{"id":6879,"date":"2021-04-30T11:56:54","date_gmt":"2021-04-30T15:56:54","guid":{"rendered":"https:\/\/www.bu.edu\/bhr\/?p=6879"},"modified":"2022-05-24T14:57:58","modified_gmt":"2022-05-24T18:57:58","slug":"creating-engaging-workspaces-and-experiences","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/bhr\/2021\/04\/30\/creating-engaging-workspaces-and-experiences\/","title":{"rendered":"Memo to Leaders: \u201cEnchanted\u201d Marketplaces and Workspaces are on the Horizon"},"content":{"rendered":"
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Source: Photo Credit to Canva<\/figcaption><\/figure>\n
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By:<\/strong> James Houran<\/a><\/span>, Ph.D.<\/span>Managing Director at AETHOS Consulting Group <\/span>\u00a0and J. Bruce Tracey<\/a><\/span>, Ph.D. <\/span>Professor at Cornell University\u2019s School of Hotel Administration<\/span><\/p>\n

Pine and Gilmore\u2019s (1999) famous concept of the \u201cexperience economy\u201d \u2013 introduced nearly 25 years ago \u2013 asserts that businesses intent on competition or differentiation must deliver \u201cmemorable events\u201d for consumers because such favorable \u201cexperiences\u201d are the ultimate product in today\u2019s marketplace. Researchers have since learned that the most memorable experiences specifically embody the qualities of aesthetics, authenticity, education, entertainment, escapism, newness, and a feeling of rejuvenation. These trends all clearly align to the tourism-hospitality industry\u2019s overarching brand promise of efficacious emotions and experiences (e.g., Filep & Pearce, 2014).\u00a0<\/span><\/p>\n

Yet new research hints that the experience economy is evolving to something more evanescent and esoteric. Houran et al. (2020a) discussed how this development is most visible per the immense, mainstream popularity of \u201cparanormal tourism.\u201d Here, diverse customers spend strongly and year-round on the hope and excitement that accompanies the chance to experience something \u201cunbelievable and supernatural.\u201d And impressive consumer reactions often happen when unbelievable things do occur. One paranormal tourist at a reputedly haunted restaurant described his response to hearing a mysterious voice when no one else was around, \u201cTime immediately stood still as I was trying to come to grips with an amazing event that I was first skeptical about.\u201d\u00a0<\/span><\/p>\n

\u201cThe Magic Train\u201d attraction in Portugal offers a more \u201cearthbound\u201d example (Lange et al., 2021b), whereby visitors go on what they expect to be merely a fun ride around the city of Porto, and instead they often have profound experiences of \u201cspecialness, humility, and similarly being lost-in-the-moment.\u201d Moreover, this emerging enchantment economy is arguably exacerbated by the ongoing social restrictions ushered by the COVID-19 pandemic. One consumer sentiment survey (Lange et al., 2021a) found that about 63% of respondents indicated a desire for what can be called \u201cawakenings\u201d \u2013 that is, personal or professional experiences that surpass mere comfort or excitement by challenging people\u2019s understanding of reality and their own place in it. It is a trippy idea but one with practical ramifications. The most pressing implication is that contemporary marketplaces and workspaces will need effective, and arguably new, leadership approaches to best navigate the shifting\u00a0 expectations of customers and employees in what seems to be a burgeoning\u00a0 \u201cenchantment economy.\u201d\u00a0<\/span><\/p>\n

Introducing the Enchantment Economy\u00a0<\/b><\/h3>\n

Recent studies of consumer motivators in niche tourism products (Drinkwater et al., 2020; Houran et al., 2020a, 2020b) strongly suggest that people are notably drawn to offerings that (a) are <\/span>immersive experiences<\/span><\/i> which completely surround individuals, so they feel inside and part of them, and accordingly (b) induce a sense of <\/span>enchantment<\/span><\/i> in consumers. Enchantment is a complex arousal state filled with competing emotional, sensorial, timeless, rational, and transformative themes. This confluence disrupts the mundane or difficult experience of daily life with a positive feeling of connection to a \u201ctranscendent agency or ultimate reality\u201d (Drinkwater at al., 2020). This more surrealistic view expands previous definitions of awe or enchantment as generically memorable or emotionally engaging experiences (Kawasaki, 2011). Simply put \u2013 products in the experience economy delight consumers\u2019 senses and sensibilities, whereas enchanting experiences profoundly stir their psyches and proverbial souls (Drinkwater et al., 2020).\u00a0<\/span><\/p>\n

