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INSTITUTE OF HOTEL MANAGEMENT

AURANGABAD

A STUDY ON THE IMPACT OF SERVICESCAPE, EMOTIONS,


BEHAVIOURS AND REPATRONAGE INTENTIONS IN
UPSCALE RESTAURANTS – MUMBAI

Anand Lilani (H -1240)

SUBMITTED IN FULFILLMENT OF THE REQUIREMENT


OF THE B.A. (HONS.) IN HOTEL MANAGEMENT

UNIVERSITY OF HUDDERSFIELD

U.K.

JUNE 2008
“SERVICESCAPE” – Emotions, Behavioural Intentions & Repatronage Intentions

I would like to dedicate this dissertation


in fond memory of my loving mother.

LILANI A. (H-1240)

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DECLARATION

I declare that this dissertation is the result of my efforts and that it


confirms to University, departmental and course regulations
regarding cheating and plagiarisms. No material contained within this
dissertation has been used in any other submissions, for an academic
award.

June, 2008
Anand Lilani
(H-1240)

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ACKNOWLEDGEMENTS

I would like to thank all the pe ople who have been actively involved
in carrying out this dissertation and those who have given me this
opportunity to do this dissertation on „Servicescape‟.

I am thankful to my dissertation guide, Mrs. Parvadhavardhini


Gopalakrishnan, for giving me valu able inputs and guidance that was
provided at every stage of my dissertation. I would also like to thank
Mr. Anand Iyengar, who helped me at every stage of Data Analysis
with his valuable inputs.

I would also like to extend my gratitude towards the entire library


staff for letting me issue relevant books and materials. Lastly, I
would also like to thank the Information Technology staff for their
support at all times.

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TABLE OF CONTENTS

DECLARATION .......................................................................... II
ACKNOWLEDGEMENTS ............................................................ III
TABLE OF CONTENTS .............................................................. IV
LIST OF FIGURES .................................................................... VII
LIST OF GRAPHS ....................................................................VIII
LIST OF TABLES ....................................................................... IX
SYNOPSIS ................................................................................... X
CHAPTER 1: ISSUE IDENTIFICATION ......................................... 1
1.1 INTRODUCTION ................................................................... 1
1.2 FRAMING OF THE RESEARCH ISSUE .................................... 2
1.3 STATEMENT OF AIM ............................................................ 4
1.4 LIST OF OBJECTIVES ........................................................... 4
1.5 SCOPE ................................................................................. 5
1.6 LIMITATIONS ...................................................................... 5
1.7 STRUCTURE OF THE DISSERTATION .................................... 6
1.8 DISSERTATION STRUCTURE MODEL .................................... 6
1.9 CONCLUSION ...................................................................... 7
CHAPTER 2: LITERATURE REVIEW ............................................ 8
2.1 INTRODUCTION ................................................................... 8
2.2 SERVICESCAPE...................................................................10
2.3 RELEVANCE OF SERVICESCAPE IN UPSCALE
RESTAURANTS ........................................................................12
2.4 THE IMPORTANCE OF THE PHYSICAL ENVIRONMENT IN
UPSCALE RESTAURANTS .........................................................17
2.5 SERVICESCAPE IN DIFFERENT SERVICE SETTINGS .............20
2.6 ELEMENTS OF A SERVICESCAPE .........................................22
2.6.1 AMBIENCE ....................................................................25
2.6.1.1 TEMPERATURE ........................................................ 25
2.6.1.2 NOISE ......................................................................26
2.6.1.3 MUSIC .....................................................................26
2.6.1.4 AROMA ....................................................................28
2.6.1.5 LIGHTING ................................................................29
2.6.2 FACILITY AESTHETICS .................................................30
2.6.2.1 COLOUR ..................................................................31
2.6.2.2 FURNISHINGS ..........................................................31
2.6.2.3 LAYOUT ..................................................................32
2.6.2.5 SOCIAL FACTORS ....................................................33
2.6.2.5.1 EMPLOYEES .......................................................33

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2.6.2.5.2 CUSTOMERS .......................................................34


2.6.3 CUSTOMER BEHAVIOUR ................................................34
2.6.4 EMOTIONS AND BEHAVIOURAL INTENTIONS OF
CUSTOMERS ..........................................................................35
2.7 CONCLUSION .....................................................................37
CHAPTER III: RESEARCH METHODOLOGY ...............................38
3.1 INTRODUCTION ..................................................................38
3.2 TYPES OF RESEARCH .........................................................39
3.2.1 EXPLORATORY RESEARCH ............................................39
3.2.2 DESCRIPTIVE RESEARCH ..............................................40
3.2.3 EXPLANATORY RESEARCH ............................................40
3.3 RESEARCH PURPOSE ..........................................................41
3.4 RESEARCH PROCESS ..........................................................42
3.4.1 OBSERVATION ..............................................................43
3.4.2 PRELIMINARY INFORMATION GATHERING ....................44
3.4.3 THEORETICAL FRAMEWORK ......................................... 44
3.4.3.1 VARIABLES .............................................................45
3.4.3.1.1 INDEPENDENT VARIABLE ...................................45
3.4.3.1.2 DEPENDENT VARIABLE ......................................46
3.4.4 DEVELOPING HYPOTHESIS ............................................46
3.4.5 FURTHER SCIENTIFIC DATA GATHERING ......................47
3.4.5.1 RESEARCH TOOLS ...................................................48
3.4.5.1.1 DINESCAPE ........................................................49
3.4.5.1.2 EMOTIONAL STATES ..........................................49
3.4.5.1.3 BEHAVIOURAL INTENTIONS ............................... 50
3.4.5.2 CRONBACH’S ALPHA ...............................................51
3.4.6 SAMPLING ....................................................................52
3.4.7 ANALYSIS AND INTERPRETATION OF DATA ..................54
3.4.8 DEDUCTIONS ................................................................55
3.5 SAMPLE QUESTIONNAIRE ...................................................56
3.6 DINESCAPE SCALE .............................................................59
CHAPTER 4: DATA ANALYSIS ....................................................60
4.1 INTRODUCTION ..................................................................60
4.2 DATA COLLECTION ............................................................60
4.3 METHOD OF ANALYSIS ....................................................62
4.3.1 DEMOGRAPHICS OF THE SAMPLE ..................................62
4.3.2 STATISTICAL TOOLS .....................................................63
4.3.2.1 CRONBACH’S ALPHA ...............................................64
4.4 MEASURING INSTRUMENTS ................................................65
4.4.1 DINESCAPE SCALE ........................................................65
4.4.2 MEHRABIAN-RUSSELL MODEL ......................................66
4.5 DEMOGRAPHIC CHARACTERISTICS OF THE SAMPLE ...........68
4.6 DESCRIPTIVE STATISTICS ..................................................68
4.7 VARIABLE WISE CORRELATION ......................................... 71
4.8 FACTOR WISE CORRELATION ............................................. 73

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CHAPTER 5: CONCLUSION AND RECOMMENDATION ................75


5.1 INTRODUCTION ..................................................................75
5.2 CONCLUSION .....................................................................75
5.2.1 IMPLICATION FOR RESTAURANT OWNERS /
MANAGERS ...........................................................................77
5.3 FINDINGS ...........................................................................78
5.4 SCOPE FOR FURTHER RESEARCH ........................................78
BIBLIOGRAPHY .........................................................................80
JOURNALS AND ARTICLES .......................................................80
BOOKS.....................................................................................88

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LIST OF FIGURES

FIGURE 1.1: THE NEW MARKETING CONCEPT: CUSTOMER


GOALS ................................................................................... 3
FIGURE 1.2: DISSERTATION STRUCTURE MODEL ......................... 6
FIGURE 2.1: ELEMENTS OF A SERVICESCAPE..............................23
FIGURE 2.2: MEHRABIAN-RUSSELL MODEL ................................36
FIGURE 3.1: HYPOTHETICO DEDUCTIVE METHOD .......................42
FIGURE 3.2: HYPOTHESIS ...........................................................47
FIGURE 4.1: MEHRABIAN-RUSSELL MODEL ................................67

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LIST OF GRAPHS

GRAPH 4.1: GENDER DEMOGRAPHICS .........................................63

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LIST OF TABLES

TABLE 2.1: TYPOLOGY OF SERVICE ENVIRONMENTS ..................15


TABLE 3.1 CRONBACH'S ALPHA ................................................. 52
TABLE 3.2: RELIABILITY - CASE PROCESSING SUMMARY ...........53
TABLE 3.3: POPULATION & SAMPLE SIZE ...................................53
TABLE 3.3: TIME OF VISIT & POPULATION: SAMPLE
PERCENTAGE ........................................................................54
TABLE 3.4: NUMBER OF APPLICABLE QUESTIONNAIRES .............54
TABLE 4.1: CRONBACH'S ALPHA .................................................64
TABLE 4.2: DEMOGRAPHICS .......................................................68
TABLE 4.3: DESCRIPTIVE ANALYSIS ...........................................70
TABLE 4.4: VARIABLE WISE CORRELATION ................................ 71
TABLE 4.5: FACTOR WISE CORRELATION ................................... 74

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SYNOPSIS

The physical environment may be an important determinant of


customer satisfaction and subsequent behaviour when services are
consumed not only for hedonic purposes but also for customers who
spend moderate to long periods of time in the physical surroundings.
This study explored the domain of physical environment in various
upscale restaurants in Five Star Hotels in Mumbai, INDIA and
discovered the importance of servicescape in such atmospheres.
Relevant literature was reviewed on architecture, environmental
psychology, psychology, operations and services management,
servicescape marketing and highlighting empirical and theoretical
contributions.

