Planning the Service Environment
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Transcript of Planning the Service Environment
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Chapter 10
Planning the
Service Environment
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The Purpose of Service Environments
The service environment influences buyer behaviour in3 ways Message-creating Medium: symbolic cues to communicate the
distinctive nature and quality of the service experience.
Attention-creating Medium: to make the servicescape stand out
from other competing establishments, and to attract customersfrom target segments.
Effect-creating Medium: colors, textures, sounds, scents andspatial design to enhance the desired service experience,
and/or to heighten an appetite for certain goods, services orexperiences
Helps the firm to create a distinctive image & positioning thatis unique.
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Comparison of Hotel Lobbies(Figure 10.1)
Four Seasons Hotel, New York
Orbit Hotel and Hostel, Los Angeles
The servicescape is part of the value proposition!
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The Mehrabian-Russell Stimulus-
Response Model (Figure 10.2)
Response
Behaviors:Approach/
Avoidance &CognitiveProcesses
EnvironmentalStimuli & Cognitive
Processes
Dimensions ofAffect:
Pleasure andArousal
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The Mehrabian-Russell Stimulus-
Response Model Simple and fundamental model of how people
respond to environments
Peoples conscious and unconscious perceptions
and interpretation of the environment influencehow they feel in that environment
Feelings, rather than perceptions or thoughts drivebehavior
Typical outcome variable is approach oravoidance of an environment, but other possibleoutcomes can be added to the model as well
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The Russell Model of Affect
Arousing
Pleasant
Sleepy
Unpleasant
Exciting
RelaxingBoring
Distressing
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The Russell Model of Affect
Emotional responses to environments can be
described along two main dimensions, pleasure
and arousal.
Pleasure is subjective depending on how much theindividual likes or dislikes the environment
Arousal quality of an environment is dependent on
its information load, i.e., its degree of Novelty (unexpected, surprising, new, familiar) and
Complexity (number of elements, extent of motion or
change)
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Drivers of Affect Affect can be caused by perceptions and cognitive
processes of any degree of complexity.
Simple Cognitive Processes, Perception of Stimuli
tangible cues (of service quality)
consumer satisfaction
Complex Cognitive Processes
affective charged schemata processing
attribution processes
The more complex a cognitive process becomes, the morepowerful its potential impact on affect.However, most serviceencounters are routine. Simple processes can determine affect.
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Behavioral Consequence of Affect
Basically, pleasant environments result inapproach, and unpleasant environments result inavoidance
Arousal acts as an amplifier of the basic effect of
pleasure on behavior If the environment is pleasant, increasing arousal
can lead to excitement and stronger positiveconsumer response. If the environment is
unpleasant, increasing arousal level will moveconsumers into the Distressing region
Feelings during the service encounter is also animportant driver of customer loyalty
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An Integrated FrameworkBitners
ServiceScape Model (Figure 10.4)Environmental
Dimensions
PerceivedServiceScape
AmbientConditions
Space/Function
Signs,Symbols &Artefacts
CognitiveEmotionalPsychological
CustomerResponseModerator
EmployeeResponses
Approachor
Avoid
ApproachorAvoid
Social InteractionBetweenCustomers &Employees
HolisticEnviron-ment
Moderators Internal Responses Behaviour
Customer
Responses
EmployeeResponseModerator
CognitiveEmotionalPsychological
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An Integrated FrameworkBitners
ServiceScape Model(cont)
Identifies the main dimensions in a service
environment and views them holistically
Customer and employee responses classified
under, cognitive, emotional and psychological
which would in turn lead to overt behavior
towards the environment
Key to effective design is how well each
individual dimension fits together with
everything else
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Dimensions of the Service
Environment
Ambient Conditions Music (e.g, fast tempo and high volume increase arousal levels)
Scent (strong impact on mood, affect and evaluative responses,
purchase intention and in-store behavior)
Color (e.g, warm colors associated with elated mood states and
arousal but also increase anxiety, cool colors reduce arousal but
can elicit peacefulness and calm)
Service environments are complex and have many designelements. The main dimensions in the servicescape modelincludes:
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Dimensions of the Service
Environment (cont)
Spatial Layout and Functionality Layout refers to size and shape of furnishings and the ways it is
arranged
Functionality is the ability of those items to facilitate performance
Signs, Symbols and Artifact Explicit or implicit signals to communicate the firms image, help
consumers find their way and to convey the rules of behavior
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Impact of Music on Restaurant
Diners(Table 10-2)Restaurant
PatronBehavior
Fast-beatMusicEnvironment
Slow-beatMusicEnvironment
Difference betweenSlow and Fast-beatEnvironments
AbsoluteDifference
%Difference
Consumer timespent at table 45min 56min +11min +24%
Spending onfood
$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%
Estimatedgross margin
$48.62 $55.82 +$7.20 +15%
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The Effects of Scents on the
Perceptions of Store Environments(Table 10-3)Evaluation Unscented
EnvironmentMean Ratings
ScentedEnvironmentMean 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/colorful 3.63 4.72 +1.09
Boring/Stimulating 3.75 4.40 +0.65
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The Effects of Scents on the
Perceptions of Store Environments(Table 10-3)
Evaluation UnscentedEnvironmentMean Ratings
ScentedEnvironmentMean Ratings
Difference
Merchandise
Outdated/up- to-datestyle
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
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Aromatherapy: The Effects of
Fragrance on People (Table 10-4)Fragrance Aromath
erapyAromatherapy Class
Traditional Use
Potential PsychologicalImpact on People
Orange Citrus Calming Soothingagent,astringent
Calming and relaxingeffect esp. for nervouspeople
Lavender Herbaceous
Calming,balancing,soothing
Musclerelaxant,soothingagent
Relaxing and calming,helps create a homey andcomfortable feel
Jasmine Floral Uplifting,balancing
Emollientsoothingagent
Helps makes people feelrefreshed, joyful,comfortable
Peppermint Minty Energizing,stimulating
Skincleanser
Increase attention leveland boosts energy
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Common Associations and Human
Responses to Colors (Table 10-5)Color Degree of
WarmthNatureSymbol
Common Association andHuman Responses to Color
Red Warm Earth High energy and passion; canexcite, stimulate, and increase
arousal and blood pressuresOrange Warmest Sunset Emotions, expressions, and
warmth
Green Cool Grass
andTrees
Nurturing, healing and
unconditional love
Blue Coolest Sky andOcean
Relaxation, serenity and loyalty
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Selection of Environmental Design
Elements There is a multitude of research on the
perception and impact of environmental stimuli
on behaviour, including:
People density, crowding Lighting
Sound/noise
Scents and odours
Queues
No standard formula to designing the perfect
combination of these elements.
Design from the customers perspective
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Tools to Guide in Servicescape
Design
Keen Observation of Customers Behavior 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
ranging from suggestion boxes to focus groupsand surveys.
Field Experiments can be used to manipulate
specific dimensions in an environment and the