Welcome to the experience economy

Question 1

cake analogy

Answer 1

Gives the analogy of making a cake from scratch , then would pay money for a mix, then just payed someone to make the cake, now just go to a birthday plac

Question 2

Sellings services

Answer 2

selling experiences

Question 3

Iggy→

Answer 3

best cab driver in the world, sang, served food, made an ordinary cab into a great event. The experience of riding in his cab was more valuable than the service of being transported by the cab and customers would gibe bigger tips

Question 4

An experience occurs

Answer 4

when a company intentionally uses services as the stage and goods as props to engage customers in a memorable event

Question 5

two people cant nave the same experience

Answer 5

Experiences are personal and exist in the mind of the person so no two people can nave the same experience because each experience derives from the interaction between the staged event and the indidviuals mind

Question 6

Experiences have always been at the heart of the enetrtinament business

Answer 6

now people are selling an entertainment experience

Question 7

Experiences are not just about enterinatiemnt,

Answer 7

companies stage an experience whenebr they engage customers in a personal,memorable way

Question 8

Niketwon stores

Answer 8

nike is almost in the xperience business. Builds the brand image. If you charge a fee for people to visit the niketwon stores, then nike would have to stage events

Question 9

disney

Answer 9

Disney generated profits from food, parking but without the staged experiences like cartoon, movies, customers would have nothing to remember

Question 10

the characteristics of experiences

Answer 10

Before a company can charge admission, must design an experience that customers judge to be wrth the price
Excellent design marketing and delivery are crucial
Think about experiences across two dimensions
Customer participation → passive where customers dont affect the performance. (symhpner goers, observers). Then theres active participation where customers play jey roles (skiers)
Conneciton or envornemtna relationship that unites customers with the event or performance. One end is absorotion and other end is immersion
Can sort epxeirneces into four ctagroies where they fall along two dimensions
Most people think about experiences like going to a concert (entertainment), customers participate more passively than actively
Richest experiences encompass aspects of all four realms, forming a sweet spot
“What specific experience will my company offer”

Question 11

designing the memorable experiences

Answer 11

1) theme the experience
2) harmonize impresions with positive cues
3) eliminate negative cues
4)mix in memorabilia
5) engage in all five senses

Question 12

theme the experience

Answer 12

Ex: hardrock cafe, rainforest cafe
Know what to expect when you eneteer
Well defined theme
Need a lasting memory
Ex: forum shops in las vegas, shows an ancient roman place in every detail. Made marble floors, whitenpillars
Effective themes are concise and compelling
Not a coprpate mission statement or marketing tag line
Must drive all design elements and staged events of the experience toward a unified story line that captivates the customer

Question 13

harmonize impressions with positive cues

Answer 13

Impressions –< takeaway of the experience, fullfill the theme
Com[anies must introduce cues that affirm the nature of the experience to the guest
Even the smallest cue can aid the creation of a unique experience
Ex: barista brava is an old world italian express bar. Themed well, impressions convey a smooth setting
Cues that make the impressions that create the experienc in the customers mind
Have planned and consistent visual and aural cues

Positive cues are specific elements that reinforce the theme of the experience

Question 14

eliminate negative cues

Answer 14

Eliminate anything that diminishes, contradicts or distracts from the theme
Dont have trivial messages
Service providers choose an inappropriate mekdum or message form
Easiest way to turn a service into an epxeirnece is to provide poor service which creates a bad memory
Overservicing can also ruin

Question 15

mix in memorabilia

Answer 15

Certain goods are purchased for memories ex: buying postcardsm t shirts
Physical reminder of experience
If services businesses like airlines, banks dont find demand for memorabilia, its because they do not stage engaging experiences → if they offered themed experiences, positive cues, guests would want to pay for memorabilia

Question 16

engage in all five senses

Answer 16

Should enhance the theme
More senses= more effective and memorable it can be
Grocery stores put bakery smells in the isles
Mist at the rainforest cafe appeals to all 5→ comes as a sound, then you see the mist and feel it soft, then you semll it, then taste
Some cues heighten an experience through single sense affected through striking simplicity
Not all senasttins are good ones and some comvos dont wok

Question 17

entering the experience economy

Answer 17

Using the five designs is no guarantee for success
Companies that fail to provide constisntleu engaging experiences, oberprice or overbukld caacptu to stage will see pressure on demand, pricing or both
Discovery zone had a rough go→ incomistent staging, bad games,
Rainforest and planet holywood have enocuntred issues bc they have failed to refresh their experiences
Disney avoids stalness by adding new attractions
More than a few experience stagers wille xit the business
Growth of the industrial economy and the service economy came with the proliferation of ifferings- goods and services that didnt exist before imaginative designers and marketers invented and dveeop them
Thats how the experience economy will grow→ through the gales of creative destruction → business innovation which trhreatens to render irrelevant those who relegate themselves to the diminishing world of goods and services

Question 18

four realms

Answer 18

Using the two dimensions, we can categorize the experiences into four realms:

Entertainment Realm (Passive/Absorption):
Characteristics: Customers engage with content primarily as spectators. They absorb the experience without active participation.
Examples: Watching a movie, attending a concert as an audience member, or browsing a website without interactive elements.
Key Focus: Delivering captivating content that captures attention and evokes emotions.
Educational Realm (active/Immersion):
Characteristics: Customers are passive observers but experience a deep level of immersion. They learn and gain insights from the content without actively participating.
Examples: Watching documentaries, attending lectures or workshops, or exploring interactive exhibits in a museum.
Key Focus: Providing valuable information in an engaging format that draws the audience in.
Escapist Realm (Active/Immersion):
Characteristics: Customers are active participants and feel fully immersed in the experience. They engage deeply and can lose themselves in the environment.
Examples: Virtual reality experiences, interactive theme park rides, or escape rooms where customers must solve puzzles together.
Key Focus: Creating an engaging environment that encourages participation and emotional investment.
Esthetic Realm (passive/Absorption):
Characteristics: Customers participate actively but remain somewhat detached from the experience. They engage with the environment but do not fully immerse themselves.
Examples: Visiting art galleries where customers may explore art at their own pace or participating in a cooking class while observing rather than fully engaging in every step.
Key Focus: Balancing participation with the appreciation of aesthetics, allowing customers to engage at their own comfort level.

passive: entertainment, esthetic
active: educational, escapist

immersion : esthetic and escapist (physically in the enbrionemnt )
absorption: educational, entertainment

Question 19

customer journey map

Answer 19

is a visual representation of the process a customer goes through when interacting with a brand or product. It outlines the various stages and touchpoints in the customer experience, helping businesses understand their customers’ needs, emotions, and pain points throughout their journey.
Touchpoints are the interactions a customer has with a brand at each stage of the journey.
Pain Points:
Identifying challenges or frustrations customers encounter during their journey helps businesses pinpoint areas for improvement.