1

SCOPING NEPAL AS A SOURCE COUNTRY IN EXPERIENCE ECONOMY A

STUDY OF HOSPITALITY PERSPECTIVES

CHAPTER 1

INTRODUCTION

1.1. Background of the Study

In today's hospitality market, every product and service has been aimed to develop a

distinct profile to attract tourists. One new means increasingly used to attain such

distinction is to brand this sector as memorable experiencing stage (Gilmore, & Pine,

2002), on top of convenience of production, product quality as well as selling, marketing,

customer and societal considerations (Kotler, & Armstrong, 2014; & Kotler, & Keller,

2006).

Today, hospitality sector is strategically conceived as the main factor for promoting

Nepal's vast blend of uniqueness. Hopefully, it can be the keystone of success if the

experience options and services offered by this sector exponentially meet the rising bar of

tourist expectations. This paper applies an experience economy framework to analyze the

country of Nepal as a universal source destination of experiencing the Experience

Economy from the perspective of the world of hospitality so as to create potentially

transformative and innovative practices, helping re-imagine hospitality sector and reshape

the identity of the country.

The aim of marketing is to make selling superfluous (Drucker, 1964; as cited in Gilmore,

& Pine, 2002). On recognizing the early contribution of Drucker, these scholars have

further stated, "We add the aim of experience is to make marketing superfluous”

(Gilmore, & Pine, 2002). These arguments confirm the relationship and importance of the

philosophical concepts of selling, marketing and experience in service industry,

especially in the case of marketing and promotion of tourism products.

2

Pine and Gilmore (2002) have contributed with one step forward on the concept

propagated by Drucker (1964; as cited in Pine, & Gilmore, 2002) who considered

marketing as one of the essential tools for making selling superfluous. In fact, selling

concept of marketing follows a historical rooting along the philosophical evolutionary

system of production and then the product concepts of marketing that emerged as

instrumental pillars amid the development of marketing as a separate business discipline,

following the global industrial revolution (Kotler, & Keller, 2006) and, as the discipline

became able to rule the world of business in the late 1990s witnessing an equal emphasis

on holistic and customer concepts which emerged along the dawn of 2000s, eventually

welcoming the societal marketing concept -- all serving as the foundation for the

emergence of experience economy as another new discipline, especially with focus on

marketing of 'experience' as a product (Pine, & Gilmore, 2002).

Pine and Gilmore (1999) have stated that some of the fastest growing sectors of the

global economy are broadly related to the consumption of experiences. According to Pine

and Gilmore (1999; as cited in Gilmore, & Pine, 2002a, 2002b), in the emerging

experience economy, consumers seek unique experiences beyond merely consuming

products and services because the consistent, high level of product and service quality

can no longer be used to differentiate the choices for consumers. This new demand for

unique and memorable experiences requires the firms to develop a distinct value-added

provision for products and services that have already achieved a consistent, high level of

functional quality. For instance, a cooking demonstration or a themed guestroom at a

rural bed-and-breakfast facility may offer the guests with educational, entertaining, and

esthetic experiences, or forms of experiential value added to its highly personalized and

professionally managed lodging facility.

Earlier, Pine and Gilmore (1999) argued that businesses need to shift their paradigm from

the delivery-focused service economy that emphasizes high quality offerings to the

experience-focused memorable stage economy that creates a mind-full, lasting memory

of consumption experiences.

3

Tourism has been at the leading position of staging experience as Sternberg (1997, pp.

952 & 954) concisely put, “Tourism primarily sells a ‘staged’ experience... tourism’s

central productive activity is the creation of the touristic experience.” Visiting a particular

tourist destination is typically motivated less by the elaborated physical characteristics of

the site than by the powerful mental and emotional image or pre-experience expectation

the tourist has about the offering of the destination or institution.

On the other hand, each nation must have its defined priorities for business development

and promotion. As per the geo-political, socio-economic structure of Nepal, production

economy is not viable and there are no big trade partners for Nepal in import and export

business though Nepal is considered as a transit nation between India and China for the

trading of goods and services (Rijal, C. P., 2015; based on personal conversation with the

scholar on dated January 7, 2015). This scholar further retreated that also the internal

consumption requirement of goods and services for this country is also minimal. At the

same time, there are ample nature gifted mountains, rivers, lakes, forests, wildlife, flora

and fauna which do not need be produced or transported, and at the same time, may keep

on earning revenue for tourism economy of the nation. Thus, service industry seems to be

more favorable as Nepal's identity of travel atmosphere, hospitality, diverse pattern of

culture, amazing arts, crafts and architecture, socio-cultural value system, ancient

civilization, spiritual doctrines depicts the indigenous ambience, agrees Kunwar (2015;

based on personal conversation with Kunwar, R. R. on dated January 12, 2015).

Considering this, the present researcher observed a great scope for promoting Nepal as a

source country in a number of experience economy of Nepalese hospitality industry and

also found that such a research was overdue till date. Thus, the present researcher saw the

nature gifted resources, cost effective promotion of indigenous sources and other

fundamental elements of Nepal's experience economy and its broader spectrum of

services, destinations, events, traditions, cultures, and many others needed to be outlined

as source destination in the world communities.

