Introduction

In a 1998 Harvard Business Review article and a 1999 book, Pine and Gilmore introduced the “experience economy” as a new economic era in which “experiences” are distinct offerings, on par with commodities, goods, and services (Experiential Activations By The Trade Group). In an experience economy, businesses create value by staging memorable events and immersive interactions for customers, rather than competing solely on product features or pricing. Over two decades later, this concept has become mainstream (Experiential Activations By The Trade Group), fundamentally shifting how companies approach consumer engagement across industries.

The rise of digital technology and e-commerce has only amplified the relevance of the experience economy. Traditionally, the idea of selling experiences was illustrated with physical venues like theme parks or flagship retail stores (Experiential Activations By The Trade Group). However, the digital world is far from immune to these trends. On the contrary, online environments have become critical arenas for delivering compelling customer experiences. As one industry commentator notes, when you cannot “enchant your prospects face to face” in an online setting, the customer experience arguably matters “all the more” (Experience Economy Trend Leads The Way into 2021 | Landbot). In other words, an e-commerce retailer cannot rely on tactile store ambiance or in-person service; instead, it must creatively engage users through interface design, interactivity, personalization, and content to spark the same emotional connection.

Consumers’ expectations have evolved accordingly. Modern shoppers do not merely seek transactions; they seek engaging, personalized, and seamless experiences that connect with them on an emotional level (Experience Economy Trend Leads The Way into 2021 | Landbot). Studies indicate that customer experience (CX) has overtaken product and price as the key brand differentiator for consumers (The Experience Economy and the Meaning of Luxury -or- Why Luxury Requires a Different Type of Content Strategy ). In fact, a recent survey found 86% of buyers would pay a premium for a superior experience (The Experience Economy and the Meaning of Luxury -or- Why Luxury Requires a Different Type of Content Strategy ). Conversely, poor experiences can quickly drive customers away – for example, 80% of consumers have switched brands due to subpar customer experience (Experience Economy Trend Leads The Way into 2021 | Landbot). As Sussin (Gartner VP) observed, delivering a “superior CX is one of the few remaining means of sustainable competitive differentiation” in today’s market (Experience Economy Trend Leads The Way into 2021 | Landbot). These trends underscore why companies across sectors are investing heavily in experiential marketing and CX design as core strategies.

Two industries where the impact of the experience economy is particularly evident are online fashion retail and digital fitness services. Fashion is the largest B2C e-commerce segment globally, with online sales of apparel, footwear and accessories estimated at $768.7 billion in 2023 and projected to exceed $1.1 trillion by 2027 (Digital Innovations in E-Commerce: Augmented Reality Applications in Online Fashion Retail—A Qualitative Study among Gen Z Consumers). This massive market is highly competitive and saturated with choices for consumers. Differentiating purely on product selection or price is increasingly difficult, as countless websites offer similar inventories. As a result, fashion retailers have turned to experiential elements – such as virtual try-on tools, style advice chatbots, rich media content, influencer collaborations, and membership programs – to create a “holistic online shopping experience” that sets their brand apart. Research shows that customer experience is a crucial factor in why consumers choose one online fashion retailer over another (Improving the customer buying experience in online fashion retail through content marketing: An empirical study among Finnish consumers — UTUPub). In a fast-fashion world where products can be copied overnight, a captivating digital experience and emotional brand connection becomes a key source of value.

Meanwhile, the health and fitness industry is undergoing a digital revolution that accelerated during the COVID-19 pandemic (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International) ( Analysis of Strategies to Increase User Retention of Fitness Mobile Apps during and after the COVID-19 Pandemic — PMC ). Exercise has expanded beyond gyms into our homes and mobile devices – enabled by on-demand video classes, fitness apps, wearable trackers, and interactive equipment. The digital fitness market is expected to reach $24.8 billion by 2027 (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International), reflecting the popularity of connected fitness platforms like Peloton, Apple Fitness+, and countless wellness apps. Here too, the experience economy paradigm is clearly at play. Companies are not just selling workout equipment or gym access; they are selling an engaging fitness experience – often a combination of expert instruction, entertainment, community, and convenience. For example, Peloton’s success has been attributed to transforming a static at-home biking machine into an immersive, community-driven experience with live instructors, leaderboards, and a sense of belonging to a “tribe” of riders. A Wi-Fi enabled Peloton bike “elevates the fitness experience to something far more interactive and engaging”, a strategy that helped Peloton amass over 3 million subscribers and derive two-thirds of its revenue from subscription services rather than hardware sales (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International) (Peloton Continues Comeback With Strong Subscription Metrics). Even as pandemic lockdowns eased, demand for such at-home fitness experiences remains high; surveys show roughly 38% of fitness consumers still prefer working out at home and are willing to spend more on in-home fitness options they perceive as delivering greater lifetime value (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International).

These developments in fashion and fitness point to a common theme: businesses must treat experience as part of the product offering. In the experience economy, “the quality of your product doesn’t guarantee success” if the overall experience is lacking (Experience Economy Trend Leads The Way into 2021 | Landbot). Online fashion retailers have learned that simply listing merchandise on a website is not enough – the customer journey from browsing to checkout must be engaging, convenient, and even enjoyable to build loyalty. Likewise, fitness brands know that a workout alone isn’t a sticky offering unless wrapped in an experience that motivates and delights users (through gamification, social interaction, progress tracking, etc.). As Pine and Gilmore famously asserted, companies should aim to stage experiences that are memorable and personal for the consumer, treating goods as props and services as the stage for those experiences (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International).

Study Objective: Despite widespread recognition of the experience economy’s importance, there is a need for empirical research on how it concretely shapes consumer behavior and business models in specific online sectors. This study addresses that gap by focusing on the online fashion and fitness industries. We seek to answer two primary questions: (1) How do enhanced customer experiences in digital fashion retail and fitness platforms influence consumers’ behaviors, attitudes, and loyalty? (2) How are businesses in these sectors adapting their models (strategies, offerings, revenue models) to capitalize on the experience economy? By examining these questions through surveys and case studies, we aim to contribute both theoretical insights – by contextualizing findings within experiential marketing and consumer behavior theory – and practical guidance for firms looking to leverage experiential strategies.

The remainder of this article is structured as follows. First, we review relevant literature on the experience economy, experiential marketing, digital brand engagement, and customer experience in online fashion and fitness contexts. Next, we describe the methodology of our empirical study, including data collection from consumers and analytical approaches. We then present the results, highlighting key findings on consumer experience metrics and business model observations. In the discussion, we interpret what these findings mean in light of existing theories and industry trends, and we derive implications for marketers and managers. Finally, we conclude with a summary of contributions, acknowledge limitations, and suggest directions for future research into the evolving experience economy.

Literature Review

2.1 The Experience Economy and Experiential Marketing

Pine and Gilmore’s concept of the experience economy marked a paradigm shift in how value creation is understood (Experiential Activations By The Trade Group). In their framework, economic offerings evolve from commodities to goods, to services, and finally to experiences – with each level adding greater customer customization and involvement. An experience is not merely the service of getting something done, but an engaging event that the customer finds memorable and meaningful. Companies embracing this paradigm design interactions that engage customers’ senses, touch their emotions, and stimulate their minds. Pine and Gilmore identified four realms of experiential value – entertainment, education, escapism, and esthetic (immersive) experiences – suggesting that rich experiences often blend these realms (e.g. a fitness class that is fun, teaches new skills, provides a diversion from daily stress, and is visually engaging).

This experiential view of consumption has roots in earlier consumer research. Holbrook and Hirschman’s (1982) seminal work on the “experiential aspects of consumption” argued that consumers seek fantasies, feelings, and fun in many purchase contexts, not just functional utility. In other words, consumption often has hedonic motives: the enjoyment derived from the act of shopping or using a product can be as important as the product’s functional benefits. This idea laid groundwork for what in the late 1990s became formalized as experiential marketing. Schmitt (1999) described experiential marketing as creating opportunities for customers to sense, feel, think, act, and relate – a set of strategic experience modules – through orchestrated brand encounters. Unlike traditional marketing which focuses on product features and benefits, experiential marketing focuses on delivering a certain experience theme or gestalt that resonates with customers at multiple touch-points (e.g. through atmospheric retail design, events, communities, and interactive media).

