2. Experience Staging

Hurtes harwell 1998 hurtes

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Unformatted text preview: industry because it is has been demonstrated by consumer behavior research that immediate experiences are often of much greater value to guests and consumers than are the products or “services” offered in ways that do not evoke engaging emotional and motivational states. Pine and Gilmore (1999) point out ways that guest value may be enhanced by “experientializing” a tangible product or by “staging” an intangible experience encounter (e.g., a recreation program or “service”). Experientializing Products Examples of organizations that have successfully experientialized products are readily identiྰable. Pine and Gilmore (1999) illustrate this phenomenon using the coffee industry as an example. As a fungible commodity, a coffee bean sells for a few cents per pound. When that commodity is processed, ground, and packaged, it becomes a “good” and a pound of packaged coffee beans will sell for a few dollars on the retail market. But the coffee may be offered to consumers in a number of different ways, and it is the nature of this offering that determines the value of the coffee to the consumer. If the processed coffee beans ultimately are purchased in coffee that is sold at a small convenience store, consumers will purchase small quantities of the bean in cups of coffee for a modest price, perhaps one or two dollars per cup. If, on the other hand, the processed beans are offered to consumers through cups of coffee in an upscale restaurant or one of the numerous coffee shops that stage coffee consumption around a relaxed environment for socializing (e.g., Starbucks), the value will increase exponentially, perhaps to ྰve dollars per cup or more. In such environments, the coffee offering is actually only a part of a larger “theatrical set” for staging an experience (Pine & Gilmore, 1999). Consumers and guests value drinking their coffee in these relaxed environments much more so than in their car...
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This document was uploaded on 09/20/2013.

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