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Transcript of Service environment
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Crafting the Service Environment
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Learning Objectives
Study the purpose of service environments
Understand consumer responses to service environments
Uncover the dimensions of the service environment
Determine design elements of effective servicescapes
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What Is the Purpose of Service Environments?
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Purpose of Service Environments
Helps firm to create distinctive image and unique positioning Relate to the style and appearance of the physical
surroundings and other experiential elements encountered by the customers at service delivery site
Service environment (servicescape) affects buyer behaviour in three ways: Message-creating medium: Symbolic cues to communicate
the distinctive nature and quality of the service experience Attention-creating medium: Make servicescape stand out
from competition and attract customers from target segments Effect-creating medium: Use colours, textures, sounds, scents
and spatial design to enhance desired service experience
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Comparison of Hotel Lobbies
Each servicescape clearly communicates and reinforces its hotel’s respective positioning and sets service expectations as guests arrive
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Image, Positioning and Differentiation
Intangible, customers cannot check quality well
Use service environment as a proxy, and hence firms make quality environment and desired image
Reception areas of big companies In retail store environment portrays the
quality of the merchandise Some servicescape are functional
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Servicescape as Part of Value Proposition Physical surroundings help shape appropriate
feelings and reactions in customers and employees For example: Disneyland, Denmark’s Legoland
Servicescapes form a core part of the value proposition For example: Club Med, Las Vegas, Florida-based
Muvico- Las Vegas: Repositioned itself to a somewhat more
wholesome fun resort, visually striking entertainment centre
- Taj Holiday Village, Orange County Resorts The power of servicescapes is being discovered
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Elements of Physical Evidence
Servicescape Other tangibles Facility exterior Exterior design Signage Parking Landscape Surrounding environment
Facility interior Interior design Equipment Signage Layout Air quality/temperature
Business cards Stationery Billing statements Reports Employee dress Uniforms Brochures Web pages Virtual servicescape
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Examples of Physical Evidence fromthe Customer’s Point of View
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Typology of Service Organizations Based on Variations in Form and Use of the Servicescape
Complexity of the Servicescape Servicescape usage
Elaborate Lean
Self-service (customer only)
Golf course eBay
ATM Car wash Simple Internet services Express mail drop-off
Interpersonal services (both customer and employee)
Hotel Restaurant Health clinic Hospital Bank Airline School
Dry cleaner Retail cart Hair salon
Remote service (employee only)
Telephone company Insurance company Utility Many professional services
Telephone mail-order desk Automated voice messaging
services
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Roles of the Servicescape
Package conveys expectations influences perceptions
Facilitator facilitates the flow of the service delivery process
provides information (how am I to act?) facilitates the ordering process (how does this work?) facilitates service delivery
Socializer facilitates interaction between:
customers and employees customers and fellow customers
Differentiator sets provider apart from competition in the mind of the
consumer
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Understanding Consumer Responses to Service
Environments
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The Mehrabian-Russell Stimulus-Response Model
Response/ Behaviour:
Approach Avoidance and
Cognitive Processes
Environmental Stimuli and Cognitive
Processes
Dimensions of Affect:
Pleasure and Arousal
Feelings Are a Key Driver of Customer Responses to Service Environments
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Insights from Mehrabian-Russell Stimulus-Response Model
Simple yet fundamental model of how people respond to
environments
The environment, its conscious and unconscious
perceptions, and interpretation influence how people feel in
that environment
Feelings, rather than perceptions/thoughts drive behavior
Typical outcome variable is “approach” or “avoidance” of
an environment, but other possible outcomes can be added
to model
Eg crowded environment vs deterred by feeling of crowd
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The Russell Model of Affect
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Insights from Russell Model of Affect
Emotional responses to environments can be described along two main dimensions: Pleasure: Direct, subjective, depending on how much
individual likes or dislikes environment Arousal: How stimulated individual feels, depends
largely on information rate or load of an environment Eg deep sleep to bungee jumping eg. Stimulating- have high info rate /novel/surprise
Russell separated cognitive part of emotions from these two emotional dimensions
Advantage: simplicity, allows a direct assessment of how customers feel Firms can set targets for affective states
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Drivers of Affect
Affect can be caused by perceptions and cognitive processes of any degree of complexity
It’s the simple cognitive processes that determine how people feel in a service setting
If higher levels of cognitive processes are triggered, the interpretation of this process determines people’s feelings
The more complex a cognitive process becomes, the more powerful its potential impact on affect.
However, most service encounters are routine and simple processes can determine affect.