Empirical research on the effect of Servicescape on quality


perception is rare. However, numerous studies on several aspects of
the servicescape, such as colour and light (Areni and Kim, 1994),
background music (Yalch and Spangenberg, 2000), temperat ure,
noise, as well as odour, smell and aroma (Mitchell et al, 1995 and
Spangenberg, 1996). These studies show behavioural effects but
primarily refer to the hospitality industry which is an element of the
service industry. These studies examine only one s ingle component.
The emphasis of these studies is on the investigation of a direct
connection between servicescape factors and behavioural variables.
The research on how servicescape actually affects the evaluation of
service quality is scarce. Less attent ion has been paid to the question
of how the servicescape affects the service quality.

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Servicescape is defined as the physical surroundings as fashioned by


service organizations to facilitate the provision of service offerings
to customers (Bitner, 1992). Bitner‟s (1992) Servicescape framework
provides a starting point for this analysis by suggesting that
consumers formulate approach / avoidance decisions based upon a
response to physical elements in consumption setting‟s built
environment, or Servicescape. The Servicescape framework designed
by the researcher is to bridge the gap between marketing and
environmental psychology by offering an explanation regarding how
customers formulate approach / avoidance decisions via physical
environmental stimuli.

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CHAPTER 1: ISSUE IDE NTIFICATION

1.1 INTRODUCTION

In achieving customer expectations, it is clear that the servicescape


plays a number of roles, often simultaneously (Zeithaml and Bitner,
1996, ch. 18). The servicescape is the outward appearance of the
organization and thus can be critical in forming initial impressions or
setting up customer expectations. The servicescape, or service
setting, plays a critical role in shaping customer expectations,
differentiating service firms, facilitating custome r and employee
goals, and influencing the nature of customer experiences (Bitner,
1992; Sherry 1998). This chapter talks about the dilemma between
the impacts of servicescape on customers seeking quality perceptions.
The researcher also talks about the gap s between management
perceptions of customer expectations and customer expectations.

The concept of a servicescape was developed by Booms and Bitner to


emphasize the impact of the physical environment in which a service
process takes place. Booms and Bitn er defined a servicescape as "the
environment in which the service is assembled and in which the seller
and customer interact, combined with tangible commodities that
facilitate performance or communication of the service" (Booms and
Bitner, 1981, p. 36). Service employees also will be influenced by
dimensions of the servicescape, as will the interactions between and
among employees and customers.

Servicescape of a restaurant or any other environment can be


modified by moving things, removing things, and adding to or
destroying to the environment and physical surroundings.

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1.2 FRAMING OF THE RESEARCH ISSUE

This study attempts to measure customers‟ perceptions of service


quality in upscale restaurants of five star hotels in Mumbai, India
using a modified version of the DINESERV. This dissertation will
construe the role of servicescape and the level of importance of
servicescape in regards to the hospitality i ndustry and the service
sector.

Mainly, this study is aimed at finding out the impact of servicesca pe


on customers involved in quality perceptions. The researcher would
also like to discover if servicescape enhances customer satisfaction
and customer retention. After the primary research, the researcher
will also articulate a few servicescape effects an d propose an
integrated framework for restaurant managers, Assistant food &
beverage managers and Executive Assistant Managers for food &
beverage.

The underlying assumption in Bitner‟s (1992) model of servicescape


is that each customer comes to a service organization with a goal or
purpose or might be aided or hindered by the physical surroundings.
The servicescape has been defined as the built environment
surrounding the service (Bitner, 1992).

This definition and the servicescape framework flowing fro m it focus


exclusively on dimensions of the physical environment; however,
because people within the built environment can shape and influence
the physical space and its impact, the social environment is included
here in an expanded definition of the servi cescape (Baker, Grewal
and Parasuraman, 1994; Baker, Levy and Grewal, 1992).

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Although, the researcher could expand the concept of servicescape or


setting even further to include natural, cultural, temporal, or
political environment, these definitions of e nvironment are beyond
the scope of the researcher and the current effort.

Thus, the researcher has confined the notion of servicescapes to the


immediate physical and social environments surrounding a service
experience, transaction or event.

Enhancing

Retaining

Satisfying

Getting

Figure 1.1: The New Marketing Concept: Customer Goals

The servicescape influences goals at all levels of the pyramid.


Clearly the design and presentation of the servicescape can serve to
attract customers into a restaurant or any other serv ice facility.

Signage, colours, attractive design, music, or scents can be used to


draw customers into a place. The researcher believes that
servicescape will help shape the customer‟s experience and influence
his or her satisfaction with the service deli very. He also believes that
servicescape may even be a determining factor in whether the
customer returns to the particular restaurant.

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1.3 STATEMENT OF AIM

The study aims to graph a ranking of servicescape dimensions that


the customers would perceive in restaurants of five star hotels in
Mumbai, India.

1.4 LIST OF OBJECTIVES

 To define and delimit the servicescape concept .

 To study and interpret the literature review of servicescape,


quality perception and servicescape marketing in a more
comprehensive way.

 To study specific research hypothesis done by analyzing the


problems of previous studies.

 To examine the method used to test the hypothesis by adapting


questionnaire as a tool for data analysis.

 To describe the factors related to Servicescape for restaurants


and other service industries in relation to Bitner‟s work on
Servicescape (Bitner, 1992).

 To analyze and verify the data collected during the research to


be carried out in restaurants of Five Star Hotels in Mumbai.

 To establish the importance of servicescape in the customers


overall service experience.

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1.5 SCOPE

 The researcher would like to learn the diverse aspects of


servicescape.

 The researcher would like to examine various customer


responses linked with the servicescape.

 The researcher would then analyze the data collection.

 The researcher would then establish the importance of the


servicescape in the customer‟s overall service experience.

 Although the researcher could expand the study of servicescape


or setting even further to include the natural, cultural,
temporal, or political environment, the definition of
environment is beyond the scope of the current effort.

1.6 LIMITATIONS

 This research is limited to respondents‟ views in Mumbai and


should not be generalized geographically els ewhere.

 This research is limited to studying the role of the servicescape in


an upscale restaurant environment.

 The results should not be interpreted for a different service


setting.

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1.7 STRUCTURE OF THE DISSERTATION

In chapter 1, the researcher has ta lked about the concept of


servicescape. In chapter 2, the researcher has reviewed the literature
on servicescape and has also discussed previous works and studies of
other authors on this particular subject. Further in chapter 3, the
various models of servicescape and its implementation on restaurants
of Five Star Hotels have been discussed by the researcher. This
chapter also deals with the methodology used by the researcher to
conduct the research. Chapter 4 makes a comparative analysis on the
servicescape impacts on quality perception customers. Lastly, the
author has summarised and concluded the research findings in chapter
5.

1.8 DISSERTATION STRUCTURE MODEL

Figure 1.2: Dissertation Structure Model

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1.9 CONCLUSION

This research is an attempt to stud y the impact of servicescape of


quality perception customers. The research will study and re -examine
the various dimensions of servicescape and the impact that it portrays
on customers perceiving quality. The researcher would also like to
re-evaluate the importance each of the servicescape dimensions. This
study can be further used as a resource for analysing service gaps and
service recovery and to analyse managers‟ perceptions on customer
expectations.

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CHAPTER 2: LITERATUR E REVIEW

2.1 INTRODUCTION

The physical environment in which a service transaction takes place,


made up of ambient conditions (temperature, lighting, noise, etc.),
spatial layout and functionality, signs, symbols and artefacts. The
dimensions of the servicescape aff ect the behaviour and emotions of
both the customers and the employees, and create the package which
delivers the total image of the organisation to the customer. In re cent
years, the concept of the servicescape has been extended to include
the electronic environment. The term was introduced in an article by
Mary Jo Bitner.

This study if performed to expand readers understanding of how the


servicescape influences behavioural intentions. The Servicescape has
become a focal point in the delivery of customer delight (Bitner,
1992). The influence of physical environment on emotions and
behaviour has gained attention from architects and environmental
psychologists (Donovan & Rossiter, 1982; Gilboa & Rafaeli, 2003;
Mehrabian & Russell, 1974; Porteous, 1997). Duri ng the past several
decades, physical environment has become an important area in the
study of hospitality and retail environment, with researchers
beginning to study the influence of such physical environments of a
restaurant or store environment on consu mer behaviour (Turley &
Milliman, 2002).

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However, research on the physical environment still lacks a logical


framework for analysing such environments (Baker et al., 1994) and
has yet to incorporate into a framework the extensive developments
in the analyses of physical environments (Bitner, 1992).

The purpose of this study is to expand readers understanding of the


servicescape to include a more holistic view of how the physical
environment leads to consumer outcome behaviours by implementing
an exploratory empirical investigation of several key hypotheses.
Considerable research has been conducted to determine what
constitutes the physical environment (Baker, 1987; Baker, Levy &
Grewal, 1992; Berman & Evans, 1995; Bitner, 1992; Brady & Cronin,
2001; Parasuraman, Zeithaml & Berry, 1998; Raajpoot, 2002;
Stevens, Knutson & Patton, 1995; Turley & Milliman, 2000;
Wakefield & Blodgett, 1996, 1999). In spite of previous studies being
revealed on various aspects of physical environment , relatively slow
progress has been made on developing a measurement scale for the
physical environment. Only few scales; i.e. SERVQUAL and
DINESERV incorporate tangible physical environment as a part of
overall service quality measurement scheme. Even though Raajpoot
(2002) developed a scale called TANGSERV, its findings might be
not acceptable or reliable due to unclear methodology .

This chapter provides an overview into the servicescapes concept and


its significance to a customer is an upscale restaurant setting. The
researcher has given an outline about the service quality and has
advanced on discussing the servicescapes in detail with relation to
customers‟ behavioural intentions. The researcher has studied various
authors‟ works and eventually determined a set of elements, which
would hold value for a customer in an upscale restaurant.

