promotion
and development of tourism infrastructure. Priority has been given for the development
of important religious, historical and archaeological touristic destination.
The National Planning Commission ([NPC], 2070/71-72/73) of Nepal in its Thirteenth
National Plan, has envisioned the diversification of tourism activities from the stand point
of promoting indigenous tourism identity of Nepal to make it more attractive nation in
international tourism scenario as a long term vision. In its strategic plan, esthetic tourist
zone such as Himalayan region will be made more visit able tourist destination and the
Mountaineering activities will be made environment friendly. Adventurous and Sports
tourism, Natural treatments and spa, Eco-friendly tourism, Gaming club and other
entertainment zone, development of home-stay in rural tourism place are taken into
consideration. Besides, the places of religious and cultural importance will be developed
as a tourist destination through proper plan and implementation.
2.4. Review of Related Studies
(Shrestha, 2014) has conducted a research on visitor experience in Ghandruk as a tourism
destination. In this study, the scholar has focused to explore visitor experience about the
Ghandruk village, Nepal. It highlights the features about Ghandruk that need further
development for visitor's meaningful experiences. The Experience Pyramid by Sanna
Tarssanen and Mika Kylanen is used as a theoretical framework to measure visitors' level
of experience in order to analyze and develop the tourism product. This tool has figured
out the individuality, authenticity, story, multi-sensory perception, contrast and
interaction as an element of Ghandruk as a product and examined customer's level of

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experience from motivational, physical, intellectual, emotional and mental level of the
visitors necessary for the meaningful experience.
In this study, the scholar has identified that the Ghandruk is the unique place for visitor
experience as they have found the culture and tradition as a genuine as well as a learning
platform to make visit a memorable. The majority of the visitors in Ghandruk come for
enjoying nature and outdoors. The visitors experienced higher level of satisfaction on
motivational, physical and intellectual level as they were satisfied with the attraction and
agreed that they had a good feeling. Visitors' have lower level of satisfaction on story
component of Ghandruk because it made them feel that they didn't find enough historical
linkages of the village.
(Apivantanaporn, & Wals, 2013) have explored the relevance of authentic Thai food in
contributing to the experience economy in Thai hotels and resort clusters. In this
qualitative doctoral research paper the researcher has categorized F&B serving industry
into three types of business model namely first model, second model and third model.
The first model categorizes the hotel or resorts which continue to provide typical
offerings that mainly focus on the room's 'core value' and other auxiliary services but not
conceptualized in typical food and beverages offerings.
The second model of hotel or resort feature different offering from the first type and they
tend to provide a hybrid model of Food and Beverage provision e.g. hotel that offer
typical American breakfast supplemented by local specialties.
The third model type of hotels features food and beverage services as part of the core
offering and representatives of key service values. This type of hotel positions itself as a
destination with innovative ambience, authenticity and a distinctive food menu. Thai
Food and Beverages are highly integrated into the core values of the hotel and guest are
also able to participate in food presentation, cookery lessons, trips to local food producers
and farmers' markets and so forth.

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For example, Sukothai Treasure Resort and Spa features a spectacular dinner experience
within the setting of the private and exclusive cultural dining facility within the
Sukhothai Historical Park so that the guest can enjoy what is presented as authentic
northern style Thai food within the heritage based environment which is the form of
staged experience and authenticity.
The researcher has figured out that the first model has low customer engagement
compared with second and third models, there is nothing new for customer perceived
value and it has commoditized service in competitive business environment.
Second model have medium customer engagement with new learning experience and
value-added service.
Lastly, the third model has high customer engagement with extraordinary experience for
the customers and value creation in competitive business environment.
(Johansson, & Kociatkiewicz, 2011) in an online published article 'City festival:
creativity and control in staged urban experiences' has placed the city in the experience
economy by undertaking physical transformation of the urban places into symbolic
transformation of the city's image and power of attraction by mobilizing architectural
structures and sociocultural features, framing and re-presenting them accordingly to
imbue the city with new meanings. For this festival which is perceived as an easily
marketable, aesthetic experience presents an attractive means for experience production
process.
The three different aspects of the festivalization of the city are presented in this research
article, namely Stockholm Culture Festival of Sweden denoted as city staging, Nowy
Kercelak in Warsaw, Poland as Sanitizing festival and Aftermath of New Year's Eve
celebrations in Wroclaw, Poland.

