Online activity 12.3

Overview

This video features Joseph Pine, whose first book introduced the concept of mass customisation.  In this presentation he discusses the so-called ‘experience economy’.

Activity Description

Pine shows how economies have developed from commodities to goods to services and now to ‘experiences’.   In the ‘commodities economy’ the business imperative was supply and customer concern was about availability; in the ‘goods economy’ operators sought control and consumers wanted low cost; and the in the ‘service economy’ business focused on improvement because customers sought quality.  He goes on to argue that in the ‘experience economy’ firms have to render authenticity to their consumers.
Watch Joseph Pine’s presentation and consider:

• What is authenticity?
• What are the implications of this concept for operations managers?
• How can strategies be designed to deliver authenticity?

Website
Joe Pine overviews the experience economy: https://www.youtube.com/watch?v=M7rGBgn9jAI