Rethinking Retail Design in the Experience Economy

Rethinking Retail Design in the Experience Economy

Beatriz Itzel Cruz Megchun (University of Portland, USA)
DOI: 10.4018/978-1-7998-2823-5.ch008

Abstract

This chapter seeks to explore and discuss the way commercial companies and non-commercial companies have transformed the design and the delivering of products and services offered. This work aims to contribute to the discussion of the character of interiors by exploring empirical cases. These cases exhibit experiences comprised of emotional as well as functional interactions between customers and service providers. Their key attribute is to deliver a personal experience that stirs feelings, sensations, and emotions that are memorable and inclusive. The result of this research intends to enable professionals to have a series of instruments that are multidisciplinary in nature so that they can use them in their design practice.
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Rethinking Retail Design In The Experience Economy

These subliminal aspects of everything that happens to us may seem to play very little part on our daily lives. But they are almost invisible roots or our conscious thoughts. - Carl Jung

The twenty-first century observed the progression of the economy, where organizations require to regard their competitive position, pricing, and needs of customers to compete (Pine II and Gilmore, 2011). This type of economy, in turns, changed the way commercial companies and non-commercial companies design, promote and deliver their products and services. Organizations can fit under four different stages, extract commodities, make goods, deliver services or stage experiences, depending on their economic function, nature of the offering, key attributes, methods of supply, sell, buy and factors of demand (Table 1). The nature of experience economy comprises the delivery of personal experiences that stir sensations through functional, usable, intuitive, aesthetic and emotional products and/or services that are compelling and memorable (Berry, Carbone, and Haeckel, 2002; Beltagui et al. 2012). Products and services move beyond tangible goods, giving primacy to socio-cultural, psychological, and emotional connections (Brakus, Schmitt, and Zarantonello, 2009). Consequently, businesses must design, manage, and stage customer experiences as its success depends on the ability to design a theatrical performance appropriately for the audience.

Table 1.
Experience economy
EconomyCommodityProductServiceExperience
EconomyAgrarianIndustrialServiceExperience
Economic functionExtractMakeDeliverStage
Nature of offeringFungible [Interchangeable]TangibleIntangibleMemorable
Key attributeNaturalStandardizedCustomizedPersonal
Method of supplyStored in bulkInventoried after productionDelivered on demandRevealed over time
SellerTraderManufacturerProviderStager
BuyerMarketUserClientGuest
Factors of demandCharacteristicsFeaturesBenefitsSensations

Adapted from Joseph Pine II and James Gilmore, The experience Economy

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