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CHAPTER 3
RESEARCH METHODOLOGY
3.1. Introduction
The main purpose of developing this chapter is to provide with detailed information
pertaining to various methodological perspectives to be used for the successful execution
of the proposed research. For this, the chapter as a whole, has been developed in ten
distinctive sections where the first section provides with the information on proposed
methodological paradigms on which the present study will be executed, followed by brief
information on main research designs to be used in the second section. Similarly, the
information on population of study and proposed techniques of sampling have been
presented in third and fourth sections respectively. Following this, a careful analysis of
results will be done in the fifth section of the chapter. The sixth section will entail the
confirmation of reliability and validity of the research process and its outcomes.
Mechanism for the research administration will be discussed in the seventh section,
followed by the discussion on different approaches and techniques to be used in this
research in the eighth section. The ninth section will present the detailed plan of action.
Finally, the last section of this chapter will present with the socio-ethical considerations
to be made throughout different phases of this research.
3.2. Methodological Paradigms of Research
According to Denzin and Lincoln (1998), in any research, the ways of constructing the
reality and portraying how things really work or exist is referred to as ontology of
research. Similarly, the process of acquisition of different forms of knowledge of the
chosen field of reality and nature of relationship that exists between the researcher and
the subjects of interest of the inquiry is known as the epistemology, which specializes on
knowing about the reality. On top of these two, a methodology serves with the
determination and development of specific approaches, tools and techniques of
uncovering the reality.

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In the present study, the ontological perspectives would be related to the identification
and selection of different Nepalese indigenous hospitality experiences. In the case of
epistemological grounds, the present researcher would like to know or inquire from the
words of established professionals and scholars of hospitality experiences the prospect of
promoting Nepal as a source country of these selected hospitality experiences in the
global market place. One of the major concerns for conducting such a study would be the
present researcher's personal intention to explore a suitable space in professionally
suitable career in this particular field of experience economy of service glorification.
To transform the present idea of research from the ontological and epistemological
perspectives, the present researcher intends to make this endeavor a more qualitative
journey. For this, the present researcher would like to craft it on an ethnographic
dialectical approach while establishing the discourses with the participants of the study.
An ethnographic dialectic serves as a means of discovery of truth through examining and
interrogating competing ideas, perspectives or arguments for developing a holistic
understanding of a society, community, group or organization from an insider's
perspectives, by living with members over an extended period of time (Spradley, 1979,
1980)
In this qualitative research, a total of three key informants with various sectoral expertise
will be involved in face-to-face, in-depth interviews. Such areas of specialized coverage
will include cultural and religious tourism expert, general hospitality management and
entrepreneurship and relevant policy advocacy expert. Each extended, depth interview
will be distinct and adequate effort will be made to make it more eternally glorifying to
uncover the prospect of promoting Nepal as a source country to promote a number of
services to the world of experience economy.
3.3. Major Research Designs Used
The research design is the overall strategic framework that guides a research towards its
objectives (Gill, & Johnson, 2002) through effective development and execution.
According to Creswell (2009), the research design are the plans and procedures for

