IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v64y2018icp55-63.html
   My bibliography  Save this article

Experience economy in hospitality and tourism: Gain and loss values for service and experience

Author

Listed:
  • Chang, Seohee

Abstract

In the experience economy, distinct from the service economy, industry revenue increases according to the extent to which consumers enjoy their experience. This study explores the experience economy from various viewpoints, but particularly by examining whether consumers perceive differences in the monetary values between experience and service, as well as perceive gain and loss values differently in the same experiential component. The online survey was conducted with 550 adult participants. Data were analyzed using descriptive analysis, paired t-test, and multivariate analysis (MANOVA). The findings show that consumers still tend to perceive the service industry more important than the experience industry. However, as the loss values of experience are found to be larger than its gain values, it is very important to convince consumers to not lose an opportunity to experience future experiential consumption.

Suggested Citation

  • Chang, Seohee, 2018. "Experience economy in hospitality and tourism: Gain and loss values for service and experience," Tourism Management, Elsevier, vol. 64(C), pages 55-63.
    • Handle: RePEc:eee:touman:v:64:y:2018:i:c:p:55-63
    DOI: 10.1016/j.tourman.2017.08.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261517717301802
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.tourman.2017.08.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 375-406.
    2. Sørensen, Flemming & Jensen, Jens Friis, 2015. "Value creation and knowledge development in tourism experience encounters," Tourism Management, Elsevier, vol. 46(C), pages 336-346.
    3. Gentile, Chiara & Spiller, Nicola & Noci, Giuliano, 2007. "How to Sustain the Customer Experience:: An Overview of Experience Components that Co-create Value With the Customer," European Management Journal, Elsevier, vol. 25(5), pages 395-410, October.
    4. Capriello, Antonella & Mason, Peyton R. & Davis, Boyd & Crotts, John C., 2013. "Farm tourism experiences in travel reviews: A cross-comparison of three alternative methods for data analysis," Journal of Business Research, Elsevier, vol. 66(6), pages 778-785.
    5. Laing, Jennifer & Wheeler, Fiona & Reeves, Keir & Frost, Warwick, 2014. "Assessing the experiential value of heritage assets: A case study of a Chinese heritage precinct, Bendigo, Australia," Tourism Management, Elsevier, vol. 40(C), pages 180-192.
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Fernandes, Teresa & Cruz, Mariana, 2016. "Dimensions and outcomes of experience quality in tourism: The case of Port wine cellars," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 371-379.
    8. Komppula, Raija & Gartner, William C., 2013. "Hunting as a travel experience: An auto-ethnographic study of hunting tourism in Finland and the USA," Tourism Management, Elsevier, vol. 35(C), pages 168-180.
    9. Yan, Bing-Jin & Zhang, Jie & Zhang, Hong-Lei & Lu, Shao-Jing & Guo, Yong-Rui, 2016. "Investigating the motivation–experience relationship in a dark tourism space: A case study of the Beichuan earthquake relics, China," Tourism Management, Elsevier, vol. 53(C), pages 108-121.
    10. Kahneman, Daniel & Thaler, Richard H, 1991. "Economic Analysis and the Psychology of Utility: Applications to Compensation Policy," American Economic Review, American Economic Association, vol. 81(2), pages 341-346, May.
    11. Shim, Changsup & Santos, Carla Almeida, 2014. "Tourism, place and placelessness in the phenomenological experience of shopping malls in Seoul," Tourism Management, Elsevier, vol. 45(C), pages 106-114.
    12. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    13. Daniel Kahneman & Richard H. Thaler, 2006. "Anomalies: Utility Maximization and Experienced Utility," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 221-234, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pedro, Rui & Mendes, Júlio & Matos, Nelson & Ascenção, Mário & Pinto, Patrícia, 2021. "How tourists perceive, create and encode the memorable tourism experience," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 9(4), pages 296-325.
    2. Živojinović, I. & Weiss, G. & Wilding, M. & Wong, J.L.G. & Ludvig, A., 2020. "Experiencing forest products – An innovation trend by rural entrepreneurs," Land Use Policy, Elsevier, vol. 94(C).
    3. Jinsoo Hwang & Kyuhyeon Joo & Joonho Moon, 2023. "Relationships among Experience Economy, Tour Quality, Tour Satisfaction, and Word-of-Mouth in the Senior Tourism Context in Korea: The Moderating Role of Tour Guiding Services," Sustainability, MDPI, vol. 15(8), pages 1-13, April.
    4. Juan Antonio Jimber del Río & Ricardo D. Hernández-Rojas & Arnaldo Vergara-Romero & Mª Genoveva Dancausa Dancausa Millán, 2020. "Loyalty in Heritage Tourism: The Case of Córdoba and Its Four World Heritage Sites," IJERPH, MDPI, vol. 17(23), pages 1-20, December.