4

1.2. The Missing Link

The concept of experience economy and its techniques are more applicable in the

hospitality sector as compared with other sectors. Overall, Nepal's richness in terms of

experiential attributes in hospitality sectors are paramount and may need serious

exploration, keeping in view the national economic dependence in such sectors.

As the present researcher could observe that both the knowledge as well as business

community lacked considerable attention on scoping Nepal's prospect for promoting as

an indigenous source country for a number of hospitality experiences, making vision of

such a research emerged as a conviction of the present researcher. The present researcher

firmly believed that such an idea was not only an innovative initiative, but also an

inevitable step to be taken sooner or later keeping in view the sustainable economic

development of the nation.

Moreover, the present researcher intends to take this opportunity as a platform for

developing career goal in the same field. The present researcher firmly believes that it

will surely lay down the foundation for the further exploration of Nepalese hospitality

business scoping. This would also help the entrepreneurs to consider subjective

characteristics in their new product exploration or development, as they will have a better

understanding of the impact of subjective characteristics on consumers’ preferences

regarding experience products, and can then incorporate this consideration when

designing an optimal experience product that has a maximum price premium.

1.3. Objectives of the Study

The main purpose of this research will be to explore the potential of promoting Nepal as

one of the source countries of selected hospitality culture, tradition, events, places and

ways of services -- all keeping in view the essence of experience economy framework.

The research is expected to investigate and compare the perceptions of the visitors and

the providers of the different hospitality services in Nepalese context with an emphasis

on the customer experience model derived from Pine and Gilmore (1999) and,

5

specifically, the model’s four realms of experience -- education, escapist, esthetics, and

entertainment, i.e., 4Es.

To attain the above stated purpose, the present researcher will be further interested to

field the study with following specific aims:

Identify various subjective and objective attributes of hospitality experience

products and their innovative value propositions in Nepal and to understand the

reasons why the premium travelers are more influenced towards subjective

attributes over objective ones.

Understand and evaluate experiential consumptions of hospitality seeking tourists

across various hospitality industries and their products in Nepal.

Explore what it takes to create the desired impression and loyalty for the

hospitality product and services for the customers.

Prove that realization of memorable staging of the experiences is more valuable to

the customers in hospitality sector.

Locate and clearly understand the major hospitality seekers' selection of sources

of experience in Nepal, may it be the tourist spots, hotels, lodges, rural

destinations, social institutions, traditional and cultural activities, etc. that are

profound in delivering indigenous Nepalese experiences.

1.4. Statement of the Problem

The specific consequences of tourist experiences have drawn less research attention in

Nepal. While it is apparent that internalized benefits from these sources are paramount

which might have inspired several foreign researchers to study and take benefits but the

Nepalese scholars are still way behind taking up such opportunities of initiating valuable

research endeavors worth promoting Nepal and its indigenous hospitality products and

services. In this context, the present researcher is interested to undertake a systematic

inquiry with an aim to confirm the scope of promoting Nepal as a source country of a

select variety of hospitality products and services.

6

In this respect, the present researcher is interested to uncover the reality being guided by

a single statement of problem which reads as -- How is the prospect of scoping Nepal as a

source country of selected hospitality products and services as part of Nepal's indigenous

elements of experience economy?

1.5. Research Questions

Taking into consideration, the missing link, objectives and statement of the problem, the

present researcher composed a set of five Research Questions (RQs) which are as

follows:

RQ1: Scoping the business

In context of Nepal in the world of experience based business, what could be the

Nepalese typical indigenous products/services that could be promoted in original form to

the rest of the world?

RQ2: Prospects and Problems

What are the underlying problems, issues, challenges, and prospects of promoting these

hospitality products or services through indigenous Nepalese branding?

RQ3: Visitor's Perception

How does the visitor community perceive the indigenous Nepalese Hospitality services to

be promoted as indigenous offer from Nepal?

RQ4: Strategic courses of action

What strategic moves should be initiated to promote the indigenous Nepalese hospitality

services to the world of visitor community?

RQ5: Major attributes of Hospitality Experience features of Nepal

What are the several attributes such as unique pattern of activities like music, dances,

artistic performance, cultural attributes, painting, etc. that can be considered as

experience feature in order to add the value to the hospitality services.

7

1.6. Scope of the Works

The present researcher, while conducting this research observed various social

institutions such as hospitality products, religious components such as religious symbols,

socio-anthropological prospects, historical mythology and legends, tradition and

celebration, lifestyles, caste, rituals, festivals, art, architecture, paintings and other several

specialties such as cuisines, Nepalese musical instruments as a platform to create the

richest experiences to the visitors seeking hospitality. Moreover, there are ample factors

which can be used to innovate and develop as a genius product and which touches the

four dimensions of experience.

1.7. Expected Outcomes of the Study

In this respect, the present researcher proposes at least three level of future implication

from policy level, market offering level and culture of inquiry background. This research

will definitely serve in developing the required framework and will lay down the

foundation for strategic improvements in above stated level.

Obviously, the experience economy can be the best development policy for the local and

government authorities in order to promote Nepalese tourism and hospitality industry

although the problem lies in research and knowledge in this area. Investment in the

experience economy are also more political driven than a knowledge driven (Birch,

2008). Thus, in this scenario of difficulties for taking right step and policy, the present

research will definitely help in the realignment of the policy to favor tourist attraction

based on the experience economy concept.