22
research that span the decisions from broad assumptions to detailed methods of data
collection and analysis. Another scholar has claimed research design as the stage at the
core of the research activity which provides technical and procedural framework to
follow throughout the entire research process (Chisnall, 2001).
In any research, the main purpose of research design is to avoid gathering irrelevant
information that has no fundamental pertinence to the research inquiry. Research design
and research methodology differ on the grounds that the methodology has to do with
principles and design is be based on the nature of the research problem or issue being
addressed, the researchers' personal experiences and the audience of the study (Creswell,
2009).
Creswell (2007) has further addressed that the process of designing a qualitative study
begins not with the methods which is actually the easiest part of research but instead with
the broad assumptions central to qualitative inquiry, a worldwide consistent with it, and
in many cases, a theoretical lens that shapes the study.
Whereas, in qualitative research, the design serves as a platform of socio-cultural theories
form the basic building blocks of a good qualitative ethnography (LeCompte, &
Schensual, 1999) blended with the conceptual constructs of the interest of inquiry.
In the present research, the research is interested to design and administer it as a blend of
exploratory research using depth participant interviews in a more ethnographic dialectics.
Moreover, this type of research strategy allows the searcher to explore and examine the
cultures and societies that are fundamental part of the human experience and
ethnographer as researcher is not typically detached or uninvolved observer (Murchison,
2010) as there remains a completely two-way discourse between the researcher and the
subjects or participants of the inquiry.

23
3.4. Identification of Key Informant Experts for In-depth Interviews
The key informant for this interview will be the privileged witnesses, or person of the
tourism and hospitality field of Nepal who because of their position, activities or
responsibilities, have a good understanding about the needs and challenges of this field
and who will have a major interest to outline the changes that are needed to be made for
the successfulness of hospitality industry in Nepal. Thus, there will be the selection of
three experts from tourism and hospitality field of Nepal who are actively engaged from a
long time and who knows better about this field.
3.5. Modality of Conduction of the Interviews
In line with the explorative nature of this research, the aim of the interviews will be to
enable the researcher to understand in-depth the pertinent issues, challenges, and strategic
insights related to uncovering the truth regarding the interest of the study. For this, the
present researcher intends to initiate in-depth interviews via multiple meetings with
selected members for participation.
With respect to the agreed time and venue for meeting with the participants, the interview
will be set for one expert at one time and it will not exceed more than one hour. The same
question will be asked with another expert at another time. Thus, there will be at least
five meeting with one expert. After all, to ask the five questions with two experts it will
take ten separate and scheduled time altogether. Several tools such as voice recording,
note taking, etc. will be used extensively for the proper review of the interview if the
experts permission allows to do the same.
Finally, in order to understand the collective view of the experts at final stage there will
be rap up discussion or confirmatory discussion.
3.6. Development of Semi-Structured Interview Facilitation Checklist
At the outset the researcher will be concerned with generating an atmosphere of trust with
the interviewees based on Meyers (2001) strategy for building trust. This entailed

24
developing a procedure for contacting the interviewees and sending a letter explaining the
key features of the research and the broad issues to be addressed in the interview with the
proposed structure to accomplish them, and how the researcher intended to use and store
the information. Both transparency and the avoidance of ambiguity are critical factors to
assure reliability, therefore the researcher provided the interviewee with a synopsis of the
questions prior to the actual interviews. The advantage of semi-structure interviews is
that they allow the researcher to uncover not only the ‘what’ is happening and ‘how’ it is
happening but more importantly they explore ‘why’ it is happening (Saunders, Lewis, &
Thomhill, 2003).
A set of interview questions will be designed based on the key research objectives in
order to understand the different views, suggestion, grievances of the key informant.
Questions will be of closed and open-ended to allow for the richer data coverage and to
clearly understand the different dimensions of understanding between the participants of
the inquiry. A semi-structured interview format will be chosen as it will allow the
researcher to explore the unit of analysis without too many boundaries.
3.7. Decision on Recording the Research inputs
After taking the prior permission and consent of the interviewee either to take notes or to
make audio record of the interview and by considering their priority, the interview
outputs and discussion will be converted into manuscript. If the interviewee refuses to
give permission to make an audio record of the interview then note taking will be done.
At the next interview, discussion disclosure of the previous interview will be held so that
there will confirmation of the information. The discussion disclosure will be held on
Nepali language in order to minimize the chance of misappropriation in understanding
and for the purpose of flawless recording. Similarly, the semi-structured checklist will
also be given to the interviewee after translating into Nepali language which will add to
the accuracy of information. The date, venue and time for the interview will also be fixed
prior of the interview.

