Experience economy in hospitality and tourism: Gain and loss values for service and experience

Abstract

In the experience economy, distinct from the service economy, industry revenue increases according to the extent to which consumers enjoy their experience. This study explores the experience economy from various viewpoints, but particularly by examining whether consumers perceive differences in the monetary values between experience and service, as well as perceive gain and loss values differently in the same experiential component. The online survey was conducted with 550 adult participants. Data were analyzed using descriptive analysis, paired t-test, and multivariate analysis (MANOVA). The findings show that consumers still tend to perceive the service industry more important than the experience industry. However, as the loss values of experience are found to be larger than its gain values, it is very important to convince consumers to not lose an opportunity to experience future experiential consumption. (C) 2017 Elsevier Ltd. All rights reserved.