This research will definitely help in finding the necessary models and clues for

identification, protection and promotion of experience economy in tourism and

hospitality field. Moreover, this research will depict the major visitor exclusive

indigenous products of Nepal which can be used for staging experience thus the benefits

of such outcomes will reach to internal and external stakeholder for new product

development.

8

The present research will also deserve the attention from the inquirer to study this field in

broader perspectives which will broaden the research boundary from marketing and

socio-cultural dimension.

1.8. Definition of Key Terms

For the purpose of making it simple to the readers of this report, the present researcher

has defined a number of key terminologies in this section.

Epistemology:

The process of acquiring different forms of knowledge of the selected field of reality and

nature of relationship that exists between the researcher and the subjects of interest of the

inquiry is known as the epistemology in research.

Experience economy:

The term coined by B. Joseph Pine II and James H. Gilmore, in 1999 in a book titled

“The Experience Economy”. The authors describe the experience economy, as the ‘next

economy’ following the agrarian economy, the industrial economy and the most recent

service economy. This notion points to a larger perspective on ‘the experience’ such as

entertainment, edutainment and cultural values in the making and marketing of new

consumer products.

Methodology:

The methodology is the general research strategy that outlines the way in which research

is to be undertaken and, among other things, identifies the methods to be used in it.

Ontology:

The ways of constructing the reality and portraying how things really work or exist is

referred to as ontology in research.

Tharu:

9

Tharu is an ethnic group indigenous to the Terai, the southern foothills of the Himalayas

in Nepal and India. The Tharus are recognized as an official nationality by the

Government of Nepal and India.

1.9. Development of Conceptual Framework of the Study

Finally, the fifth chapter will conclude the thesis by summarizing the key findings in the

scope of the hospitality experience in Nepal. The practical and theoretical contributions

emanating from the study will be discussed. The chapter will be finishes by discussing

the limitation and recommendation of the work whilst also providing possible directions

for future studies.

Figure 2.3: Conceptual Framework of the Study

Exploration of Assessment of 4 Realms of Experience

1. Education: Absorption of knowledge, Engaging the intellect, About learning

2. Esthetic: Passive immersion, Special moments to remember, About being there

3. Escapism: Active Immersion, Participation, Forgetting time, About doing

4. Entertainment: Passive absorption, Seeing and listening, About sensing

Confirmation of Scoping Potential for Nepal as a Source Country of Selected

Hospitality Experiences

Education:

1. Different tribes, Caste with their lifestyles, Traditions and different Food habits

2. Rural lifestyles, and activities such as traditional farming.

3. Ethnic languages, Dresses and Ornaments

4. Tharu-Mithila art galleries and other Historical-Cultural museums and places.

10

5. Paintings related to Historical Myths and Legends

6. Nepalese Art and Craft, Architecture and Religious symbols

7. Hospitality Events

Esthetic:

1. Trekking, Hiking, Sightseeing of Mountains, Rivers, Lakes, etc.

2. Nepal's Cultural, Historical sites and Ethnic background and its uniqueness

3. Holy Pilgrimages, Religious destinations.

4. National Parks, Plants, Birds and Wild habitat

Escapism:

1. Trekking, Hiking, Mountaineering and other Adventurous tourism activities

2. Safari

3. Sports

Entertainment:

1. Touring in traditional vehicles,

2. Hospitality Events

1.10. Limitation and Delimitation of the Study

This research will be focused only in finding the available resources that are present in

the core of countries and their suitability for meeting the needs of four dimension of

experience wherefore, the application scope of the findings is limited. This research will

not be primarily focused on any location, particular product, sites but only with the

examination of overall available sources that it can be considered as the elements for

innovating experience products. There will be no any guarantee that the usability of the

findings of the research and their application will help in meeting all type of experience

expectation of the customers. Thus, this research can only prove that there are ample

sources to be considered or can be taken for developing the experience products.

The present research will be heavily confined only in finding the major source and

elements to be considered as the experience products or can be innovated for developing

experience products that are available in the countries due to the less time and resources.

11

Several elements of Nepalese hospitality which are less considered in promoting

experiential hospitality business will not be taken in research considering the vastness of

the research topic and due to the time constraints. So, the present research will be

confined within the four walls of experience-- education, escapist, esthetics, and

entertainment considering the core elements of Nepalese hospitality.

1.11. Organization of Thesis Report

This thesis report will be organized in five distinctive chapters. The following brief

discussion has been prepared to project the respective chapter-wise contents of the

manuscript:

There is a brief background of the study with its introduction and the subject matter in

first chapter. The chapter closes with a presentation of the research aims and objectives

and the indication of the methodology to be employed in achieving them along with the

research limitation and de-limitation.

The second chapter will provide the overall information about the major components of

the Nepalese hospitality industry based on the theoretical benchmark of experience

economy and its principles.

Chapter three will present the series of choices which inform the researcher's

methodology. This chapter will seek to explain the researcher approach to this study and

details the methodology applied. It is concerned with examining the scope of hospitality

experience as well as exploring the process whereby experience can be developed in

hospitality enterprises in Nepal. Based on a review of product and service development

literature a conceptual framework is presented which outlines the key stage, activities,

participants and outputs to be followed for new experience development. A number of

antecedents which underpin a scope of hospitality experience and its development

process are also identified and discussed.