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2.2 SERVICESCAPE

“Atmosphere is the effort to design buying environments to produce


specific emotional effects in the consumer that enhance his/her
purchase probability.”
- Kotler, 1973

It is clear that the physical environment is an important determinant


of consumer perceptions and future behaviours. However, in order for
managers to benefit fully from this knowledge, it is critical that they
understand more than the simple bivariate relationships between
these variables. In spite of the current trend, some empirical
evidence is available that connects a restaurant ‟s servicescape to
such notable services constructs as enduring involvement,
perceptions of value, service quality, waiting t ime and behavioural
intentions.

Servicescape has been referred as a quality indicator by various


authors and researchers. The physical surrounding or the physical
environment of a service organisation ca n be termed as servicescape.
It has been cited by Berry and Par asuraman (1991) that even though
customers do not see the service, they can observe the various
tangibles linked with service, which acts as a hint for the invi sible
service.

It is a commonly stipulated fact that managers should deal with


service settings which are the physical evidences and similarly
tangible cues are used to assess the quality of the service provided in
the absence of a material product (Gamet, 1997). Accordingly,
Shostack (1982) cited in Gamet (1997) saying that the more tangible
the service, greater is the need to provide physical evidence.

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According to Eiglier and Langeard (1987), the setting or environment


that assists the performance and communication of the service is
known as the physical evidence. Since the physical environment is
important for the customer in evaluating the quality of the service, it
is also fundamental in customer satisfaction in services like
restaurants, retail stores, banks, etc (Gamet, 1997).

As previous service quality research has shown, the evaluation of the


service experience is based more on the intangible elements of the
service itself. Accordingly, servicescape being a tangible component
forms only a small part of the whole experience but customers
respond to the complete product. Hence, the tangible c omponent
forms an important part of the service setting.

According to Kotler (1973), the physical environment or the place as


a whole can sometimes be more important that the product itself but
this also depends upon the type of service. As mentioned by Levitt
(1981) cited in Kuehn and Reimer (2005), customers to some extent
depend on the appearance and external impression while evaluating
intangible products.

A majority of research articles have focused on service encounters of


a relatively short duration. This could be anything like dry -cleaning,
fast food restaurants, etc. Bitner (1990) has stated that customers
tend to spend a short period of time in such facilities and the service
quality is usually looked at from the angle of intangible factors such
as reliability, empathy, assurance and responsiveness and more often
than not the tangible aspects are overlooked (Wakefield and Blodgett,
1996). Whereas, in places like hotels, upscale restaurants,
entertainment zones, etc. customers are inclined to spend more time
in such surroundings.

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In the cases, the servicescape plays a very important role in


determining how long a customer intends to stay in the facility and
how much money he is willing to spend. It also depends on the
servicescape and the physical a tmosphere and environment whether or
not the customer is willing to return to the same establishment again
(Wakefield and Blodgett, 1996). Similarly, at a good upscale
restaurant in Mumbai, a customer would not only focus on the quality
of food but also give great importance to the physical environment of
the restaurant; which would by all odds play an important role in
determining if the customer is satisfied.

In an upscale restaurant, customers tend to spend more time than


what they spend at fast-food outlets where they observe the physical
environment or the atmosphere for a longer period of time and it is
inclined to have larger impacts upon their service experience.

2.3 RELEVANCE OF SERVICESCAPE IN UPSCALE


RESTAURANTS

In the servicescape marketing li terature, services are frequently


described by characteristics such as intangibility, inseparability of
production from consumption, and the impossibility of keeping
services in stock. In services, customers participate in the production
process and therefore also influence the flow and outcome of the
process.

It is often observed that customers have difficulty evaluating a


service before buying it and that such is n ot the case for physical
goods.

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In the mind of a customer, restaurant service can be as int angible as


a car and similarly, it may be as difficult to evaluate a kilogram of
tomatoes before eating them as it is to evaluate the service of a bank.
Service displays tangible and intangible characteristics, which help
in enhancing a customer‟s percepti on of high service quality. The
effects of the physical environment have been documented in studies
conducted in hotels (Saleh & Ryan, 1992), restaurants (Milliman,
1986), and in leisure services (Wakefield & Blodgett, 1994).

In the hospitality industry t he tangible component of service quality


has the capacity to influence customer behaviour and create an image
about the firm in the customers mind. According to Dube and
Renaghan (2000) cited in Ryu (2005), while making a purchase
decision customers rate exterior and public spaces and guest room
design as the driving force after location and brand name. But in
terms of creating value regarding the experience for the customer,
brand name and location were rated below the physical attributed i.e.
guest room design and physical appearance .

The level of importance of servicescape or the physical environment


can vary under the combined effects of particular characteristics i.e.
time spent in the restaurant, the purpose of consumption and
different sellers and societies. The extent of the influence of physical
environments on customer expectations may be especially pronounced
if the service is consumed for hedonic motives rather than utilitarian
purposes. Hedonic consumption looks for pleasure or emotional
fulfilment, as opposed to functional usefulness, from the service
experience (Babin, Darden & Griffin, 1994). Because of the
emotional context, customers of the upscale restaurants are likely to
be more sensitive to the aesthetics of their e nvironment (Wakefield &
Blodgett, 1994).

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The amount of time spent in a facility influences the extent to which


the physical environment i.e. Servicescape influences customer
attitudes or satisfaction with service. The physical environment may
have little impact on service encou nters of relatively short duration
as in fast food restaurants (Wakefield & Blodgett, 1996). As
mentioned by Shostack, service encounter refers to „a period of time
during which a consumer directly interacts with a se rvice‟ (Shostack,
1985, p.243).

This definition covers all aspects of the service with which the
customer may directly interact including personnel, physical
facilities, and other tangibl e elements during a given time. In service
encounters of relatively short duration; customers typically spend
only a short time inside the restaurant (Bitner, 1990). In such
situations, customers perceive service quality based mainly on
intangible aspects i.e. reliability, assurance, responsiveness, empathy
and less on the tangible aspects i.e. servicescape or physical
surroundings (Wakefield & Blodgett, 1996).

For example, in fast food restaurants, customers are likely to put


more stress on how long it takes to have a meal served which show
traits of reliability and responsibility and how courteous the service
personnel are which shows traits of assurance rather than on
aesthetics of the restaurant.

However, service in the upscale restaurant segment generally requires


customers to spend a certain number of hours in the physic al
surroundings (Wakefield & Blodgett, 1996).

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In such situations, where the customer spends an extended period of


time observing and experiencing the physical environment, the
importance of the physical environment increases with time. For
example, since customers often wait a long time f or their food after
being seated in an upscale restaurant, it is important that they do not
feel bored. The physical environment might be used to enhance
stimulation and prevent boredom.

The researcher has depicted various types of service settings in the


figure below, combining the effects of long stays in the service
environment with customers‟ hedonic motives as compared to that of
utilitarian motives.

The classification clearly shows that the physical environment is


more critical in those settings in which consumers patronize service
providers more for emotional motive than for functional purposes,
and for which they spend more time in the service facility than for
shorter stays (Wakefield & Blodgett, 1999).

Table 2.1: Typology of Service Environments

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Wakefield and Blodgett (1996) argues that physical environment is an


important determinant of customers‟ behavioural intentions when the
service is primarily for hedonic purposes and customers spend
moderate to long durations in the physical surroundings. In the
context of upscale restaurants, customers m ay spend several hours or
more.

The primary foodservice offering must be of acceptable quality, but


pleasing and delighting physical environments which are lighting,
décor, layout, employee appearance may determine, to a large extent,
the degree of overall satisfaction and repatronage.

Lastly, the importance of Servicescape varies among service


providers. Kotler (1973) proposed that Servicescape can be an
important marketing tool in situations :

1. where the product is purchased or consumed and the seller has


design options
2. where product and/or price differences within the same industry
are small
3. when the product entries are aimed at distinct social classes or
lifestyle buyer groups

Most of these are true in upscale restaurants. The first situation is


true for upscale restaurants because the meal is purchased and
consumed simultaneously and restaurateurs have considerable control
over the physical surroundings. In this case, the physical
environment is part of the total product. Secondly, the product or
price differences might be minimal within t he upscale restaurant
industry.

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Similarly, restaurateurs should have some singularity to differentiate


themselves from competitors. Cust omers need further discrimi nating
criteria, and the physical environment can be an important one.
Finally, upscale restaurants should be designed to attract customers
in the intended market segment (ex: upper-class patrons). In short,
the physical environment can be a crucial part o f the total dining
experience.

2.4 THE IMPORTANCE OF THE PHYSICAL


ENVIRONMENT IN UPSCALE RESTAURANTS

The level of importance of the physical environment can vary under


the combined outcomes of the following characteristics:

1. Time spent in the facility


2. Consumption Purpose
3. Different Sellers and Societies

The extent of the influence of physical environments on customer


affective responses may be especially pronounced if the service is
consumed primarily for hedonic purposes rather than utilitarian
purposes, as is the case in an upscale restaurant.

Hedonic consumption looks for pleasure or emotional fulfilment, as


opposed to functional usefulness, from the service experience (Babin,
Darden & Griffin, 1994). Because of the hedonic or emotional
context, customers of the upscale restaurant are likely to be more
sensitive to the aesthetic qualities of their surroundings (Wakefield
& Blodgett, 1994).

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The amount of time spent in facility influences the extent to which


the physical environment influences customer attitudes or
satisfaction with service. The physical environment may have little
impact on service encounters of relatively short duration as in fast
food restaurants (Wakefield & Blodgett, 1996). Here, service
encounters refers to “a period of time during which a consumer
directly interacts with a service” (Shostack, 1985, p.243).