Leaders should not dismiss the concept of enchantment as a relic of the 1960s hippie counterculture movement. The human need for the \u201cnuminous\u201d remains a potent motivator around the world, as exemplified by the awe-inducing appeal of some extreme-sport activities, art exhibitions or demonstrations, religious and secular pilgrimages, as well as natural and manmade \u201csacred spaces\u201d (Drinkwater et al., 2020; van Elk et al., 2016). In fact, some businesses routinely entice consumers with marketing material or brand promises that reference enchantment. For example, \u201cEnchantment of the Seas\u201d is a Vision-class cruise ship that has been operated by Royal Caribbean International since 1996. Or consider New Mexico\u2019s Tourist Bureau, which described the state as \u201cthe Land of Enchantment\u201d in a 1935 brochure that aimed to attract visitors to the area. The motto was later adopted as the state\u2019s formal nickname. Likewise, \u201cIt\u2019s being in awe a few hours more\u201d was the value proposition that American Express card services proclaimed in an October 2018 ad in <\/span>Travel + Leisure<\/span><\/i> magazine.\u00a0<\/span><\/p>\n

A Concept More Relevant than Ever<\/b><\/h3>\n

An enchantment economy was certainly blossoming before last year\u2019s disruptive events (Houran et al., 2020a). However, we contend that the boredom, anxiety, or depression caused by the extended social and leisure restrictions of the COVID-19 pandemic (Ammar et al., 2020) are creating unparalleled pent-up demand for escapism and experiences of enchantment. To be sure, distractions such as television binge-watching (Dixit et al., 2020) or impulsive shopping (Sneath et al., 2009) often coincide with event-induced stress, and on a grander scale, journalists have documented a global wave of public protests against \u201clockdown fatigue\u201d from mass quarantine or confinement (Reguly, 2020). A new term has even been dubbed for this anticipated trend \u2013 i.e., \u201crevenge travel\u201d (Shadel, 2020) \u2013 which echoes \u201crevenge spending\u201d that emerged in China in the 1980s following the opening of its economy.\u00a0<\/span><\/p>\n

Moreover, preliminary research reveals that consumers intend to pursue \u201cenchanted marketplaces\u201d post-COVID via five categories of events or experiences labeled as \u201cEscapade, Nostalgia, Catharsis, Communion, and Attachment\u201d (Lange et al., 2021a). Also, a growing business case for consumer enchantment comes from the Net Promoter\u00ae Score<\/span> (NPS: Reichheld, 2003) approach. NPS is the percentage of customers rating their likelihood to recommend a company, product, or service to a friend or colleague as 9 or 10 (\u201cpromoters\u201d) minus the percentage rating this at 6 or below (\u201cdetractors\u201d) on a scale from 0 to 10. This metric correlates with revenue growth and has been adopted by more than two-thirds of Fortune 1000 companies. In a commissioned study of \u201cThe Magic Train\u201d attraction in Portugal, Lange et al. (2021b) found a significant correlation (<\/span>r<\/span><\/i> = .40, <\/span>p<\/span><\/i> < .05) between NPS scores and the total number of terms endorsed on the \u201cEnchantment-Adjective Checklist\u201d (Houran et al., 2020b). In other words, the more a product enchants customers, the more these customers become promoters. Leaders at all levels in an organization should therefore appreciate the business case for consumer enchantment.<\/span><\/p>\n

But <\/span>consumer-oriented<\/span><\/i> enchantment is not the whole story. All indications are that <\/span>employees <\/span><\/i>likewise want \u201cenchanted workplaces.\u201d Excessively rational or transactional corporate cultures that are preoccupied with \u201ccontrol and process\u201d are linked to increases in various types of organizational \u201cdehumanization,\u201d which can undermine employees\u2019 well-being, sense of self,\u00a0 and relationships to various others (Ritzer, 2005). Consequently, leaders need to intentionally turn dehumanized organizations into enchanted workspaces that promote meaningful and empowering experiences on professional and personal levels (Endrissat et al., 2015). The return-on-investment for this effort can include employees who are particularly resourceful, happy, resilient, passionate, motivated, or healthy at work (Suddaby et al, 2017). This area is admittedly fresh and mostly unexplored, so more research is needed to better understand the leadership practices, characteristics, and behaviors that create the most enchanted workplaces. The good news is that this research is currently underway, and new insights should follow in due course.<\/span><\/p>\n

\u201cEnchanted Leadership\u201d in Strategic Focus\u00a0<\/b><\/h3>\n

Strategically speaking, enchanted leadership involves the mission of exploring and investing in product and service innovations that both exceed and redefine consumer expectations, either subtly or boldly (Houran et al., 2020a, 2020b). Rather than giving consumers what they literally expect or want, the idea is for hospitality businesses to facilitate unforgettable experiences that specifically situate consumers \u201cbetwixt and between\u201d reality and fantasy \u2013 an enriching and existential \u201cwow factor\u201d as readily observed in visitor reactions to paranormal tourism or The Magic Train attraction. This might sound especially tricky or difficult, but a sense of awe and enchantment can be consistently induced in many people under certain conditions (e.g., Bermudez, 2009; Houran et al., 2020b; van Elk et al., 2016).<\/span><\/p>\n

