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Acknowledgment We thank the Southern Rural Development Center for funding this project. We also thank Steve Mickelson, Extension Specialist at Iowa State University, for his review of the project and Keila Tyner and Calista J. Yoo for their creative and technical assistance.

Table of Contents
Lesson 1. An Introduction to Experience Economy Strategies Lesson 2. Experience Economy Strategies Adding Value to Rural Businesses

Lesson 3. Aligning Experience Economy Strategies of the Business and E-commerce Website
Lesson 4. Assessing Experience Economy Strategies of the Business Lesson 5. Assessing Experience Economy Strategies of the E-commerce Website

Lesson 1.1: A Progression of Economic Value

from Commodities to Experience

Lesson 1.2: Defining the Four Experiences (4Es)

Successful small businesses focus on

Vision Innovation Opportunity recognition Passion for change

Customer-focused strategy
Exceptional staffing Extraordinary service

Customers want value

High quality products Superior customer service

Positive, engaging, memorable experiences

Experiential value

Competitive advantages of experiential value

Satisfies customers fully Builds loyal customers Increases customers willingness to pay more Encourages positive word-of-mouth

Recruits new customers

Enhances business image Differentiates from competitors

Added experiential value for customers: An example of Starbucks

Interior Design
Rich warm colors Contemporary furnishings

Music Media Bars

Music heard in store Recommendations of music

Stylized graphics

CD burned from selected music of vast library

Pine & Gilmores Progression of Value

Sources of economic growth in the U.S. have progressed from commodities to goods and services, and now to experiences (Pine and Gilmore, 1999)
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Pine & Gilmores Progression of Value

The Experience Economy reflects expansion of customer expectations to include positive experiences In addition to quality goods and superior customer service, businesses must add value in new ways to differentiate themselves

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Progression of Value: An Example of Corn

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Four experiences based on level and form of customers involvement

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Definition of 4Es: Educational Experiences

Increase the customer's skills and enhance his/her knowledge through active participation in the experience

Applications for four different businesses

Accommodation

/ B&B

Restaurant

Retail

Rural tourism

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Definition of 4Es: Esthetic Experiences

Entail customer enjoyment of an enriched, unique physical design. The customer enjoys passively appreciating or just being in a setting of the business. Applications for four different businesses
Accommodation

/ B&B

Restaurant

Retail

Rural tourism

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Definition of 4Es: Escapist Experiences

Require that the customer actively participate in the events of a real or virtual environment. The customer shapes or contributes to the experience, which offers the customer a way of taking on a new persona. Applications for four different businesses
Accommodation

/ B&B

Restaurant

Retail

Rural tourism

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Definition of 4Es: Entertainment Experiences

Entail watching the activities and/or performances of others. The customer is not actively involved in the creation of the entertainment, but the mind is actively engaged during appreciation of the event Applications for four different businesses
Accommodation

/ B&B

Restaurant

Retail

Rural tourism

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Educational Experience: Accommodation/B&B

A B&B provides seasonal educational experiences about traditional Minnesota farm life, such as bread baking in an outdoor oven, making homemade applesauce, and berry picking.

Round Barn Farm Red Wing, MN

http://www.roundbarnfarm.co m/attractions.htm

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Educational Experience: Restaurant

A local restaurant offers hands-on cooking classes, plus special events such as wine tasting, entertaining, and birthday parties.

The Chopping Block Chicago, IL

http://www.thechoppingbloc k.net/

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Educational Experience: Retail

A fabric store sells traditional/contemporary quilting fabric and supplies and teaches quilting classes to customers.

Cow Country Fabrics and Quilts Dorchester, WI

http://www.cowcountryfabri cs.com/

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Educational Experience: Rural Tourism

A Dutch tourism attraction retail store and factory provides an opportunity for patrons to observe traditional wooden shoe carving. Visitor also can talk with artisans as they create wooden shoes and delftware in the old world tradition.

Dutch Village Holland, MI

http://www.dutchvillage.com/park/acti vities.html

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Esthetic Experience: Accommodation/B&B

Landscape and interior design of this B&B offer an esthetic experience.

Beautiful B&B Yarra Valley, Australia

http://www.worldvacationre ntals.net/detailed/1157.html

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Esthetic Experience: Restaurant

Art-lined walls and accent lighting create an esthetic experience in this otherwise understated restaurant.

Caf Des Amis Breaux Bridge LA

http://www.roadfood.com/R eviews/Overview.aspx?RefI D=1900

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Esthetic Experience: Retail

The picture-perfect exterior along with beautiful products displayed inside offer an esthetic experience.

Belgique Ptisserie & Chocolatier Kent, CT

http://www.roadfood.com/R eviews/Overview.aspx?RefI D=491

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Esthetic Experience: Rural Tourism

Brilliant rivers and mountains of orange pumpkins of this festival offer an esthetic experience.

Pumpkin Festival Half Moon Bay, CA

http://www.sfc.ucdavis.edu/ agritourism/agritour.html

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Escapist Experience: Accommodation/B&B

Murder mystery dinners held in a B&B provide an evening of mystery and intrigue. Each guest plays a character and attempts to solve the murder while being served a delicious gourmet meal.

Maple Hill Manor, KY

http://www.bbonline.com/ky/maplehill/ murdermystery.html

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Escapist Experience: Restaurant

A family-run restaurant offers a wide variety of activities for its customers, which make them feel like rangers by bottle-feeding cows.

Flying B Ranch, SD
http://www.flyingb.com/Calf %20Feeding.jpg

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Escapist Experience: Retail

Bike shop customers can try out demo mountain bikes on the mountain trail, thus, escaping from their routine life.

http://www.beautifulvista.co m/Recent_Photos/Bike_Rid e_Photos/Bob_Mountain_Bi king.JPG

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Escapist Experience: Rural Tourism

A small farmhouse offers a mini maze for little kids to wander through alongside a cornfield maze adventure for adults.
Scotts Zellwood, FL.
http://www.scottszellwoods weetcorn.com/cornmaze.ht m

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Entertainment Experience: Accommodation/B&B

A B&B owner, dressed in colonial garb, shares recipes, cooking secrets, and narratives from the 18th century.

Elias Child House B&B, Woodstock, CT

http://www.bbonline.com/ct/ eliaschild/specials.html

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Entertainment Experience: Restaurant

Servers entertain customers by singing for their supper at a restaurant.

Flying T Chuckwagon Supper & Show Rapid City, SD.

http://www.flyingt.com/

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Entertainment Experience: Retail

A boutique pet store offers a unique private birthday party for a pet, with the stores owner providing birthday cake and entertaining music.

Metropawlis Milwaukee, WI
http://www.metropawlis.co m/

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Entertainment Experience: Rural Tourism

Spectators cheer on their favorite pig at the World-Class Pig Races held on a farm.
Old MacDonalds Farm, SD
http://www.oldmacsfarm.bla ckhills.com/Info/pr0402.jpg

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