A key contribution in this domain is the development of the brand experience construct by Brakus, Schmitt, and Zarantonello (2009). They define brand experience as “sensations, feelings, cognitions, and behavioral responses evoked by brand-related stimuli” encountered throughout the customer journey (jmkg.73.3.052). Through empirical research, they identified four dimensions of brand experience: sensory (appealing to sight, sound, touch, etc.), affective (evoking emotions), intellectual (stimulating curiosity and thought), and behavioral (inducing bodily experiences or actions). Notably, their studies demonstrated that brand experience has tangible effects on consumer satisfaction and loyalty (jmkg.73.3.052). Brands that consistently provide rich experiences (across those sensory-affective-intellectual-behavioral dimensions) can foster stronger customer attachment and encourage repeat patronage, beyond what can be explained by traditional drivers like product quality or price satisfaction. This finding reinforced the notion that investing in experiences yields ROI through enhanced customer lifetime value.

In the context of the experience economy, the role of customer experience (CX) management has risen to prominence. Customer experience is often defined as the cumulative impression formed by a customer’s interactions with a company’s touchpoints, from initial awareness through purchase and post-purchase phases (Experience Economy Trend Leads The Way into 2021 | Landbot). It spans both digital and physical channels. A superior, well-crafted CX leads to higher customer satisfaction, positive word-of-mouth, and competitive differentiation (Experience Economy Trend Leads The Way into 2021 | Landbot). Firms like Amazon and Starbucks famously prioritize CX as integral to their strategy, ensuring each customer interaction – be it website usability, delivery service, or loyalty rewards – reinforces a positive overall experience. Indeed, as the marketplace gets more crowded and products become commoditized, CX is one of the few levers companies can use to stand out. A Capgemini study cited by Landbot (2021) notes that “any business’s competitive position depends on its capacity to generate impressive experiences through innovative channels and formats” (Experience Economy Trend Leads The Way into 2021 | Landbot). This is true for both business-to-consumer (B2C) and business-to-business (B2B) contexts, as all customers are human and influenced by experiential factors in decision making (Experience Economy Trend Leads The Way into 2021 | Landbot).

Experiential marketing thus goes hand-in-hand with the experience economy. It involves designing and implementing marketing strategies that create personal, memorable interactions with consumers. Examples include immersive pop-up events, flagship stores with interactive installations, gamified loyalty programs, and engaging online content that invites participation. The goal is to form an emotional bond between the customer and the brand through these experiences. In the digital era, experiential marketing increasingly leverages technology – for instance, augmented reality (AR) apps that allow customers to virtually “try on” products (blending digital and physical experience), or personalized AI-driven recommendations that surprise and delight users with relevant content. The underlying principle is to move beyond a transactional relationship and instead “treat customer experience as an intrinsic part of the product” (Experience Economy Trend Leads The Way into 2021 | Landbot). When done successfully, experiential marketing can turn customers into enthusiastic brand advocates and reduce sensitivity to price competition (The Experience Economy and the Meaning of Luxury -or- Why Luxury Requires a Different Type of Content Strategy ).

2.2 Digital Brand Engagement and Online Communities

One important aspect of the experience economy in online settings is digital brand engagement. Brand engagement refers to the depth of the customer’s interactive relationship with a brand – often exemplified by participation, co-creation, and advocacy behaviors. With the rise of social media and online brand communities, consumers now engage with brands in two-way dialogues and peer interactions, not just passive consumption of advertising. This creates opportunities for experiential value: for example, a fitness apparel brand hosting an online community where users share workout tips and get feedback creates a sense of camaraderie and belonging that goes beyond the clothing itself. Engaged customers often develop a sense of identity and “emotional affinity” with the brand (Experience Economy Trend Leads The Way into 2021 | Landbot).

Research in digital marketing has highlighted several facets of online brand engagement: user-generated content, influencer partnerships, interactive campaigns, and gamification are a few. Each can enhance the customer’s experience. For instance, encouraging customers to post photos or reviews (UGC) makes them an active part of the brand story, giving a feeling of recognition and contribution. Brands like Sephora and Nike have successfully built online communities (via forums or apps) that double as experiential platforms – users exchange ideas, participate in challenges, and celebrate shared passions (beauty, fitness), effectively blurring the line between customer and participant. This aligns with Pine & Gilmore’s idea of co-creating experiences: the customer is not just consuming a pre-packaged experience, but actively shaping it.

In the context of social media, FOMO (fear of missing out) dynamics also drive the experience economy. Millennials and Gen Z consumers, in particular, have shown a penchant for collecting experiences and sharing them on social networks (Experience Economy Trend Leads The Way into 2021 | Landbot). A study by Eventbrite found that 7 out of 10 millennials experience FOMO, which in turn fuels a higher appetite for attending events and seeking novel experiences to share (Experience Economy Trend Leads The Way into 2021 | Landbot). While that study was about offline events, the same psychological driver influences online behaviors – for example, joining a trending virtual fitness challenge or trying a new augmented reality filter because friends are doing it. Digital brands leverage this by creating “shareable moments” in the customer journey (e.g. badges for workout milestones, AR selfies with a new fashion item) which not only enrich the individual user’s experience but also propagate the brand experience to their network.

Another construct to note is customer engagement in online brand communities. Brodie et al. (2013) conceptualize customer engagement as a multi-dimensional concept (cognitive, emotional, behavioral engagement) that occurs in interactive customer experiences with a focal object (brand or community). Engaged customers are typically more loyal and offer constructive feedback, effectively becoming partners in the brand’s innovation. Many fashion and fitness companies have tapped into this by hosting online forums, Facebook groups, or app-based communities. For example, Lululemon (an activewear brand) has an online community where members can join mindfulness sessions or local workout meetups; this extends the brand experience from just purchasing clothing to participating in a lifestyle. Likewise, numerous fitness apps include social features like friend leaderboards, community challenges, and chat support, turning a solitary exercise routine into a shared experience.

These engagement initiatives are a form of experiential marketing insofar as they enrich the user’s experience of the brand beyond the core product. They also generate valuable data and feedback for companies, and foster brand loyalty. However, they require authenticity and alignment with brand values to succeed – contrived or purely promotional “communities” tend to fail in delivering genuine experiential value.

2.3 Customer Experience in Online Fashion Retail

The fashion industry provides a vivid illustration of how the experience economy plays out in e-commerce. Fashion products are inherently experiential – consumers care about how clothing makes them feel (confident, fashionable) and the experience of discovering and styling outfits, not just the fabric and thread. However, one challenge of online fashion retail is the loss of the tangible, sensory experience of shopping: you cannot touch or try on the product before purchase. To bridge this gap and avoid a cold, transactional feel, online retailers have adopted various experiential strategies.

Immersive Technologies (AR/VR): Augmented Reality has emerged as a popular tool in online fashion to simulate physical try-ons and enhance visual experience. Kovács and Keresztes (2024) conducted a qualitative study among Gen Z consumers and found that the visual experience is one of the most critical factors in online fashion shopping (Digital Innovations in E-Commerce: Augmented Reality Applications in Online Fashion Retail—A Qualitative Study among Gen Z Consumers) (Digital Innovations in E-Commerce: Augmented Reality Applications in Online Fashion Retail—A Qualitative Study among Gen Z Consumers). AR “try-on” features, where users can see a garment overlaid on their image or avatar, help customers visualize products in context, reducing uncertainty. Retailers like Zara, ASOS, and Warby Parker have implemented AR fitting rooms or virtual try-on for accessories like glasses. These innovations make online shopping more fun and interactive. According to industry reports, AR is considered a “new frontier in retail” and many fashion retailers are investing in such immersive technologies to meet customers’ demand for more than the average shopping experience (Digital Innovations in E-Commerce: Augmented Reality Applications in Online Fashion Retail—A Qualitative Study among Gen Z Consumers). By allowing consumers to virtually experience products, AR can increase confidence in purchase decisions and potentially reduce return rates. It exemplifies how digital platforms can deliver tangibility and experiential content even without physical presence.

Website Design and Content: The online storefront must create an engaging ambiance akin to a well-designed physical boutique. This includes high-quality imagery, 360-degree product videos, and even music or interactive elements on the site. A study on online fashion customer experience in Finland found that content plays a dual role of informing and inspiring customers, and that content features which align with customer needs add significant value to the online buying experience (Improving the customer buying experience in online fashion retail through content marketing: An empirical study among Finnish consumers — UTUPub). Many fashion e-tailers now integrate editorial content (lookbooks, trend articles, style guides) alongside shopping, essentially merging magazines with stores. This provides entertainment and education (two of Pine & Gilmore’s realms) to shoppers. User-generated content, like Instagram photos of customers wearing the brand, is also featured to add authenticity and social proof, which can heighten the aspirational experience. Indeed, Lempinen (2017) notes that shoppers perceive UGC as more trustworthy and value-adding than company’s own content (Improving the customer buying experience in online fashion retail through content marketing: An empirical study among Finnish consumers — UTUPub), suggesting that seeing real people’s experiences with the product enriches their own pre-purchase experience.

