THE LUXURY EXPERIENCE ECONOMY

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Excerpt from Maine Uy's Research on Experience Economy.

The concept of Experience Economy was first introduced by Pine and Gilmore, which explains that when a person buys into the experience the very essence of the product becomes more interactive. Thus, consumers in itself become part of the value creation process. In the post-pandemic world, consumers are navigating differently, influencing their consumption behaviours with complex product considerations that aligns with their personal values. Wardle stated that the Experience Economy is what will reengineer the human connection that was halted by the pandemic and that it will no longer be enough just to market to people, but brands must now invest in immersions to create lasting memorable brand experiences. Although there have not been enough studies in the impact of these brand experiences to families. Merrilees et al.’s study suggests the concept of “companion shopping” where mall experiences are deemed to be more emotionally enriching when done with friends or families. Experience Economy have been integral to luxury brands where physical spaces and services are directly experienced by their consumers making it essential in communicating the entire essence and values of a brand. Sources:

• B., Joseph Pine I. I., and H. Gilmore James. 2014. “A Leader’s Guide to Innovation in the Experience Economy.” Strategy & Leadership 42 (1): 24–29.

• Batat, Wided. 2019. The New Luxury Experience: Creating the Ultimate Customer Experience. Springer International Publishing. 

• Harrison, Simon. 2021. “The Experience Economy Is Booming.” CIO. September 15, 2021. 

• Joseph Pine, B., and James H. Gilmore. 2019. The Experience Economy: Competing for Customer Time, Attention, and Money. Harvard Business Review Press. 

• “What Is the Experience Economy?” Localist.