12

Fourth chapter will present the findings from the data and analysis stage of the research.

The tools and techniques that will be employed to analyze data in an objective, uniform

fashion, adding to the overall reliability and rigor of the research process will be

indicated in this chapter. It will consist of a comprehensive discussion of the research

findings on the nature of hospitality experiences and the manner by which they will be

developed. The discussion allows the refinement of the conceptual development

framework presented in the earlier chapter.

Finally, the fifth chapter concluded the thesis by summarizing the key findings in the

scope of the hospitality experience in Nepal. The practical and theoretical contributions

emanating from the study are discussed. The chapter finishes by discussing the limitation

and recommendation of the work whilst also providing possible directions for future

studies.

13

CHAPTER 2

REVIEW OF LITERATURE

2.1. Introduction

The primary purpose of conducting review of literature was to get acquainted with

required theoretical and conceptual knowledge of the field of interest of the present study.

For this, the chapter as a whole has been developed in four distinctive sections where the

first section presents with the review of related theoretical and conceptual perspectives

followed by review of important policy documents related to present study in the second

section of the chapter. Similarly, the third section of the chapter contains review of other

similar studies conducted in the Nepalese and international context. Finally, on the basis

of overall learning imports gained through review of various literatures, the present

researcher has made a conceptual framework of the study in the fourth section of the

chapter. This conceptual framework of the study serves as the basis of governing the

overall ongoing study.

2.2. Review of Theoretical Perspectives

As the main part of review of literature, this section provides with a closer study of

various theoretical and conceptual aspects related to the hospitality experience primarily

focusing on four realm of experience.

The core philosophy of the experience economy is that customers are in a search of new

aspects of products and services which shapes their demands. They want to experience

something which challenges the producers to offer something––such as added value

through additional services or the core product or services (Pine & Gilmore, 1999;

Jensen, 1999; Tarassanen, & Kylanen, 2005). The nature of competition also changes as a

result of this trend on the demand side. Thus, in present day hospitality business, there is

a serious concern for consumer's attention. For example, the hotels are marketed as

design hotels, and meals are served in restaurants by waiters singing opera. Hotels such

as the Atlantis and Burj Al Arab of United Arab Emirates (UAE) have unique ability of

using internet to build 'experiences' through interactivity, pictures, videos and sounds.

14

Recently, In Nepal, traditional homes have acquired best choices of the tourists for

accommodation than others because it gives them a unique experience of the beauty and

traditional culture.

Pine and Gilmore's model (1999) illustrates how staging experiences constitutes a new

source of value creation and represent the final stage in the development of

Figure 2.1: The Progression of Economic Value (Pine & Gilmore. p. 22).

Differentiated

Competitive

Position

Undifferentiated

Market Pricing Premium

economic values for enhancing customer experience while delivering service to them. It

shows how staging experience in line with customers' needs is crucial. It is not so much

the product or service itself as it is the enveloping experience that matters. Guests obtain

memorable experience when a company intentionally uses services as the stage and

goods as props to engage individual customers in inherently personal way" (Gilmore, &

Pine, 2002, p. 88).

Stage

Experiences

Customization

Deliver

Services

Make

Goods

Extract

Commodities

Commoditization

15

Pine and Gilmore (1999) are less concerned with specific elements of what creates an

experience, instead they have suggested four main dimensions of experiences along two

axes – i. the customer’s level of participation, and ii. The customer’s connection with the

environment or surroundings.

According to these scholars, the customer’s participation varies between active and

passive participation. Being active is closely related to seeing the customer as a

“prosumer” (Toffler, 1980), that is, one who both consumers and produces the service. In

these cases the production or creation of the experiences will depend on the customer’s

active participation, such as in rafting and amusement or activity parks. With passive

participation, however, the customers do not affect the performance at all, and have more

of a mental presence, as it were, which is the case when one visits a theatre, cinema or

museum, for example. On the other axis, experience relates to the extent to which a

customer is connected with the environment. At one end of the continuum of connection

lies absorption and at the other end lies immersion (Pine, & Gilmore, 1998). Absorption

suggests that the customer has a certain distance to the stage or the experience (e.g.,

watching a movie) while immersion indicates that the customer gets “drawn in” the

experience; that is, the distinction is that of passive versus active participation. The two

categories are not mutually exclusive, but differ in degrees, which is depicted in Figure

2.2 illustrating the four main experiential dimensions of Pine and Gilmore (1999).

Figure 2.2: Pine & Gilmore, 1999. The four dimensions of an experience (p. 30).

Absorption

Passive Active

Participation Participation

Immersion

Entertain Educati

ment on

Esthetic Escapist

16

According to these scholars, as presented in figure 2.2, entertainment represents the

dimension in which the participant passively absorbs what is happening, such as folk

dance performance like Chandi Dance, Kumari Dance etc and theatre performances of

Tharu cultural shows in Chitwan.

Pine and Gilmore (1999) have further suggested that the esthetic dimension involves

passive participation, but with a greater depth and immersion with respect to what is seen

or experienced. Examples of this dimension may be a visit to a museum or experiencing

the breathtaking scenery of Mount Everest.

Education represents an experience that is absorbed as it happens but also requires active

participation, such as paragliding and sky diving.