It is true that hospitality businesses understandably ground their service strategies in the three Universal Service Rules to heighten their (a) <\/span>empathy to customers<\/span><\/i> (traditional \u201cGolden Rule\u201d), (b) <\/span>focus on customers\u2019 expectations<\/span><\/i> (\u201cPlatinum Rule\u201d), and (c) <\/span>ways to exceed those expectations<\/span><\/i> (\u201cDouble Platinum Rule\u201d). But the enchantment economy advocates a more aspirational rule, i.e., \u201cDeliver experiences that people are not expecting to be possible.\u201d Houran and colleagues (2020b: Appendix B) offered initial guidance on engineering such outcomes for consumers, but they also acknowledged that not every product or service <\/span>can<\/span><\/i>, or <\/span>should<\/span><\/i>, be enchanting. Even so, our market research on The Magic Train attraction shows that even one instance of enchantment can leave an indelible impression on consumers that translates to a competitive advantage for businesses (Lange et al., 2021b).<\/span><\/p>\n

A Closing Thought<\/b><\/h3>\n

Accepting that the enchantment economy is on the horizon, leaders moving forward must have the proper mindsets and ambitions to meet the evolving expectations of customers and employees. We are researching this important issue in more depth so that detailed guidance on creating and sustaining enchanted marketplaces and workspaces will be available to seasoned and new leaders alike. In the meantime, all leaders can critically reflect on the impact they tend to have on their direct reports, peers, stakeholders, and customers, i.e., does one\u2019s efforts, relationships, and outcomes consistently \u201cinvigorate\u201d other people or \u201csap\u201d them? Ultimately, enchantment involves \u201cinspiring vibes or energies\u201d from experiences or interactions \u2013 and that energy is just the jolt needed to propel us forward.\u00a0<\/span><\/p>\n

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PDF Version Available Here<\/a><\/p>\n

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References<\/strong><\/h3>
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Ammar, A., Mueller, P., Trabelsi, K., Chtourou, H., Boukhris, O., Masmoudi, L., et al. (2020) Psychological consequences of COVID-19 home confinement: The ECLB-COVID19 multicenter study. <\/span>PLoS ONE<\/span><\/i> 15<\/span><\/i>:e0240204. <\/span>https:\/\/doi.org\/10.1371\/journal.pone.0240204<\/span><\/a> \u00a0\u00a0<\/span><\/p>\n

Bermudez, J. (2009). Amazing grace: New research into \u201cextraordinary architectural experiences\u201d reveals the central role of sacred places. <\/span>Faith & Form: The International Journal on Religion, Art and Architecture, 42<\/span><\/i>, 7-13.<\/span><\/p>\n

Dixit, A., Marthoenis, M., Arafat, S. M. Y., Sharma, P., & Kar, S. K. (2020). Binge watching behavior during COVID 19 pandemic: A cross-sectional, cross-national online survey. <\/span>Psychiatry Research<\/span><\/i>, <\/span>289<\/span><\/i>:113089. <\/span>https:\/\/doi.org\/10.1016\/j.psychres.2020.113089<\/span><\/a>\u00a0<\/span><\/p>\n

Drinkwater, K., Massullo, B., Dagnall, N., Laythe, B., Boone, J., & Houran, J. (2020). Understanding consumer enchantment via paranormal tourism: Part I – Conceptual review. <\/span>Cornell Hospitality Quarterly<\/span><\/i>, advance online publication: <\/span>https:\/\/doi.org\/10.1177\/1938965520967920<\/span><\/a><\/p>\n

Endrissat, N., Islam, G., & Noppeney, C. (2015). Enchanting work: New spirits of service work in an organic supermarket. <\/span>Organization Studies<\/span><\/i>, <\/span>36<\/span><\/i>, 1555-1576. <\/span>https:\/\/doi.org\/10.1177\/0170840615593588<\/span><\/a><\/p>\n

Filep, S., & Pearce, P. (Eds.) (2014). <\/span>Tourist experience and fulfillment: Insights from positive psychology<\/span><\/i>. New York: Routledge. <\/span>https:\/\/doi.org\/10.4324\/9780203134580<\/span><\/a><\/p>\n

Houran, J., Hill, S. A., Haynes, E. D., & Bielski, U. A. (2020a). Paranormal tourism \u2013 Market study of a novel and interactive approach to space activation and monetization. <\/span>Cornell Hospitality Quarterly<\/span><\/i>, <\/span>61<\/span><\/i>, 287-311. <\/span>https:\/\/doi.org\/10.1177\/1938965520909094<\/span><\/a><\/p>\n