This definition encompasses all aspects of the service with which the
consumer may interact including personnel, physical facilities, and
other tangible elements during a given time. In service encounters of
relatively short duration, customers typically spend only a short time
inside the restaurant (Bitner, 1990). In these situations, customers
perceive service quality based mainly on intangible aspects which
can be reliability, assurance, responsiveness, empathy and less on the
tangible aspects which is physical surrounding s (Wakefield &
Blodgett, 1996).

For example, customers fast food restaurants are likely to put more
emphasis on how long it takes to have the meal served whi ch would
include reliability and responsiveness and how courteous the
personnel are than on the aesthetics of the restaurant.

However, service in the upscale restaurants generally requires


customers to spend several hours in the physical surroundings of t he
service provider (Wakefield & Blodgett, 1996).

In such situations, where the customer spends an extended period of


time observing and experiencing the physical environment, the
importance of the physical e nvironment increases with time.

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For instance, since customers often wait long for their food after
being seated in an upscale restaurant, it is important that they do not
feel bored. The physical environment might be used to enhance
stimulation and prevent boredom.

Wakefield and Blodgett (1996) argue d that the physical environment


is an important determinant of customers‟ behavioural intentions
when the service is primarily for hedonic purposes and customers
spend moderate to long periods in the physical su rroundings.
In the context of upscale restaur ants, customers may spend several
hours or more. The primary foodservice offering must be of
acceptable quality, but pleasing environments (ex: lighting, décor,
layout, employee appearance) may determine, to a large extent, the
degree of overall satisfaction and repatronage.

Finally, the importance of servicescape varies among service


providers or societies. Kotler (1973) proposed that servicescape can
be an important marketing tool in situations under certain conditions
mentioned below:

1. where the product is purchased or consumed and where the


seller has design options

2. where product and/or price differences within the same industry


are small

3. when the product entries are aimed at distinct social classes or


lifestyle buyer groups

Most of these conditions are valid and relevant in upscale restaurants


that the researcher has chosen.

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The first situation is true for upscale restaurants because


restaurateurs not only concentrate on purchasing and consuming food
but simultaneously have a considerable control ove r the physical
surroundings. In this case, the physical surrounding is part of the
total product. Secondly, product or price differences might be
minimal within the upscale restaurant business. Thus, restaurateurs
should have some uniqueness to differentia te themselves from
competitors. Customers need further discriminating criteria, and the
physical environment can be an important one.

Finally, upscale restaurants should be designed to attract customers


in the intended market segment. Briefly, the physical environment
can be a crucial part of the total dining experience.

2.5 SERVICESCAPE IN DIFFERENT SERVICE


SETTINGS

“Because delivering high quality service is crucial for success in the


service industry, understanding the nature of service quality has
been important.”

- Parasuraman, Zeithaml, Berry (1985)

There are many authors who have discussed the various aspects of
servicescape. They have all taken into consideration different
dimensions, which they have identified according to the type of
service facility. It relates to not only the hospitality industry but also
in retailing, malls, banks, airlines, bathrooms, etc.

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There are a numerous number of factors, which constitute the


servicescape. Some of them are lighting, colour, signage, textures,
layout, decor, etc.
After studying previous literatures on Bitner‟s work, the researcher
identified three main dimension named by Bitner (1992):

 Ambient Conditions
 Spatial Layout and Functionality and Signs
 Symbols and artefacts

Customers and employees perceiv e the environment holistically, as a


composite of three dimensions mentioned above. Each dimension may
affect the overall perception independently or through its interactions
with the other dimensions.

In a similar study by Baker, Grewal and Levy (1992), the effect if


ambient factors and social cues on customers emotional states and
purchase intentions have been examined in retailing. Music and
lighting as ambient factors were taken into consideration during this
study by Baker, Grewal and Levy. The number of employees and their
friendliness was taken into account to judge the social factors. They
tested the ambience on how pleasure experienced by consumers and
the social factors were tested on both pleasure and arousal. Results
showed that when there are a n adequate number of employees present
who exhibit friendly and helpful behaviour, an arousing environment
could be created.

Lastly, Wakefield and Blodgett (1994) conducted a study to examine


the importance of servicescape in a leisure service setting. Th is study
was based on a major league baseball game.

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The logic behind selecting such a service setting was that since
customers spend an extended time period, the perceived quality of the
servicescape is higher resulting in satisfaction with the service.

They took into account elements of the servicescape based on


Bitner‟s servicescape model (1992), which are a spatial layout and
functionality and elements related to the aesthetic appeal of the
place. Layout and functionality are basically factors that enhan ce the
comfort levels of the customer. This includes the way in which seats,
rest rooms, entrances, exits and walkways, etc. are designed in that
setting.

However, these factors are mainly the external environment which


can be experienced by the guests physically. The results of this study
showed that when the customer perceives the service to be of higher
quality, they are willing to return to the stadium for another game
and vice-versa.

This reminds the employees, managers and owners to concentrate


more in detail to design each element of servicescape so that
customers are satisfied with not only the primary service offered but
with the entire experience (Wakefield and Blodgett, 1994).

2.6 ELEMENTS OF A SERVICESCAPE

Baker (1987) classified three fundamental factors that affect the


tangible portion of service quality dimensions i.e. design, social and
ambient factors. Ambience includes background variables such as
lighting, aroma, temperature. These variables are not part of the
primary service but are i mportant because their absence may make
customers feel concerned or uncomfortable.

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Design dimensions comprise the components of the environment that


tend to be visual and more tangible in the nature. Design dimensions
include colour, furnishings, and spatial layout. The design elements
contain both the aesthetic aspects (ex. Beauty, décor) and the
functional aspects (ex. Layout, ease of transaction and waiting room
design) that facilitate high quality service. The social factors relate
to an organisation‟s concern for the people in the environment,
including customers and employees.

Baker, Grewal and Parasuraman (1994) also classified store


atmospherics into three categories: store functional / aesthetic design
factors, store social factors, and store ambie nt factors.

Figure 2.1: Elements of a Servicescape

Bitner (1992) discussed the effect of tangible physical environment


on overall development of service quality image. She identified three
primary dimensions of the SERVICESCAPE that influence
consumers‟ holistic perceptions of the Servicescape i.e. perceived
quality and their subsequent internal i.e. satisfaction with the
Servicescape and external responses (ex. approach / avoidance,
staying, repatronage).

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The three dimensions are:

1. Ambient Conditions\(elements related to aesthetic appeal)

2. Spatial Layout and Functionality

3. Signs, symbols and artefacts.

Ambient conditions include temperature, music, noise, odours and


lighting. Aesthetic appeal refers to physical elements such as the
surrounding external environment, the architectural design, facility
upkeep and cleanliness, and other physical elements that customers
can see and use to evaluate the aesthetic quality of the Servicescape.

Aesthetic factors are important because they influence ambience.


Spatial layout and functionality refer to the ways in which seats,
aisles, hallways and walkways, foodservice lines, restrooms and the
entrance and exits are designed and arranged in service settings.

Layout and functionality factors are important in man y leisure


services (ex. Theatres, concerts, upscale restaurants) because they
can affect the comfort of the customer. Signs, symbols and artefacts
include signage and décor used to communicate and enhance a certain
image or mood, or to direct customers to desired destinations. These
three dimensions are similar to those proposed earlier by Baker
(1987).

However, Bitner‟s signs, symbols and artefacts dimension focuses


more on explicit and implicit signals than Baker‟s greater focus on
people in the environment.

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In addition, Bitner (1992) argued that, based on their perceptions of


the Servicescape, consumers will have certain thoughts and feelings
(emotional and physical) that ultimately either lead them to either
approach or avoidance behaviour.

Based on Bitner‟s (1992) servicescape framework, Wakefield and


Blodgett (1996) examined the effects of layout accessibility, facility
aesthetics, electronic equipment, seating comfort and cleanliness on
the perceived quality of the Servicescape.

The findings revealed that perceived quality had a positive effect on


customer satisfaction with the Servicescape, which in turn affected
how long customers desired to stay in the leisure service setting and
whether they intended to re-patronize the service provider.

2.6.1 AMBIENCE

Several authors have identified ambient conditions as an intangible


construct that affects the perceptions of and human responses related
to the environment (Becker, 1981; Wineman, 1982; Baker, 1987;
Bitner 1992). They include temperature, noise, music, scent and
lighting. These elements have been discussed in detail below.

2.6.1.1 TEMPERATURE

It is often recognized that when a guest visits a restaurant, he would


like an environment, which would make him feel comfortable and
relaxed during the duration of his meal. Temperature can be a factor,
which can be unpleasant if not controlled adequately. Extreme hot or
cold can produce negative emotional states in customers. Thus it is
an important part of the ambience.
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2.6.1.2 NOISE

Noise can be classified as a non-musical sound. Sound has been


perceived annoying on the basis of being loud and noisy. According
to Kryter (1985), the frequency of sound waves is defined as the
pitch of sound and the amplitude or the maximum displacement of a
periodic sound wave (physics) is classified as the volume.

He goes on to say that when sound is unexpected or perceived as


undesirable it leads to a negative stimulation or emotion. If there is
too much silence, it can be equally taxing. Therefore a balance of
loud and regular sound leads to a pleasant environment, which can
have a positive affect on customer‟s behaviour (Lin, 2004).

2.6.1.3 MUSIC

Hui et al. (1997) says that whilst in the physical environment of a


service facility, customers pay attention to music as an auditory
component in their evaluations of the environment. Research studies
in the past have revealed that music can be a positive component in
stimulating customer emotions and behaviours.

Yalch and Spangenberg (1998) cited in Lin (2004), found that


background music led young shoppers to spend more time shopping
and it also had a considerable effect on arou sal.

Kellaris and Mantel (1996) have said that music can lengthen the
actual shopping time than was perceived by the customer origina lly
resulting in more spending.

