Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Experience Economy shopping experience:
1. Compare - without doubt the biggest advantage that the Experience Economy offers shoppers today is the ability to compare thousands of Experience Economy at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Experience Economy? Wrong! If the Experience Economy is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Experience Economy then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Experience Economy? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Experience Economy and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Experience Economy wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Experience Economy then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Experience Economy site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Experience Economy, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Experience Economy, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
The
Experience Economy, according to B. Joseph Pine II and
James H. Gilmore in their
1999 book of the same name, is an advanced
service economy which has begun to sell "
mass customization" services that are similar to
theatre, using underlying good (accounting) and
services as Theatrical propertys.
Businesses must orchestrate memorable events for their customers, they argue, and that memory itself becomes the product - the "experience". More advanced experience businesses can begin charging for the value of the "transformation" that an experience offers, e.g. as
education offerings might do if they were able to participate in the value that is created by the educated individual. This, they argue, is a natural progression in the value-added by the business over and above its inputs.
Five ways of marketing a product or service
A core argument is that because of technology, increasing competition, and the increasing expectations of consumers, services today are starting to look like
commodities. Products can be placed on a continuum from undifferentiated (referred to as commodities) to highly product differentiation. Just as
service markets build on
goods markets which in turn build on commodity markets, so transformation and experience markets build on these newly commoditized services, e.g. Internet bandwidth,
consulting help.
The classification for each stage in the evolution of product (business) is:
- If you charge for undifferentiated stuff, then you are in the commodity business.
- If you charge for distinctive tangible things, then you are in the goods business.
- If you charge for the activities you perform, then you are in the service business.
- If you charge for the feeling customers have because of engaging you, then you are in the experience business.
- If you charge for the benefit customers (or "guests") receive as a result of spending that time, you are in the transformation business.
Proceeding to the next stage more or less requires giving away products at the more commodified level. For instance, to charge for service, e.g. new car warranties, one must be prepared to give away new cars to replace 'lemons'. And, to charge for transformations, one must be prepared to risk there being no payment for the time you spend working with customers who don't "transform".
Pine and Gilmore draw on Walt Disney, AOL, Nordstrom, Starbucks,
Saturn Corporation and International Business Machines as examples.
Criticisms
Their thesis has been criticized as an example of an over-hyped business philosophy arising from or in the dotcom boom and a rising economy in the United States that was tolerant of high prices, inflated claims, and no limitations of supply - or
investment. Detractors contrast it with other service economy theses such as Natural Capitalism, in which there is a clear focus on making measurably better use of scarce resources, usually considered to be the basis of
economics. They claim service management should stress efficiency more than effectiveness. The thesis has also been criticized from within the fields of Tourism, Leisure and Hospitality Studies where theories as to the role of experiences in the economy were already well established prior to the work of Pine and Gilmore but were not acknowledged in their work. Although continuing to influence business thinking the concept has already been superseded within much Service Marketing and Management literature by the argument that the value of all goods and services are co-created or co-produced through the interaction of consumers and producers. Therefore, at one level of abstraction all consumption can be understood in experiential terms.
Lists of related topics
References
- Pine, J. and Gilmore, J. (1999) The Experience Economy, Harvard Business School Press, Boston, 1999.
- Schmitt, B. (2003) Customer Experience Management, The Free Press, New York, 2003.
- Schmitt, B. and Simonson, A. (1997) In Marketing Aesthetics:The strategic management of brands, identity, and image The Free Press, New York, 1997.
The
Experience Economy, according to B. Joseph Pine II and James H. Gilmore in their 1999 book of the same name, is an advanced
service economy which has begun to sell "mass customization" services that are similar to
theatre, using underlying good (accounting) and services as Theatrical propertys.
Businesses must orchestrate memorable events for their customers, they argue, and that memory itself becomes the product - the "experience". More advanced experience businesses can begin charging for the value of the "transformation" that an experience offers, e.g. as
education offerings might do if they were able to participate in the value that is created by the educated individual. This, they argue, is a natural progression in the value-added by the business over and above its inputs.
Five ways of marketing a product or service
A core argument is that because of technology, increasing competition, and the increasing expectations of consumers, services today are starting to look like commodities. Products can be placed on a continuum from undifferentiated (referred to as commodities) to highly
product differentiation. Just as
service markets build on
goods markets which in turn build on commodity markets, so transformation and experience markets build on these newly commoditized services, e.g. Internet bandwidth, consulting help.
The classification for each stage in the evolution of
product (business) is:
- If you charge for undifferentiated stuff, then you are in the commodity business.
- If you charge for distinctive tangible things, then you are in the goods business.
- If you charge for the activities you perform, then you are in the service business.
- If you charge for the feeling customers have because of engaging you, then you are in the experience business.
- If you charge for the benefit customers (or "guests") receive as a result of spending that time, you are in the transformation business.
Proceeding to the next stage more or less requires giving away products at the more commodified level. For instance, to charge for service, e.g. new car warranties, one must be prepared to give away new cars to replace 'lemons'. And, to charge for transformations, one must be prepared to risk there being no payment for the time you spend working with customers who don't "transform".
Pine and Gilmore draw on Walt Disney, AOL,
Nordstrom,
Starbucks,
Saturn Corporation and International Business Machines as examples.
Criticisms
Their thesis has been criticized as an example of an over-hyped
business philosophy arising from or in the
dotcom boom and a rising economy in the United States that was tolerant of high prices, inflated claims, and no limitations of supply - or investment. Detractors contrast it with other service economy theses such as
Natural Capitalism, in which there is a clear focus on making measurably better use of scarce resources, usually considered to be the basis of
economics. They claim service management should stress efficiency more than effectiveness. The thesis has also been criticized from within the fields of Tourism, Leisure and Hospitality Studies where theories as to the role of experiences in the economy were already well established prior to the work of Pine and Gilmore but were not acknowledged in their work. Although continuing to influence business thinking the concept has already been superseded within much Service Marketing and Management literature by the argument that the value of all goods and services are co-created or co-produced through the interaction of consumers and producers. Therefore, at one level of abstraction all consumption can be understood in experiential terms.
Lists of related topics
References
- Pine, J. and Gilmore, J. (1999) The Experience Economy, Harvard Business School Press, Boston, 1999.
- Schmitt, B. (2003) Customer Experience Management, The Free Press, New York, 2003.
- Schmitt, B. and Simonson, A. (1997) In Marketing Aesthetics:The strategic management of brands, identity, and image The Free Press, New York, 1997.
