What is progression of economic value?

The progression of economic value relates offering differentiation relevant to customer needs to customer value and pricing. The more an offering is tailored, or customized, to meet the specific needs of a customer, the higher the value thus the higher the premium that can be charged for that offering.

What does the concept of progression of economic value mean in Pine & Gilmore?

Experience Economy
The Progression of Economic Value states that as a society and its economy evolves, so customer needs and wants change. As their needs and wants change, so what a firm has to do in order to be competitive changes. For more, read Pine and Gilmore’s The Experience Economy.

What are the 5 economic values?

What Are ‘Economic Values’? There are nine common Economic Values that people consider when evaluating a potential purchase: efficiency, speed, reliability, ease of use, flexibility, status, aesthetic appeal, emotion, and cost.

What is an experience Pine and Gilmore?

The term “Experience Economy” was first used in a 1998 article by B. Joseph Pine II and James H. Pine and Gilmore argue that businesses must orchestrate memorable events for their customers, and that memory itself becomes the product: the “experience”.

What is command system?

command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.

What is a staged experience?

A staged experience occurs when a company intentionally uses services as the stage, and goods as props to engage individual customers in a way that creates a memorable event.

What actions promote capital deepening?

Capital deepening increases the marginal product of labor – i.e., it makes labor more productive (because there are now more units of capital per worker). Capital deepening typically increases output through technological improvements (such as a faster copier) that enable higher output per worker.

Which are economic values?

Economic value is the measurement of the benefit derived from a good or service to an individual or a company. Economic value can also be the maximum price or amount of money that someone is willing to pay for a good or service. As a result, economic value can be higher than market value.

How do you create economic value?

The return required by the shareholders will vary according your firm’s level of risk and will be composed of required dividends and/or increases in share price. If the actual return is higher than the cost of capital, then the difference is the economic value created.