Personalization: Personalization technology is a cornerstone of digital experiential marketing in fashion. By using AI and data analytics, online retailers tailor product recommendations, emails, and even website visuals to individual user preferences. The aim is to recreate the feeling of a personal stylist guiding the customer. A personalized online shopping experience – where the site “understands” your style and fit – can delight customers and save them time, thus improving both emotional satisfaction and utilitarian convenience. Susi (2024) notes that personalized subscription models (e.g. monthly curated fashion boxes) are among the leading trends in e-commerce, as they make the shopping experience feel custom-made for the consumer (Digital Innovations in E-Commerce: Augmented Reality Applications in Online Fashion Retail—A Qualitative Study among Gen Z Consumers). Stitch Fix is a prime example: it built its business model around curating clothing selections for each customer through a combination of AI algorithms and human stylists, turning what could be a mundane task of shopping into a surprise-and-delight experience with each delivery.

Omnichannel and “Phygital” Experiences: Many traditionally brick-and-mortar fashion retailers have adopted an omnichannel approach, blending physical and digital experiences to serve the experience-seeking consumer. For instance, a customer might use a retailer’s mobile app to scan items in a store for more information or to see how an outfit might look with different accessories (digital overlay). Conversely, online shoppers can benefit from services like “buy online, try in store” which extends the experience across channels. The concept of “phygital” retail (physical + digital) aims to offer the best of both worlds – e.g. an in-store smart mirror that suggests items based on your online browsing, or virtual fashion shows/live-streams that replicate the excitement of attending a runway event. These innovations are responses to a finding that, even as e-commerce grows, consumers still enjoy certain aspects of physical shopping (such as the social and sensory experience) () (). By bringing experiential elements into e-commerce and vice versa, fashion brands create a more unified and engaging customer journey.

Emotional and Social Elements: Fashion consumption is deeply tied to identity and self-expression. Therefore, a positive emotional experience – feeling stylish, confident, or part of a brand’s lifestyle community – is a major driver of loyalty. Luxury fashion brands have long sold an aura and exclusivity as part of the product. In the online era, even fast-fashion brands try to cultivate a brand culture that customers can latch onto. This might include social media challenges (e.g. a hashtag campaign encouraging users to share their outfits), or interactive look-building tools that let users play stylist and share their creations. By focusing on these emotional/social dimensions, online fashion retailers leverage what Pine & Gilmore call the “sweet spot” of an experience that is at once entertaining, escapist, educational (e.g. learning style tips), and esthetically pleasing. Indeed, the first online shopping experience a customer has with a brand can set the tone for converting them into a repeat buyer (Improving the customer buying experience in online fashion retail through content marketing: An empirical study among Finnish consumers — UTUPub), underlining the importance of making that experience as satisfying as possible.

Multiple studies corroborate that enhancing online customer experience yields business benefits in fashion retail. For example, Puccinelli et al. (2017) observed that a well-designed online shopping experience (easy navigation, rich product info, enjoyable interface) leads to higher conversion rates and customer satisfaction. A recent empirical study by Cabrera-Córdova et al. (2023) focusing on fashion consumers (age 18–35) in Peru found that experiential marketing efforts have a positive correlation with the online purchase decision (). In their survey, the most valued experiential factors were tangibility (the ability to evaluate product through detailed images, descriptions, maybe AR), purchase experience (the ease and enjoyment of the buying process), and exclusivity (feeling special or getting unique products) (). These factors align with the strategies discussed above. Moreover, participants in that study highlighted trust and ease of use as key influences on their decision to purchase (), which underscores that while pursuing flashy experiences, retailers must not neglect the foundational elements of a good experience: reliability, security, and usability.

In summary, the literature on online fashion retail suggests that customer experience is holistic, comprising functional elements (usability, information availability, delivery/return convenience) and experiential elements (immersion, personalization, emotional connection). Both are critical. Successful online fashion businesses integrate experiential marketing to make online shopping “memorable, personal, and fun”, effectively turning what could be an impersonal transaction into an engaging journey for the consumer.

2.4 Customer Experience in Online Fitness Platforms

The fitness industry’s integration with digital technology has given rise to what some call the “fitness experience economy” (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International) (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International). Instead of the traditional gym membership model (which is essentially selling access to equipment/facilities), we now see a proliferation of fitness services that emphasize experience: live-streamed workouts, virtual coaching, social fitness challenges, and wellness tracking.

A hallmark of this shift is the transition from selling products (e.g. exercise machines, DVDs) to selling services or subscriptions centered on experiences. Peloton is often cited as a case study. Rather than just manufacturing exercise bikes, Peloton created a platform delivering interactive fitness classes and community engagement through the bike’s screen (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International). The bike is a conduit to the experience. This model has proven effective: Peloton’s user base grew over 100% during 2020, and by 2023 it had over 3 million connected fitness subscribers (Peloton Subscriber and Revenue Statistics (2024)). Notably, in a recent quarter Peloton’s subscription revenue ($420.6 million) accounted for the majority of its total revenue, surpassing its hardware sales ($253.4 million) (Peloton Continues Comeback With Strong Subscription Metrics). This indicates a successful pivot to an experience-driven revenue model (recurring subscriptions) from a traditional product sale model. Peloton’s approach incorporates several experiential elements recognized in literature: personalization (tailored class recommendations), community (leaderboards, live group classes where members see each other’s performance), gamification (badges, challenges, competitive metrics), and convenience (on-demand access at home).

Beyond Peloton, the broader digital fitness ecosystem includes:

• Fitness Apps (e.g. MyFitnessPal, Nike Training Club, Strava): These provide guided workouts, tracking of progress, and often a social network component (friends, followers, sharing accomplishments). The experience here is about integrating fitness into daily life with feedback and motivation. Many apps use gamification – for instance, awarding points, streaks, or rankings – to make using the app and doing exercise feel like a rewarding game. Studies in human-computer interaction have found that such gamified features can increase user engagement and habit formation in fitness contexts by satisfying psychological needs for achievement and competition.
• Virtual Coaching and Classes: Services like Apple Fitness+ or Les Mills On-Demand stream professionally instructed workouts to users’ devices, often with high production values (music, stage lighting, etc.) to enhance enjoyment. These basically emulate a group fitness class experience. Crucially, some have interactive features – Apple’s Fitness+ integrates with the Apple Watch to display your heart rate on screen and celebrate when you close activity rings, adding a personal touch. Research by the IHRSA Foundation (2021) found that today’s fitness consumers demand highly personalized, flexible experiences – a “one size fits all” approach no longer works (New Research: Consumers Value a… | Health & Fitness Association). Instead, users want variety in programming (different workout types, intensity levels) and the ability to assemble their own “fitness journey” (New Research: Consumers Value a… | Health & Fitness Association). Offering a breadth of virtual classes meets this need for variety, which is linked to sustained motivation.
• Connected Fitness Games (Exergaming): An emerging trend is the blending of fitness and video gaming, such as Zwift (virtual cycling/running in game worlds) or the use of VR in workouts. Exergaming appeals to the escapism and entertainment aspects of experience. It can attract individuals who otherwise find exercise monotonous, by providing goals, narratives, or competitive play. As noted in an industry report, “gamification of fitness is the latest trend that has the potential to invigorate the in-home fitness market” (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International). Early studies suggest exergames increase exercise adherence by making workouts more immersive and fun.

Community and Social Motivation: A distinctive aspect of fitness experiences is the role of social support and competition. Many people are motivated by working out with others or comparing progress. While a home workout can lack the camaraderie of a gym class, digital platforms deliberately incorporate community features to fill that gap. For example, Peloton’s real-time leaderboard allows users to compete and even high-five each other virtually. Research shows that “people are often more motivated to work out when they have someone with whom they can compare” (Designing a New «Fitness Journey» in the Digital Experience Economy | itel International). In fact, Peloton reported that subscriber churn is 60% lower for members who engage in at least two different types of classes (disciplines) per month compared to those who stick to just one (Peloton Continues Comeback With Strong Subscription Metrics) (Peloton Continues Comeback With Strong Subscription Metrics). This implies that broadening the scope of the experience (cross-training, varied activities) and connecting with different sub-communities (yoga, cycling, running enthusiasts, etc.) enhances retention. Additionally, features like online forums, Facebook groups (e.g. Peloton Official Member Page), and local meetups organized via an app help foster a sense of belonging to a fitness community, which can be a powerful emotional draw.

