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27733 The Experience Economy

UTS: Business: Leisure, Sport and Tourism
Credit points: 6 cp

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

This subject explores the nature and emergence of the Experience Economy as the broad context within which the Arts, Sport, Tourism and Events sectors operate. The distinctive nature of experiences is explored, particularly with regard to the role of the consumer in the co-creation of value within experiences. The particular characteristics of both the demand and supply side of the experience economy are examined, with some emphasis on the role of collective and collaborative behaviour within and between sectors. An understanding of the dynamics of the experience economy leads ultimately to a consideration of the future challenges within the various sectors.

Subject objectives/outcomes

On successful completion of this subject, students should be able to:

  1. demonstrate an understanding of the concept of the experience economy and how production and consumption processes associated with the Arts, Sport, Tourism and Events sectors differ from those associated with other products and services
  2. demonstrate an understanding of social, cultural and psychological factors that drive demand for experiences
  3. demonstrate an appreciation of the distinctive characteristics of the supply-side of experience markets, particularly the importance of collaboration between competitors
  4. demonstrate an understanding of the mutual dependencies between the Arts, Sport, Tourism and Events sectors of the experience economy
  5. analyse, interpret and project trends and influences that will impact on the future demand for and provision of experiences.

Contribution to graduate profile

This subject examines the 'experience economy' as the broad context in which the Arts, Sport, Tourism and Events sectors operate. It provides a contemporary analysis of the nature of 'experiences' as opposed to products and services, and key forces that influence demand and supply in these sectors. Through an examination of the dynamics of the experience economy, students will be equipped to understand and respond to future challenges within their respective sectors.

Teaching and learning strategies

Two hour lectures with a further one hour each week devoted to discussion of prescribed readings, case study analyses, simulation activities and role-playing. Content for this subject will be supported by UTSOnline.

Content

The subject will be delivered in two parts: the first part will develop students' understanding of concepts of managing creatively. The second part will explore these concepts through practical exercises and case studies.

  • The concept of the 'experience economy'
  • Experiences vs products and services
  • Co-creation of value in experiences
  • The emergence of the experience economy
  • Arts, Sport, Tourism and Events as sectors within the experience economy – key trends
  • Demand for experiences: key drivers; determinants of value and key attributes of experiences; social and psychological bases for demand
  • Distinctive supply-side features of the experience economy: motivations of investors and suppliers; market structures; collaboration within competition
  • Collective behaviour and the role of the state in the experience economy: market failure – positive/negative externalities and public good; Interconnections and dependencies between Arts, Sport, Tourism and Events sectors; policy implications
  • Future challenges in the experience economy: scenario-setting; generational change.

Assessment

Assessment item 1: Case Study Report (Individual)

Objective(s): 2, 3, 5
Weighting: 50%
Task: This addresses objectives 2, 3 and 5.

Assessment item 2: Examination (Individual)

Objective(s): 1-5
Weighting: 50%
Task: This addresses objectives 1-5.

Recommended text(s)

Faculty of Business (2006) Guide to Writing Assignments, Faculty of Business, University of Technology, Sydney.

Indicative references

Boswijk, A, Thijssen, T and Peelen, E. (2007) The Experience Economy: a New Perspective. Amsterdam: European Centre for the Experience Economy.

Bull, A (1995) The Economics of Travel and Tourism. Melbourne: Longman.

Caves, RE (2000) Creative Industries: Contracts between Art and Commerce. Cambridge MA: Harvard University Press.

Dwyer, L and Forsyth, P. (eds) (2006) International Handbook on the Economics of Tourism. Cheltenham: Elgar.

Forster, J and Pope, N. (2004) The Political Economy of Global Sporting Organisations. London: Routledge.

Gerrard, B. (ed) The Economics of Association Football. Cheltenham: Elgar.

Getz, D (2007) Event Studies: Theory, Research and Policy for Planned Events. Oxford: Butterworth-Heinemann.

Gilmore, JH and Pine, BJ (2002) Differentiating hospitality operations via experiences. Cornell HRA Quarterly, 43(3), 87-96.

Gilmore, JH and Pine, BJ (2007) Authenticity: What Consumers Really Want. Boston: Harvard Business School Press.

Ginsburgh, VA and Menger, PM (eds) (1996) Economics of the Arts – Selected Essays. Oxford: Elsevier.

Gratton, C and Taylor, P (2000) Economics of Sport and Recreation. London: Spon.

Hayes, D and McLeod, N. (2007) Packaging places: designing heritage trails using an experience economy perspective. Journal of Vacation Marketing, 13(1), 45-58.

Heilbrun, J and Gray, CM (2001) The Economics of Art and Culture. New York: Cambridge University Press.

Hemmington, N. (2007) From service to experience: understanding and defining the hospitality business. The Service Industries Journal, 27(6), 747-755.

Hesmondhalgh, D. (2007) The Cultural Industries. London: Sage.

Hjorth, D and Kostera, M. (eds) (2007) Entrepreneurship and the Experience Economy. Copenhagen: Copenhagen Business School Press.

Jackson, J, McIver, R and Bajada, C. (2007) Economic Principles, 2nd ed. Sydney: McGraw Hill.

Jansen-Verbeke, M, Priestley, G.K and Russo, A.P. (eds) (2008) Cultural Resources for Tourism. New York: Nova.

Klamer, A. (1996) The Value of Culture. Amsterdam: Amsterdam University Press.

Oh, H, Fiore, AM and Jeoung, M (2007), Measuring experience economy concepts: tourism applications. Journal of Travel Research, 46(2), 119-132.

Pine, BJ and Gilmore, JH (1999) The Experience Economy: Work Is Theatre and Everyday Business a Stage. Boston: Harvard Business School Press.

Richards, G. (ed) (2001) Cultural Attractions and European Tourism. Cambridge MA: CABI.

Rosentraub, M (1999) Major League Losers: the Real Costs of Sport and Who's Paying for It. New York, Basic.

Sandy, R, Sloane, P and Rosentraub, M. (2004) The Economics of Sport: An International Perspective. Basingstoke: Palgrave Macmillan.

Sheehan, RG (1996) Keeping Score: the Economics of Big Time Sport. South Bend: Diamond Communications.

Shone, A and Parry, B (2004) Successful Event Management, 2nd ed. London: Thomson.

Sinclair, MT and Stabler, M (1997) Economics of Tourism. London: Routledge.

Sundbo, J and Darmer, P (eds) (2008) Creating Experiences in the Experience Economy. Cheltenham: Elgar.

Towse, R (ed) (2003) A Handbook of Cultural Economics. Cheltenham: Elgar.

Tribe, J (2005) The Economics of Recreation, Leisure and Tourism, 3rd ed. Oxford: Butterworth-Heinemann.

Vanhove, N (2005) The Economics of Tourist Destinations. Amsterdam: Elsevier.

Zimbalist, A (ed) (2001) The Economics of Sport: Volume II. Cheltenham: Elgar.