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In another study by the same authors in 1994, music in a restaurant


can also increase table turnover by making them feel they have spent
more time over their meal than they have actually done (Oakes,
2000).

Literatures in the past have shown that music preference varies in a


service setting depending on the age segments of consumers. Hui et
al. (1997) found that music improved the emotional assessment of a
service environment, which led to a positive effect o n approach
behaviour.

According to Yalch and Spangenber (1990) cited in Oaked (2000), the


music played in restaurants can result in a rapid turnover during low
margin high demand periods like during lunch hours and similarly
can result in longer stays resulting in increased spending.

Milliman (1986) conducted a study in a restaurant to gauge the


impact of music on customer behaviour in restaurants. Background
music is classified as an atmospheric variable, which could affect the
restaurant environment.

As mentioned by Sweeney and Wy ber (2002), customers‟ evaluations


of service quality and eventual approach behaviours are significantly
influenced by the music played in a retail setting.

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2.6.1.4 AROMA

Odours environment in a sales area seems to have a positive effect on


consumers‟ behaviour. Knasko (1989) showed that ambient aroma had
a positive impact on the duration of time spent by consumers at a
jewellery counter. This result was confirmed by Lipman (1990).
Despite frequent studies that showed that ambient aromas or odour
have an effect on consumers‟ behaviour, no studies have analysed the
effect of ambient scents in a restaurant setting.

An experiment was carried out by a few researchers and experts


where two classical aromas used in many of the studies presented
above were diffused in a restaurant in order to test their effect on
consumers‟ behaviour. It was hypothesized in this experiment that
scent would play positively influential role in he length of time and
the amount of money spent by the customers.

Bone and Ellen (1994) conducted a study regarding a catalogue –


shopping task in a scented and unscented room where results showed
that customers spend more time in the presence of ambient scent in
not only a store environment but also possibly in a restaurant
environment (Crowley et al., 1996).

Scents or aromas alone will not have a significant impact upon the
customer but will be evaluated with all other cues to form a holistic
picture of the servicescape by the customer. This will lead to a
greater impact of the aroma on the customer‟s behaviour.

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2.6.1.5 LIGHTING

Lighting preference has been found to differ depending upon the


situation and behaviour portrayed by the customer / individual
(Butler & Biner, 1987 cited in Baker et al., 1992). Meer (1985) cited
in Baker et al. (1992) stresses that soft lighting has the tendency to
generate a pleasant mood as compared to bright lighting.

According to Kurtich and Eakin (1993) cited in Lin (2004), an


individual‟s perception regarding the quality of space affecting his /
her emotional aspect of the space is directly influenced by lighting in
the environment. Stone and Irvine (2004) have examined the
relationship between light intensity and work productivity, revealing
that perceptions of light influence people‟s perceptions of the
environment.

Lighting has the ability to affect the customer‟s emotional states


thereby influencing their behaviour. The type of lighting used and
also its intensity has the ability to impact the customers in a positive
manner related to their approa ch and avoidance behaviours.

Ambient elements can play a crucial role in influencing the impact of


the servicescape with regard to the customers‟ behavioural
intentions. Ambient elements create a pleasant and arousing
atmosphere, which affects the customers‟ emotional states.

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2.6.2 FACILITY AESTHETICS

Facility aesthetics refers to a function of architectural design, along


with interior design and decor, all of which contribute to the
attractiveness of the physical environment (Wakefield & Blodgett,
1994). From an external viewpoint, as customers approach or drive
by an upscale restaurant, they are likely to evaluate the
attractiveness of the exterior of the restaurant. Once inside the
dining area, customers often spend hours observing (consciously and
subconsciously) the interior of the dining area. These evaluations are
likely to affect their attitudes towards the r estaurant (Baker et al.,
1988).

In addition to the appeal of the dining area‟s architectural design,


customers may be influenced by the c olour schemes of the dining
area‟s walls and floor coverings. Other aspects of interior design
such as pictures / paintings, plants / flowers, ceiling decorations, and
/ or wall decorations may also serve to enhance the perceived quality
of the physical environment. (Ryu K, 2005)

An aesthetic impression can be created by using quality materials in


construction, photographs, and by personal objects displayed which
define a symbolic meaning for the customer (Bitner, 1992). Aesthetic
factors also manipulate t he ambience of the place (Wake field and
Blodgett, 1994).

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2.6.2.1 COLOUR

People see and interact within both natural and built environments.
About 80 percent of the information that people absorb through the
senses is visual (Khouw, 2004). However, co lour does more than just
give people objective information. It actually influences how people
feel. The presence of colour becomes even more important in interior
environments in generating positive feelings.

According to Eiseman (1998) as cited in Lin (2 004), interior settings,


colour is an important visual element. Customers cognitively process
this visual input before it affects their moods and emotions, and it is
a fact that has been displayed by previous research in this area (Lin,
2004).

The researcher proposes upscale restaurant owner and upscale


restaurant managers to provide a mix of warm and cool colour in
order to attract customers and to create a pleasant environment
depending upon the service setting.

2.6.2.2 FURNISHINGS

Furnishings in a service setting encompass the objects and materials


that are used within the environment. The impact of furnishings can
be evidenced through the affective response of comfort. For instance,
seating comfort has been found to affect pleasure in football and
baseball stadium facilities (Wakefield, Blodgett, Sloan, 1996).
Consumers who are comfortable should experience more positive
state (Baker & Cameron, 1996). Creating dining environments that
make customers feel comfortable is a key goal of designers and
operators.

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Seating comfort in an upscale restaurant is of utmost importance


where a customer would want to sit for hours and hours. Seat comfort
can be influenced by the physical seat itself as well as the space
between the seats. Some seats may be uncomfortab le because of their
design (e.g.: hard base, no back support, etc.). Seats may also be
uncomfortable because of their proximity to other seats. Customers
may physically and psychologically be uncomfortable if they sit too
close to the customers next to the m (Barker & Pearce, 1990). It is
further said in previous literatures that cramped seating quarters are
likely to be perceived as displeasing and of poor quality (Eroghu &
Machleit, 1990; Hui & Bateson, 1991). Hence, comfortable seats with
ample space might reduce the feeling of being crowded.

2.6.2.3 LAYOUT

Layout refers to the way in which objects such as machinery,


equipment and furnishings are arranged within the environment. An
interesting and effective layout may also facilitate fulfilment of
hedonic or pleasure needs (Wakefield & Blodgett, 1994). Spatial
layout that makes people feel constricted may have a direct effect on
customer quality perceptions, excitement levels and indire ctly on
their desire to return.

This implies that service or retail f acilities that are specifically


designed to add some level of excitement or arousal to the service
experience such as in an upscale restaurant should provide ample
space to facilitate exploration and stimulation within the physical
environment (Wakefield & Blodgett, 1994).

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2.6.2.5 SOCIAL FACTORS

Social elements are the people (i.e. employees and their customers)
in the service setting (Baker, 1987). The social variables include
employee appearance, number of employees, gender of employees and
dress or physical appearance of other customers.

2.6.2.5.1 EMPLOYEES

Bitner (1990) found that a disorganised environment, featuring an


employee in less than professional attire could influence a
customer‟s attribution and satisfaction w hen a service failure
occurred.

In agreement with Baker, Levy and Grewal (1992), it was determined


that the more social elements present in the restaurant environment,
the higher the subject‟s arousal. Baker et al. (1994) cited in Ryu K
(2005) examined the effects of sales personnel on consumer
interferences about merchandise and service quality and store image
in a retail store setting.

However, Fischer et al. (1997) cited in Ryu K (2005) explored


whether the gender of the service provider should be regarded as an
element of the physical environment that influences perceptions of
service quality in fast food restaurants such as McDonalds, retail
stores such as Spencer‟s, etc.

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2.6.2.5.2 CUSTOMERS

“Service Quality is not evaluated by consumers only in terms of what


they receive at the end of the service delivery process, but also in
terms of the process itself.”
- Chebat et al. (1995)

Customers are something that are the most important in the restaurant
business in today‟s world. In an open service encounter site where
customers could observe service delivery to other customers, the way
services were delivered influenced not only the opinions of the
customers who received the service, but also the opinions of other
customers who observed service delivery.

A similar study has been portrayed by Belk (1975) cited in Grover


and Fisk (1997) as a part of the social surrounding, which affects
customer behaviour.

2.6.3 CUSTOMER BEHAVIOUR

By reviewing the past literature, it can be inferred that a majority of


customers react to the physic al environment based on the effective
states of pleasure and arousal, which influences their behavioural
intentions in an upscale restaurant environment. Consumers also use
cognitive and physiological responses to react to the servicescape
and these also help forming beliefs regarding the servicescape.
Wakefield and Blodgett (1994) have said that affective responses may
be very important in determining repatronage intentions, especially
in service settings like restaurants where customers are using them
with a hedonic service purpose.

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2.6.4 EMOTIONS AND BEHAVIOURAL INTENTIONS OF


CUSTOMERS

The effects of the parts of the physical environment that are more
aesthetic in nature i.e. decor, colours, music, lighting, etc. have been
widely documented in the litera ture by the researcher. Research in
environmental psychology has shown that properly designed physical
environments may create feelings of excitement, pleasure or
relaxation (Mehrabian-Russell, 1974; Russell & Pratt, 1980).
Wakefield and Blodgett (1999) no ted that the physical environment
might directly influence consumers‟ affective responses while service
quality perceptions related to reliability, assurance, responsiveness
and empathy might generate emotional evaluations.

The Mehrabian-Russell (1974) model, which presented a basic model


of human emotion, has received strong support in environmental
psychology, retailing and marketing. The model claims that any
environment will generate an emotional state in one of the three
ways:

 Pleasure
 Arousal
 Dominance

Those three emotional states mediate approach -avoidance behaviours


in a wide range of environments. Pleasure refers to the extent to
which individuals feel good, happy, pleased or joyful in a situation
whereas arousal refers to the degree to which ind ividuals feel
stimulated, excited or active.