Houran, J., Lange, R., & Laythe, B. (2020b). Understanding consumer enchantment via paranormal tourism: Part II – Preliminary Rasch validation. <\/span>Cornell Hospitality Quarterly<\/span><\/i>, advance online publication: <\/span>https:\/\/doi.org\/10.1177\/1938965520971276<\/span><\/a><\/p>\n

Kawasaki, G. (2011). <\/span>Enchantment: The art of changing hearts, minds, and actions<\/span><\/i>. New York: Portfolio\/Penguin.<\/span><\/p>\n

Lange, R., Houran, J., & Moran, Y. (2021b). <\/span>Enchanting Portugal: The case of Porto\u2019s magic train<\/span><\/i> (Report SEP-2021-32A). Laboratory of Statistics and Computation, ISLA – Instituto Polit\u00e9cnico de Gest\u00e3o e Tecnologia, Edif\u00edcio Bela Vista, Rua Diogo de Macedo, n\u00ba 192, 4400 – 107 Vila Nova de Gaia, Portugal.<\/span><\/p>\n

Lange, R., Houran, J., & Tracey, J. B. (2021a). Many happy returns: Preliminary study on retrospective and prospective experiences of consumer enchantment. <\/span>Manuscript under review for publication<\/span><\/i>.<\/span><\/p>\n

Pine, B. J., & Gilmore, J. H. (1999). <\/span>The experience economy<\/span><\/i>: <\/span>Work is theatre and every business a stage<\/span><\/i>. Boston, MA: Harvard Business School Press.\u00a0<\/span><\/p>\n

Reguly, E. (2020, September 30). Global protests are ramping up as lockdown fatigue and economic destruction set in. <\/span>The Globe and Mail<\/span><\/i>, <\/span>https:\/\/www.theglobeandmail.com\/world\/article-protests-are-ramping-up-as-lockdown-fatigue-and-economic-destruction\/<\/span><\/a><\/p>\n

Reichheld, F. F. (2003). One number you need to grow. <\/span>Harvard Business Review<\/span><\/i>, <\/span>81<\/span><\/i>, 46-54, 124.\u00a0<\/span><\/p>\n

Ritzer, G. (2005). <\/span>Enchanting a disenchanted world: Revolutionizing the means of consumption<\/span><\/i>, Pine Forge Press, Newbury Park, CA\u00a0<\/span><\/p>\n

Shadel, J. D. (2020, July 29). \u2018Revenge travel\u2019 is the phenomenon that could bring back tourism with a bang. <\/span>The Washington Post<\/span><\/i>,\u00a0 <\/span>https:\/\/www.washingtonpost.com\/travel\/2020\/07\/29\/revenge-travel-is-phenomenon-that-could-bring-back-tourism-with-bang\/<\/span><\/a>\u00a0\u00a0<\/span><\/p>\n

Suddaby, R., Ganzin, M., & Minkus, A. (2017). Craft, magic and the re-enchantment of the world, <\/span>European Management Journal<\/span><\/i>, <\/span>35<\/span><\/i>, 285-296. <\/span>https:\/\/doi.org\/10.1016\/j.emj.2017.03.009<\/span><\/a>\u00a0<\/span><\/p>\n

Sneath, J. Z., Lacy, R., & Kennett-Hensel, P. A. (2009). Coping with a natural disaster: Losses, emotions, and impulsive and compulsive buying. <\/span>Marketing Letters<\/span><\/i>, <\/span>20<\/span><\/i>, 45-60.\u00a0 <\/span>https:\/\/doi.org\/10.1007\/s11002-008-9049-y<\/span><\/a><\/p>\n

van Elk, M., Karinen, A., Specker, E., Stamkou, E., & Baas, M. (2016). \u2018Standing in awe\u2019: The effects of awe on body perception and the relation with absorption. <\/span>Collabra<\/span><\/i>, <\/span>2<\/span><\/i>:4, <\/span>https:\/\/doi.org\/10.1525\/collabra.36<\/span><\/a>\u00a0\u00a0<\/span><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By: James Houran, Ph.D.Managing Director at AETHOS Consulting Group \u00a0and J. Bruce Tracey, Ph.D. Professor at Cornell University\u2019s School of Hotel Administration Pine and Gilmore\u2019s (1999) famous concept of the \u201cexperience economy\u201d \u2013 introduced nearly 25 years ago \u2013 asserts that businesses intent on competition or differentiation must deliver \u201cmemorable events\u201d for consumers because such […]<\/p>\n","protected":false},"author":18480,"featured_media":6900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[521,554,555,522,1],"tags":[562,289,561,560,559,254,557],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/posts\/6879"}],"collection":[{"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/users\/18480"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/comments?post=6879"}],"version-history":[{"count":16,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/posts\/6879\/revisions"}],"predecessor-version":[{"id":9582,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/posts\/6879\/revisions\/9582"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/media\/6900"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/media?parent=6879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/categories?post=6879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/bhr\/wp-json\/wp\/v2\/tags?post=6879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}