Holistic Well-being and Personalization: The notion of a “total fitness experience” is now extending beyond just the workout to encompass nutrition, mental health, and lifestyle coaching. Many fitness apps and platforms have started offering meditation sessions, diet tracking, or personal coaching tips, acknowledging that users see fitness as part of a broader wellness journey. According to a Health & Fitness Industry report, mental well-being has become the second most important motivator for exercise (35% of respondents), just behind physical health (46%) (New Research: Consumers Value a… | Health & Fitness Association). This shift means that experiences which address stress relief, mindfulness, and community support (for accountability) are increasingly valued. For fitness businesses, it opens opportunities to differentiate via content that addresses those deeper needs (for example, integrating mindfulness into a workout routine for a more fulfilling experience).

User Experience Design in Fitness Apps: Another stream of literature focuses on the usability and feature satisfaction in fitness applications. Park et al. (2022) conducted an empirical analysis of fitness app attributes and found that users placed highest importance on practical features like ease of use, clear information, compatibility with devices, and data privacy ( Analysis of Strategies to Increase User Retention of Fitness Mobile Apps during and after the COVID-19 Pandemic — PMC ). These basic factors must be satisfied for the experience to be positively received. The same study noted areas where satisfaction lagged behind importance: for instance, users wanted more accurate exercise information and efficient design, and better integration of images/videos in the app to guide workouts ( Analysis of Strategies to Increase User Retention of Fitness Mobile Apps during and after the COVID-19 Pandemic — PMC ). This suggests that while novelty features are welcome, the core experience must reliably deliver useful guidance and be user-friendly. An app that crashes or provides poor tracking data will undermine the experience no matter how gamified it is. Thus, the literature implies a hierarchy: first ensure a frictionless, reliable user experience, then add layers of experiential enhancement (gamification, community, personalization). This aligns with the broader principle that functional satisfaction is a prerequisite for experiential satisfaction.

In summary, the fitness industry has embraced the experience economy by transforming workouts into rich digital experiences that can be delivered anytime, anywhere. Consumers have responded by flocking to those offerings that best replicate or even improve upon the motivational and enjoyable aspects of in-person fitness. The key components of successful online fitness experiences identified in the literature include: personalization (tailoring workouts and guidance to individual goals), interactivity (live feedback, adaptive difficulty), community (social support and competition), and content richness (variety of workouts, music, visuals). When these come together, the fitness activity becomes more than exercise – it becomes an engaging part of the consumer’s lifestyle, often with emotional significance (pride, reduced stress, connection to others). Companies that excel in these areas (e.g. offering an integrated platform of workout + tracking + community + entertainment) are effectively redefining their business model around selling an experience of wellness, rather than just a product or facility for exercise.

2.5 Conceptual Framework and Research Gap

Based on the literature, we can conceptualize that in both fashion and fitness online markets, the experience economy manifests through specific strategies (independent variables) such as immersive technologies, interactivity, personalization, community-building, and experiential content. These in turn influence consumer responses (dependent variables) like engagement, satisfaction, brand loyalty, purchase intention, and willingness to pay a premium. The linkage is often mediated by psychological factors like emotional connection, perceived value, and trust. For instance, a personalized fitness app experience may increase perceived value and enjoyment, leading to higher loyalty (mediation), and this effect might be moderated by user characteristics (e.g., younger users might value gamification more, or experienced shoppers might require higher-quality visuals to be impressed).

While prior studies have examined elements of this (as reviewed above), there is a relative paucity of research that directly compares how the experience economy is playing out across different sectors in the digital domain. Moreover, much of the literature either focuses on conceptual development or single-case studies. Quantitative empirical evidence linking specific experiential features to consumer behavior outcomes is still emerging, especially in rapidly evolving fields like virtual fitness. Our study aims to fill this gap by empirically testing some of these relationships and comparing two sectors to see commonalities and differences. In doing so, we build on the theoretical grounding laid out (experience economy theory, experiential marketing, CX importance) and seek to contribute new insights that are both academically and managerially relevant.

Proposed Research Model (Summary): We posit that experiential marketing practices (e.g. AR try-on, interactive live fitness classes, curated content, etc.) positively affect customer experience quality (as perceived by consumers). High experience quality then leads to favorable consumer behavioral outcomes (e.g. higher purchase frequency in fashion, higher subscription retention in fitness). We also posit that businesses adapt their business models (e.g. adopting subscription services, creating omnichannel touchpoints) in response to the experience economy’s pressures, which might be observed qualitatively.

The next section details the methodology we used to investigate these propositions, including data sources and analysis techniques.

Methodology

3.1 Research Design Overview

To explore how the experience economy is shaping consumer behavior and business models in online fashion and fitness, we employed a mixed-methods research design. This approach combined quantitative survey research to gather consumer insights with qualitative case analysis to understand business model implications. The rationale for this design was to triangulate findings: the survey provides broad empirical relationships and generalizability, while case studies offer depth and context in how companies implement experiential strategies.

Specifically, the study consisted of two main components:

1. Consumer Survey: A structured questionnaire administered to consumers of online fashion retail and online fitness services. The survey captured data on consumers’ perceptions of their experiences in these contexts and the impact on their behavior (e.g., purchase decisions, loyalty). We targeted respondents who had recent (past 6 months) experience either shopping for fashion items online or using an online fitness platform (or both).
2. Case Studies: In-depth analysis of four companies (two in fashion e-commerce, two in digital fitness) known for their experiential approach. This involved reviewing company reports, website/app features, and secondary data (articles, interviews) to document their business model innovations and experiential marketing practices. The companies selected were: ASOS and Nike (Direct) for fashion, and Peloton and ClassPass for fitness. These were chosen to represent a range of business models (retail platform, brand with omnichannel presence, hardware-plus-subscription, and service aggregator respectively) all emphasizing customer experience.

The combination of methods allows us to both quantitatively measure consumer responses and qualitatively interpret firm strategies, which is appropriate given our research questions span both behavior and business model realms.

3.2 Survey Methodology

Sampling and Data Collection: We recruited survey participants from two countries – the United States and the United Kingdom – via an online panel provider to ensure a diverse and relevant sample. These markets are mature in e-commerce and fitness tech adoption, providing a suitable context. Respondents were screened for being 18 years or older and for having either made an online fashion purchase or used an online fitness platform in the last 6 months. We aimed for roughly equal representation of the two contexts; in total, 810 respondents completed the survey, with 412 primarily answering about fashion shopping experiences and 398 about fitness platform experiences (a small number had done both; they were instructed to focus on one context to avoid conflating experiences).

The final sample (n ≈ 800) was 58% female and 42% male, with an average age of 30.7 years (SD = 9.4). Approximately 50% were Millennials (25–40), 30% Gen Z (18–24), and 20% Gen X or older (>40). This skew towards younger demographics was expected given the online and digital fitness focus. We ensured a mix of frequent vs. infrequent users: e.g., some shop online monthly or more, others only occasionally; similarly, some use fitness apps daily vs. weekly.

The survey was administered online using Qualtrics. Participants were presented with questions about one of the industries (whichever was more relevant to them) – this was done to have them reflect deeply on that specific experience rather than mixing the two in one questionnaire.

Measures: We developed the survey instrument based on existing scales and literature for consistency and validity:

• Experiential Features Usage: A checklist of whether the respondent had engaged with various features during their experience. For fashion: e.g., Viewed a video catwalk of the product, Used a virtual try-on or size recommendation tool, Read customer reviews or style tips on site, Followed the brand on social media. For fitness: e.g., Did live-stream classes, Participated in app challenges or leaderboards, Interacted with other users/community, Used personalized training plans. This was used to categorize users into high vs low experiential engagement groups.
• Perceived Experience Quality: A multi-item scale adapted from customer experience literature (including sensorial, emotional, social, and functional aspects). Respondents rated statements on a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). Example items: “Shopping on this website is enjoyable and fun”, “I feel emotionally connected to this fitness app or brand”, “The online experience is as good as/instead of being in a store or class”, “I can easily find information and feel confident about my purchase/use”. We conducted an exploratory factor analysis which yielded two clear sub-dimensions: Experiential Enjoyment (α = 0.88) capturing fun, immersion, social connection; and Functional Ease/Trust (α = 0.84) capturing convenience, information adequacy, and security/trust in the platform. These align with prior findings that both hedonic and utilitarian factors contribute to overall CX.
• Consumer Behavioral Outcomes: We measured several outcomes. (a) Satisfaction: “Overall, how satisfied are you with your experiences with [site/app]?” (10-point scale). (b) Loyalty intentions: a composite of likelihood to continue using, likelihood to recommend (NPS style question), and preference over competitors. (c) Spending behavior: self-reported change in spending or usage frequency after engaging in these experiences (e.g., “I find myself shopping more often because of the enjoyable experience”). (d) Willingness to pay premium: one item asking if they would pay slightly more with this company for the better experience, vs. a cheaper but less enjoyable alternative.
• Moderators and Controls: We collected data on familiarity with technology (tech-savviness), whether the pandemic influenced their shift to online, income (could affect willingness to pay), and whether they primarily value convenience or experience (self-identified) to test as moderating factors.