    5. ShiNa Li & Yixin Liu & Shanshan Dai & Mengxin Chen, 2022. "A review of tourism and hospitality studies on behavioural economics," Tourism Economics, , vol. 28(3), pages 843-859, May.
    6. Robinson, Richard N.S. & Baum, Tom & Golubovskaya, Maria & Solnet, David J. & Callan, Victor, 2019. "Applying endosymbiosis theory: Tourism and its young workers," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    7. Hanife Aysen Karagoz & Tevfik Demirciftci & Ezgi Erkmen, 2022. "Local Restaurants’ Effect on Tourist Experience: A Case from Istanbul," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 65(65), pages 313-327, June.
    8. Yong, Shih Ween & Cheah, Jun-Hwa & Lim, Xin-Jean & Ng, Siew Imm & Leong, Yee Choy, 2023. "How to make you spend more in the airport? An investigation towards ECSI model on willingness to spend more in airport," Journal of Air Transport Management, Elsevier, vol. 112(C).
    9. António Azevedo, 2023. "Pull and Push Drivers of Giant-Wave Spectators in Nazaré, Portugal: A Cultural Ecosystem Services Assessment Based on Geo-Tagged Photos," Land, MDPI, vol. 12(2), pages 1-23, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hajdu, Tamás & Hajdu, Gábor, 2011. "A hasznosság és a relatív jövedelem kapcsolatának vizsgálata magyar adatok segítségével [Examining the relation of utility and relative income using Hungarian data]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 56-73.
    2. Simona Franzoni & Michelle Bonera, 2019. "How DMO Can Measure the Experiences of a Large Territory," Sustainability, MDPI, vol. 11(2), pages 1-14, January.
    3. Floris Heukelom, 2007. "Who are the Behavioral Economists and what do they say?," Tinbergen Institute Discussion Papers 07-020/1, Tinbergen Institute.
    4. Mitra, Atul & Jenkins, G. Douglas & Gupta, Nina & Shaw, Jason D., 2015. "The utility of pay raises/cuts: A simulation experimental study," Journal of Economic Psychology, Elsevier, vol. 49(C), pages 150-166.
    5. Floris Heukelom, 2007. "Kahneman and Tversky and the Origin of Behavioral Economics," Tinbergen Institute Discussion Papers 07-003/1, Tinbergen Institute.
    6. Carter, Steven & McBride, Michael, 2013. "Experienced utility versus decision utility: Putting the ‘S’ in satisfaction," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 13-23.
    7. Basieva, Irina & Khrennikova, Polina & Pothos, Emmanuel M. & Asano, Masanari & Khrennikov, Andrei, 2018. "Quantum-like model of subjective expected utility," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 150-162.
    8. Daniel Serra, 2019. "La neuroéconomie en question : débats et controverses," CEE-M Working Papers halshs-02160911, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    9. Jan-Emmanuel De Neve & George Ward & Femke De Keulenaer & Bert Van Landeghem & Georgios Kavetsos & Michael I. Norton, 2018. "The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-Being Data," The Review of Economics and Statistics, MIT Press, vol. 100(2), pages 362-375, May.
    10. van Hoorn, Andre, 2016. "Reliability and Validity of the Happiness Approach to Measuring Preferences," MPRA Paper 79977, University Library of Munich, Germany.
    11. Floris Heukelom, 2011. "Behavioral Economics," Chapters, in: John B. Davis & D. Wade Hands (ed.), The Elgar Companion to Recent Economic Methodology, chapter 2, Edward Elgar Publishing.
    12. HAMADI, Malika & RENGIFO, Erick & SALZMAN, Diego, 2005. "Illusionary finance and trading behavior," LIDAM Discussion Papers CORE 2005004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. Haijiao Cui & Bin Cao & Aimei Li & Zhaohui Li, 2023. "A General Model of Subjective Value and Stimulus-Intensity-Sensitive Hedonic Editing Strategy," Journal of Happiness Studies, Springer, vol. 24(3), pages 1191-1217, March.
    14. Elias L. Khalil, 2022. "Solving the income-happiness paradox," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 433-463, September.
    15. Norbert Hirschauer & Mira Lehberger & Oliver Musshoff, 2015. "Happiness and Utility in Economic Thought—Or: What Can We Learn from Happiness Research for Public Policy Analysis and Public Policy Making?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(3), pages 647-674, April.
    16. Daniele Schilirò, 2012. "Bounded Rationality And Perfect Rationality: Psychology Into Economics," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 3(2), pages 99-108.
    17. Christopher K. Hsee & Yuval Rottenstreich & Alois Stutzer, 2012. "Suboptimal choices and the need for experienced individual well-being in economic analysis," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 63-85.
    18. Kontek, Krzysztof, 2010. "Decision Utility Theory: Back to von Neumann, Morgenstern, and Markowitz," MPRA Paper 27141, University Library of Munich, Germany.
    19. Dolan, P. & Hallsworth, M. & Halpern, D. & King, D. & Metcalfe, R. & Vlaev, I., 2012. "Influencing behaviour: The mindspace way," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 264-277.
    20. Feng Dai & Songtao Wu & Yajun Zuang, 2004. "The PD-Utility Function for Prospect Behavior and Related Researches," Others 0403003, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:64:y:2018:i:c:p:55-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.