In today's competitive market, customer loyalty is increasingly shaped by memorable experiences rather than just product utility or convenience. This shift, explored through Behavioural Economics and the Experience Economy, highlights how emotions, psychological principles, and personalization drive consumer purchasing decisions.

• The Experience Economy, a term coined by B Joseph Pine II and James H Gilmore in 1998, describes businesses staging engaging experiences for customers.
• Key psychological principles influencing consumer choices include loss aversion (Fear of Missing Out - FOMO) and the Endowment Effect, where customers value what they own or try.
• Hyper-personalization, exemplified by Spotify Wrapped, and emotional connections, like those fostered by Apple's retail stores, are crucial for building brand affinity and customer loyalty.