International Journal of Management, Knowledge and Learning, 9(1), 109–120
Experience Economy in the Context
of Sustainable Development
Monika Klein
University of Szczecin, Poland
Monika Spychalska-Wojtkiewicz
University of Szczecin, Poland
One of the main challenges is the question how sustainable development as-
sumptions can be implemented in practice better and more effectively. This
paper explores the relation between sustainable development trends and ex-
perience economy, with its main aim to describe links of those two ideas.
The authors hypothesized that there is relation between sustainable devel-
opment and experience economy since both ideas have common goals and
are a counterweight to the concept of mass consumption. The aim of the
study is to prove that the concept of experience economics along with its
conscious design in an enterprise can counteract growing consumerism. In
order to verify this hypothesis and achieve the main aim, the author used
triangulation methods combining desk research and qualitative research. The
main research result is that designing experience in organisations will be an
important trend that will allow to meet the current challenges not only eco-
nomic, social but also ecological. It is a very good time for designers for using
their creativity in many different branches of industry.
Keywords: experience economy, sustainable development, experience
design, consumerism
Introduction
Human life is full of experience. What we experience, what stimuli we per-
ceive, how we deal with them and process them affects the kind of people
we become. Homo oeconomicus is also a rational man striving to maximise
profits and making choices because of the economic value of the results of
these decisions.
Although people are not always rational, they have high desire to max-
imise benefits and learn from mistakes that make this maximisation diffi-
cult. The constant need to improve the state of life and the desire to in-
crease the level of possession that goes with it has led to an escalation of
standard consumption – the consumption of goods in order to directly meet
human needs to the level of consumerism – consisting in almost unjustified
real needs, or ecological costs, social acquisition of material goods and
services.
www.issbs.si/press/ISSN/2232-5697/9_109-120.pdf
110 Monika Klein and Monika Spychalska-Wojtkiewicz
In consumerism, consumption has become a key value, determining
even the style and quality of life. It is debatable whether this process has
been designated by people as consumers, driven by new whims in a dy-
namically changing world, or by companies that impose new needs on re-
cipients. Nevertheless, hedonistically understood consumption, as well as
the accompanying cult of ownership transforming into materialism, led to
one of the most important questions of modern times about how not to
over-exploit and protect the environment in which we live.
CO2 emissions, which companies are responsible for, contribute to an
increase in the Earth’s surface temperature, which translates into melting
glaciers and rising water levels. The global deforestation is responsible for
the decrease in animal population and for the increase of the smog phe-
nomenon. Excessive use of natural resources means that in the near future
we will be forced to change our habits, diets and even lifestyles.
Sustainable development responds to the current needs of people with-
out limiting future generations from being able to meet their needs. Sustain-
able development requires partnership and is now generally accepted by not
only politicians but also producers and end users. Nevertheless, its imple-
mentation is not easy and needs effort on the part of the stakeholders.
One of the main challenges is the question how sustainable development
assumptions can be implemented in practice better and more effectively.
This paper explores the relation between sustainable development
trends and experience economy, with main aim to describe links of those
two ideas. The authors hypothesised that there is a relation between sus-
tainable development and experience economy as both ideas have common
goals and are a counterweight to the concept of mass consumption. What
is more that the concept of experience economics along with its conscious
design in an enterprise can counteract growing consumerism.
In order to verify this hypothesis and achieve the main aim, the au-
thor used triangulation methods combining the desk research method and
also qualitative research in form of the individual in-depth interviews (IDI).
The scenario was divided into introduction, summary and three substantive
parts. The respondents were representatives of enterprises and experts in
the field of experience economy, experience design and sustainable devel-
opment.
Experience Economy, Circular Economy Role and Implementation
The economy of experience is based on the experience of the recipients and
refers to their emotional, physical, intellectual and spiritual involvement in
the consumption of products and services. Thanks to such approach, the
recipient has a sense of participation and co-creation of different types of
activities, and thus of involvement and identification with the product. The
International Journal of Management, Knowledge and Learning
Experience Economy in the Context of Sustainable Development 111
price of such a hybrid offer is therefore higher than the purchase of the good
itself.