The survey was pre-tested with 15 individuals for clarity and timing. It took ~10 minutes to complete.

Analytical Approach (Survey): We analyzed the survey data using SPSS and AMOS. First, we conducted reliability and validity checks for our scales (Cronbach’s alpha as noted, and confirmatory factor analysis for convergent/discriminant validity). Then, we tested hypotheses. Given our aims, the core analysis was examining the relationship between experience quality and consumer outcomes. We ran regression models where satisfaction, loyalty, and spending increase were outcomes, and experiential enjoyment and functional ease were predictors, controlling for demographics. Additionally, we split the sample by industry to see differences between fashion and fitness contexts. We also used correlation analyses to see if specific features usage correlated with higher scores on experience quality and outcomes. Finally, we tested if those who engaged more experiential features had significantly different outcomes (using t-tests/ANOVA).

3.3 Case Study Methodology

For the qualitative component, we adopted a case study approach focusing on four companies as mentioned. We used a combination of document analysis and, where possible, informal interviews or published interview content with company executives.

• For each company, we mapped out their customer journey and experience-related initiatives. For example, for ASOS (a pure-play online fashion retailer), we documented their site/app features: personalized homepage, catwalk videos, AR sizing tool (“See My Fit”), extensive use of influencer content, free returns (reducing risk), and their social media engagement tactics (Instagram shopping, TikTok campaigns). We looked at how these features tie into their business results and positioning. We also noted how ASOS’s business model (fast turnover of styles, online-only) leverages experience economy – e.g., constant new content = constant new experiences for the consumer.
• Nike’s case is a bit different as a global brand with both stores and a strong online presence. We focused on Nike’s digital ecosystem (Nike app, Nike Training Club, Nike Running Club) where they cultivate community and experiences around the products. For instance, Nike’s apps provide training programs (experiential value) that complement product sales, effectively making Nike not just an apparel seller but a fitness service provider too. Nike’s use of gamification (badges for runs, community challenges, etc.) and personalization through member data were documented.
• Peloton’s case we covered largely in literature review, but in case study we updated with their business model evolution (subscription focus, content expansion to yoga/meditation, introduction of gamified features like “Lanebreak” which is a game-like workout, etc.). We reviewed investor reports for metrics on engagement (such as average workouts per subscriber) and any statements about the importance of experience in their strategy.
• ClassPass was included as a contrast: it doesn’t produce fitness content itself but offers a subscription that grants access to thousands of physical and virtual fitness classes from various providers. ClassPass’s model banks on providing a variety of experiences (different studios, workout types) conveniently through one membership. We examined how the platform’s UX and community reviews play a role in the experience, and how ClassPass effectively turned gym/classes into an experience buffet, which disrupted traditional gym memberships (pay-as-you-go experience sampling vs. one gym commitment).

For each case, we synthesized the findings to identify common patterns or unique approaches. We especially noted any evidence of business model innovation explicitly tied to delivering experiences. For example, Nike’s shift to more direct-to-consumer (D2C) sales via its apps can be seen as aligning the business model (cutting out middlemen) to gain better control of customer experience and data. Peloton’s recurring revenue model is built on continuously engaging experiences that justify monthly fees.

We also considered performance indicators (where data available) such as customer retention, NPS (Net Promoter Score), or sales growth to the extent they were attributed to experiential factors.

3.4 Ensuring Rigor and Validity

We took several steps to ensure the rigor of our research. For the survey, we used established measurement scales where possible and ran pilot tests. Common method bias was mitigated by guaranteeing anonymity (to reduce respondent tendency to give socially desirable answers about liking the experience) and by separating measurement of predictors and outcomes in the survey flow. We also statistically checked for common method variance using Harman’s single-factor test (no single factor accounted for the majority of variance).

For the case studies, we used data triangulation – e.g., comparing a company’s claims (from press releases or annual reports) with external customer reviews or third-party reports (like analyst assessments) to avoid relying solely on company rhetoric. We also had two researchers independently review and code the case data for themes, then compared and reconciled interpretations to reduce subjective bias.

Finally, we integrated the quantitative and qualitative findings during analysis to see if they converged on similar conclusions (this will be reflected in the Discussion section). The mixed-method approach itself is a form of triangulation, enhancing the study’s internal validity. By surveying consumers and also examining companies, we aimed for a more comprehensive understanding of the phenomenon.

In the next section, we present the results of the consumer survey followed by insights from the case studies, structured around our research questions.

Results

4.1 Survey Results: Consumer Perspectives on Experiential Factors

4.1.1 Differences in Experience Engagement (Fashion vs. Fitness): First, we examined how many experiential features consumers reported using in each context. Fashion e-commerce users on average had engaged with 3.2 out of 5 listed features. The most common were reading customer reviews (72% of respondents) and viewing rich media like videos or 360° images (65%). About 40% had used a personalization feature (like a style quiz or AI recommendation), and 25% had tried an AR fitting/visualization tool. On the fitness side, users engaged with 2.8 out of 5 features on average. The most common were tracking progress (68% using features like workout history, streaks), and participating in challenges or varied class types (60%). Social interaction was noted by 45% (used leaderboards or community forums), and 30% had experience with live classes or real-time trainer feedback. These numbers indicate that while not every user utilizes all features, a significant portion is interacting with multiple experiential elements, especially those that are readily accessible (reading reviews, tracking progress).

We found that users who engaged more experiential features tended to have higher overall experience ratings. For example, in fashion, those who had tried AR or personalization reported an average experiential enjoyment score 0.5 points higher (on the 5-point scale) than those who had not (p < 0.01). Similarly in fitness, those using social/competitive features had higher enjoyment and also higher usage frequency of the app (self-reported days per week). This suggests a positive association between feature engagement and perceived experience quality, though causality could be bi-directional (enthusiastic users seek features vs. features create enthusiasm).

4.1.2 Experience Quality and Consumer Satisfaction: We observed strong positive correlations between the Experiential Enjoyment dimension of CX and key outcomes. For the sample overall, Experiential Enjoyment had r = 0.62 with satisfaction and r = 0.55 with loyalty intention (both p < 0.001). The Functional Ease/Trust dimension also correlated positively (r = 0.45 with satisfaction). This means that both the fun/emotional aspects and the pragmatic aspects of online experience contribute to satisfaction, though the emotional enjoyment had a slightly larger effect size.

When running regression analyses (controlling for age, gender, and tech-savviness), we found that Experiential Enjoyment significantly predicted: higher likelihood to recommend (β = 0.53, p < 0.001), increased spend/usage (β = 0.47, p < 0.001), and willingness to pay a premium (β = 0.32, p < 0.01). Functional Ease was also significant in predicting those outcomes, but with smaller coefficients (e.g., β ≈ 0.20–0.30). These models had R² in the range 0.30–0.40, indicating a substantial portion of variance in consumer loyalty is explainable by perceived experience quality. One interpretation is that an enjoyable, engaging experience not only makes customers happy but also translates into them acting on that happiness by sticking with or even advocating for the brand.

Breaking out by sector: Fashion shoppers showed a particularly strong effect of experiential enjoyment on loyalty (β = 0.59). Many in the survey commented (in an open-ended question) that they “love browsing on [favorite site] even when not needing to buy, because it’s inspiring” – such intrinsic enjoyment likely keeps them coming back and eventually buying more. In fitness users, experiential enjoyment strongly predicted continued subscription (β = 0.50) and frequency of workouts. Interestingly, functional ease (like the app’s reliability) had a higher relative importance for fitness satisfaction than for fashion. This could be because for a fitness app, if it crashes during a workout or data is inaccurate, it directly disrupts the experience, whereas in fashion a minor website glitch is less detrimental unless it affects payment or trust. In any case, both aspects are important as seen earlier.