The final dimension, escapism, represents experiences where the participant both

becomes engaged in what is happening and participates actively, for example, by rafting

or playing in a casino.

In sum, we could say that the entertainment experience is about feeling, the educational

experience learning, the esthetic experience presence, and the escapist experience doing

(Mossberg, 2003). An experience is not necessarily solely related to one of the four

dimensions. Even if one dimension is emphasized, the experience will (often) have

elements of all four dimensions. It is when the customers perceive that they feel, learn,

and become immersed by just being there, or do something actively, that all the senses

become involved and the experience feels meaningful or extraordinary (Pine, & Gilmore,

1999; Mossberg, 2003; Boswijk et al., 2007). Pine and Gilmore (1999) describe this as

the “sweet spot,” and this is what gives the richest experiences. Some attractions, such as

amusement parks and museums, develop a product that includes different kinds of

elements of experiences. These again trigger different experiential dimensions (as seen

from the customer) which then conform to the “sweetspot” principle. For destinations, it

is important to offer experiences that touch all four dimensions. The issues become those

17

of customization and of how the destinations may meet the widest diversity of needs and

wishes as possible (Stamboulis, & Skayannis, 2003).

2.3. Review of Related Policy Development

The budget speech of Fiscal year 2014/2015 for tourism sector has more emphasis on

promoting Nepal's tangible and intangible cultural heritages through exploration and

protection. Thus total budget of 3.92 billion has been sanction for the cultural promotion

and development of tourism infrastructure. Priority has been given for the development

of important religious, historical and archaeological touristic destination.

The National Planning Commission ([NPC], 2070/71-72/73) of Nepal in its Thirteenth

National Plan, has envisioned the diversification of tourism activities from the stand point

of promoting indigenous tourism identity of Nepal to make it more attractive nation in

international tourism scenario as a long term vision. In its strategic plan, esthetic tourist

zone such as Himalayan region will be made more visit able tourist destination and the

Mountaineering activities will be made environment friendly. Adventurous and Sports

tourism, Natural treatments and spa, Eco-friendly tourism, Gaming club and other

entertainment zone, development of home-stay in rural tourism place are taken into

consideration. Besides, the places of religious and cultural importance will be developed

as a tourist destination through proper plan and implementation.

2.4. Review of Related Studies

(Shrestha, 2014) has conducted a research on visitor experience in Ghandruk as a tourism

destination. In this study, the scholar has focused to explore visitor experience about the

Ghandruk village, Nepal. It highlights the features about Ghandruk that need further

development for visitor's meaningful experiences. The Experience Pyramid by Sanna

Tarssanen and Mika Kylanen is used as a theoretical framework to measure visitors' level

of experience in order to analyze and develop the tourism product. This tool has figured

out the individuality, authenticity, story, multi-sensory perception, contrast and

interaction as an element of Ghandruk as a product and examined customer's level of

18

experience from motivational, physical, intellectual, emotional and mental level of the

visitors necessary for the meaningful experience.

In this study, the scholar has identified that the Ghandruk is the unique place for visitor

experience as they have found the culture and tradition as a genuine as well as a learning

platform to make visit a memorable. The majority of the visitors in Ghandruk come for

enjoying nature and outdoors. The visitors experienced higher level of satisfaction on

motivational, physical and intellectual level as they were satisfied with the attraction and

agreed that they had a good feeling. Visitors' have lower level of satisfaction on story

component of Ghandruk because it made them feel that they didn't find enough historical

linkages of the village.

(Apivantanaporn, & Wals, 2013) have explored the relevance of authentic Thai food in

contributing to the experience economy in Thai hotels and resort clusters. In this

qualitative doctoral research paper the researcher has categorized F&B serving industry

into three types of business model namely first model, second model and third model.

The first model categorizes the hotel or resorts which continue to provide typical

offerings that mainly focus on the room's 'core value' and other auxiliary services but not

conceptualized in typical food and beverages offerings.

The second model of hotel or resort feature different offering from the first type and they

tend to provide a hybrid model of Food and Beverage provision e.g. hotel that offer

typical American breakfast supplemented by local specialties.

The third model type of hotels features food and beverage services as part of the core

offering and representatives of key service values. This type of hotel positions itself as a

destination with innovative ambience, authenticity and a distinctive food menu. Thai

Food and Beverages are highly integrated into the core values of the hotel and guest are

also able to participate in food presentation, cookery lessons, trips to local food producers

and farmers' markets and so forth.

19

For example, Sukothai Treasure Resort and Spa features a spectacular dinner experience

within the setting of the private and exclusive cultural dining facility within the

Sukhothai Historical Park so that the guest can enjoy what is presented as authentic

northern style Thai food within the heritage based environment which is the form of

staged experience and authenticity.

The researcher has figured out that the first model has low customer engagement

compared with second and third models, there is nothing new for customer perceived

value and it has commoditized service in competitive business environment.

Second model have medium customer engagement with new learning experience and

value-added service.

Lastly, the third model has high customer engagement with extraordinary experience for

the customers and value creation in competitive business environment.

(Johansson, & Kociatkiewicz, 2011) in an online published article 'City festival:

creativity and control in staged urban experiences' has placed the city in the experience

economy by undertaking physical transformation of the urban places into symbolic

transformation of the city's image and power of attraction by mobilizing architectural

structures and sociocultural features, framing and re-presenting them accordingly to

imbue the city with new meanings. For this festival which is perceived as an easily

marketable, aesthetic experience presents an attractive means for experience production

process.