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Behavioural Consequence of Affect
Pleasant environments result in approach, whereas unpleasant ones result in avoidance
Arousal amplifies the basic effect of pleasure on behaviour If environment is pleasant, increasing arousal can
generate excitement, leading to a stronger positive consumer response
If environment is unpleasant, increasing arousal level will move customers into the “distressed” region
Feelings during service encounters are an important driver of customer loyalty
Holiday season- loud fast music- could increase stress levels
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AmbientConditionsTemp,Air,Noise,Music,Scent
Space/FunctionLayout,Equipment,Furnishings
Signs,Symbols, and Artifacts
CognitiveEmotional
Psychological
An Integrative Framework: Bitner’s Servicescape Model
ENVIRONMENTAL DIMENSIONS
HOLISTIC ENVIRONMENT
MODERATORSINTERNAL RESPONSES BEHAVIOUR
Source: Mary J. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” Journal of Marketing 56 (April 1992), pp. 57-71. American Marketing Association.
Perceived Servicescape
EmployeeResponse Moderator
Customer Response Moderator
Employee Responses
Customer
Responses
CognitiveEmotional
Psychological
Approach• Affiliation• Exploration• Stay longer• SatisfactionAvoid(opposite of approach)
Approach• Attraction• Stay/Explore• Spend More $$$• SatisfactionAvoid(opposite of approach)
Social Interaction Between
Customers and Employees
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A Framework for Understanding Environment-User Relationships in Service Organizations
Source: M. J. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” Journal of Marketing 56 (April 1992), 57–71.
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An Integrative Framework: Bitner’s Servicescape Model
Identifies the main dimensions in a service environment Ambient conditions, space/functionality, signs, symbols and artifacts
and views them holistically Internal customer and employee responses can be categorized into
cognitive, emotional, and psychological responses, which lead to overt behavioral responses towards the environment
Same service environment has different effects on each individual customer
Also imp for the firm to realize that max time their own employees spend in the environment- so servicescape should promote productivity
Key to effective design is how well each individual dimension fits together with everything else
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Dimensions of the Service Environment
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Main Dimensions in Servicescape Model
Ambient Conditions Characteristics of environment pertaining to our five
senses Spatial Layout and Functionality
Spatial layout: - Floorplan - Size and shape of furnishings, counters,
machinery,equipment, and how they are arranged Functionality: Ability of those items to facilitate
performance Signs, Symbols, and Artifacts
Explicit or implicit signals to:- Communicate firm’s image- Help consumers find their way- Convey rules of behaviour
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Impact of Ambient Conditions
Ambient environment is composed of hundreds of design elements and details that must work together to create desired service environment
Ambient conditions are perceived both separately and holistically, and include: Lighting and colour schemes Size and shape perceptions Sounds such as noise and music Temperature Scents
Clever design of these conditions can elicit desired behavioural responses among consumers Eg Dental spa
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Impact of Music
In service settings, music can have a powerful effect on perceptions and behaviors, even if played at barely audible levels
Structural characteristics of music―such as tempo, volume, and harmony―are perceived holistically Fast tempo music and high volume music increase arousal
levels People tend to adjust their pace, either voluntarily or
involuntarily, to match tempo of music Careful selection of music can deter wrong type of
customers Eg Jay customers ,vandals and loiters- classical music, London underground- classical music by Mozart and Pavrotti
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Impact of Music on Restaurant
Diners Restaurant Patron Behaviour
Fast-beat Music Environment
Slow-beat Music Environment
Difference between Slow- and Fast-beat Environments
Absolute Difference
% Difference
Consumer time spent at table
45min 56min +11min +24%
Spending on food
$55.12 $55.81 +$0.69 +1%
Spending on beverages
$21.62 $30.47 +$8.85 +41%
Total spending
$76.74 $86.28 +$9.54 +12%
Estimated gross margin
$48.62 $55.82 +$7.20 +15%
Source: Ronald E. Milliman (1982), “Using Background Music to Affect the Behavior of Supermarket Shoppers,” Journal Of Marketing, 56 (3): pp. 86–91
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Impact of Scent
An ambient smell is one that pervades an
environment May or may not be consciously perceived by customers
Not related to any particular product
Scents have distinct characteristics and can be used
to solicit emotional, physiological, and behavioural
responses
In service settings, research has shown that scents
can have significant effect on customer perceptions,
attitudes, and behaviours
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Effects of Scents on Perceptions of Store Environments
Evaluation Unscented Environment Mean Ratings
Scented Environment
Mean Ratings
Difference
Store Evaluation
Negative/positive 4.65 5.24 +0.59
Outdated/modern 3.76 4.72 +0.96
Store Environment
Unattractive/ attractive
4.12 4.98 +0.86
Drab/colourful 3.63 4.72 +1.09
Boring/Stimulating 3.75 4.40 +0.65
Source: Eric R. Spangenberg, Ayn E. Crowley, and Pamela W. Hendersen (1996), “Improving the Store Environment: Do Olfactory Cues Affect Evaluations and Behaviors?,” Journal Of Marketing, (April): pp. 67–80.