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The Mehrabian-Russell (1974) model claimed that pleasure and


arousal were the two orthogonal dimensions representing individual
emotional or affective responses to a wide range of environments.
Donover and Rossiter (1982) discovered a positive relationship
between pleasure and arousal dimensions and intentions to remain in
a retail setting and spend more money. In addition, Kenhove and
Desrumaux (1997) cited in Ryu K. (2005) stated that the examination
relationship between the emotional states evoked in a retail
environment and behavioural intentions in that environment.

The Mehrabian-Russell (1974) model specified a conditional


interaction between pleasure and arousal in determining approach -
avoidance behaviour. In a pleasant environment, an increase in
arousal was argued to increase approach behaviours, whereas in
unpleasant environments, an increase in arousal was suggested to
motivate more avoidance behaviours (Donovan & Rossiter, 1982).

Similarly, the researcher is in complete agreement with Ryu K.


(2005) and would like to add that the traditional pleasure -arousal
interaction effect might be limited to high target arousal situations.

Figure 2.2: Mehrabian-Russell Model

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2.7 CONCLUSION

The researcher has discussed previous literatures pertaining to that of


servicescape construct and studied data related to servicescapes. This
chapter also construes the various elements of servicescape along
with models pertaining to the same. The researcher has also di scussed
the five factors of service quality, out of which one is the tangible
aspect.

Servicescape is something that has been studied in various service


settings other than that of upscale restaurants by various authors and
hence the researcher has chosen the topic in context with upscale
restaurants only. The servicescape has been shown to affect
customers‟ behavioural intentions in the literature by various
authors. Customers would perceive them to be important in a
restaurant setting, as they would form impressions about the expected
service based on the servicescape.

Chapter three deals with the research methods and a range of


techniques that the researcher has followed, to validate the
arguments, which have been mentioned by the researcher in the
literature review.

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CHAPTER III: RESEARC H METHODOLOGY

3.1 INTRODUCTION

This chapter talks about the methodology used by the researcher to


perform a research into the statement of aim. The main objective of
this chapter is to clearly define the specific guidelines which will
enable the researcher to corroborate the attained hypothesis. In brief,
this chapter discusses about the concepts, which are used in the
course of primary and secondary.

“A research design is the plan, structure and strategy of


investigation conceived so as to obtain answers to research questions
and to control variance.”
- Kerlinger

The researcher has provided significant information in chapter two on


the impact of servicescape on customers perceiving quality service
in restaurants of five star hotels in Mumbai. Work by various
accepted authors like Bitner, Bellizzi, Donovan, Caro, Knutson,
Stevens, Kotler, etc. have been considered and debated upon to reach
an agreement. The researcher thus investigates into this matter to
explore a correlation between the impact of servicescape and
customers perceiving service quality in restaurants with their
intentions to return (repatronage).

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3.2 TYPES OF RESEARCH

The main purpose of conducting a research is to inform the reader


about the reader about the intention of the researcher, and h ow the
result can be utilised. According to Sekaran (1992), research has
been defined as:

“An organised, systematic, data based, critical, scientific enquiry


and investigation into a specific problem, un dertaken with the
objective of finding answers or solutions to it.”
- Sekaran (1992)

Therefore, it can be deduced that research is a planned, systematic


method of analysing a problem conducted in order to find or discover
a solution to that particular pro blem.

Research can be classified into different groups based in the type of


research. There are primarily three types of researches that can be
followed by the researcher as described below:

3.2.1 EXPLORATORY RESEARCH

Exploratory research is a type of r esearch conducted because a


problem has not been clearly defined. Exploratory research helps
determine the best research design, data collection method and
selection of subjects. Exploratory research relies on Secondary
research. Hence, research that is conducted with an intention to
explore is called an exploratory research.

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3.2.2 DESCRIPTIVE RESEARCH

Descriptive research describes data and characteristics about the


population or phenomenon being studied. If the purpose of the
research is to describe, the study is considered to be descriptive in
nature. It basically gives the researcher a choice of perspective,
aspects, levels, terms and concepts, as well as to observe, register,
systemise, classify and interpret.

3.2.3 EXPLANATORY RESEARCH

Explanatory research is applied when the issue is already known and


has a description of it. The desire to know „why‟ to explain is the
purpose of explanatory research. It builds on exploratory and
descriptive research and goes on to identify the reasons for
something that occurs. Explanatory research looks for causes and
reasons.

In this study, the researcher has explored „SERVICESCAPE‟ in detail


through his literature review. The researcher has tried to explore the
correlation between the impacts of servicescape in restaurants and
customer intentions of coming back to the restaurant (behavioural
intentions).

On the basis of this relationship the researcher has been able to


explore the various aspects of the servicescape. Consequently, the
researcher has coined his research as an exploratory research.

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3.3 RESEARCH PURPOSE

Rarely does a research come neatly packaged with obvious


information requirements, clear -cut boundaries and pure motives on
the part of the decision makers. Research problems are more likely to
be poorly defined which are only partially understood and missing
possible decision alternatives that should be analysed. The purpose
of research is to either create or test a theory. It is the instrument
used to test whether a theory is good or not. It can be used to
determine if a specific theory is valid or applicable or not.

The main reason for the researcher to conduct an extensive research


in this area is to identify the importance and the impact of
servicescape of customers perceiving service quality in restaurants
based on their emotion and behaviour and also to determine their
intention to come back. After extensive reading into the vast
literature published on these two var iables, the researcher has
attempted to bring out the ambiguity that covers these two variables,
i.e. the impact of servicescape on customer perceiving quality
service and their intentions to come back.

As mentioned by Zikimund (1991), the actual research process is


completed in six easy steps which are mentioned as under:

1. Identifying the research problem


2. Defining the research problem
3. Determining how to conduct the research or the method
4. Collecting research data before analysing
5. Interpreting the data
6. Presenting the result

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The researcher would like to uncover the mystery that many


researchers are trying to distinguish across the world.

3.4 RESEARCH PROCESS

Figure 3.1: Hypothetico Deductive Method

(Source: Sekaran, U., 1992. Research Methods for Business: A Skill


Building Approach, 2nd Edition, New York: John Wiley & Sons, Inc.
p.15)

The Webster dictionary defines Methodology as the analysis of the


principles or procedures of inquiry in a particular field.

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In this study, the researcher has used the seven steps Hypothetico
Deductive Method for this research. This study has been undertaken
to study the area of Servicescape. Since there is prolonged
controversy in the area of Servicescape in restaurants, this area has
been selected for study. This study embarks on the discussion to
identify the importance of servicescape to u phold and preserve
customers and also customer intentions of coming back to the
restaurant. With application of the funnel approach, the seven step
hypothetico method narrows down extensive research area,
facilitating the research in an organised manner. T he research has
been restricted to the hotels in Mumbai only.

3.4.1 OBSERVATION

The issue arose after intense reading of relevant books, journals and
online articles on Servicescape by Mary Jo Bitner, Service Marketing
by Kotler, etc.

The topic of Servicescape was carefully studied. The researcher


sensed that the restaurants in five star hotels for Mumbai specifically
are in a great need for efficient and effective servicescape. The
researcher has analysed the influence of Servicescape on customer
retention. Since the area of discussion on the influence of
Servicescape on customers in still under question and arguments, the
researcher decided to conduct an intense study into this area.

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3.4.2 PRELIMINARY INFORMATION GATHERING

Sekaran (1992) defines pr eliminary data gathering as the search for


the information in order to build up the researchers understanding
towards the area of the subject.

Secondary research includes readily available sources like JSTOR,


Blackwell Synergy, EBSCO, Ingenta Connect, Min tel, Springer Link,
Ebrary, Wiley Interscience, SAGE Journals online and Net Library
where the researcher acquires pre-done research papers. Search
engines like GOOGLE, YAHOO, etc. were also of great help for this
research.

Various search item like Servic escape + Restaurants, Interior


Designing + Restaurants, Servicescape + Research Papers,
Servicescape + pdf, DINESCAPE + pdf, Physical Environment of a
restaurant, Servicescape + Hedonic Consumption, Interior Designing
+ Consumer Behaviour, Servicescape + C ustomer Repatronage,
Servicescape + Customer Retention, Servicescape + Emotions,
Servicescape + Behavioural Intentions, Servicescape + Repeat
Customers + Restaurants, Worlds best interior Designer, Worlds best
Restaurant, etc. were fed in the search engine s.

3.4.3 THEORETICAL FRAMEWORK

At this stage the researcher prepares a relevant literature review to


find a solution to the formulated research question. The researcher
aims to study the role and the importance of servicescape in
correlation with customer emotions and behaviours and further their
intentions to come back to the restaurant.

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A detailed argument towards this specific topic is provided in the


literature review. The concept of servicescape is thoroughly
challenged by the researcher. Then the s econd variable i.e. „customer
repatronage (customers‟ intentions of coming back to the restaurant)‟
is focused upon. The function of servicescape in restaurants of Five
Star and the influence of the same on customers‟ emotions and
behaviours have been provided.

3.4.3.1 VARIABLES

Sekaran (1992) identifies four different variable types which can be


customary to a research namely Dependent, Independent, Moderating
and Intervening.

Once the theory formulation is gathered , the main variables of the


proposed hypothesis are conceptualised.

3.4.3.1.1 INDEPENDENT VARIABLE

As independent variable is a hypothesized cause or influence on a


dependent variable (Simon, 2002). A discrepancy in the independent
variable is determined by the performance of the dependent variable.
Thus in this case ‘Servicescape’ was identified as the independent
variable.

