HELLO!

I am Ms. Riche Justine P. Duran

I am here because I love my students.
Justine Paras (Messenger)
Riche Justine Duran (SSU- LMS)

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In this chapter, we will discuss:

� Progression of Economic Value

� Realms of Experience
� Experience Economy
�

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THE
SERVICE
ECONOMY
“An experience occurs when a company intentionally uses services as the stage, and
goods as props, to engage individual customers in a way that creates a memorable
event.”

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Commodities are fungible,
goods tangible,
services intangible, and
experiences memorable.

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“…experiences are inherently personal, existing only in the mind of an individual who has been
engaged on an emotional, physical, intellectual, or even spiritual level. “

Thus, no two people can have the same experience, because each experience derives from the interaction
between the staged event (like a theatrical play) and the individual’s state of mind.
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Consumer Service
Experience (B2C)
› is the internal and subjective
response customers have to any
direct or indirect contact with a
company by engaging and
connecting with the customer in a
personal and memorable way.
Direct contact generally occurs in the course of
purchase, use, and service and is usually initiated by
the customer.

Indirect contact most often involves unplanned

encounters with representations of a company’s
products, services, or brands and takes the form of
word-of-mouth recommendations or criticisms,
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THE
EXPERIENC
E
ECONOMY
“As business explicitly charge for the memorable encounters they stage, we
transition from a service economy to the new experience economy.”

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The 4 Realms of
Experience

These are the types of consumer experiences characterized

by the level of customer participation and level of
interaction with the environment.

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Entertainment (e.g. watching television, listening to music) - tend to
(Absorption &
Passive
be those in which customers participate more passively
Participation) than actively.

(e.g. a tourist who merely views the Grand Estheticism

Canyon from its rim or like a visitor to an art gallery) - (Immersion &
Passive
customers or participants are immersed in an activity or
Participation)
environment, but they themselves have little or no
effect on it.

Education (e.g. interactive discussions) - tend to involve more

(Absorption &
Active
active participation, but students (customers, if you will)
Participation) are still more outside the event than immersed in the
action.

(e.g. acting in a play, playing in an orchestra, or

Escapist
descending the Grand Canyon) -just as well as (Immersion &
educational events can, or amuse just as well as Active
entertainment, but they involve greater customer Participation)
immersion which involves both active participation and
immersion in the experience. 9
 5 Principles to have
Memorable Consumer
Service Experience
THEME IT!
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T heme the experience
Just hear the name of any “eatertainment”
restaurant—Hard Rock Cafe, Planet Hollywood, or the
Rainforest Cafe, to name a few—and you instantly know
what to expect when you enter the establishment. The
proprietors have taken the first, crucial step in staging an
experience by envisioning a well-defined theme.

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T heme the experience

Image Source: https://assets.simpleviewinc.com/simpleview/image/fetch/q_75/https://assets.simpleviewinc.com/simpleview/image/upload/crm/tampabay/Hard-Rock-

Cafe-Entrance_5490A5C4-DB33-4F77-89A10CDC098E2F08_71019092-5056-a36a-08fa665ae1abcfcb.jpg
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T heme the experience

Image Source: https://upload.wikimedia.org/wikipedia/commons/2/21/Planet_Hollywood_Downtown_Disney_Florida.jpg

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T heme the experience

Image source: https://www.bluediamondresorts.com/imager/assets/misc/2506/Pool-36_5d115737bb40693b26d0f189b7a2eb16.jpg

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 T heme the experience

Image Source https://images.getbento.com/accounts/3db889a3fca226b46ccb3927ec65f27d/media/images/54325_NEF0066.jpg?w=1200&fit=crop&auto=compress,format&h=600 15

T heme the experience

Image Source https://media-cdn.tripadvisor.com/media/photo-s/14/2a/dd/d2/dine-with-the-elephants.jpg 16

H armonize impressions with positive cues.
While the theme forms the foundation, the experience must
be rendered with indelible impressions. Impressions are the
“takeaways” of the experience; they fulfill the theme. To
create the desired impressions, companies must introduce
cues that affirm the nature of the experience to the guest.
Each cue must support the theme, and none should be
inconsistent with it.

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Examples:

Image Source https://media-cdn.tripadvisor.com/media/photo-s/18/f9/a5/37/entrance-to-restaurant.jpg

Even the smallest cue can aid the creation of a unique experience.
When a restaurant host says, “Your table is ready,” no particular cue is
given. But when a Rainforest Cafe host declares, “Your adventure is
about to begin,” it sets the stage for something special.
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Image Source https://images.getbento.com/accounts/3db889a3fca226b46ccb3927ec65f27d/media/images/
75042RAINFOREST_CAFE_014.jpg?w=1200&fit=crop&auto=compress,format&h=600

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EEnsuring the integrity of the customer experience requires
more than the layering on of positive cues. Experience
liminate negative cues.
stagers also must eliminate anything that diminishes,
contradicts, or distracts from the theme. Most constructed
spaces—malls, offices, buildings, or airplanes—are littered
with meaningless or trivial messages. While customers
sometimes do need instructions, too often service providers
choose an inappropriate medium or message form.

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Examples:

(1) Trash bins at fast-food facilities typically display a “Thank You” sign. True,
it’s a cue to customers to buss their own trays, but it also says, “No service
here,” a negative reminder. Experience stagers might, instead, turn the trash bin
into a talking, garbage-eating character that announces its gratitude when the lid
swings open. Customers get the same message but without the negative cue, and
self-busing becomes a positive part of the eating experience.

(2) “Over-servicing” in the name of customer intimacy can also ruin an

experience. Airline pilots interrupt customers who are reading, talking,
or napping to announce, “Toledo is off to the right side of the aircraft.”

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M ix in memorabilia.
Certain goods have always been purchased primarily for the
memories they convey. Vacationers buy postcards to evoke a
treasured sight, golfers purchase a shirt or cap with an
embroidered logo to recall a course or round, and teenagers
obtain T-shirts to remember a rock concert. They purchase
such memorabilia as a physical reminder of an experience.
People already spend tens of billions of dollars every year on
memorabilia. These goods generally sell at price points far
above those commanded by similar items that don’t
represent an experience.  22
Examples:

(1)  Rolling Stones concert-goers, for example, will pay a premium for an
official T-shirt emblazoned with the date and city of the concert. That’s
because the price points are a function less of the cost of goods than of the
value the buyer attaches to remembering the experience.

Image Source https://www.rollingstone.com/wp-content/uploads/2022/08/merch-booth-2.jpg

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E ngage all five senses.

The sensory stimulants that accompany an experience

should support and enhance its theme. The more senses an
experience engages, the more effective and memorable it can
be. 

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Examples:

The mist at the Rainforest Cafe appeals serially to all five senses. It is
first apparent as a sound: Sss-sss-zzz. Then you see the mist rising from
the rocks and feel it soft and cool against your skin. Finally, you smell its
tropical essence, and you taste (or imagine that you do) its freshness.
What you can’t be is unaffected by the mist.

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Image Source https://www.yesterland.com/images-dtddlr/rainforest_canopy2018ah.jpg
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THEME IT!
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References:
 https://hbr.org/1998/07/welcome-to-the-experience-econo
my
“Welcome to the experience economy” by
B. Joseph Pine II and James H. Gilmore From the July–
August 1998 Issue

 https://www.disruptiveadvertising.com/business/what-is-b2
b/
“What is B2B…and What Type of B2B Business Should I
Choose?” by Anna Gotter July 11, 2018

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THANKS!
Any questions?
You can find me at:
Justine Paras( Messenger)
Riche Justine Duran (SSU- LMS)

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