Defining the Domain

1
Defining the Domain

• What is An Experience?What is An Experience
  Economy?

2
What Is An Experience?
3
What Is An Experience Product?
?
4
Discuss

• How are experiences different than services? 
  That is, what dimensions of an experience
  distinguish it from a service?
• For that matter, what distinguishes a good from a
  service?

5
What is An Experience Product?

• Goods Versus Services
• Intangibility
• Perishability
• Inseparability
• Variability
• These are the characteristics that distinguish
  goods from services
• Services Versus Experiences
• Create a Connection
• Deliver Uniqueness
• Leave Memories
• These are the characteristics that distinguish
  services from experiences

To be a product has to have economic value
must charge for experience.
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What is An Experience Product?

• Commodities fungible
• Goods tangible
• Services intangible
• Experiences - memorable

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What Is an Experience Product?

• Also consider the properties of products
• Search
• Experience
• Credence

8
Discuss

• What are some examples of organizations that
  charge for the experience(s) they provide?

9
The Four Realms of Experience
10
Discuss

• What does it mean that customers co-create
  experience products?

11
Discuss

• Do you think Pine and Gilmore are correct in
  suggesting the next stage of economic development
  is an "experience economy?"  Why?

12
Economic Value Over Time
13
Discuss

• What is creative destruction?
• Consider that Peter Drucker believes that the
  fundamental purpose of an organization is
  innovation and marketing (creating value)
• As we innovate, we make other things irrelevant

14
Economic Progression
Source The Experience Economy - Work Is Theatre
Every Business a Stage, by B. Joseph Pine II
and James H. Gilmore, (1999) Harvard Business
School Press.
15
Discuss

• Pine and Gilmore suggest five key
  experience-design principles.  Comment on them
  and/or offer other design principles.

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Experience-Design Principles

• Theme the Experience
• Harmonize impressions with positive cues
• Eliminate negative cues
• Mix in memorabilia
• Engage all five senses

17
Discuss

• Lets consider the Cabelas experience.
• www.cabelas.com

18
Discuss

• Do you think Cabelas offers an experience?
• How did you see Pine and Gilmores experience
  design principles reflected in the design of the
  Cabelas store?
• Do you think Pine and Gilmore would classify
  visiting Cabelas brick and mortar store as an
  experience product?
• Does the website provide the essentials of
  creating an experience?

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Source http//www.thetransitioner.org/wiki/tiki-
index.php?pageExperienceEconomy
20
Discuss

• What did you learn from the Pine and Gilmore
  article that surprised you?  Do you think
  differently about designing a customer experience
  than you did before you read it?  How so?

21
Discuss

• Are the products at brand-building stores (e.g.,
  Cabelas) memorabilia? Why do you think that?

22
Pine and Gilmores Company

• http//www.customization.com/