J ÖNKÖPING I NTERNATIONAL B USINESS S C H O O L JÖNKÖPING UNIVERSITY Producer in the Experience Economy How to deliver experiences Master Thesis in Business Administration Author: Claesson, Mikaela Nordell, Nina Tutor: Gustafsson, Karl Erik Jönköping June 2006 I NTERNATIONELLA H ANDELSHÖGSKOLAN HÖGSKOLAN I JÖNKÖPING Att vara producent i Upplevelsesamhället Konsten att leverera upplevelser Magisteruppsats inom Företagsekonomi Författare: Claesson, Mikaela Nordell, Nina Handledare: Gustafsson, Karl-Erik Jönköping Juni 2006 Preface The authors would like to give their warmest thanks to the companies that took part in this thesis. These are; Aftonbladet, Air Historic Research AB, Arkitekthuset Jönköping AB, Bonnier Responsmedier Group AB, Complete Film & Multimedia AB, Företags Catering AB, Galleri Bergström, Ord & Form, PowerHouse, Skivfynd, Struktur Design, Skånes Dansteater, the anonymous fashion company and West Vilt. The authors would also like to thanks their supervisor Karl Erik Gustafsson for his supervi- sion and helpful advices during the master thesis. Mikaela Claesson Nina Nordell i Master TThesishesis ininin Business AdministrAdministraaaationtion Title: Producer in the Experience Economy --- How to deliver experiences Authors: Claesson, Mikaela Nordell, Nina Tutor: Gustafsson, KarlKarl----ErikErik Date : 20062006----06060606----02020202 Subject terms: Experience EcEcEconomy,Ec onomy, Experience SocietySociety,, Value AAddedddeddded,, B, BrandB rand Abstract Background and problem: Experiences have become a new trend within the world economy today and a new way to add value to companies. A new economy is emerging named the Experience Economy. The customers’ demands of experiences are increasing and companies need to satisfy these demands and adapt them- selves to this emerging economy. The Experience Economy is today the fastest growing industry in Sweden and has grown steadily during the last decade. The Experience Eco- nomy is something that needs to be adapted within all in- dustries in the society and is seen as the key factor towards economic success. Purpose: The purpose of this thesis is to study how Swedish compa- nies have implemented experiences in the society and give future recommendations for their industries. Frame of reference: In this section theories and definitions regarding the Ex- perience Economy from a producer perspective are pre- sented. The theoretical frame does also contain the evolve- ment, culture, design and added value of experiences in to- day’s society. Method: In order to answer the purpose of the thesis a qualitative method has been utilized. The data collection contains of 14 companies within 13 sections of industries providing ex- periences in the Swedish market. Conclusion : The results presents the spreading of experiences in the Swedish society, the industries that are better suited for the Experience Economy and further more the future aspects of the development of this economy. ii Magisteruppsats inom Företagsekonomi Titel: Att vara producent i Upplevelsesamhället --- konsten att leverera upplevelser Författare: Claesson, Mikaela Nordell, Nina Handledare: GustafsGustafssssson,on, KarlKarl---- Erik Datum : 20062006----06060606----02020202 Ämnesord UppUpplevelseekonomi,levelseekonomi, Upplevelsesamhälle, MMeeeerrrrvärdevärdevärde,, V, VarumärkeV arumärke Sammanfattning Bakgrund och problem: Upplevelser har utvecklats till att bli en ny trend inom världsekonomin idag. Denna trend är sedd som ett nytt sätt att generera mervärde till företag. En ny ekonomi har upp- kommit vid namn Upplevelseekonomi. Konsumenterna idag efterfrågar mer upplevelser vilket företagen måste till- fredsställa. Upplevelseekonomin är idag den snabbaste väx- ande industri i Sverige och har ökat under det senaste årti- ondet. Upplevelseekonomin är något som är nödvändigt att implementeras inom alla samhällets industrier och ses idag som nyckeln till ekonomisk framgång. Syfte: Syftet med denna uppsats är att studera hur svenska företag har implementerat upplevelser i det svenska samhället och vidare ge framtida rekommendationer för de olika industri- erna. Referensram: I denna del presenteras teorier och definitioner rörande Upplevelseekonomin från ett producent perspektiv. Refe- rensramen innehåller även utvecklingen, kulturen, designen och mervärdet av upplevelser i dagens samhälle. Metod: För att genomföra syftet av denna uppsats på bästa sätt har en kvalitativ ansats valts. Insamlad data består av 14 företag inom 13 industrier som tillhör Upplevelseindustrin i Sverige. SlutsatsSlutsats:::: Resultatet visar spridningen av upplevelser inom det svenska samhället, industrier som visat sig vara bättre lämpad för Upplevelseekonomin, samt framtida aspekter. iii Table of Contents 1 Introduction ................................................................................1 1.1 Point of Departure ..................................................................................1 1.2 Problem Statement.................................................................................2 1.3 Research Questions...............................................................................3 1.4 Purpose ..................................................................................................3 1.5 Delimitations...........................................................................................3 1.6 Disposition of the Thesis ........................................................................4 2 Theoretical framework...............................................................5 2.1 The Development of the Experience Economy ......................................5 2.2 The Experience Society..........................................................................7 2.3 Experience Strategy ...............................................................................8 2.4 Experience Design ...............................................................................12 2.4.1 Experiencescapes ................................................................................13 2.4.2 The Experience Realms .......................................................................14 2.5 Value Added Organizations..................................................................16 2.5.1 The Value Chain...................................................................................16 2.5.2 Value Added Selling .............................................................................17 2.5.3 Charge for the Experience....................................................................18 2.6 Summary ..............................................................................................18 3 Method ...................................................................................... 20 3.1.1 Qualitative Research ............................................................................20 3.1.2 Descriptive Research ...........................................................................20 3.2 Sample .................................................................................................21 3.3 Data Collection .....................................................................................22 3.4 Information Techniques ........................................................................22 3.5 Questionnaires .....................................................................................24 3.6 Validity and Reliability...........................................................................24 3.7 Criticism................................................................................................25 3.8 The Empirical Study Base ....................................................................27 3.9 Report and Presentation.......................................................................28 4 Empirical Part........................................................................... 29 4.1 Introduction...........................................................................................29 4.1.1 The Existence and Creation of the Experience Economy.....................30 4.1.2 Communication and Brand ...................................................................32 4.1.3 Communication Problems ....................................................................34 4.1.4 Value Added and the Influence of the Environment .............................35 4.1.5 Product and Price.................................................................................38 4.1.6 Customer Involvement..........................................................................39 4.1.7 Marketing..............................................................................................41 4.1.8 Recommendations................................................................................42 5 Analysis .................................................................................... 44 5.1.1 Differentiation .......................................................................................45 5.1.2 Technological Aspects and Involvement ..............................................46 5.1.3 Delivery of Experiences and the Environment......................................48 iv 5.1.4 Brand Image and Culture .....................................................................50 5.1.5 Company Position ................................................................................52 5.1.6 Differences between the Enlightened and Natural Orientation .............55 5.1.7 The Four Realms..................................................................................56