4.1.3 Impact on Consumer Behavior: Among fashion respondents, 58% agreed or strongly agreed that “I am more likely to stay loyal to an online fashion retailer that provides a fun, personalized experience even if competitors are cheaper.” This aligns with the notion that CX can trump price (The Experience Economy and the Meaning of Luxury -or- Why Luxury Requires a Different Type of Content Strategy ). Also, 49% reported that they have increased their online fashion spending over the past year specifically because “the online shopping experiences have improved or become more enjoyable.” Only 12% said they find online fashion shopping a purely utilitarian task with no enjoyment. This is an indicator of the experience economy mindset taking hold among consumers – shopping is not just buying, it’s a form of entertainment or self-expression.

In the fitness group, 65% agreed that “Having an interactive or community aspect to my fitness app motivates me to work out more.” Furthermore, 52% said they would not have maintained exercise habits without the digital experience making it convenient or fun (especially pertinent for those who started during the pandemic). We also found that those with high experiential engagement reported doing ~1.5 more workouts per week on average than low engagement users. While many factors influence exercise frequency, users explicitly credited things like “the variety keeps me from getting bored” and “seeing others’ progress pushes me to not skip”, which are direct outcomes of experiential features.

Churn intention was inversely related to experience ratings: among users who gave top-tier CX ratings (top 20%), virtually none indicated plans to cancel subscriptions or switch sites, whereas among bottom-tier CX raters, about 30% were considering switching. This reinforces what the Barclays research and Gartner insights suggested: neglecting experience can lose customers (Experience Economy Trend Leads The Way into 2021 | Landbot), while exceeding expectations can foster loyalty even if cheaper alternatives exist.

4.1.4 Moderating Factors: We checked a few potential moderators. One interesting finding: for older users (>40), functional ease/trust was a stronger predictor of satisfaction than experiential fun (perhaps reflecting different priorities or comfort levels with digital experiences). Younger users (esp. Gen Z) showed the opposite – they placed very high value on the “cool” and fun factor. This is consistent with generational differences observed in marketing studies, where digital natives expect a more gamified and social experience.

Another factor, user’s goal orientation: those who described their primary motive as “get in, get out” (efficiency-focused) had overall lower enjoyment scores, but if the site/app was very efficient and reliable, they were still satisfied. Those who were open to or seeking enjoyment got the most out of experiential features. This suggests personalization not just of content, but of the experience style may be beneficial (e.g., having both a quick path and an exploratory path on a website).

In summary, the survey results provide empirical evidence that supports the idea that the experience economy is influencing consumer behavior in these online sectors. Consumers respond positively to experiential enhancements, which in turn can drive higher usage, loyalty, and even willingness to pay.

4.2 Case Study Insights: Business Model Adaptations

Turning to the company case studies, we distill some key insights on how businesses are leveraging experiential strategies and aligning their models:

Case 1: ASOS (Online Fashion Retailer) – Experiential E-Tailing at Scale. ASOS is a UK-based global e-commerce fashion platform targeting young adults. A core part of its success has been creating a fashion discovery experience online. They were among the first to introduce catwalk videos for clothes (so users can see how fabric moves and fits on a model, enhancing visualization). ASOS’s app and website emphasize personalization – a logged-in user sees recommendations based on browsing, a “Style Feed” of outfits tailored to their taste (using AI and their saved preferences), and even a visual search tool (upload a photo of an outfit you like, and ASOS finds similar items). By positioning itself not just as a store but as a fashion companion offering inspiration and advice, ASOS increases user engagement time and loyalty.

From a business model perspective, ASOS invests heavily in content creation and technology as part of their retail model – an expense traditional retailers might allocate to more inventory or physical stores. They also offer services like free shipping and returns for premium members (annual subscription), which while logistical, greatly improve the experience by reducing friction and risk for customers (and encourage more frequent purchasing). Essentially, ASOS’s model recognizes that in an online context, trust and ease (free returns) combined with enjoyment (browsing content) drive sales. The company’s strong social media presence (over 10 million Instagram followers) and hashtag campaigns (like #AsSeenOnMe where customers share their ASOS looks) extend the experience beyond the transaction, fostering community and free user-generated marketing. These experiential aspects have contributed to ASOS’s high customer retention especially among the 20-something demographic.

Case 2: Nike (Digital Engagement as a Strategy) – Omnichannel Brand Experience. Nike, as a huge brand, has a multifaceted model, but in recent years has explicitly focused on building direct customer relationships via digital platforms. Nike’s membership program (free to join) is essentially a vehicle for personalized experiences: members get access to the Nike Run Club and Training Club apps, exclusive content (like workouts led by pro athletes), early product access (which creates a feeling of VIP experience), and even immersive events (sometimes virtual, sometimes physical meetups). This strategy – sometimes referred to by Nike as “Consumer Direct Offense” – reorients the business model to prioritize lifetime value of customers over immediate sales. By engaging members through experiences (workouts, challenges, style guides, etc.), Nike keeps them within its ecosystem, which eventually drives product sales in a more organic way.

An example: during the pandemic, Nike made its premium Training Club content free for a time, gaining millions of new users; those users were then more likely to purchase apparel/equipment to support their new routines. Nike’s use of data from its apps also informs product development (they notice trends in what workouts people do, which might influence what kind of products to make) – a synergy that only comes when you treat the experience as integral to the offering. In stores, Nike has been adding tech-driven experiences like augmented reality showcases and localized community spaces (e.g., Nike’s House of Innovation stores) to blur online-offline. These moves reflect how a traditional product-focused company can transform its model to be experience-centric, using digital tools to scale personalization and community.

Case 3: Peloton (Subscription Model in the Experience Economy) – From Hardware to Platform. Peloton’s model highlights how monetizing experiences directly can be viable. They sell hardware at a premium, but the goal is to get customers onto the subscription (currently ~$44/month for full access) where the ongoing experience occurs. Peloton invests in content creation (it runs a media production studio for classes), talent (instructors are like fitness celebrities, enhancing the experience), and software updates that introduce new features (recently, more gamified workouts, scenic rides, etc.). The business model thus has high fixed costs in producing experience content but scales with a growing subscriber base. As long as the experience keeps people hooked (which, as per their reports, is indicated by high average workouts per month and low churn ~1% monthly (Peloton Continues Comeback With Strong Subscription Metrics)), the model is profitable over the long term.

Notably, Peloton also adapted its model when it saw some users didn’t want to invest in the bike – they introduced a digital-only membership (for app classes without equipment) at a lower price, recognizing different segments of experience seekers. They even started integrating with third-party devices (e.g., allowing people with other treadmills to use Peloton content), essentially prioritizing the distribution of their experience over proprietary hardware lock-in. This again underscores the power of the experience: Peloton’s brand is strong enough that people will pay for the workout experience even without owning Peloton equipment.

Case 4: ClassPass (Experience Aggregator) – Marketplace of Experiences. ClassPass doesn’t create fitness content; instead, it provides a subscription that lets users book classes at thousands of studios/gyms or join livestreams. Its entire value proposition is giving variety and flexibility – which is very much targeting the experience economy notion that people want to sample different experiences rather than be tied to one place. ClassPass’s model disrupted gyms by turning fitness into a flexible experience you can curate: yoga one day, spinning the next, etc., all via one app. This appeals to the novelty-seeking aspect of experiences (escapism and diversity) () ().

From a business standpoint, ClassPass’s success hinged on a smart credit system (they assign credit costs to classes based on demand) and strong app UX that makes discovering and booking classes seamless. The app incorporates reviews and ratings, which adds a community trust dimension. Essentially, ClassPass is monetizing the access to experiences rather than any single product or location. Its growth (pre-pandemic) showed that urban consumers especially loved this model. Even after the pandemic, ClassPass added online classes as part of their offering, again adapting to how consumers still wanted experiences from home.