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Effects of Scents on Perceptions of Store Environments
Evaluation Unscented Environment Mean Ratings
Scented Environment
Mean Ratings
Difference
Merchandise
Outdated/up-to-date style
4.71 5.43 +0.72
Inadequate/adequate 3.80 4.65 +0.85
Low/high quality 4.81 5.48 +0.67
Low/high price 5.20 4.93 -0.27
Source: Eric R. Spangenberg, Ayn E. Crowley, and Pamela W. Hendersen (1996), “Improving the Store Environment: Do Olfactory Cues Affect Evaluations and Behaviors?,” Journal Of Marketing, (April): pp. 67–80
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Aromatherapy: Effects of Selected Fragrances on People
Fragrance Aroma Type Aroma-Therapy Class Traditional Use Potential Psychological
Effect on People
Eucalyptus Camphor-aceous
Toning, stimulating
Deodorant, antiseptic, soothing agent
Stimulating and energizing
Lavender Herbaceous Calming, balancing, soothing
Muscle relaxant, soothing agent, astringent
Relaxing and calming
Lemon Citrus Energizing, uplifting
Antiseptic, soothing agent Soothing energy levels
Black pepper Spicy Balancing, soothing
Muscle relaxant, aphrodisiac
Balancing people’s emotions
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Impact of Colour
Colours can be stimulating, calming, expressive, disturbing, impressional, cultural, exuberant, symbolic
Colour pervades every aspect of our lives, embellishes the ordinary, gives beauty and drama to everyday objects
Colours have a strong impact on people’s feelings Colours can be defined into three dimensions:
Hue is the pigment of the colour Value is the degree of lightness or darkness of the colour Chroma refers to hue-intensity, saturation, or brilliance
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Common Associations and Human Responses to Colours
Colour Degree of Warmth Nature Symbol Common Association and
Human Responses to Colour
Red Warm Earth High energy and passion; can excite and stimulate
Orange Warmest Sunset Emotions, expressions, warmth
Yellow Warm Sun Optimism, clarity, intellect, mood-enhancing
Green Cool Growth, grass, and trees
Nurturing, healing, unconditional love
Blue Coolest Sky and ocean Relaxation, serenity, loyalty
Indigo Cool Sunset Mediation and spirituality
Violet Cool Violet flower Spirituality, reduces stress, can create an inner feeling of calm
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Impact of Signs, Symbols, and Artifacts
Guide customers clearly through process of service delivery Customers will automatically try to draw meaning from the
signs, symbols, and artifacts Unclear signals from a servicescape can result in anxiety and
uncertainty about how to proceed and obtain the desired service
For instance, signs can be used to reinforce behavioural rules
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Signs Teach and Reinforce Behavioural Rules in Service Settings
Note: Fines are in Singapore dollars (equivalent to roughly US $300)
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People Are Part of the Service Environment
Distinctive Servicescapes Create Customer Expectations
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Putting It All Together
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Selection of Environmental Design Elements
Consumers perceive service environments holistically
Design with a holistic view Servicescapes have to be seen holistically: No
dimension of design can be optimized in isolation, because everything depends on everything else
Holistic characteristic of environments makes designing service environment an art
Must design from a customer’s perspective
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Tools to Guide Servicescape Design
Keen observation of customers’ behaviour and responses to the service environment by management, supervisors, branch managers, and frontline staff
Feedback and ideas from frontline staff and customers, using a broad array of research tools from suggestion boxes to focus groups and surveys.
Field experiments can be used to manipulate specific dimensions in an environment and the effects observed.
Blueprinting or service mapping—extended to include physical evidence in the environment.
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Summary
Service environments are very important to service marketers Communicate the positioning strategy Key part of delivery system Shape employee and customer productivity
There are a number of key models that describe customer responses to service environments
Customers perceive the servicescape holistically Designing service environments is an art
needing professional designers who are customer centric