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3.4.3.1.2 DEPENDENT VARIABLE

In a research study, the variable that one believes might be


influenced or modified by some treatment or exposure. Sometimes the
dependent variable is called the outcome variable (Simon, 2004).

The dependent variable is the area of the principal interest. Through


the analysis of the arguments in the area of the depending variable, it
is possible to find a solution to the entire problem.

Thus in this dissertation, ‘Customer Retention or customer


intentions to come back to the restaurant’ is the dependent
variable.

3.4.4 DEVELOPING HYPOTHESIS

A hypothesis is a possible answer to the research question. It can be


further defined as a logically conjectured relationship between two or
more variables expressed in the form of testable statements. It is an
educated guess about a problems solution (Sekaran, 1992).

According to a research article by Tripathi and Siddiqui (2007), it


has been studied that the satisfaction levels and repatronage
intentions of consumers of certain services like shopping malls or
restaurants are strongly influenced by perceptions of Servicescape,
especially since so much time is spent in the facility. The results of
this study showed that when the subjects perceived the Servicescape
to be of superior quality, they were more satisfied with the
Servicescape, and were therefore more inclined towards v isiting
those facilities again.

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It was also studied that when the customer s perceived the


Servicescape to be of poor quality, they were less satisfied with the
Servicescape and were therefore less inclined towards visiting those
facilities.

Another study by Ryu (2005) also has also mentioned that the finding
by the author indicate that facility aesthetics, ambience, and social
factor can significantly affect customers‟ pleasure and arousal, and
the pleasure and arousal can significantly influence their intended
behaviour, such as revisit, positive word -of-mouth, length of stay and
expenditure at the restaurant.

According to this study, the researcher then had to link the two
variables. After reading relevant notes, journals, articles and books
on the same topic, the researcher concluded upon these three
hypotheses.

Figure 3.2: Hypothesis

3.4.5 FURTHER SCIENTIFIC DATA GATHERING

Scientific Data Collection is n ecessary to test the hypotheses that are


generated from the study (Sekaran, 1992).

The instrument used by the researcher i s a questionnaire. Data was


collected from customers in upscale restaurants of five star hotels in
Mumbai in which average per -person check was Rs. 800 and above.

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The researcher has chosen restaurants that offer a full menu, full
table service, food made from the scratch, personalised s ervice and
acceptable ambience. Using a convenience sampling approach, 100
responses were collected at five upscale restaurants or five star
hotels in Mumbai.

Restaurants taken into consideration were:

1. TRATTORIA (TAJ President)


2. PURE (TAJ Lands End)
3. Thai Pavilion (TAJ President)
4. WINK (TAJ President)
5. Bombay Baking Company – B.B.C. (J.W. Marriott)

Customers will be given surveys at the end of their main course and
will be asked to participate in the study.

3.4.5.1 RESEARCH TOOLS

Measurement as defined by the Web Centre for Social Research


Methods is the process observing and recording the observations that
are collected as part of a research effort.

The tool used by the resea rcher is a questionnaire format where


customers will the customers will be given questionnaires at the end
of their main course and will be asked to participate in the study. The
questionnaire designed for the study is divided into three parts:
DINESCAPE, Emotions and Behavioural Intentions .

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3.4.5.1.1 DINESCAPE

Respondents will be asked to rate e ach statement item using a 7-point


Likert Scale where 1 denotes extremely disagree and 7 denotes
extremely agree.

The questionnaire has measurements which include items relevant to


six dimensions of Servicescape which are facility aesthetics,
lighting, ambience, layout, service product and social factor of the
DINESCAPE scale developed by studies done previously. A list of
relevant physical environmental items was generated from review of
previous studies, books and online journals which resulted in 23
items related to the physical environment.

3.4.5.1.2 EMOTIONAL STATES

Emotions are going to be measured using eight items representing the


pleasure and arousal dimensions derived from the scale suggested by
Mehrabian and Russell (1974) which are adapted to fit the upscale
restaurant setting. These will evaluate th eir feelings, moods and
emotional responses to the physical environment of the upscale
restaurant. All items are going to be rated on a 7 -point semantic
differential scale, in which an emotion and i ts opposite will
constitute the two ends of the scale. The scale of pleasure will
consist of four bipolar measures coded on a 7-point scale mentioned
below:
 Unhappy-Happy

 Annoyed-Pleased

 Bored-Entertained

 Disappointed-Delighted

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The measurement of arou sal will comprise of the following four


items:

 Depressed-Cheerful

 Calm-Excited

 Indifferent-Surprised

 Sleepy-Awake

3.4.5.1.3 BEHAVIOURAL INTENTIONS

To measure general approach-avoidance behaviour, specifically,


behavioural intentions will be operational using four items. These
items will be assessed on a 7-point Likert scale. Behavioural
Intentions are based on Mehrabian and Russell‟s (1974) four aspects
of approach-avoidance behaviours and the scale suggested by
Zeithaml et al. (1996) will be adapted to fit the upscale restaurant
setting. Subjects will be asked to react to the following four
statements:

 I would like to come back to this restaurant in the future


 I would recommend this restaurant to my friends
 I am willing to stay longer that I planned at this restaurant
 I am willing to spend more than I planned at this restaurant

Participants will be asked to respond to these items using a 7-point


Likert scale where 1 denoted extremely disagree and 7 denotes
extremely agree.

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The researcher intends to test the hypothesis into the Indian Hotel
industry context and hence has selected the metropolitan city of
Mumbai as his target to te st the hypothesis. The researcher has
selected the following restaurants of Five Star hotels in Mumbai:

1. Trattoria, TAJ President, Cuffe Parade, Mumbai


2. Pure, TAJ Lands End, Bandra, Mumbai
3. Thai Pavilion, TAJ President, Cuffe Parade, Mumbai
4. Wink, TAJ President, Cuffe Parade, Mumbai
5. Bombay Baking Company, J.W. Marriott, Juhu, Mumbai

The hypothesis formulated will be tested on the basis of personally


administered questionnaires amongst niche clientele in these
restaurants whose approximate spending power is more than Rs. 800
– Rs. 1000.

3.4.5.2 CRONBACH’S ALPHA

Reliability is used to refer to the degree of variable error in a


measurement. Reliability is defined as the extent to which a
measurement is free of variable errors. Cronbach‟s Coefficient Alpha
is one of the most commonly used statistical techniques to estimate
internal consistency reliability. It solves the purpose to measure of
the reliability of psychometric instrument (questionnaire). It is of an
important use to estimate the internal consistency reliability of
multiple indicators for each construct in the DINESCAPE model
(Fornell & Larcker, 1981; Gerbing & Anderson, 1998; Hair et al.,
1998; Nunnally & Bernstein, 1994). It is important to know the
reliability and validity of the proposed questionnaire. The closer the
Cronbach‟s Alpha is to 1, higher the internal reliability consistency
(Sekaran, 1992 p. 172, 284).

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In this study, the value of Cronbach‟s Alpha should be higher than


0.6 or 60% for the questionnaire to be reliable and valid (Fornell &
Larcker, 1981; Nunnally & Bernstein, 1994) . Similarly, the acquired
sample was computed after the primary data was gathered . The
Cronbach‟s Alpha for the DINESCAPE Scale and the Mehrabian &
Russell Model was calculated and the reliability attained was as
follows:

Reliability Statistics
Cronbach's
N of Items
Alpha
.876 35
Table 3.1 Cronbach's Alpha

The Cronbach‟s Alpha, which was designed to check the internal


consistency of items within each d imension, ranged from .80 to . 90,
indicating good reliability (Hair et al., 1998). However the
DINESCAPE dimensions were subjected to confirmatory factor
analysis (CFA). Confirmatory Factor Analysis was performed to
verify the factor structure and improve measurement properties in the
proposed scale (Anderson & Gerbi ng, 1998; Bearden et al., 1989).

3.4.6 SAMPLING

Sampling is the method of selecting an adequate number of elements


from the population so that by studying the sample and understanding
the properties of the features of the sample subj ects, one can
generalise the properties of features to the population element
(Sekaran, 1992 p. 226, 227).

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Using the convenience sampling approach, 116 responses were


collected at five upscale restaurants in Mumbai. Customers were
given surveys at the end of their main course and asked to participate
in the study. After deleting incomplete responses, 100 questionnaires
were used for further analysis. The dates considered for the primary
were from the 22nd of April to the 27th of April which includes days
from Tuesday to Sunday. Data was collected during dinner hours i.e.
from 20:00 to 23:00. There were five restaurants considered in all,
and one restaurant was looked at on one day. The researcher has
mentioned the population size of each restaurant and the sample size
of the same in a tabular format on the next page. It also shows a
percent value of population, sampl e size and void questionnaires.

Reliability - Case Processing


Summary
N %
Cases Valid 116 100.00
Excluded 16 13.79
Total 100 86.21

Table 3.2: Reliability - Case Processing Summary

NAME OF THE POPULATION SAMPLE


HOTEL
RESTAURANT SIZE SIZE
TAJ
TRATTORIA 500 26
President
TAJ Lands
PURE 160 21
End
TAJ
Thai Pavilion 70 22
President
TAJ
WINK 70 27
President
Bombay Baking Company J.W. Marriott 150 20
950 116

Table 3.3: Population & Sample Size

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NAME OF THE TIME OF POPULATION :


HOTEL
RESTAURANT VISIT SAMPLE
TAJ
TRATTORIA 20:00-23:00 5.20%
President
TAJ Lands
PURE 21:00-23:00 13.12%
End
TAJ
Thai Pavilion 20:30-23:00 31.42%
President
TAJ
WINK 22:00-01:00 38.57%
President
J.W.
Bombay Baking Company 21:00-22:30 13.33%
Marriott

Table 3.3: Time of Visit & Population: Sample Percentage

QUESTIONNAIRE NO.
Number of Respondents 116
Void Questionnaires 16
TOTAL APPLICABLE
100
QUESTIONNAIRES

Table 3.4: Number of Applicable Questionnaires

3.4.7 ANALYSIS AND INTERPRETATION OF DATA

In this section, the researcher will re-arrange the collected data in a


systematic manned for interpretation purpose. The researcher has
used analytical tools like mean, median, mode, reliability, etc. The
researcher has also used advanc ed statistical tools. Quantitative
method has been implied to substantiate the developed hypothesis.