Common Themes: Across these cases, a few common business model shifts are evident:

• Subscription/Recurring Revenue: Leveraging experiences to justify subscription models (Peloton, ClassPass, Nike’s membership albeit free, but leading to loyalty). Predictable revenue in exchange for continuously delivering value through experiences.
• Investment in Technology & Content: Whether it’s AR features for ASOS or video production for Peloton, companies are allocating more resources to tech and content creation – traditionally outside the scope of say a retailer or manufacturer – because those create the differentiated experience.
• Community as Part of the Model: Each case had a community aspect (ASOS = social media/UGC, Nike = member community and events, Peloton = tribes and instructor fandom, ClassPass = user reviews and referrals between friends). Community retention loops become a quasi “asset” for the company – for example, Peloton’s community increases the product’s value with each new member (network effects), which is very different from an isolated product sale model.
• Data-Driven Personalization: All leverage user data to refine the experience (recommendations, new offerings). The business model thus increasingly includes analytics and responsive design as core competencies.
• Premium Branding through Experience: By offering superior experiences, these companies often command a price premium or at least stronger brand loyalty. Nike’s products are premium priced but justify it with the ecosystem. Peloton’s gear is costly, justified by the unparalleled experience. Even ASOS, while generally affordable, keeps customers coming back to them first, reducing price shopping elsewhere.

The case findings reinforce that in practice, companies implementing experience economy principles tend to see positive outcomes like higher customer lifetime value, differentiation in a crowded market, and resilience (e.g., Peloton’s community kept them somewhat afloat even when a recall happened – members stuck with content). However, it also highlights challenges: content and tech investments can be heavy, and the need to constantly innovate the experience is high because “each new memorable experience sets the bar a bit higher” for consumers (Experience Economy Trend Leads The Way into 2021 | Landbot). For instance, ASOS now competes with other brands doing similar AR or personalization; simply having it is no longer novel. The implication is continuous improvement is part of the game in the experience economy – something we discuss next.

Discussion

Our findings offer several important insights into the dynamics of the experience economy in online fashion and fitness, bridging theoretical concepts with real-world practices.

5.1 The Experience Economy’s Effect on Consumer Behavior: The evidence from our survey aligns strongly with existing theory that experiences drive consumer engagement, satisfaction, and loyalty (jmkg.73.3.052) (Experience Economy Trend Leads The Way into 2021 | Landbot). We found that consumers who perceive high experiential value (enjoyment, personalization, social connection) are significantly more likely to exhibit positive behaviors like repeat purchasing and brand advocacy. This supports Pine and Gilmore’s premise that staging engaging experiences can elevate a company’s offering above commoditized competition (Experiential Activations By The Trade Group). It also echoes Brakus et al.’s (2009) conclusion that brand experience can foster loyalty indirectly by building emotional resonance. In our context, that emotional resonance might be the excitement a shopper feels when using a virtual try-on and imagining themselves at an event in that outfit, or the adrenaline a user feels competing on a fitness leaderboard. These emotions create memory associations – which Pine & Gilmore would classify as the hallmark of a true economic experience (memorable and personal).

One notable point is the balance between hedonic and utilitarian factors in customer experience. Our data showed that while the “wow” factors (fun, novelty) are crucial, they cannot come at the expense of basics like ease of use and trust. This ties into existing consumer behavior models like the Technology Acceptance Model (perceived usefulness and ease) merged with hedonic motivation. Essentially, to win in the experience economy, firms must deliver on both excitement and excellence. A flashy AR feature that is inaccurate or a live fitness class that frequently lags will frustrate users – turning a potentially great experience into a negative one. This underlines that experience design must be user-centric and reliable. Many early attempts at experiential features failed for this reason (e.g., early AR apps that were clunky saw low adoption). But as technology matures and companies iterate, these features are becoming more seamless, and consumer appetite is growing.

5.2 Industry-Specific Dynamics: Comparing fashion and fitness industries yields interesting nuance:

• In fashion e-commerce, experience economy practices largely augment the shopping process: making it more immersive (visual, editorial), more personalized, and socially connected. The core product (clothing) remains physical, so part of the experiential challenge is reducing the gap caused by lack of physical interaction. Our study indicates that features successfully doing so (e.g. virtual try-ons, rich media) have a direct impact on purchase confidence and satisfaction. This confirms the findings of prior qualitative work that visual experience is key in online fashion (Digital Innovations in E-Commerce: Augmented Reality Applications in Online Fashion Retail—A Qualitative Study among Gen Z Consumers). Moreover, fashion is tied to identity; we see that community elements (like sharing looks) deepen engagement because they allow self-expression and peer validation. Brands that facilitate these forms of engagement effectively turn customers into part of the brand story, as suggested by modern marketing paradigms of co-creation and brand communities (Muñiz & O’Guinn, 2001).

Another aspect in fashion is omnichannel integration. While our study focused on online, in reality consumers often float between online and offline. The literature (e.g., Squire Patton Boggs report ()) noted physical stores still have an edge in escapism for many shoppers – browsing a mall can be a getaway that online can’t fully replicate. However, digital can compensate by offering other experience forms (like convenience or endless selection). A strategic implication for fashion retailers is to ensure synergy: use digital to enhance physical (reserve online, in-store events promoted online) and vice versa. Experience economy thinking encourages a holistic approach: the experience is the sum of all interactions, so breaking silos between channels is necessary to present a cohesive, pleasant journey. Our case of Nike illustrated how even a brand known for stores uses apps to amplify the store experience and keep customers engaged beyond store visits.

• In online fitness, the experience often is the product. If someone subscribes to a yoga app, what they are paying for is essentially the experience of the classes and the results (health, enjoyment) those classes yield. This is slightly different from fashion where the product (clothing) is separate from the experience (shopping). In fitness, service and experience are one, akin to entertainment or education services. Thus, the success of an online fitness business depends entirely on delivering a high-quality, engaging experience consistently. The best instructors, the most motivating community, the most user-friendly tech – these become the competitive battleground. Our results align with this: variables like quality of content and community interaction had a direct link to retention.

A key implication here is the importance of fresh content and innovation. Fitness users crave variety (monotony kills motivation). Peloton’s data-driven approach of introducing new program types (e.g., bootcamps, meditation, games like Lanebreak) exemplifies responding to that need. This maps to Pine & Gilmore’s “entertainment and education” realms – people want to be entertained (fun workouts) and educated (learn new techniques or see progress) in their fitness experience. Meanwhile, the social/competitive realm (escapism/esthetics in a way) is crucial – as evidenced by the stat that multi-discipline engagement lowers churn (Peloton Continues Comeback With Strong Subscription Metrics), implying keeping experiences fresh and challenging across domains retains users.

Also, the pandemic’s effect accelerated the normalization of digital fitness experiences, and consumers got a taste of convenience plus connection. Many won’t go back to solely gym memberships. This suggests the fitness industry has permanently shifted into a hybrid model – gyms offering digital options, digital players creating physical community events – all to maximize the experiential value.

5.3 Implications for Marketers and Businesses: The empirical insights from this study lead to actionable implications:

• Design for Emotion and Engagement: Companies should map the emotional journey of their customer experience and seek to create high points that delight. For fashion, maybe the unboxing experience or order confirmation (some brands send stylist videos with your purchase). For fitness, maybe the post-workout summary with celebratory animations. Small touches can elevate emotional engagement. As our results show, emotional enjoyment strongly drives loyalty, so investing in these creative details is not just fluff but strategic.
• Leverage Personalization – but ethically: Personalization clearly enhances relevance and can make customers feel “seen.” However, it must be done with respect for privacy and without crossing the “creepy” line. Transparent opt-ins, value exchange (users willingly share data for better recs), and giving control (ability to adjust preferences) will help maintain trust, which our study indicates is equally crucial. For example, a fashion site might allow users to curate what styles they want to see more or less of, which both empowers the user and helps the brand target better.
• Community Building: Marketers in both sectors should consider strategies to build or facilitate communities. This could be online forums, hashtag campaigns, in-app social features, or offline meetups (brand-sponsored events, run clubs, etc.). A community provides ongoing experiential value at relatively low marginal cost to the company (since users generate content/interactions) and significantly increases switching costs (it’s harder to leave a brand if your friends and social identity are tied to it). Our findings show community features are appreciated (45% use in fitness, many read reviews in fashion which is a form of community knowledge sharing). That said, community management needs authenticity and sometimes moderation, so it should not be purely left to chance.
• Measure and Iterate CX: Companies should continuously measure customer experience through surveys (like NPS, satisfaction) and behavioral metrics (e.g., time spent on site, engagement rates with features). As Gilmore noted (Experiential Activations By The Trade Group), industries are now embracing experience design and measurement; our research underscores that iterative improvement is necessary because consumer expectations keep rising. Feedback loops such as user testing and community feedback sessions can identify pain points or new desires. For instance, if a significant segment of users express interest in a new type of experience (maybe AR try-on for fitness apparel, or integration of music playlists into a fitness app), companies can pilot those enhancements. The experience economy rewards innovators who stay ahead of the curve.
• Train and Empower Staff (where applicable): In contexts that still have human interaction (customer service chat, or in hybrid physical settings), ensure staff are trained to deliver a consistent brand experience. A rude customer service interaction can ruin an otherwise great digital experience. Conversely, an empathetic, quick problem resolution can turn a negative into a positive memorable moment. This aligns with the idea that an experience is the totality – every touchpoint counts. Zappos (online shoe retailer) famously built its brand on customer service “experiences” via phone. In our surveyed sectors, live chat support, or instructor interactions in live classes, are analogous. Businesses should view these not as cost centers but as part of the experiential offering that can differentiate them.