The three different aspects of the festivalization of the city are presented in this research

article, namely Stockholm Culture Festival of Sweden denoted as city staging, Nowy

Kercelak in Warsaw, Poland as Sanitizing festival and Aftermath of New Year's Eve

celebrations in Wroclaw, Poland.

20

CHAPTER 3

RESEARCH METHODOLOGY

3.1. Introduction

The main purpose of developing this chapter is to provide with detailed information

pertaining to various methodological perspectives to be used for the successful execution

of the proposed research. For this, the chapter as a whole, has been developed in ten

distinctive sections where the first section provides with the information on proposed

methodological paradigms on which the present study will be executed, followed by brief

information on main research designs to be used in the second section. Similarly, the

information on population of study and proposed techniques of sampling have been

presented in third and fourth sections respectively. Following this, a careful analysis of

results will be done in the fifth section of the chapter. The sixth section will entail the

confirmation of reliability and validity of the research process and its outcomes.

Mechanism for the research administration will be discussed in the seventh section,

followed by the discussion on different approaches and techniques to be used in this

research in the eighth section. The ninth section will present the detailed plan of action.

Finally, the last section of this chapter will present with the socio-ethical considerations

to be made throughout different phases of this research.

3.2. Methodological Paradigms of Research

According to Denzin and Lincoln (1998), in any research, the ways of constructing the

reality and portraying how things really work or exist is referred to as ontology of

research. Similarly, the process of acquisition of different forms of knowledge of the

chosen field of reality and nature of relationship that exists between the researcher and

the subjects of interest of the inquiry is known as the epistemology, which specializes on

knowing about the reality. On top of these two, a methodology serves with the

determination and development of specific approaches, tools and techniques of

uncovering the reality.

21

In the present study, the ontological perspectives would be related to the identification

and selection of different Nepalese indigenous hospitality experiences. In the case of

epistemological grounds, the present researcher would like to know or inquire from the

words of established professionals and scholars of hospitality experiences the prospect of

promoting Nepal as a source country of these selected hospitality experiences in the

global market place. One of the major concerns for conducting such a study would be the

present researcher's personal intention to explore a suitable space in professionally

suitable career in this particular field of experience economy of service glorification.

To transform the present idea of research from the ontological and epistemological

perspectives, the present researcher intends to make this endeavor a more qualitative

journey. For this, the present researcher would like to craft it on an ethnographic

dialectical approach while establishing the discourses with the participants of the study.

An ethnographic dialectic serves as a means of discovery of truth through examining and

interrogating competing ideas, perspectives or arguments for developing a holistic

understanding of a society, community, group or organization from an insider's

perspectives, by living with members over an extended period of time (Spradley, 1979,

1980)

In this qualitative research, a total of three key informants with various sectoral expertise

will be involved in face-to-face, in-depth interviews. Such areas of specialized coverage

will include cultural and religious tourism expert, general hospitality management and

entrepreneurship and relevant policy advocacy expert. Each extended, depth interview

will be distinct and adequate effort will be made to make it more eternally glorifying to

uncover the prospect of promoting Nepal as a source country to promote a number of

services to the world of experience economy.

3.3. Major Research Designs Used

The research design is the overall strategic framework that guides a research towards its

objectives (Gill, & Johnson, 2002) through effective development and execution.

According to Creswell (2009), the research design are the plans and procedures for

22

research that span the decisions from broad assumptions to detailed methods of data

collection and analysis. Another scholar has claimed research design as the stage at the

core of the research activity which provides technical and procedural framework to

follow throughout the entire research process (Chisnall, 2001).

In any research, the main purpose of research design is to avoid gathering irrelevant

information that has no fundamental pertinence to the research inquiry. Research design

and research methodology differ on the grounds that the methodology has to do with

principles and design is be based on the nature of the research problem or issue being

addressed, the researchers' personal experiences and the audience of the study (Creswell,

2009).

Creswell (2007) has further addressed that the process of designing a qualitative study

begins not with the methods which is actually the easiest part of research but instead with

the broad assumptions central to qualitative inquiry, a worldwide consistent with it, and

in many cases, a theoretical lens that shapes the study.

Whereas, in qualitative research, the design serves as a platform of socio-cultural theories

form the basic building blocks of a good qualitative ethnography (LeCompte, &

Schensual, 1999) blended with the conceptual constructs of the interest of inquiry.

In the present research, the research is interested to design and administer it as a blend of

exploratory research using depth participant interviews in a more ethnographic dialectics.

Moreover, this type of research strategy allows the searcher to explore and examine the

cultures and societies that are fundamental part of the human experience and

ethnographer as researcher is not typically detached or uninvolved observer (Murchison,

2010) as there remains a completely two-way discourse between the researcher and the

subjects or participants of the inquiry.

23

3.4. Identification of Key Informant Experts for In-depth Interviews

The key informant for this interview will be the privileged witnesses, or person of the

tourism and hospitality field of Nepal who because of their position, activities or

responsibilities, have a good understanding about the needs and challenges of this field

and who will have a major interest to outline the changes that are needed to be made for

the successfulness of hospitality industry in Nepal. Thus, there will be the selection of

three experts from tourism and hospitality field of Nepal who are actively engaged from a

long time and who knows better about this field.

