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The Experience Economy

The experience economy book report 1

TheExperience Economy

The book presentsthe Pine and Gilmore’s thoughts regarding economic growth in thecontemporary business environment. The business environment is on thethreshold where managers should change their approach to sales andmarketing (Pine &amp Gilmore, 2011). The authors’ claimed thatfocusing on products and services exclusively does not offer enoughcompetitive advantage in the modern market. In this context, managersshould facilitate the creation of memorable moments for consumers(Pine &amp Gilmore, 2011). The rationale of this assertion is thatpositive experiences among clients promote loyalty and enhances brandimage in the market. These experiences transform the values thatcompanies offer to consumers. Therefore, this book provides creativeand practical approaches that companies can use to facilitate thecreation of customer experiences (Pine &amp Gilmore, 2011). Theauthors used a range of examples such Disney Company to illustratehow experience enhances value delivery, consequently promotingconsumer loyalty.

Discussion

One of theassumptions made in the book is that the business environment hasentered a phase where experiences can be perceived as commercialofferings in demand because they are capable of generating values toconsumers. According to the authors, economic value has passedthrough three stages so far. Therefore, the focus on experience isthe fourth stage of economic value (Pine &amp Gilmore, 2011). Theearliest phase was the industrial commodity where business peoplewere analogous to hunters and gatherers because they focused onextracting substances from the world. The manufacturing economy wasthe second the phase and was characterized by an exclusive focus onproducts and services (Pine &amp Gilmore, 2011). Thus, managersemphasized on differentiation through unique product designs andperformances among other features. However, manufacturing economy didnot replace the economic commodity but added a new business dimensionin the mix. Likewise, until recently, service economy dominated thebusiness environment. This phase was characterized by the delivery ofintangible values such as efficiency and satisfaction to consumers.

Currently, a new atrend which may be defined as the experience economy has picked up inthe business environment. In this phase, organizations focus onstaging significant incidences with the aim of enhancing customerloyalty. Most of the experiences are either entertaining oreducational in nature. The authors argued that businesses that havegrasped the concept of experience economy are the successful ones inthe market today. Marketers use services as the stage for deliveringunique experiences while products are used as props (Pine &ampGilmore, 2011). Therefore, the services are intangible, goods aretangible, while commodities are fungible. The fusion of these threeaspects results in the development of unique consumer experiences.The experiences are sensational and stimulating, thus appealing toconsumers’ emotional and psychological needs. Organizations whichhave embraced this concept have realized that people have uniqueexperiences. The uniqueness of the experience depends on theinteraction between the staged event and consumers’ prior state ofmind.

The book alsodiscussed that manufacturers could create experiences from theirgoods by using the related services as theaters where they engagecustomers. The quality of experience determines the extent oforganizational outcomes. Consequently, it determines thecorresponding prices of products. An enhanced experience translatesinto high prices of goods and services. The authors also coined amarket term, “experientialize” to summarize their concept (Pine &ampGilmore, 2011). The name implies focusing on the experientialdimension of products. Goods entail various experiential points. Theauthors used apparel manufacturing companies to illustrate theirassertion. They claimed that clothing manufacturers can focus on thecleaning experience, cleaning experience, hanging experience orstorage experience (Pine &amp Gilmore, 2011). Similarly, othercompanies can focus on briefcase packing experience or waste basketcontainment experience. The authors further explained thatmanufacturers are likely to add values to their products if theystart to think within the context of exploiting the experientialelements of their products. They maximize one or multiple experiencesover others to enhance the value of their products.

An apparelmanufacturing company which focuses on enhancing cleanlinessexperiential aspect of their products creates a memorable experiencefor consumers. Individuals regard such clothes as easy to clean.Therefore, such apparels may appeal to the broad demographics ofsports people. They use sports apparels to train daily thusattracting sweat-related dirt. Cleaning such kits would be difficultwould be difficult if the fabric used was not easy to clean.Consequently, sports people would avoid them because of thedifficulty in cleaning. The authors also used the Rawlings SportingGoods Company to illustrate the concept of experience economy. Theysuggested that the company could enhance the experience of ballthrowing and catching by embedding microchips on baseballs tofacilitate tracking and speed estimation (Pine &amp Gilmore, 2011).This approach would make it easy to manage and gauge players’throwing and catching capabilities than was possible in the past.Baseball players are likely to pay more for balls with microchipscompared to ordinary balls because of the experience. The value ofusing radar balls exists in the relationships and interactions theyprovoke. They make it easy for coaches to interact with players withcertainty that was not possible in the past. Correspondingly, theyallow people who play throw and catch to share specific informationbecause they facilitate data collection.

The book alsodiscusses five principles that are critical in the establishment ofthemed experiences. Firstly, an engaging theme should alterconsumers’’ perception of reality. It should be beyond theirexpectations of possibilities. Secondly, the process of changing anindividual`s sense of reality should affect the experience of space,time, and matter. Thirdly, an engaging theme should unify theexperience of space, time, and matter. Likewise, the creation ofmultiple places within a stage reinforces a theme. Lastly, aparticular theme should align with the identity of the relatedorganization. Furthermore, the authors stated that a company that hasembraced the concept of orchestrating experiences should either ofthe four theater stages to maximize consumer experience. The authorsarranged the four theaters into portfolios to facilitateclassification. The first portfolio entails the stability or dynamicnature of performance. The performance should either be consistent orflexible. The portfolio characterizes the nature of the audience(Pine &amp Gilmore, 2011). The audience should be dynamic or stable.The portfolio yields four categories of theaters, including PlatformTheater, street theater, matching theater, and Improvement Theater.

The authors endedtheir arguments by discussing the next conceptual discussion in thisframework. Specifically, they asserted that experiences would becomelike commodities in the future. Currently, people have adopted theexpression ‘I have been there, I have done that” to signify thatthey are relatively more concerned about experiences rather thanphysical attributes of products and services (Pine &amp Gilmore,2011). The next phase of the economic offering will be transformationwhere consumers will become the product rather than experiences. Inthis context, companies will focus on personal transformations.

Conclusion

The discussions inthe book provide an insight into the timeline of value addition inthe business environment. Values have evolved according to customerpreferences. For instance, today, customer do not appreciate productdesign and performance like it used to happen in the past becausenearly all companies are aware that quality translates to success.Therefore, all of them make high-quality products and services toenhance their brand in the market. Consequently, customers`specifications have shifted to higher dimensions such as experience.Dentistry is not exempted from the evolution in consumers`experiences. One of the factors that were preventing people fromhonoring dental appointments was that the related processes werepainful. Therefore, dentists adopted approaches that would lessen thepain during dental procedures. Consequently, anesthetic chemicalusage was on the rise.

This approach canbe likened to the service economy where the focus was in the deliveryof values. However, dentists need to adjust with the changing patientexpectations. For instance, the healthcare has embraced multiculturalcare delivery to improve outcomes. Dentists should embrace culturalawareness to determine how cultural aspects such as religion and foodinfluence to oral health. This approach can enable caregivers toprovide dental-related services as well as preventive methods againstdental infections. Therefore, I have learned that patients`experiences will always shift from time to time depending on emergingtrends such as technology and management concepts.

References

Pine, B. J., &amp Gilmore, J. H. (2011).&nbspThe experience economy. Boston, Mass: Harvard Business Review Press