Introduction to Travel & Tourism Exam 1
UPDATED ACTUAL Exam Questions and
CORRECT Answers
When was the term "Experience economy" termed and by who - CORRECT ANSWER -
July 1998 issue Harvard Business Review published Joseph Pine and James Gilmore's article
"Welcome to the experience economy".
After P&G published their article what was next on their agenda - CORRECT ANSWER -
they published their book The Experience economy in 1999
What are P&G's argument in terms of the experience economy? - CORRECT ANSWER -
They argue that just as the manufacturing sector of the economy superseded ag, and the service
economy has superseded manufacturing, the experience economy must gain ascendancy as the
last, best hope for future economic growth
Goods and services are - CORRECT ANSWER - no longer enough, unless we make a
transition from manufacturing and service to next phase of the economy- we will have problems
Management and marketing experts and researchers, together with scholars researching t&t -
CORRECT ANSWER - now recognize the importance and potential of the experience
economy, there is consensus among such experts around the world the the experience economy
is the essential next step, without which prospects for the future of modern economies are dim
indeed
What is the experience economy? Coffee example - CORRECT ANSWER - First- extract
commodities (Coffee beans)
-- low in market value
--generic customer need
--undifferentiated diversity
Second- make goods (coffee in a bag)
--medium in market value
,--medium in customer need
--medium in diversity
Third- Deliver services (cup of coffee)
--more in market value
--more in customer needs
--more in diversity
Fourth- Provide experiences (Starbucks)
--high in market value
-- specific customer need
--different and unique
What is the key to progression of economic values and what is the solution - CORRECT
ANSWER - Commoditize
solution: Customize- differentiate- make each product as specific as possible to the individual
buyer
What does commoditize mean - CORRECT ANSWER - the act of making a process,
good, or service easy to obtain by making it as uniform, plentiful, and affordable as possible
-something becomes commodities when one offering is nearly indistinguishable from another
-As a result of technological innovation, broad-based education, and frequent iteration, goods
and services become commoditized, and therefore, widely accessible
What is the progression of economic values in terms of "happy birthday to you" - CORRECT
ANSWER - -sing happy birthday $0
-here is an orange (commodity) $.50
-I have baked a cake and decorated it (manufactured goods) $3
-I went out and bought you a cake $20 (manufactured good)
-I have arranged a party for you as well as bough the cake (service economy) $200
-Lets take everyone to Chuck-E-Cheese (Service economy/experience economy) $200
, -Hire a professional party planner for your birthday, with presents for everyone who comes, and
great entertainment at a wonderful resort (experience economy) $2000 & up
What are examples of the experience economy? - CORRECT ANSWER - Disney world,
Starbucks, hard rock cafe, Chuck-E-Cheese, Game-works, Build-A-Bear, The gambling industry
What are the best examples of the experience economy? - CORRECT ANSWER - Travel
and tourism and then gambling industry
How do you distinguish the experience economy from the service economy - CORRECT
ANSWER - -value added- input added by the customer
-time spent- method of supply is sustained through time
-participation- something happens in the customer
-memory- durable takeaways from experience
P&G's definition of experience: an experience occurs when a company - CORRECT
ANSWER - intentionally uses services as the stage and goods as props, to engage
individual customers in a way that creates a memorable event (Theatre model)
Hunnicutt's definition of an experience: an experience - CORRECT ANSWER - that a
customer is willing to buy= one in which more value is added and input provided by the
customer
-a continuum- there is no way to make a clear distinction between service and experience
-value added by customer
-value happens inside the customer and is largely subjective
What is also involved in the experience economy? - CORRECT ANSWER - -marketing
-best buy and other retailers that are improving and selling the experience of shopping
-interactive vending machines
--ex. extra tall coke machine, dancing with machine
UPDATED ACTUAL Exam Questions and
CORRECT Answers
When was the term "Experience economy" termed and by who - CORRECT ANSWER -
July 1998 issue Harvard Business Review published Joseph Pine and James Gilmore's article
"Welcome to the experience economy".
After P&G published their article what was next on their agenda - CORRECT ANSWER -
they published their book The Experience economy in 1999
What are P&G's argument in terms of the experience economy? - CORRECT ANSWER -
They argue that just as the manufacturing sector of the economy superseded ag, and the service
economy has superseded manufacturing, the experience economy must gain ascendancy as the
last, best hope for future economic growth
Goods and services are - CORRECT ANSWER - no longer enough, unless we make a
transition from manufacturing and service to next phase of the economy- we will have problems
Management and marketing experts and researchers, together with scholars researching t&t -
CORRECT ANSWER - now recognize the importance and potential of the experience
economy, there is consensus among such experts around the world the the experience economy
is the essential next step, without which prospects for the future of modern economies are dim
indeed
What is the experience economy? Coffee example - CORRECT ANSWER - First- extract
commodities (Coffee beans)
-- low in market value
--generic customer need
--undifferentiated diversity
Second- make goods (coffee in a bag)
--medium in market value
,--medium in customer need
--medium in diversity
Third- Deliver services (cup of coffee)
--more in market value
--more in customer needs
--more in diversity
Fourth- Provide experiences (Starbucks)
--high in market value
-- specific customer need
--different and unique
What is the key to progression of economic values and what is the solution - CORRECT
ANSWER - Commoditize
solution: Customize- differentiate- make each product as specific as possible to the individual
buyer
What does commoditize mean - CORRECT ANSWER - the act of making a process,
good, or service easy to obtain by making it as uniform, plentiful, and affordable as possible
-something becomes commodities when one offering is nearly indistinguishable from another
-As a result of technological innovation, broad-based education, and frequent iteration, goods
and services become commoditized, and therefore, widely accessible
What is the progression of economic values in terms of "happy birthday to you" - CORRECT
ANSWER - -sing happy birthday $0
-here is an orange (commodity) $.50
-I have baked a cake and decorated it (manufactured goods) $3
-I went out and bought you a cake $20 (manufactured good)
-I have arranged a party for you as well as bough the cake (service economy) $200
-Lets take everyone to Chuck-E-Cheese (Service economy/experience economy) $200
, -Hire a professional party planner for your birthday, with presents for everyone who comes, and
great entertainment at a wonderful resort (experience economy) $2000 & up
What are examples of the experience economy? - CORRECT ANSWER - Disney world,
Starbucks, hard rock cafe, Chuck-E-Cheese, Game-works, Build-A-Bear, The gambling industry
What are the best examples of the experience economy? - CORRECT ANSWER - Travel
and tourism and then gambling industry
How do you distinguish the experience economy from the service economy - CORRECT
ANSWER - -value added- input added by the customer
-time spent- method of supply is sustained through time
-participation- something happens in the customer
-memory- durable takeaways from experience
P&G's definition of experience: an experience occurs when a company - CORRECT
ANSWER - intentionally uses services as the stage and goods as props, to engage
individual customers in a way that creates a memorable event (Theatre model)
Hunnicutt's definition of an experience: an experience - CORRECT ANSWER - that a
customer is willing to buy= one in which more value is added and input provided by the
customer
-a continuum- there is no way to make a clear distinction between service and experience
-value added by customer
-value happens inside the customer and is largely subjective
What is also involved in the experience economy? - CORRECT ANSWER - -marketing
-best buy and other retailers that are improving and selling the experience of shopping
-interactive vending machines
--ex. extra tall coke machine, dancing with machine