In practical terms, the relationship between the producer and the recipi-
ent may assume two extreme types of behaviour – active and passive. In an
active relationship, the manufacturer allows the recipient to co-create the
selected good or service that the recipient wants to purchase (Stickdorn &
Schneider, 2011). In a passive relationship, the producer recognises the
lack of need to involve the recipient in the process of producing the good
or service. The main assumptions of the experience economy include the
following aspects (Dziewanowska, 2013):
1. it is not products or services that are purchased, but the accompany-
ing sensations, which means that value is no longer considered only
in the utilitarian context, but value is considered in relation to the
category of experiences that allow buyers to fulfil their dreams and
achieve the desired lifestyle (Bakowska & Tomczyk, 2014; Smith &
Wheeler, 2002);
2. key are customer experiences (Majchrzak, 2014), which co-exist with
increasingly personalized consumption, based on the intangible val-
ues accompanying the concluded transaction, such as feelings, smell,
prestige, impressions, mood, atmosphere (Stasiak, 2013), store ap-
pearance, service behaviour, product packaging, way of providing the
service, way of communication with the customer, etc. (Skowronek,
2011).
Experimental goods are characterised primarily by the fact that they are
symbolic (based on mass beliefs, ideas, commonly held values), consist of
messages affecting the imagination, have an element of surprise, create
a desire to repeat the experience, are virtual, can use all the possibilities
of digital technologies, so they are widely available. The economy of expe-
rience is based on experience as the main factor of creating value. Thanks
to this, the product itself could be used many times, because it is not the
products that are the goal, but the experience around them (Pine & Gilmore,
2013). The economics of experience can therefore become part of circular
economics.
The circular economy (Ellen MacArthur Foundation, 2013) is a sustain-
able development paradigm that has attracted the attention of governments
and organisations around the world as it is considered a promising concept
to enable more sustainable economic development in a changing socio-
economic landscape where resources are limited. The interpretation of the
Ellen MacArthur Foundation has become a de facto standard in recent
years.
However, it appears that industry has not yet implemented the principles
Volume 9, Issue 1, 2020
112 Monika Klein and Monika Spychalska-Wojtkiewicz
of a circular economy for sustainable production on a large scale (Heshmati,
2015).
The main concept of circular economy is based on the principle of reborn
design (Stahel, 1982), who in the 1970s, in a research report entitled ‘The
possibility of changing the workforce to energy’ commissioned by the Eu-
ropean Commission, sketched a vision of a looped economy. This concept
was developed by (Braungart & McDonough, 2002). In a book published in
2002 they comprehensively described a philosophy of action called cradle-
to-cradle.
The cradle-to-cradle model is the driving force behind the circular econ-
omy and is used to describe a sustainability model in which manufactur-
ers, looking at nature, introduce solutions to reduce or eliminate waste.
Economic growth in the circular economy model is not related to the con-
sumption of limited natural resources. Materials are divided into technical
and biological ones and so the production process is conducted in such a
way so as to maintain and use the highest quality throughout the product’s
life. The main focus is on the efficient design and use of materials in or-
der to optimise their flow and maintain or increase technical and natural
resources. Circulation management can therefore be interpreted as a set
of many complementary principles. The proper selection and application of
these principles largely depends on the context of the problem. In order
to implement the principles of circular economics, it is necessary to start
by changing the approach to the design of products and services so as to
eliminate the concept of waste already during production – things, packag-
ing and systems – from the very beginning based on the assumption that
there is no waste (Braungart & McDonough, 2002):
Zero waste, zero emissions, zero ‘ecological footprints,’ [. . .] zero is
a good target. We also need to understand that poor design of things
is dishonourable, destroying the best systems that man could create.
