Experience value and its determinants

Pine and Gilmore’s The Experience Economy has had a substantial impact on how experiences and services are planned and implemented. But empirical confirmation of mechanisms for providing valued experiences in various attractions and guest services has been limited. Our article addresses that issue. Specifically, we examined relations between dimensions of experience value and three sets of predictors: experience industry strategies (theming, multisensory embellishment and personalizing touchpoints), service performance and participant co-creation (co-design and co-actualization). Experience value dimensions included experience-value-during-use (EVDU), experience-value-in-exchange (EVIE) and experience-value-after-use (EVAU). Our intention was to evaluate techniques experience providers in tourism, hospitality and leisure industries can use to maximize experience value for visitors and customers. Six hundred sixty-nine students enrolled in a college of business at a faith-based university visited self-selected sport, art, entertainment, food service and worship venues on and near campus. After each visit, students completed an online questionnaire measuring provider performance variables (i.e. experience industry strategies and service performance), participant co-creation and the three experience value dimensions. We hypothesized that provider and participant strategies (e.g. theming, service performance and co-creation) increase EVDU (e.g. engagement, immersion and absorption), which in turn yields EVAU (proclivity to recommend) and EVIE (satisfaction and perceived value of time spent). Providers who used experience industry strategies (e.g. theming and personalization) and delivered strong service performance increased the EVDU of guests. Participant co-creation (co-design and co-actualization) also increased experience value. EVDU had significant correlations with EVIE and EVAU. Results support theory and prior untested assertions about factors promoting experience value. Results affirm the benefit of experience providers using experience economy tools and service performance. Findings also suggest benefits from facilitating co-creation. Results provide empirical support for influential propositions about experience value. Experience industry strategies, service performance and co-creation yield experience value.