Analysis Of The Experience Economy

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The Experience Economy: Work is Theatre and Every Business is a Stage is a business and economics book that was authored by Joseph Pine and James Gilmore. The main idea of the book focuses on the suggestion that businesses on a smaller scale and an entire economy runs on the concept of experience rather than just the simple exchange of products, services, and commodities, hence the term experience economy. Pine and Gilmore introduced the concept by briefly discussing the limitations that come with the rapidly aging agricultural economy. It can be recalled that prior to the industrial revolution and the development of modern economies, a large portion of private enterprise revenues came from farms and agricultural and commodities-related businesses. Then the industrial economy came, fueled by the popularization of the production line or the concept of mass production. The distribution and sales of industrial goods became a common business scenario. The agrarian economy proved to be stable (with minimal to flat growth annually, in the face of a rapidly growing…show more content…
the experience economy) is more than just a concept or a business model, because it may also be used as a marketing idea. Customers often make buying and investment decisions based on value proposition. In such a case, the business that offers the highest value proposition (i.e. highest quality per unit for a reasonable price) would most likely prove to be the winner because customers would flock on its side. Therefore, in order for businesses to market their products and or services, they can model their value proposition scheme based on the concept of experience economics. Basically, what they want to achieve is to be able to product the product or service that the market needs, and at the same time, provide a unique experience that would make the customers go back and ask more of business’ products or
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