Product Evolution in the Experience Economy: How to Develop a Welcoming Experiential Offering

Purpose This article argues for how products evolved in the experience economy and discusses production strategies of the experiential product.Design/methodology/approach Drawing upon the theories of human motivation, experience economy, experiential marketing, value co-creation, and co-productive offering, this paper develops an experiential product evolution model. Given that the fulfillment of the need for self-actualization will lead to the ultimate satisfaction, this study proposes the upper stage of experiential products from the perspective of the sense of self-actualization. Being a research-based paper, the topic is approached by theoretical analysis and conceptual development.Findings The model of how the experiential product evolved has been developed, five stages of the evolutionary progress are distinguished: the utilitarian product, the pleasurable product, the collaborative product, the participative product, and the self-conductive product. The experiential product will become co-productive instead of unilateral productive and finally be self-conductive. The paper regards the enterprise as an experience stager, a consumer assistant, and the customer as the ultimate producer of the experience. Meanwhile, comparisons show that traditional products are designed to emphasize utilitarian functions, while experiential products focus on providing pleasurable experiences derived from the customer’s creation and self-actualization. Drawing on the analysis, a conceptual model of experience formation process is developed.Research Implications This study posits that the experiential product evolution is driven by increased customer participation. The analysis provided a comprehensive framework for experiential product design. The comparison between traditional and experiential products elucidates key concepts such as the source product, the final product, the collaborative enterprise, and the self-conductive consumer. The findings on the relationship between enterprises and customers will enrich the literature on experience economy and experiential marketing.Practical Implications The proposed model provides a clear guideline for designing experiential products, identifying aspects that can enhance the value proposition. It defines the types of experiences that should be incorporated to create more welcoming products. An empirical validation of the five-stage evolution model through imagery evidence in tourist destinations is presented. This study adopts a cross-industry perspective, which is applicable to various segments of experience industry, such as the hospitality, tourism, and education sectors, as well as to the agricultural, manufacturing, and service industry. The findings of this paper may assist experience designers and business managers in their work.Originality/value The concept of peak experience has been discussed for several years, this research explores a commercial approach to achieving this optimal state of happiness.