IT flag   EN flag   RU flag
Blog Newya

Are we living in the experiential economy? - A point of view - Parth Kalke, India

Are we living in the experiential economy?

What is experience? According to the Psychology dictionary it is “a conscious event the aspect of intellect and consciousness experienced as combinations of thought, perception, memory, emotion, will and imagination, including all unconscious cognitive processes.”

We are living in a world where people are spending more money and investing time on experiences over products.(i) Economists have typically lumped experiences in with services, but experiences are a distinct economic offering, as different from services as services are from goods. Today we can identify and describe this fourth economic offering because consumers unquestionably desire experiences, and more and more businesses are responding by explicitly designing and promoting them.

Let’s take an example of Nike Inc. With its Niketown stores, Nike is almost in the experience business. To avoid alienating its existing retail channels, Nike created Niketown as a merchandising exposition. It’s ostensibly for show—to build the brand image and stimulate buying at other retail outlets—not for selling. If that is so, then why not explicitly charge customers for experiencing Niketown? Would people pay? People have already queued to enter the Niketown on Chicago’s Michigan Avenue. An admission fee would force Nike to stage more engaging events inside. The stores might use the basketball court, say, to stage one-on-one games or rounds of horse with National Basketball Association players. Afterward customers could buy customized Nike T-shirts, commemorating the date and score of events—complete with an action photo of the winning hoop. There might be more interactive kiosks for educational exploration of past athletic events. Virtual reality machines could let you, as Nike’s advertising attests, be Tiger Woods. Nike could probably generate as much admission-based revenue per square foot from Niketown as the Walt Disney Company does from its entertainment venues.(ii)

Similarly, in the consultancy business. Here are the top 3 things you need to know when considering your customer experience.

  • It has to be personal
  • Get Engaged
  • Walk in their shoes.

The best way to understand your customer experience is to be your own customer. To conclude:

“Today the concept of selling experiences is spreading beyond theatres and theme parks.”

© Parth Kalke.


  • (i) A ‘golden era’ for events? By Andrew O’ Loughlin
  • (ii) Welcome to the Experience Economy

From the July–August 1998 Issue

NewYa Consulting & Training

Sede Operativa: Via Biturgense 100, 06012 Città di Castello (PG)
Sede Legale: Via Biturgense 100, 06012 Città di Castello (PG)
P.IVA 03354790549 - REA PG-283194 - PEC
Info Privacy & Cookie Policy

© 2024, NewYa Consulting & Training


posta ico

Seguici anche su

a face a in a insta agoogle a youtube ins2