Journal of Innovations

Vol. 4, Issue 3

Premium Consumption and Utilization: A Strategic View of the Experience Economy

AUTHOR(S)

Hope Rebecca Minnema

ABSTRACT

This paper examines a pattern observed widely among younger consumers: the willingness to pay substantially more for boutique fitness memberships and premium apparel when lower-cost alternatives are readily available. Drawing on the progression of economic value framework developed by Pine and Gilmore (1998), the study asks whether high-premium purchases in boutique fitness (e.g., [solidcore], PWR House) and luxury apparel (e.g., LVMH, Lululemon) can be understood as economically rational for adults aged 18 to 35. The central argument is that qualitative benefits, such as social accountability and brand prestige, serve as behavioral commitment devices that increase utilization sufficiently to lower the effective cost per session below that of cheaper alternatives. The study uses literature analysis alongside a comparative financial model that divides monthly membership cost by documented attendance rates drawn from peer-reviewed and industry sources to produce an effective cost-per-session figure for both traditional and boutique fitness options. Findings support the hypothesis that, under underutilization conditions, when cost is measured per use rather than per month, premium experiential consumption can outperform low-cost options on purely financial grounds. The paper’s contribution is a utilization-adjusted framework for evaluating experience-economy spending, with practical implications for personal budgeting among younger consumers navigating a market increasingly organized around experiential premiums.

DOI

https://doi.org/10.62470/5c268659 

CITE THIS ARTICLE 

Minnema, H. R. (2026). Premium Consumption and Utilization: A Strategic View of the Experience Economy. Journal of Innovations, 4(3), 64-77. https://doi.org/10.62470/5c268659