3.5. Modality of Conduction of the Interviews

In line with the explorative nature of this research, the aim of the interviews will be to

enable the researcher to understand in-depth the pertinent issues, challenges, and strategic

insights related to uncovering the truth regarding the interest of the study. For this, the

present researcher intends to initiate in-depth interviews via multiple meetings with

selected members for participation.

With respect to the agreed time and venue for meeting with the participants, the interview

will be set for one expert at one time and it will not exceed more than one hour. The same

question will be asked with another expert at another time. Thus, there will be at least

five meeting with one expert. After all, to ask the five questions with two experts it will

take ten separate and scheduled time altogether. Several tools such as voice recording,

note taking, etc. will be used extensively for the proper review of the interview if the

experts permission allows to do the same.

Finally, in order to understand the collective view of the experts at final stage there will

be rap up discussion or confirmatory discussion.

3.6. Development of Semi-Structured Interview Facilitation Checklist

At the outset the researcher will be concerned with generating an atmosphere of trust with

the interviewees based on Meyers (2001) strategy for building trust. This entailed

24

developing a procedure for contacting the interviewees and sending a letter explaining the

key features of the research and the broad issues to be addressed in the interview with the

proposed structure to accomplish them, and how the researcher intended to use and store

the information. Both transparency and the avoidance of ambiguity are critical factors to

assure reliability, therefore the researcher provided the interviewee with a synopsis of the

questions prior to the actual interviews. The advantage of semi-structure interviews is

that they allow the researcher to uncover not only the ‘what’ is happening and ‘how’ it is

happening but more importantly they explore ‘why’ it is happening (Saunders, Lewis, &

Thomhill, 2003).

A set of interview questions will be designed based on the key research objectives in

order to understand the different views, suggestion, grievances of the key informant.

Questions will be of closed and open-ended to allow for the richer data coverage and to

clearly understand the different dimensions of understanding between the participants of

the inquiry. A semi-structured interview format will be chosen as it will allow the

researcher to explore the unit of analysis without too many boundaries.

3.7. Decision on Recording the Research inputs

After taking the prior permission and consent of the interviewee either to take notes or to

make audio record of the interview and by considering their priority, the interview

outputs and discussion will be converted into manuscript. If the interviewee refuses to

give permission to make an audio record of the interview then note taking will be done.

At the next interview, discussion disclosure of the previous interview will be held so that

there will confirmation of the information. The discussion disclosure will be held on

Nepali language in order to minimize the chance of misappropriation in understanding

and for the purpose of flawless recording. Similarly, the semi-structured checklist will

also be given to the interviewee after translating into Nepali language which will add to

the accuracy of information. The date, venue and time for the interview will also be fixed

prior of the interview.

25

REFERENCES

Apivantanaporn, T., & Walsh. J. C. (2013). The Experience Economy in Thai Hotels and

Resort Clusters: The Role of Authentic Food. Article Published in Acta

Univiversitatis Danubius.

Chisnall, Peter (2001). Marketing Research. Berkshire: McGraw-Hill

Creswell. J. W. (2009). Research design: qualitative, quantitative, and mixed methods

approaches. Thousand Oaks, CA: sage

Creswell. J. W. (2007). Qualitative Inquiry and Research design- Choosing among Five

traditions. Thousand Oaks, London, New Delhi: SAGE

Denzin, N.K. and Lincoln, Y. S. (1998), The Landscape of Qualitative Research:

Theories and Issues, Thousand Oaks, CA: Sage.

Gill, J. & Johnson, P. (2002), Research Methods for Managers, Paul Chapman: London

Gilmore, J. H., & Pine II, B. J. (2002). The experience is the marketing. Strategic

Horizons LLP. Available at: https://www.soloseo.com/blog/files/experience-is-

the-marketing.pdf. Retrieved on: November 24, 2014.

Jensen, R. (1999). The dream society: How the coming shift from information to

imagination will transform your business .New York, NY: McGraw-Hill.

Johansson, M. & Kociatkiewicz, J. (2011). City festivals: creativity and control in staged

urban experiences. Journal of Travel Research. Available at: eur.sagepub.com.

Retrieved on: December 5, 2014

Kotler, P., & Armstrong, G. (2014). Principles of marketing. (15th ed.). New York:

Pearson Education Incorporation.

Kotler, P., & Keller, K. L. (2006). Marketing management. (12th ed.). New Delhi:

Pearson Education Pvt. Ltd.

LeCompte, M.D., & Schensual, J.J. (1999). Designing and conducting ethnographic

research (Ethnographer's toolkit, Vol-1), Walnut Creek, CA: AltaMira

Mossberg, L. (2003). Att skapa opplevelser fran OK til WOW! [Creating experiences:

From OK to WOW!].Lund, Sweden: Studentlitteratur.

Murchison, J.M. (2010). Ethnography essentials: designing, conducting, and presenting

your research (1st ed.). United States of America: John Wiley & Sons.

26

National Planning Commission ([NPC], 2014). Thirteen Plan, Government of Nepal,

Available at: http://www.npc.gov.np/web/ui/index.php/home/publication.

