Reference no: EM133606216

Scenario/ essay question:

The economic perspective has evolved from an agrarian, commodity perspective, product-dominant logic, and service-dominant logic to an amorphous construct of experience as real an offering as any service, good, or commodity. In today's service economy, many companies simply wrap experiences around their traditional offerings to sell them better without enchanting life with multiple experiences. To realize the full benefit of staging experiences, however, businesses must deliberately design engaging experiences with sensual immersion that command a premium price. The transition from selling services to selling experiences in the airline, hospitality, shis'nyama, retailing, entertainment, health care and so on presents a great economic shift, from the industrial to the service economy. The dimensions of service quality compel considerable upgrades for service offerings to the next stage of economic value. 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. Companies are struggling to comprehend that the commodities are fungible, goods tangible, services intangible, and experiences memorable. The experience economy is based on the premise that businesses must deliberately orchestrate and create memorable encounters for their customers, and that the memory itself becomes the product to address the service quality gaps while entrenching on the service encounter triad for a better experience. The current market condition has reached a level where customers are saturated with the availability of product-dominant logic and service-dominant logic and are now willing to pay more for experiences. Even psychologists support experience economy with their theory that indulgence-happiness and hedonism are derived more from experiences than what people possess (commodities) or get (services). It means that experience can be seen as a new and distinct economic offering that should be consistent in theme and engage the customers' sensuality and immerse all the aspects of the human being for multiple experiences. 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. In terms of the statements:

Question 1: Critically analyse the service quality gaps affecting the co-creation of the customer experience chain and how the competitive service strategies afford the transition from service-dominant logic to experience economy.