Experience economy can be understood as the production, distribution and consumption of experiences-based products in new and traditional business contexts.
- Experience Economy as a New Economy. The term Experience Economy is first described in a book written in 1999 by B. Joseph Pine II and James H. Gilmore, titled “The Experience Economy”. The authors describe the experience economy, as the ‘next economy’ following the agrarian economy, the industrial economy and the most recent service economy. This notion points to a larger perspective on ‘the experience’ such as entertainment, edutainment and cultural values in the making and marketing of new consumer products. This business philosophy borrows from the ‘traditional’ creative industry such as film, fashion and music-industry and arises – more or less – in the dot-com boom of the 1990s and the so-called “new economy” in the America.
- Experience Economy as a Diversity of Experience-Based Products. Due to the growing global entertainment, tourism and leisure markets, the diversity of experience-based products, both goods and services, is needed in order to create difference in the market. ‘Magic’ is a key-word commonly used in the experience economy pointing to the creation of distinctive, innovative, spectacular and sensual products.
- Experience Economy as Added Value and Marketing Aesthetics. In order to market and distinguish products, added cultural values have become more important then before. Marketing aesthetics are the practices, strategies and technologies which are applied in order to make products more attractive. By adding storytelling, entertainment, values, culture and arts the products are designed to facilitate the consumer’s social relationships, feelings and identities. Experience economy thus supports the field of customer experience management.
- Experience Economy as a Professional Sector. The experience/creative/cultural industries are the pragmatic and professional aspect of the experience economy – how can experience economy as a developmental strategy be managed, enhanced and implemented? What kind of tools and competences does already exist – and how are they put to best use as experience products? How can the organisation work together in order to develop a stronger awareness of its unique experimental resources? The concept of experience economy arose in the field of business. It has crossed the frontiers of tourism, architecture, urban and regional planning, art- and museum industry, public health service and other fields. This means that experience economy as a tool to develop and improve experience products has been widely tested amongst many - and different - consumer groups and lifestyle segments.