Retrieved on: September 3, 2014

Pine, B. J. II., & H. J. Gilmore. (1999). The experience economy: Work is theatre

and every business a stage. Boston: Harvard Business School Press.

Saunders, M., Lewis, P., & Thomhill, A. (2003). Research methods for business students,

Essex: Prentice Hall.

Stamboulis, Y., & Skayannis, P. (2003). Innovation strategies and technology for

experience-based tourism. Tourism Management 24, 35–43.

Sternberg, E. (1997). “The Iconography of the Tourism Experience.” Annals of

Tourism Research, 24 (4): 951–69.

Tarssanen, S. & Kylänen, M. (2005). A theoretical model for producing experiences

– A touristic perspective. Rovaniemi, Finland: Lapland Centre of Expertise for the

Experience Industry.

Toffler, A. (1980). The third wave. London, UK: Collins.

Shrestha, P. (2014). Visitor Experiences in Ghandruk Village, Nepal – A thesis in

Tourism. Lapland University of Applied Sciences: Finland.

27

APPENDIX A

INTERVIEW CHECKLIST

Dear Respondent,

Namaste! I am Sudip Ghimire, currently enrolled in Masters in Hospitality and Tourism

(MHM) of Tribhuwan University, pursuing my studies in Nepal Academy of Tourism

and Hospitality Management (NATHM).

I have been conducting an interview entitled," Scoping Nepal as a Source Country in

Experience economy a study of Hospitality Perspectives," as a part of academic research

requirement of MHM program of Tribhuwan University (TU).

For this I would like to request you for the contribution of about 1 hour of your valuable

time on responding to the interview questions.

I want to assure that all the information provided by you will be treated highly

confidential and used for this academic purpose only.

Sincerely,

...............................................

Mr. Sudip Ghimire

Nepal Academy of Tourism and Hotel Management

Cell no: +9779840093399

Email: sudip_ghimire2003@yahoo.com

28

APPENDIX B

CONSENT FORM

Research context

This research is based on the academic research background and is aimed at Scoping

Nepal as a source country in experience economy.

I agree to participate in this research, which condition are as follows:

In this research, semi-structured interviews will be conducted with key

informants.

Interviews will last for about one hour and questions will deal with overall

prospects, major attributes and present practices, strategic course of action and

major challenges and solutions to scope Nepalese hospitality industry in the field

of experience economy.

The interview I give and the information it contains will be used solely for the

purposes defined by the research.

At any time, I can refuse to answer certain questions, discuss certain topics or

even put an end to the interview without prejudice to myself.

To facilitate the interviewer's job, the interview will be recorded. However, the

recording will be destroyed as soon as it has been transcribed.

All interview data will be handled so as to protect their confidentiality.

Respondent's signature:............................. Interviewer's signature:.............................

Date:............................................ Date:............................................

29

INTERVIEW CHECKLIST

Overall Prospects, Major Attributes and Present Practices

Main questions Additional questions Clarifying questions

How do you see the

prospects and importance

of Nepalese Hospitality

and Tourism components

such as cultural and

indigenous practices, in

adding value to the overall

hospitality products and

services?

OR

Are there any specialty and

authenticity in our

What evidences make a

proof to this?

What measures are applied to

examine the overall

satisfaction and experience

level of tourists in Nepal

before developing any new

hospitality product and

services?

It means there are ample

entertainment, educational,

esthetic and escapist dimension

Can you expand a little

on this?

Can you cite me some

examples with

Statistical data?

Introduction of Interviewer

Hello, my name is......................................................, and I will conduct interview on

the topic "Scoping Nepal As A Source Country In Experience Economy A Study of

Hospitality Perspectives"

During the interview, I would like to discuss the following topics: overall prospects and

authenticity of Nepalese hospitality components in the world of hospitality, indigenous

practices of Nepalese hospitality and their significance in terms of four realm of

experience, Present practices of Nepalese hospitality and tourism industry, how to stage

the hospitality experience products and services mainly focusing on indigenous

components of Nepalese hospitality.

30

hospitality components

such as culture, tradition,

indigenous practices which

can be staged or can be

promoted in original form

to rest of the world?

of experience in our hospitality

components which can be used

to develop and design the

present services and products

into branded experiential

products?

Strategic Course of action

Main questions Additional questions Clarifying questions

what could be the

necessary model to stage

those hospitality

components as a hospitality

products and services to

enhance the experience of

hospitality seekers such as

tourists and travelers?

OR

Does the four dimension of

experience model of Pine's

and Gilmore can serve in

the strategic course of

action?

What marketing strategies are

applied by the national

representative bodies such as

HAN, Tourism Board to

promote such specialty till

date?

Does the present plan and

policies of the government

has stated and lay down the

way to improve such area of

concerns?

Does it mean that

government and national

bodies are very much

concerned about it?

31

Major Challenges and Solutions

Main questions Additional questions Clarifying questions

Despite of such vastness

and unique experience

options of Nepalese

Hospitality sector, where

does the major challenges

lies to successfully brand

this sector and what could

be the probable solutions?

OR

What could be the

underlying challenges and

solutions for successfully

implementing such

reformatory idea into a

successful outcomes?

Who needs to make these

efforts to convert such

challenges into a solution?

What could be the necessary

initiatives and steps at present

conditions?

It means we are not very

far to grasp these

opportunity?