Developed by Miyoung Jeong, PhD Ann Marie Fiore, PhD Haemoon Oh, PhD Linda Niehm, PhD Cheryl Hausafus, PhD Apparel, Educational Studies, & Hospitality Management Iowa State University Acknowledgment – We thank the Southern Rural Development Center for funding this project. We also thank Steve Mickelson, Extension Specialist at Iowa State University, for his review of the project and Keila Tyner and Calista J. Yoo for their creative and technical assistance.
34
Embed
Developed by Miyoung Jeong, PhD Ann Marie Fiore, PhD Haemoon Oh, PhD Linda Niehm, PhD Cheryl Hausafus, PhD Apparel, Educational Studies, & Hospitality.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Developed by Miyoung Jeong, PhDAnn Marie Fiore, PhD Haemoon Oh, PhDLinda Niehm, PhD
Acknowledgment – We thank the Southern Rural Development Center for funding this project. We also thank Steve Mickelson, Extension Specialist at Iowa State University, for his review of the project and Keila Tyner and Calista J. Yoo for their creative and technical assistance.
2
Table of Contents
Lesson 1. An Introduction to Experience Economy Strategies
Lesson 2. Experience Economy Strategies Adding Value to Rural Businesses
Lesson 3. Aligning Experience Economy Strategies of the
Business and E-commerce Website
Lesson 4. Assessing Experience Economy Strategies of the
Business
Lesson 5. Assessing Experience Economy Strategies of the
E-commerce Website
3
Lesson 1.1: A Progression of Economic Value
from Commodities to Experience
Lesson 1.2: Defining the Four Experiences (4Es)
4
Successful small businesses focus on
• Vision
• Innovation
• Opportunity recognition
• Passion for change
• Customer-focused strategy
– Exceptional staffing
– Extraordinary service
5
Customers want value
• High quality products
• Superior customer service
• Positive, engaging, memorable experiences
– Experiential value
6
Competitive advantages of experiential value
• Satisfies customers fully
• Builds loyal customers
• Increases customers’ willingness to pay more
• Encourages positive word-of-mouth
• Recruits new customers
• Enhances business image
• Differentiates from competitors
7
Added experiential value for customers: An example of Starbucks
• Interior Design
– Rich warm colors
– Contemporary furnishings
– Stylized graphics
• Music Media Bars
– Music heard in store
– Recommendations of music
– CD burned from selected music of vast library
8
9
Pine & Gilmore’s Progression of Value
• Sources of
economic growth
in the U.S. have
progressed from
commodities to
goods and
services, and now
to experiences
(Pine and Gilmore,
1999)
10
Pine & Gilmore’s Progression of Value
• The Experience Economy reflects expansion of
customer expectations to include positive
experiences
• In addition to quality goods and superior
customer service, businesses must add value
in new ways to differentiate themselves
11
Progression of Value: An Example of Corn
12
13
Four experiences based on level and form of customers’ involvement
14
Definition of 4Es: Educational Experiences
• Increase the customer's skills and enhance his/her knowledge through active participation in the experience
Accommodation/ B&B
Restaurant Retail Rural tourism
• Applications for four different businesses
15
Definition of 4Es: Esthetic Experiences
• Entail customer enjoyment of an enriched, unique physical design. The customer enjoys passively appreciating or “just being in a setting” of the business.
Accommodation/ B&B
Restaurant Retail Rural tourism
• Applications for four different businesses
16
Definition of 4Es: Escapist Experiences
• Require that the customer actively participate in the events of a real or virtual environment. The customer shapes or contributes to the experience, which offers the customer a way of taking on a new persona.
Accommodation/ B&B
Restaurant Retail Rural tourism
• Applications for four different businesses
17
Definition of 4Es: Entertainment Experiences
• Entail watching the activities and/or performances of others. The customer is not actively involved in the creation of the entertainment, but the mind is actively engaged during appreciation of the event
• Applications for four different businessesAccommodation
/ B&BRestaurant Retail Rural tourism
18
19
Educational Experience: Accommodation/B&B
A B&B provides seasonal educational experiences about traditional Minnesota farm life, such as bread baking in an outdoor oven, making homemade applesauce, and berry picking.
A Dutch tourism attraction retail store and factory provides an opportunity for patrons to observe traditional wooden shoe carving. Visitor also can talk with artisans as they create wooden shoes and delftware in the old world tradition.
Murder mystery dinners held in a B&B provide an evening of mystery and intrigue. Each guest plays a character and attempts to solve the murder while being served a delicious gourmet meal.
Maple Hill Manor, KYhttp://www.bbonline.com/ky/maplehill/murdermystery.html