planning the service environment

8/2/2019 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

planning the service environment

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