25
REFERENCES
Apivantanaporn, T., & Walsh. J. C. (2013). The Experience Economy in Thai Hotels and
Resort Clusters: The Role of Authentic Food. Article Published in Acta
Univiversitatis Danubius.
Chisnall, Peter (2001). Marketing Research. Berkshire: McGraw-Hill
Creswell. J. W. (2009). Research design: qualitative, quantitative, and mixed methods
approaches. Thousand Oaks, CA: sage
Creswell. J. W. (2007). Qualitative Inquiry and Research design- Choosing among Five
traditions. Thousand Oaks, London, New Delhi: SAGE
Denzin, N.K. and Lincoln, Y. S. (1998), The Landscape of Qualitative Research:
Theories and Issues, Thousand Oaks, CA: Sage.
Gill, J. & Johnson, P. (2002), Research Methods for Managers, Paul Chapman: London
Gilmore, J. H., & Pine II, B. J. (2002). The experience is the marketing. Strategic
Horizons LLP. Available at: https://www.soloseo.com/blog/files/experience-is-
the-marketing.pdf. Retrieved on: November 24, 2014.
Jensen, R. (1999). The dream society: How the coming shift from information to
imagination will transform your business .New York, NY: McGraw-Hill.
Johansson, M. & Kociatkiewicz, J. (2011). City festivals: creativity and control in staged
urban experiences. Journal of Travel Research. Available at: eur.sagepub.com.
Retrieved on: December 5, 2014
Kotler, P., & Armstrong, G. (2014). Principles of marketing. (15th
ed.). New York:
Pearson Education Incorporation.
Kotler, P., & Keller, K. L. (2006). Marketing management. (12th
ed.). New Delhi:
Pearson Education Pvt. Ltd.
LeCompte, M.D., & Schensual, J.J. (1999). Designing and conducting ethnographic
research (Ethnographer's toolkit, Vol-1), Walnut Creek, CA: AltaMira
Mossberg, L. (2003). Att skapa opplevelser fran OK til WOW! [Creating experiences:
From OK to WOW!].Lund, Sweden: Studentlitteratur.
Murchison, J.M. (2010). Ethnography essentials: designing, conducting, and presenting
your research (1st
ed.). United States of America: John Wiley & Sons.

26
National Planning Commission ([NPC], 2014). Thirteen Plan, Government of Nepal,
Available at: http://www.npc.gov.np/web/ui/index.php/home/publication.
Retrieved on: September 3, 2014
Pine, B. J. II., & H. J. Gilmore. (1999). The experience economy: Work is theatre
and every business a stage. Boston: Harvard Business School Press.
Saunders, M., Lewis, P., & Thomhill, A. (2003). Research methods for business students,
Essex: Prentice Hall.
Stamboulis, Y., & Skayannis, P. (2003). Innovation strategies and technology for
experience-based tourism. Tourism Management 24, 35–43.
Sternberg, E. (1997). “The Iconography of the Tourism Experience.” Annals of
Tourism Research, 24 (4): 951–69.
Tarssanen, S. & Kylänen, M. (2005). A theoretical model for producing experiences
– A touristic perspective. Rovaniemi, Finland: Lapland Centre of Expertise for the
Experience Industry.
Toffler, A. (1980). The third wave. London, UK: Collins.
Shrestha, P. (2014). Visitor Experiences in Ghandruk Village, Nepal – A thesis in
Tourism. Lapland University of Applied Sciences: Finland.

