The Experience Economy
When I prepare coffee at home, the beans cost me about 32 cents per cup of coffee. When I want to drink those same coffee beans in the restaurant nearby, I pay 2 euros. Ten times as much. But I am not complaining, because the restaurant buys and prepares the coffee. That is service industry. However, when I want to drink those same coffee beans at, say, San Marco Piazza in Venice, I pay 20 euros per cup of coffee. That is Experience Economy. You do not pay for the coffee bean. You pay for the Experience. And you are prepared to pay hundred times as much compared to drinking the coffee at your home. Welcome to Experience Economy.