[. . .] Respecting diversity in the design of things means not only how
the product is made, but how it is to be used and by whom. The
cradle-to-cradle concept can have many uses, many users, over time
and space.
The circular economy model is based on the 3R rule: reduce reuse, re-
cycle, which is a challenge and a necessity to change the current paradigm
of management. This is the basis for the Canadian formula 4RV + ges – ré-
duire, réutiliser, recycler, régénérer, valoriser + 0 gas à effet de serre, which
means to reduce, reuse, recycle, regenerate, valorise + zero greenhouse
gas emissions. The Swiss 5R formula assumes réduire, réparer, réutiliser,
recycler, réinventer, i.e. to reduce, repair, reuse, recycle, reclaim, regener-
ate, reinvent (Raftowich-Filipkiewicz, 2015).
International Journal of Management, Knowledge and Learning
Experience Economy in the Context of Sustainable Development 113
Designing Experiences in the Context of the Future and Designing
for the Future: Research Issues
Current economic realities are very difficult for micro, small, medium and
large enterprises. The environment is turbulent, trends are created in a
very short time, and quickly disappearing. It is not just companies that
create economic reality. It is also intensively created by consumers. Thanks
to new media, especially developed thanks to the Internet, buyers have
the opportunity to communicate their needs and reasons. Thus, economic
realities arise at the interface between the world created by producers and
the world of recipients.
Even the organisation’s many years of experience will not necessarily
be able to guarantee its managers the skilful construction of the entity’s
operating strategy. In such intensively changing realities it would be wrong
to assume a certain level of sector expertise or trends. Fashion and trends
emerging in economic realities pose significant challenges for enterprises.
It results, among others, from the fact that they determine the activity of
entities.
However, it should be remembered that fashion and trends should not
be given up. In order to manage them effectively, business models that help
create economic reality, not just being passive recipients, can be helpful.
What’s more, active trend analysis, conducting research on the company’s
environment can support entities in the fight for a strong competitive posi-
tion on the market (Spychalska-Wojtkiewicz & Tomczyk, 2017).
The specificity of issues related to economy of experience and the trends
that follow it is so complex that the authors decided to apply a qualitative
study to deepen the phenomena accompanying these issues. Individual in
depth interviews (IDI) were selected as a technique, taking into account the
specificity of respondents, namely experts coordinating strategic processes
in enterprises. Experts came from various European countries (N = 20), but
they all represented entities from the creative sector (such as fashion, ICT,
multimedia production, audio-visual arts, advertising, graphics). Interviews
were moderated by the authors. They lasted 40 minutes and were recorded
in accordance with the principles of anonymity of the interviewees. Transcrip-
tions from interviews were carried out and analysed. Interviews focused on
three main research issues:
• lack of information on how to design customer experience,
• lack of information on whether designing experiences can counteract
excessive consumption,
• lack of information on how to reconcile mass production and mass
sales with the sharing trend, and whether conscious design in enter-
prises can remedy this.
Volume 9, Issue 1, 2020
114 Monika Klein and Monika Spychalska-Wojtkiewicz
The problems presented to the respondents determined the interview
scenario and research questions. The interview began with an introduction
to the general assumptions of the conversation and ended with a summary
of the main conclusions. The main part has been divided into two areas:
•the first concerned issues of experience design,
•the second focused on design issues in relation to contemporary
socio-economic-economic challenges.
The interviews were aimed at verifying the hypothesis that there is a re-
lation between sustainable development and experience economy because
both ideas have common goals and are a counterweight to the concept of
mass consumption. The qualitative study has positively verified this hypoth-
esis. Experts admitted the concept of experience economics along with de-
sign in an enterprise can counteract growing consumerism and has shown
that the current, difficult time, full of environmental challenges in particular,
is a very good time for designers, as there are possibilities of using their
creativity and redesigning products that do not meet current standards. The
process of designing experience in organisations will be an important trend
that will allow to meet current challenges not only economic and social but
also ecological.
