Technology Impact On The Experience Economy

Technology Impact on the Experience Economy

  • Introduction

    Each wave of economic development so far has been characterised by a particular feature. For instance, the agrarian economy relies on farming, whereas the service economy thrives on services rather than manufactured products. The term “experience economy” was first used in 1999 to describe the emerging step in economic development (Pine & Gilmore 2013). In an experience economy, customer experiences become the main driving force behind purchasing decisions and thus influence the growth of the business. As explained by Frias (2014), customers are no longer satisfied by products and services only; they want to have an excellent experience throughout the process of selecting, buying and using a product or service. The implication of this wave of development for businesses is that they have to develop and offer new, exciting features to distinguish their products or services from the ones provided by competitors.

    The development of technology is also a significant trend that affects the growth of businesses all over the globe. New technologies can help businesses to improve efficiency and to provide services that satisfy the customers’ evolving needs. In the age of experience economy, technologies can also offer methods for delivering experiences in order to customers. However, additionally, there are many concerns amongst businesses about the particular technology backlash, which usually was set off by people’s negative experiences along with some technologies. The current paper will try to examine the effect of technology upon the development associated with the knowledge economy, mainly because well as discuss the role associated with technology backlash within the use of technologies.

    Operations plus Technology

    First associated with all, operational systems can be utilized by businesses in order to improve specific procedures or get them to automated, thus reducing expenses and improving success. In tourism plus hospitality, technology will be used to improve a number of processes, which includes customer support, security, advertising, and market study. For instance, resorts widely use technologies to improve info security (Law, Buhalis & Cobanoglu 2014). Online technologies are usually also important within tourism and occasions management, because they allow guests to create reservations online, check-in with regard to their flights ahead of time, and access client services quickly as needed. Internal processes may also be enhanced using systems. For example, because facial recognition will be growing in recognition, it may discover application in occasions management, allowing with regard to improved security plus smoother check-in associated with guests.

    Another essential trend within tourism that grew to become possible due in order to the advancements within technology is wise tourism. According in order to Gretzel et ing. (2015), smart travel and leisure includes the usage of programs to enhance tourists’ experiences. As component of smart travel and leisure initiatives, hotels may build apps that will provide personalised suggestions regarding locations to go to, dining, and activities based on the particular user’s profile plus available data. Besides, these apps can be used for contacting customer services and submitting requests without contacting the hotel’s reception. The use of smart technologies in tourism thus allows enhancing customer experiences while at the same time improving the hotel’s operations, thus contributing to the development of the experience economy.

    Delivery of Experiences

    Technology can also be used to improve the delivery of experiences to customers. As noted by Neuhofer, Buhalis, and Ladkin (2014), customer experiences can be enhanced using virtual reality or technology mediation. Further development of virtual reality, for instance, can open an entirely new market niche in tourism and events management by allowing companies to bring experiences to customers from other locations. Using virtual reality devices, customers can participate in various events or visit locations without leaving their home. Further development of virtual reality technology would make it possible to convey a sense of place, thus enabling customers to have a full experience of visiting a particular event or destination. Therefore , virtual reality is a promising technology that will probably help the growth from the experience economy.

    Another way in order to enhance the delivery associated with experiences to clients is to use technology in order to tailor experiences in order to the needs associated with individuals. The advancement of technology offers facilitated the trade of information, permitting companies to collect data about users’ preferences and passions. This data can easily be used in order to personalise services, therefore delivering experiences straight to customers prior to they make the request. Therefore, making use of technology, companies can easily improve customer fulfillment and earn more profits, thus also supporting the experience economy.

    Technology Backlash

    Technology backlash is a growing concern for businesses that rely on the particular use of technologies to improve client experience. Technology repercussion is largely focused upon the worries associated with users concerning the advancement of technology later on, as well because its misuse nowadays (Sutcliffe & vonseiten Kameke 2018). With regard to example, many individuals have concerns regarding the privacy plus security info, specifically in the lighting of recent information leaks from Fb along with other large businesses. Others also be concerned that technologies will certainly replace real-life conversation and experiences. The particular technology backlash can have a negative impact on the make use of of technology, specifically if it causes people to restrict the usage of particular technologies or oppose fresh developments in the particular tech industry. This particular can happen in case users’ concerns are certainly not addressed by companies that are positively using technology in order to deliver services.

    Nevertheless, additionally it is essential to note that will the share associated with people who accept technology and make use of it regularly in spite of having some issues is still common. Very few individuals avoid using products or maybe the Internet, which usually means that it has an opportunity to invert technology backlash. Within order to perform that, it will be crucial to function around the aspects associated with technology that trigger it. For example, enhancing information security plus promoting a secure on the internet environment may help within addressing technology repercussion and encourage have confidence in in new systems. By using a good appropriate technique to tackle the users’ issues, companies can boost their reputation and help the use of technology, reversing the backlash.

    Conclusion

    Today, many businesses, especially in the field of tourism and events management, operate in an experience economy. Whereas in the previous steps of economic development, customers’ buying behaviour rested mainly on their needs for products and services, today, customers make purchases based on the experiences they provide. Therefore , companies should seek to enhance customer experiences and find new ways of delivering them. Technology can help companies to generate more profits by improving operations and customer experiences, thus contributing to the growth of the experience economy. Future development of technology could also provide new ways of delivering experiences, such as virtual reality technologies. Nevertheless, the technology backlash that is evident in today’s society could affect the use of technology and halt the development of the experience economy. To prevent this effect, it is critical for companies to address the users’ concerns and to offer secure and reliable technologies that enhance customers’ experiences.

    Reference List

    Frias, A 2014, ‘Marketing in the “total experience” economy’, Forbes, Web.

    Gretzel, U, Sigala, M, Xiang, Z & Koo, C 2015, ‘Smart tourism: foundations and developments’, Electronic Markets, vol. 25, no. 3, pp. 179-188.

    Law, R, Buhalis, D & Cobanoglu, C 2014, ‘Progress on information and communication technologies in hospitality and tourism’, International Journal of Contemporary Hospitality Management, vol. 26, no. 5, pp. 727-750.

    Neuhofer, B, Buhalis, D & Ladkin, A 2014, ‘A typology of technology‐enhanced tourism experiences’, International Journal associated with Tourism Research, volume. 16, no. four, pp. 340-350.

    Pine, BJ & Gilmore, GH 2013, ‘The experience economic climate: past, present plus future’, in M Sundbo & Farrenheit Sørensen (eds), Handbook on the encounter economy, Edward Elgar Publishing, Cheltenham, pp. 21-44.

    Sutcliffe, H & vonseiten Kameke, C 2018, ‘Why all of us need to take hold of the tech backlash’, World Economic Forum, Web.

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