Welcome to the Experience Economy

Article Summary & comments
Author of Article: Joseph Pine & James Gilmore

In this Journal, the author explained all about experience economy elaborating on when and how to enter the emerging experience economy. According to the journal, an experience occurs when a company intentionally uses service as the stage, and goods as props, to engage individual customers in a way that creates a memorable event. I agree with the author when he mentioned that no two people can have the same experience, because it depends on the individual’s state of mind and how he personally perceives the experience. Two ways of thinking about experiences is customer participation and connection or environmental relationship. Customer participation include active participation in which customers play key roles in creating the event that yields the experience and passive participation in which customers don’t affect the event that yields the experience. Connection and environmental relationship on the other hand unites customers with the event or performance, this include absorption and Immersion. The first principle of designing a memorable experience is to “theme the experience”. An effective theme must drive all design elements and staged events of the experience that captivates the customer. The second principle is to “harmonize impressions with positive cues”. In creating the desired impression, companies must provide cues that affirm the nature of the experience. A third principle is to “eliminate negative cues” that contradicts the theme. The fourth design is “mix in memorabilia” which implies that the service or goods should be designed in a way that convey memories of the experience. The last in designing memorable experiences is to “engage all five senses” because the more senses an experience engages the more effective and memorable it can be. As we are now moving into the service experience economy Era, I believe service firms must take note of how they can make use of the