Designing Experience in the Opinion of Experts
Sensations that flow from experience can have a number of dimensions,
e.g. sensory, aesthetic, visual or olfactory. Thus, each of them, as well
as the sensations arising from it must be properly planned and therefore
designed. An apt design should create or fit into existing trends. According
to the experts surveyed:
One of the current trends that will not lose its significance but will even
strengthen is craft – manual work and a return to creative foundations.
According to the experts surveyed, there are concepts for the design
of products, services and enterprises that would be good for people, busi-
ness and the environment, but these are quite niche initiatives and still not
enough, as well as not breaking through to mass consciousness.
A lot of initiatives are created, but unfortunately they are usually start-
ups and not large enterprises (and these have their limitations). I
know, for example, a company that produces algae bottles or pro-
duces materials from potato waste. The concept of recycling as a
method of business seems to be very accurate.
Experts judged that a wise concept uniting the goals of buyers, produc-
ers and the environment is circular economics, which can help stop ex-
International Journal of Management, Knowledge and Learning
Experience Economy in the Context of Sustainable Development 115
ploitation of the planet. The circular economy assumes a renewable and
self-regenerating system designed to reduce and ultimately eliminate the
amount of unused waste and wasteland arising in the economy. In a closed
economy, products are not wasted – they are recycled, processed, repaired
or they find another buyer or other purpose. This is an incredible challenge
for producers, managers and designers.
Circular economics and circular design are very difficult concepts be-
cause they assume that the product will not become waste. This requires
designers, enterprises and management assumptions to move away from
the traditional paradigm and the concept of the product linear life cycle:
from production to its death. The circular approach assumes that the prod-
uct never really goes out of circulation and never becomes waste.
The respondents in answer to the question, considering creating and
offering buyers products of high quality but also high prices that can be
countered against excessive consumerism focused on cheap fast-moving
goods, agreed that this is how it can be:
Briefly: yes. Quality must be good, then these goods will be much
more respected and can be used many times.
I think so, that it is a matter of quality it compensates for, a higher
price, or longer waiting for the product.
The high price aspect is problematic. When an economical, rational per-
son is able to buy easily available goods at a lower price, one will most
certainly choose them. The question remains what if one is presented with
a long-refined and meticulously designed product, being hence expensive.
Will the buyer be interested? In experts’ words:
I am convinced that awareness in this area is increasing. It was com-
pletely different a few years ago, it is different now and, in a moment,
in the next period it will be different as well. Consciousness increases.
You will want to have not only more beautiful things, not only good
quality, but also what gives us aesthetic pleasure, so the combination
of this creativity, art and business has a future.
According to the respondents, well-designed, durable products will stay
with customers longer, not only due to their functional but also sentimen-
tal ties. Even a daily product can bring back memories, i.e. offer specific
sensations. Many people value inherited items, e.g. from grandparents, in
order to build a family identity. For such things to stand the test of time,
they have to be of good quality, which often goes hand in hand with price,
which consumers know and are often able to accept in such cases.
Some experts note that consumer education is necessary, pointing out
why prices are low, what affects them, and why prices are high. Several re-
Volume 9, Issue 1, 2020
116 Monika Klein and Monika Spychalska-Wojtkiewicz
spondents said that they are able to risk the statement that among young
people, despite the extensive and momentous discussion about environ-
mental protection and natural resources, there is a cult of ownership. They
don’t wonder where the products come from, how much they are worth,
where they are produced. This lack of knowledge and reflection causes that
they do not value them and quickly get bored and replace them. According
to the experts of this study, as well as KPMG (2018) analyses, The Fashion
Market in Poland, is mostly young buyers at international stores with low or
medium price caps. What’s more, in recent years the fast fashion approach
has evolved in consumers a strong need to have clothing corresponding to
seasonal trends, produced quickly, but not durable and quickly out-dated,
contributing to increasing the consumption of clothing by half, but also in-
creasing the formation of clothing garbage.
