The Experience Economy : A Theater And Every Business

Consumers do, in fact, care about experience. In fact, in many ways the rise of quick-service formats and automated service has actually fuelled a greater desire for good old-fashioned customer service, particularly in face-to-face form.

The retail industry is redefining business formulas to maximize opportunities of interaction with consumers by developing service solutions to support value creation processes (Montagnini, 2009). Eataly represents an innovative, brand-new retail formula in the Italian food market, bridging retail and consumer education concepts to enhance guests value experience (Montagnini, 2009). Eataly’s business model is an attractive value proposition that has proven to be innovative and successful. This model is greatly executed by utilizing enormous spaces in high-traffic areas, which helps fulfil Eataly’s three tenants: eat, shop, and learn (Edwards, 2015).

I’ve adored theatre for as long as I can remember. From writing plays throughout elementary school, to being involved in Drama Club in middle school, to performing in community theatre in high school, and to visiting the theatre as often as I could from the very beginning, theatre has always been a part of my life. Every aspect of it engages me: the directors working to bring their vision of the show’s scenes, choreography, or music to life, the actors transforming into different characters through their expression of dialogue, song, or dance, the costumers and set-builders transporting the audience into the setting and time period with their artistry, the backstage tech and crew working quickly and precisely to keep the show flowing to curtain call, and the orchestra bringing the show to life through music. There is nothing like the experience of live theatre, both as a member of the audience and as a member of the cast and crew.

Any of these options would make a superb option for theater watching and show business would profit by keeping all the profits from tickets sold.

Harkins Theatres are movie theatres that have locations in various points in the South West of the United States. The thearters are owned by a private investor. Harkins Theatres began back in 1933 with Dwight “Red” Harkins Notably, the parent company is known as the Harkins Enterprises. In fact, the company is currently running a total of thirty theatres which have been fitted with over four hundred and thirty screens in locations such as Arizona, colorado, Texas, Oklahoma, and California.

Hard Rock is bringing the concept of the 'experience economy' to its cafe operation. This innovation is somewhat akin to mass customization in manufacturing. At Hard Rock, the experience concept is to provide not only a custom meal from the menu, but a dining event that includes a unique visual and sound experience not duplicated anywhere in the world.

The customer experience comprises of the product of the interactions a customer has with a company and its services. The overall experience reflects how the customer feels about the company and what it has to offer meaning the experience could either be a good or a bad one.

4. The bargaining power of buyers: The outlook for the target market isn’t favorable for the movie industry because it will not be growing as fast as the overall population. Buyer power is a strong force because of the target market and several other factors including: the undifferentiated product offered, switching to an alternative is simple and low cost, and customers can stay home and watch movies. The consumers are also complaining about concession and ticket costs, along with the advertisements before the film is shown.

Back in the olden days, the success of an organisation was determined by the quality nature of products they provided their customers. It was believed that customers were ignorant and did not know exactly what they want and therefore accepted whatever was given them; thus the final decision rested on the producer or service provider. The case however, in today’s business environment is the reverse of the above mentioned. Due to technological advancements, increased competition and the fact that people have become more informed and knowledgeable, customers now determine exactly what

Tangible goods, or rather manufactured goods, have been the dominant medium of exchange for centuries. However, recent decades have proved that it is no longer the case as there has been a prevalence of being service oriented (Vargo and Lusch, 2004:1-2). Services, as defined by Vargo and Lusch (2004), are  “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (p.2).” Utilizing services gives businesses an edge, a competitive advantage, particularly in an evolving competitive market, something which Metalfrio is definitely part of (Vargo and Lusch, 2004:9).  Those businesses that learn to adapt tend to do well. In addition, Vargo and Lusch (2004) write this shift to services is also a shift from producer perspective to a customer perspective (p.2). Thus, it leads to more of a collaborative effort where co-creation leads to adding value to the service rather than a product having value (Vargo and Lusch, 2004:6). Also, customers rather develop relationships with those that can provide a range of related services over an extended period of time, thus allowing businesses retain their clients for the long term (Vargo and Lusch, 2004:13). Overall, service oriented marketing is a direction that businesses should be headed towards to ensure that they can remain relevant and competitive in the

Today’s organizations fail to realize the value of their customers when it comes to the success of their business. Without customer loyalty the success of your business will always be uncertain. Organizations must sensitively tailor the designs of a successful firm to the particular challenges of understanding, attracting, and keeping valuable customers. “Having satisfied customers just aren’t good enough”. Kenneth Blanchard and Sheldon Bowles, co-authors of Raving Fans, believe this concept is needed to have a successful business. I agree with this concept of customers being the focal point of any business. I would want more than just a satisfied customer; I want a “Raving Fan”.

Providing an exceptional product or experience to the client which gives an added value may be termed as Differentiation Strategy. Differentiation does not just mean the way the final product shows up or the features it gives, but advancement and imagination may be integrated in everything the organization does from the raw materials to post-sales assistance in a manner that the clients may derive value from it. Considering Theme Restaurants as an example, at present the theme restaurant brand which leads the Restaurant industry with its competitive advantage is Hard Rock Cafe on the grounds that they offer a “Dining Experience” which is found nowhere else and is remarkable in every aspect (Heizer & Render, 2013, pp. 72).

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

Since the 1950’s, the world’s economy has gone through several changes, from an agrarian economy to an industrial economy, then to a service-based economy and then to the experience economy. “The term ‘Experience Economy’ was first introduced by Joseph Pine and James Gilmore in 1999. The concept is that goods and services are no longer enough for consumers – that businesses must create memorable events and experiences that capture their audience and create experiences that transform their brand’s value proposition.” (Frias, 2014) Despite being introduced in 1999, the concept of the Experience Economy has already existed in some extablishments to gain a large and growing customer base. The Hospitality Industry is an example of this. “For example, on July 17th, 1955, the pioneer of the Experience Economy, as Pine calls him, Walt Disney

To better understand the value of a good customer experience, creativegood.com has provide the 3-M's framework.