One of these economic values is the experience economy.  B. Joseph Pine II and James H. Gilmore best describe the evolution of the experience economy in terms of the birthday cake.  During the agrarian economy, mothers baked cakes from scratch mixing all the ingredients that came cheap.  With the industrial economy, mothers paid more to buy pre-mixed ingredients that came in boxes like Betty Crocker and Pillsbury.  When the service economy emerged, mothers simply ordered the cakes from the bakeshop or the grocery paying more for the products that it would cost baking them.  But with the progression to the experience economy, birthday parties are now outsourced to a company, usually a restaurant (McDonalds & Jollibee leading the pack) that will stage a memorable event and the cake is thrown in as part of the package.

This same concept applies to manufacturers and marketers of hi-tech gadgets.  Product launches and carefully conceptualized, one that would appeal to the senses, to make an impact on the audience.  I still vividly remember the product launch Samsung staged to introduce a mobile phone some time ago.  Besides a fashion show coupled with a dance concert, Samsung displayed its technical prowess by flying a giant replica of the cellphone via remote control around the venue.

Technology exhibits are no different.  Visitors are encouraged to try out the products on display with the hope that consumers will eventually purchase the item when they like the experience.  Laptop distributors, for example will allow a consumer to handle a unit, scrutinize it, and discover all its wonderful features.  Internet service providers will allow a prospective subscriber unlimited free Internet access.  The days of simply looking at a merchandise before purchase are over.  Consumers, without really explicitly demanding for it, want to experience using an item first before buying it.

A USA Today story tells of how camera stores in the US whose profit margins are getting smaller with stiff competition from online retailers are pushing for services other than merely selling cameras and printing photos.  They now host parties and include photo printing activities for the kids and the parents. 

Another economic progression that technology brought about is the attention economy.  This is a concept manufacturers of tech gadgets came up with to describe the shrinking attention span of consumers given the distractions and information overload brought about by these gadgets.  Call it ADHD for adults, but according to a CNET article, tech industry executives call this malady “continuous partial attention, an adaptive behavior pattern consumers have adopted to cope with the need to multitask and boost productivity in the digital age.”  David Sifry, founder of Technorati, has identified time and people as the scarce resources of this economy.

Ask yourself this question: How long can you sit in a meeting or seminar without once thinking if you have a text message or if you have your mobile with you, get the urge to send a text message because you are becoming bored with the proceedings?  Or worse, use your mobile or PDA to play a game in the middle of the meeting/seminar and then the boss suddenly throws a question at you and you sheepishly admit you weren’t paying attention.

Tech executives are trying to solve this by coming out with applications that will help consumers “pay attention”.  A software is now available for download – Root Markets – that tracks online behavior and provides a picture of personal habits through digital visualizations.

While I subscribe to the experience economy as part of the history of economic progress and having taken part in it, I think the attention economy is not.  I can choose not to be part of it by simply turning off my gadgets, organizing my Inbox and deleting unnecessary messages.  Best of all, I can spend time bonding with my best friends over dinner or a movie or shopping.  Now that would truly be helping the economy. 

Sources:

Graham, Jefferson. (2006).  Photo marketers hope to inspire seller innovation.  USA Today.  Feb 27  www.usatoday.com

Pine, B. Joseph II, James Gilmore.  (1998).  Welcome to the experience economy.  Harvard Business Review  76(4) Jul-Aug ’98 p97

Olsen, Stefanie.  (2006).  Techies ponder how to cut through info overload.  CNet News  Mar 8  www.news.com

(For feedback, comments, suggestions email me at openingpagemb@yahoo.com)