However, with age and a richer portfolio, there is interest in good quality
and specific aesthetics. Education in this field seems to be justified from
an early age in order to teach future consumers that it is not worth falling
into the clutches of unrestrained consumption, and that it is worth saving
and sensibly managing the signed funds, exchanging them for high-quality
products. According to experts, personalisation is important for craft prod-
ucts.
The respondents referred to examples of Scandinavian countries consid-
ered to be rich, where citizens pay special attention to aspects related to
waste segregation, cleanliness of public space, or environmental protection.
According to the surveyed customers, e.g. from Sweden, they appreciate ex-
pensive products from natural resources, care for them and adhere to the
principle of their repair and further use, not just throwing them away and re-
placing them with new ones. An example would be a shopping mall opened
a few years ago in Swedish Eskilstuna where only recycled items are sold –
second hand and repaired. There are clothes, furniture, vases, lamps and
other decorations, bicycles, books, as well as home appliances and elec-
tronics (see https://www.retuna.se). Regardless of the country of origin,
the respondents concluded that the question: ‘Can building customer expe-
rience (counterpart) prevent excessive consumption?’ is a difficult question
to answer but they are able to agree with a positive answer:
Yes, customer experience can cause buyers to want to participate and
experience instead of just have it. Referring to the eternal question to
have or to be, the experience economy can lead us to the path of
being, the experience of things.
In the course of these statements about customer experience in the face
of consumerism, the respondents were asked to answer the question: are
buyers looking for the products themselves or are they looking for experi-
International Journal of Management, Knowledge and Learning
Experience Economy in the Context of Sustainable Development 117
ences related to them? The answers prevailed that buyers, in addition to
the solutions offered by the products, are looking for certain impressions
and experience (even if they are not completely aware of it). The greater the
pleasure of these experiences, the better the product is remembered and
the more buyers want to identify with it and do not want to part with it.
Generally, yes. In the case of basic goods, such as bread or soap, you
will notice that impressions, memories of warm bread, a family home,
etc. are added, and to a large extent these projects can affect the pur-
chase. When buying, for example, soap, it is also encapsulated with a
certain aura, e.g. relaxation, time for yourself etc. These impressions
influence the purchase.
Thus, the authors asked: can one design experiences to counteract ex-
cessive consumption? Make customers buy less often but reasonably, and
even at a higher price? According to the respondents, yes, it is possible.
Yes, you can design your experience the most. I think this is already
happening and more and more companies are doing so. Enterprises
are increasingly designing products and services that respond to spe-
cific needs.
It’s already happening and I think that this trend will be more and more
popular, also because we live in times where the ecological crisis is
unfortunately very likely and will also force it.
Yes, for example according to – fun theory, where human habits
change through experience in the form of fun. I think a well-designed
experience can mean that we will not only buy but will pay for the
buying experience.
In the opinion of experts, designing experience is a very current and
important topic, especially in the context of protecting natural resources
and the environment. For this reason, the respondents emphasised that
this topic would continue to grow in importance. According to the respon-
dents, designing experiences and consumption impressions may prevent
excessive buying and throwing away. Experts mentioned that some time
ago things, such as furniture, interior design, but also clothes and other
textiles, were passed down from generation to generation.
Discussion and Interpretention in Perspective
of Sustainable Development
Appropriate designed experience can cause the buyer to be strongly at-
tached to things, identify with them, which in turn can lead to taking more
Volume 9, Issue 1, 2020
118 Monika Klein and Monika Spychalska-Wojtkiewicz
care of them and to desire to pass them on to others. According to the re-
spondents, this trend may counteract excessive consumption, since during
the consumption process it was determined by producers that their prod-
ucts were quickly disposable, and their usefulness ended with the warranty
period.
This is similar to research of the emotional bond consumers experience
with their durables during ownership, which shows that for both product
attachment and satisfaction, the pleasure elicited mediates the effects of
utility and appearance (Mugge et al., 2010).