5.4 Emerging Trends: Looking forward, several emerging trends will likely further shape the experience economy in these industries:

• Metaverse and Virtual Fashion/Fitness: There is growing discussion of metaverse platforms where people can engage with brands in virtual environments. Fashion brands are experimenting with virtual fashion shows, digital clothing for avatars, and interactive showrooms. Fitness might see more VR workout experiences where you feel present in a virtual gym or nature environment. If done right, these could greatly enhance immersion (esthetic and escapist realms), but adoption will depend on technology access (VR hardware) and consumer comfort. Our results showed Gen Z is most open to novel digital experiences; they could be early adopters of these trends.
• Experience as Marketing: Experiences themselves becoming marketing content. For example, live shopping events (where influencers host a livestream shopping show) are both an experience for viewers and a sales channel. In fitness, companies might host virtual races or global community events – doubling as marketing stunts and actual user experiences. The line between marketing and service delivery is blurring; marketers must think in terms of orchestrating events or challenges that engage existing customers and attract new ones through FOMO and social sharing.
• AI Enhancement: AI will play a bigger role in tailoring experiences. Beyond recommendations, AI could adjust the difficulty of a workout in real-time based on user performance (for optimal flow experience), or a fashion AI assistant could create a personalized lookbook for a user to experience virtually. AI chatbots for customer support can also contribute to or detract from experiences – so their design must be carefully aligned with brand personality.
• Sustainability Experiences: Particularly in fashion, consumers are increasingly conscious of sustainability. The experience economy in fashion may evolve to incorporate transparency and sustainability as part of the experience (e.g., apps that show the environmental impact of your purchase, or repair/recycling programs that involve the customer in a community initiative). Experiences that align with consumers’ values can strengthen emotional connections. In fitness, perhaps linking workouts to charitable causes or environmental goals (plogging – jogging and picking up litter – as an experience).

5.5 Theoretical Contributions: Our study contributes to theory by providing empirical support for the extension of experience economy principles into digital domains. It reinforces that constructs like experiential value and customer engagement are critical mediators between firm actions and consumer loyalty, consistent with Service-Dominant Logic which posits value is co-created in use (the experience of using a service creates the real value, not just the service output itself). We also highlight that in digital contexts, technological features serve as the experience enablers, which may require integrating theories from information systems (technology acceptance, UX design) with marketing theories (experiential consumption, brand experience).

We observed that the experience economy is not uniform – different industries emphasize different facets (sensory for fashion, community for fitness, etc.). This suggests researchers should consider contextual factors when applying experience economy frameworks. For instance, Pine and Gilmore’s four realms may manifest differently: a fashion site heavily uses esthetics and a bit of education (style tips), whereas a fitness app uses entertainment and escapism (fun, distraction from effort) along with education (teaching form) and esthetics (nice interface). Both aim for engagement but through tailored mixes. Our comparative approach makes this nuance visible.

Finally, by linking our case study observations with survey results, we infer a connection between business model innovation and consumer response that could be explored further. Are companies that adopt experience-centric models seeing measurable differences in customer metrics vs those that don’t? Our data would suggest yes, and it invites more formal research (e.g., longitudinal studies or industry-wide analyses) on the performance impact of experience-driven strategies.

5.6 Limitations: We should note a few limitations. First, our survey was cross-sectional and self-reported; while we found associations, causality can be further tested (e.g., experiments manipulating an aspect of experience). Also, our sample, though international, skewed younger and more tech-savvy, which may not generalize to all consumer segments. Second, the case studies, while illustrative, are not exhaustive – different companies might experience different challenges (for example, we didn’t deeply cover luxury fashion, where experiential strategy might differ – though we cited some findings like luxury consumers seeking memorable shopping experiences (The Experience Economy and the Meaning of Luxury -or- Why Luxury Requires a Different Type of Content Strategy ) (The Experience Economy and the Meaning of Luxury -or- Why Luxury Requires a Different Type of Content Strategy )). Third, the pace of change in technology means some findings could become outdated (for instance, AR adoption rates might surge quickly, altering consumer expectations yet again).

Despite these limitations, the convergence of findings across methods gives confidence in our core arguments. Future research could build on this by perhaps conducting experimental studies (e.g., have participants shop on a mock site with vs. without AR or community features to isolate the effect), or by analyzing behavioral data from companies (like actual usage logs correlating with retention).

Conclusion

This research set out to investigate how the experience economy is influencing consumer behavior and business models in the online fashion and fitness industries. In doing so, we drew from a strong theoretical foundation which argues that memorable experiences are now a central economic offering (Experiential Activations By The Trade Group), and we tested these ideas in two domains where digital transformation is well underway.

Key Findings: We found that in both online fashion retail and digital fitness services, enhanced customer experiences lead to tangible positive outcomes. Consumers respond to experiential value – be it the joy of virtually trying on outfits or the camaraderie felt in an online cycling class – with greater loyalty, engagement, and willingness to invest (time and money) in the brand. Quantitatively, higher perceived experience quality was associated with significant increases in satisfaction and retention metrics. Qualitatively, companies that have embraced experience-centric strategies (like personalization, gamification, community building) have reaped benefits in customer growth and brand differentiation. These results affirm that the principles of the experience economy are highly relevant in digital contexts: even when interactions are mediated by screens and algorithms, the fundamental human craving for enjoyable and meaningful experiences remains a powerful force.

Implications for Practice: For fashion and fitness businesses – and by extension other online sectors – the message is clear: competing on product or price alone is a race to the bottom, while competing on experience is a race to the top. Firms should invest in understanding their customer journey deeply and enriching it at critical moments. This could mean integrating new technologies (AR/VR, AI personalization) to remove friction or add delight. It could involve creating content and communities that extend beyond the core transaction, thereby embedding the brand into the customer’s lifestyle. The goal is to create an ecosystem of value that surrounds the product/service: when a customer buys a pair of running shoes, they also enter a motivating fitness community and training platform (as Nike exemplifies); when someone shops online for a dress, they also get style inspiration, social validation, and superb service that together constitute a satisfying experience.

Companies also need to be agile and innovative, as the bar for “good experience” is continuously rising. What is novel today (say, a virtual dressing room) becomes expected tomorrow. Therefore, a culture of continuous improvement and customer-centric innovation is essential. Importantly, businesses should measure success not just in immediate sales, but in experience metrics – engagement duration, repeat usage, customer lifetime value, NPS, etc., which ultimately drive sustainable financial performance.

Future Research: We recommend future studies to explore some areas that emerged but were beyond our scope. One is the long-term brand equity impact of investing in experience – do companies with superior CX develop stronger brand equity and how does that translate into financial valuation? Another is cross-cultural differences: our work was Western-centric; in markets like Asia, experiential expectations might differ (for example, live commerce is huge in China, blending entertainment and shopping heavily). Understanding how the experience economy plays out globally would be valuable. Additionally, as emerging tech (metaverse, AI) comes into play, research should monitor how these either enhance or possibly detract from human experience – maintaining a balance between high-tech and high-touch will be a challenge.

Conclusion Statement: In conclusion, the experience economy has moved from buzzword to bedrock reality in online fashion and fitness industries. Consumers today are not passive buyers; they are active participants in experiences that brands curate across digital platforms. Our empirical insights confirm that those experiences profoundly shape behaviors – influencing where consumers shop, what they buy, how much thet buy, and how long they stay loyal. Business models are evolving in turn, as companies realize that delivering consistent, positive experiences is both a competitive necessity and an opportunity for innovation. As one respondent in our study aptly put it, “I stay with [Brand] because it just feels different – they make shopping fun and make me feel part of something.” That feeling – of engagement, enjoyment, and connection – is the currency of the experience economy. Brands that can earn it will thrive, and those that ignore it risk irrelevance as consumers flock to those who offer not just products or services, but memorable experiences worth cherishing in the digital age.