Experience Economy

Experience Economy

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In 1966, Yoko Ono presented a conceptual art piece—a simple apple. She challenged viewers to consider whether the object was just itself or something more. Specifically, the latter symbolizes the cycle of life, death, and decay, as the apple naturally rots over time. The design of the apple, placed on a pedestal in a gallery, along with its positioning, lighting, and presentation, evokes an emotional response. This also hints at a new trend in today’s economy.

“The success of a product lies not just in its basic utility but in its meaning in the lives of its users.”

Ellen Lupton, Design is Storytelling

In today’s world, economic value extends far beyond merely producing goods or offering services. We now live in what scholars B. Joseph Pine II and James H. Gilmore famously called the “Experience Economy.” It marks a new phase of economic growth, where success depends on creating memorable, emotionally engaging experiences. These experiences have become the new currency for economic development.

This blog explores how designing experiences transforms products and services into memorable moments that foster loyalty, satisfaction, and trust. This approach helps gain a competitive edge in a crowded marketplace.

Emotional Design and Perceived Value

According to Don Norman’s 2004 study on emotional design, three levels influence user experience: visceral, behavioral, and reflective.

The visceral design pertains to immediate reactions to visual and tactile aspects, such as color, shape, and texture, which create feelings of pleasure or curiosity. For example, with Coca-Cola soda, the bright red color, curvy bottle, and the sound of the fizz immediately trigger pleasure and anticipation. These sensory details make the product visually appealing and instantly recognizable.

Behavioral design focuses on usability and user interactions with the product. Drinking Coca-Cola offers a consistent experience—its cold temperature, sweet taste, and refreshing carbonation all deliver a satisfying experience. The bottle’s ergonomic shape also fits comfortably in the hand, further enhancing usability.

Reflective design examines the ideas of meaning, self-image, and memory. Coca-Cola evokes memories, traditions, and personal identity — whether it’s sharing a Coke with friends or watching nostalgic holiday ads featuring the iconic Coca-Cola Santa. The brand represents happiness, togetherness, and a sense of timelessness.

Coca-Cola advertisement. Image by Coca-Cola Company

When these three levels work together, products can foster emotional connections that boost perceived value. Consumers are often willing to pay a premium for items that make them feel good, understood, or inspired.

Aesthetics as an Emotional Trigger

Another essential aspect of the experience economy is aesthetics. Professor Paul Hekkert has demonstrated that aesthetic pleasure fosters trust and competence, influencing perceptions of quality. The “aesthetic-usability effect” suggests that visually appealing designs are often seen as more straightforward to use.

For example, Apple’s minimalist design approach evokes feelings of joy and pride, reinforcing its premium brand image. Likewise, brands like Tesla and Dyson employ sleek, futuristic aesthetics to communicate innovation, confidence, and aspiration, transforming emotion into measurable value.

Hills Science Diet Pet Food – Case Study

A good example of how product design influences emotional connection is a well-known pet food product. In 2019, Hill’s Science Diet experienced a downward trend sales. Despite using high-quality ingredients and having a strong nutritional profile, the product looked outdated compared to newer, more natural competitors. “We were standing to the side, giving good advice but not connecting emotionally with the consumer,” said Jen Giannotti-Genes, Global Brand Design Director. They identified two main problems: lack of emotional resonance and packaging navigation issues, such as a white-bag background and cluttered visual hierarchy.

Science Diet Hills packing before and after. Image by designanalytics.com

To address the issue, the agency decided to engage pet owners through relatable photography. They moved away from an overly “scientific” packaging approach to one that highlights the pet as the primary focus. Photography featured pets with distinct personalities—quirked eyebrows, perked ears—creating relatable characters that connected with consumers.

Additionally, the team kept the recognizable white-bag asset but repurposed it as a “canvas” for the pet character. They also simplified typography, reduced clutter, and improved hierarchy, making navigation more straightforward for the consumer.

During the six months following the redesign, the brand experienced a 17% growth compared to the previous six months, resulting in an annualized increase of approximately $100 million.

Conclusion

The rise of the Experience Economy marks a significant shift in how value is created and perceived. As demonstrated by theories such as Norman’s emotional design framework and Hekkert’s principles of aesthetic pleasure, emotional engagement has become a crucial factor in consumer behavior and brand success. The example of Hill’s Science Diet demonstrates that design strategies based on empathy, visual clarity, and emotional appeal can significantly improve both market performance and brand perception.

Integrating emotional design and aesthetic elements transforms products and services into engaging experiences that go beyond mere functionality. Here, design is more than just visuals or practicality; it acts as a strategic asset to generate economic value, build lasting loyalty, trust, and emotional bonds between consumers and brands.

Mauricio Zúñiga Avatar

About the author

Hello, My name is Mauricio Zúñiga. I am an enthusiastic entry-level UX designer who is captivated by mind-blowing yet easy-to-navigate websites. I excel in converting abstract concepts into mesmerizing, user-friendly web experiences, always focusing on the user’s essential needs.

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