Designing experiences and impressions of recipients resulting from con-
tact with the purchased product may lead buyers to buy less. What’s more,
it may develop the need to search for added value that they would not
get anywhere else. Such value may be, for example, a positive or neutral
impact on the environment, products that are not tested on animals. The
trend of thoughtful design of experience can occasionally make customers
more aware and more demanding of producers. What is more, they will be
more focused on the quality not on the quantity of products and will be
willing to pay more for the quality that meets their needs. According to the
respondents, the social suitability of business, social innovations, circular
economics, recycling or upcycling, fair trade are trends that change busi-
ness, the fashion sector or fast-moving goods. These changes are not tem-
porary, as the widely discussed climate crisis has its impact on producers
and consumers.
Producers will permanently introduce changes that are profitable. An im-
portant role in this practice lies with the consumers; namely, their passive
or active attitude can give testimony to what they expect. The preview re-
search shows that the group of buyers with moral norms is the smallest
one and consist of experience buyers with higher income (Han 2016), so
the new way of production and business models needs to be developed.
According to the respondents, the role of entrepreneurs should be re-
defined so that they are more aware of targeting not only sales but also
responsibility for the environment and recipients. Concepts for, for exam-
ple, adding ideas such as:
•planting trees,
•creating urban gardens or municipal food gardens,
•creating city hives,
•manufacturing products from new materials (e.g. clothing from recy-
cling materials),
• looking for alternative materials for plastic,
•sharing food, meals,
International Journal of Management, Knowledge and Learning
Experience Economy in the Context of Sustainable Development 119
•searching for cheaper and energy-saving logistics solutions could
change a lot in the approach of entrepreneurs.
According to experts, when starting a business, the entrepreneur already
has a kind of debt to pay because he uses natural resources for enrichment
purposes, thus he should look for a way to repay to nature. It goes together
with the theory of circular economy (Braungart & McDonough, 2002; Hesh-
mati, 2005; Raftowich-Filipkiewicz, 2005).
Hypothesis that there is relation between sustainable development and
experience economy because both these ideas have common goals has
been positively verified. Moreover, according to the respondents, these is-
sues are combined and cannot be resolved separately. Sustainable devel-
opment and experience economy should be implemented together to be a
counterweight to the concept of mass consumption.
Conclusions
The results of the study helped to achieve interesting results indicating that
the current, difficult time, full of environmental challenges, is a very good
time for designers, as opportunities for using their creativity are opening
up. The respondents confirmed that the process of designing experience in
organisations will be an important trend that will allow to meet the current
challenges not only economic and social, but also ecological.
Customers operating in a spiral of desire to own have more than one
thing of the same kind, they surrender to the mass market because they do
not want to differ from others, because they want to have more, they want to
manifest something with their possession. It is therefore important to find a
way out of this self-winding spiral by designing products and solutions that
will guide reason and concern for the quality of life of present and future
generations.
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Dr Monika Klein specialises in the economics of the creative sector and its
impact on regional development, business model, design management and
service design. At the same time, she is the director of the Szczecin Cultural
Incubator, promoting and developing innovative ideas in the field of culture
and creativity, and the president of the Media Dizajn association. Monika is
interested in creative search for solutions that focus on the needs of users,
supporting the activities of the creative sector in the functional, visual, emo-
tional and social spheres. monika.tomczyk@usz.edu.pl
Dr Monika Spychalska-Wojtkiewicz is a doctor of economics, lecturer at the
university, scientifically related to the study of innovation implementation in
sector enterprises SMEs, diffusion of innovation and management of non-
technological innovations. Expert in the scope of qualitative and quantita-
tive research, multi-year management practices, national and international
projects. Certified IPMA project manager. Member of the West Pomeranian
Council Regional Group of IPMA. monika.spychalska-wojtkiewicz@usz.edu.pl
International Journal of Management, Knowledge and Learning