27
APPENDIX A
INTERVIEW CHECKLIST
Dear Respondent,
Namaste! I am Sudip Ghimire, currently enrolled in Masters in Hospitality and Tourism
(MHM) of Tribhuwan University, pursuing my studies in Nepal Academy of Tourism
and Hospitality Management (NATHM).
I have been conducting an interview entitled," Scoping Nepal as a Source Country in
Experience economy a study of Hospitality Perspectives," as a part of academic research
requirement of MHM program of Tribhuwan University (TU).
For this I would like to request you for the contribution of about 1 hour of your valuable
time on responding to the interview questions.
I want to assure that all the information provided by you will be treated highly
confidential and used for this academic purpose only.
Sincerely,
...............................................
Mr. Sudip Ghimire
Nepal Academy of Tourism and Hotel Management
Cell no: +9779840093399
Email: sudip_ghimire2003@yahoo.com

28
APPENDIX B
CONSENT FORM
Research context
This research is based on the academic research background and is aimed at Scoping
Nepal as a source country in experience economy.
I agree to participate in this research, which condition are as follows:
 In this research, semi-structured interviews will be conducted with key
informants.
 Interviews will last for about one hour and questions will deal with overall
prospects, major attributes and present practices, strategic course of action and
major challenges and solutions to scope Nepalese hospitality industry in the field
of experience economy.
 The interview I give and the information it contains will be used solely for the
purposes defined by the research.
 At any time, I can refuse to answer certain questions, discuss certain topics or
even put an end to the interview without prejudice to myself.
 To facilitate the interviewer's job, the interview will be recorded. However, the
recording will be destroyed as soon as it has been transcribed.
 All interview data will be handled so as to protect their confidentiality.
Respondent's signature:............................. Interviewer's signature:.............................
Date:............................................ Date:............................................

29
INTERVIEW CHECKLIST
Overall Prospects, Major Attributes and Present Practices
Main questions Additional questions Clarifying questions
How do you see the
prospects and importance
of Nepalese Hospitality
and Tourism components
such as cultural and
indigenous practices, in
adding value to the overall
hospitality products and
services?
OR
Are there any specialty and
authenticity in our
What evidences make a
proof to this?
What measures are applied to
examine the overall
satisfaction and experience
level of tourists in Nepal
before developing any new
hospitality product and
services?
It means there are ample
entertainment, educational,
esthetic and escapist dimension
Can you expand a little
on this?
Can you cite me some
examples with
Statistical data?
Introduction of Interviewer
Hello, my name is......................................................, and I will conduct interview on
the topic "Scoping Nepal As A Source Country In Experience Economy A Study of
Hospitality Perspectives"
During the interview, I would like to discuss the following topics: overall prospects and
authenticity of Nepalese hospitality components in the world of hospitality, indigenous
practices of Nepalese hospitality and their significance in terms of four realm of
experience, Present practices of Nepalese hospitality and tourism industry, how to stage
the hospitality experience products and services mainly focusing on indigenous
components of Nepalese hospitality.

30
hospitality components
such as culture, tradition,
indigenous practices which
can be staged or can be
promoted in original form
to rest of the world?
of experience in our hospitality
components which can be used
to develop and design the
present services and products
into branded experiential
products?
Strategic Course of action
what could be the
necessary model to stage
those hospitality
components as a hospitality
products and services to
enhance the experience of
hospitality seekers such as
tourists and travelers?
OR
Does the four dimension of
experience model of Pine's
and Gilmore can serve in
the strategic course of
action?
What marketing strategies are
applied by the national
representative bodies such as
HAN, Tourism Board to
promote such specialty till
date?
Does the present plan and
policies of the government
has stated and lay down the
way to improve such area of
concerns?
Does it mean that
government and national
bodies are very much
concerned about it?

31
Major Challenges and Solutions
Despite of such vastness
and unique experience
options of Nepalese
Hospitality sector, where
does the major challenges
lies to successfully brand
this sector and what could
be the probable solutions?
OR
What could be the
underlying challenges and
solutions for successfully
implementing such
reformatory idea into a
successful outcomes?
Who needs to make these
efforts to convert such
challenges into a solution?
What could be the necessary
initiatives and steps at present
conditions?
It means we are not very
far to grasp these
opportunity?

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