Chapter four (Data Analysis) will further depict the data analysed.

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3.4.8 DEDUCTIONS

Deduction is the procedure of arriving at conclusions by interpreting


the meaning of the data analys is (Sekaran, 1992).

The conclusion is finally obtained by comparing the literature review


results with further scientific data collection. Therefore, the
researcher observes that the conclusions of the research are logically
linked to both secondary as we ll as primary research.

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3.5 SAMPLE QUESTIONNAIRE

Dear Participant,

I am conducting a research study to look at the influence of man -


made physical environment in an upscale restaurant environment
which is termed as „Servicescape.‟ This study is based to determine
the quality of physical environments that customers perceive in an
upscale restaurant. The results of this study will also help
restaurateurs develop better marketing and service strategies for
retaining customers.

Your help is essential for the success of this study. I would request
you to kindly contribute 5-7 minutes of your valuable time by filling
this questionnaire. Your participation is strictly voluntary. All
responses will remain confidential. Kindly attach your visiting /
business card, if any.

Your cooperation and contribution for this study is greatly


appreciated.

Your Information
Name:

Yours Sincerely, Age:

Gender:  Male Female


Occupation:
Anand Lilani Monthly Income:  > 25,000 INR
April, 2008  25,000 – 50,000 INR
 < 50,000 INR
How many times have you visited this
restaurant in the past?

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1. In the following statements, I am interested in your feelings


about the physical surroundings in th e dining area of this
restaurant. For each statement, please use the scale: 1 -Extremely
Disagree, 2-Strongly Disagree, 3-Somewhat disagree, 4-Neutral, 5-
Somewhat Agree, 6-Strongly Agree, 7-Extremely Agree

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2. In the following statements, I am interested i n your feelings,


moods, and emotional reactions about the physical environment
while you experience the restaurant’s service. For each statement,
place a check mark beside the number which indicates your emotional
reaction.

3. Behavioural Intentions:
In the following statements, I am interested in your feelings about
your behavioural intentions in relation to this restaurant. For each
statement, please use the scale that best reflects your opinion. (1
denotes extremely disagree, 4 denotes neutral, 7 den otes extremely
agree)

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3.6 DINESCAPE SCALE

In the DINESCAPE scale, the researcher infers that the statements


asked to the customer of upscale restaurants about their thoughts on
SERVICESCAPE include a group of different meanings. DINESCAPE
scale is a multiple-item scale to measure physical and human
surroundings in dining areas of upscale restaurants. Results of
DINESCAPE will show reliable, valid and useful measures of
physical and human surroundings in the upscale restaurant setting
from the customer point of view. This is one of few exploratory
studies to suggest a reliable and valid scale that can be used to
measure customers‟ perceived performance level of physical
environments in restaurant business settings, particularly under the
upscale restaurant context.

The DINESCAPE scale can be applied to examine the


interrelationships between DINESCAPE, emotional responses and
behavioural intentions not only in upscale restaurant setting but also
in other restaurant segments like fast -food dining restaurants (e.g.:
McDonalds, Barista, etc.)

The researcher has adopted the Mehrabian -Russell environmental


psychology framework based on the DINESCAPE scale to explore the
correlation between the six DINESCAPE dimensions and customer
emotional states and the correlation between pleasure and arousal
and behavioural intentions.

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CHAPTER 4: DATA ANALYSIS

4.1 INTRODUCTION

The researcher has gathered data regarding the servicescapes and


their importance for the customer related to their behavioural
intentions in upscale restaurants. This data has been gathered using
questionnaire as a tool for data gathering. These questionnaires are
distributed to only those customers who visit such rest aurants
frequently and to those whose approximate average spending power
ranges between Rs. 800 – Rs. 1000. Data was collected in the
metropolitan city of Mumbai. This data has been then analysed by the
researcher and the findings have been illustrated through this
chapter. These findings have been corroborated on the basis of the
past literature discussed in chapter two. It also aids to test the
hypothesis put forward by the researcher.

4.2 DATA COLLECTION

The first step in conducting a primary research is to gather relevant


data related to the research issue. This has been done t hrough
administering the questionnaires to customers who visit restaurants
of five star hotels in Mumbai. The respondents were asked to rank
and rate their views pertaining to the question necessitated the
questionnaire. The researcher has used a seven point Likert scale for
rating the question which asks the respondent to rate their views
ranging from extremely disagree to extremely agree. The
questionnaires were handed over to respondents personally in
selected upscale restaurants of Five Star Hotels in M umbai.

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The hotels that were chosen for data gathering were:

1. TAJ President
2. TAJ Mahal Palace & Tower
3. TAJ Lands End
4. J.W. Marriott

The reason why these hotels were chosen was the fact that they are
the best and the premium – most luxury hotels in Mumbai offe ring
the most excellent Food & Beverage outlets in aspects of its design,
decor, ambience, service, technology, music, quality of food,
collection of wines, etc.

The researcher has used various statistical tools like the mean,
median, mode and standard de viation of the data in order to analyse
the question pertaining to the scale. The information has been
represented by means of graphs and pie charts, after which inferences
have been made.

The standard deviation has been computed so as to verify the


accuracy of the data collected. The researcher has used other
statistical software‟s like SPSS (Statistical Package for the Social
Sciences), LISREL and Analyse It!. The researcher has also
calculated the mean (average value), median (which helps in
determining the central value from the data) and mode (the most
repetitive response from the respondents in the sample). These will
be represented through graphs and tables and thus the stability of
data can be checked.

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4.3 METHOD OF ANALYSIS

The researcher has devised the questionnaire to judge how the


customers would perceive the servicescape to affect their behavioural
intentions of coming back to the same restaurant again (repurchase
intentions).

The researcher has based the questions on the servicescape elem ents
and seen how important they are to a customer. The statements used
portray the effect it would have on a customer while he is dining at a
restaurant. This would help in determining the impact on their
overall experience and eventually their repurchase intentions or if
they would repatronize the same restaurant in time to come.

The various elements of the servicescape have been further expressed


though statements based on the literature studied by the researcher
during the course or his research. The researcher first provides the
demographics of the sample and then goes on to analyze the
questionnaire in detail.

4.3.1 DEMOGRAPHICS OF THE SAMPLE

The researcher has captured the age and gender dimensions of the
sample through the questionnaire. It has been observed that the
frequency of male respondents is larger than that of female
respondents. The researcher has depicted this in a tabular and
graphical form below.

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Graph 4.1: Gender Demographics

4.3.2 STATISTICAL TOOLS

Correlation analysis has been used by the researcher in order to know


the degree of relationship between the variables. It is the evaluation
of relationship between two or more variables Jensen, 2005) .

The researcher has applied the most commonly used method which is
the Karl Pearson‟s Correlation method which is commonly known as
Pearson‟s coefficient of correlation.

The researcher has measured all constructs using a seven point


response scale anchored by extremely disagree as 1 and extremely
agree as 7.

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The researcher has assessed the validity of each scale by the


following:

4.3.2.1 CRONBACH’S ALPHA

Reliability is used to refer to the degree of variable error in a


measurement. Reliability is defined as the extent to which a
measurement is free of variable errors. Cronbach‟s Coefficient Alpha
is one of the most commonly used statistical techniques to estimate
internal consistency reliability. It solves the purpose to measure of
the reliability of psychometric instrument (questionnaire). It is of an
important use to estimate t he internal consistency reliability of
multiple indicators for each construct in the DINESCAPE model
(Fornell & Larcker, 1981; Gerbing & Anderson, 1998; Hair et al.,
1998; Nunnally & Bernstein, 1994). It is important to know the
reliability and validity of the proposed questionnaire. The closer the
Cronbach‟s Alpha is to 1, higher the internal reliability consistency
(Sekaran, 1992 p. 172, 284).

In this study, the value of Cronbach‟s Alpha should be higher than


0.6 or 60% for the questionnaire to be reliab le and valid (Fornell &
Larcker, 1981; Nunnally & Bernstein, 1994). Similarly, the acquired
sample was computed after the primary data was gathered. The
Cronbach‟s Alpha for the DINESCAPE Scale and the Mehrabian &
Russell Model was calculated and the relia bility attained was as
follows:

Reliability Statistics
Cronbach's
N of Items
Alpha
.876 35

Table 4.1: Cronbach's Alpha

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The Cronbach‟s Alpha, which was designed to check the internal


consistency of items within each dimension, ranged from .80 to .90,
indicating good reliability (Hair et al., 1998). However the
DINESCAPE dimensions were subjected to confirmatory factor
analysis (CFA). Confirmatory Factor Analysis was performed to
verify the factor structure and improve measurement properties in the
proposed scale (Anderson & Gerbing, 1998; Bearden et al., 1989).

4.4 MEASURING INSTRUMENTS

The questionnaire is divided within three sections. Section I talks


about the different aspects of Se rvicescape inscribed from Ryu K‟s
(2005) DINESCAPE scale which was also designed to study the
different aspects of the same. Section II talks about the emotions that
the guests go through while dining in the restaurant. Lastly, section
III talks about their behavioural intentions and repatronage intentions
or rather to know about their intentions to return to the restaurant.

4.4.1 DINESCAPE SCALE

This scale has been incorporated from Ryu K‟s study which was to
analyse the impact of servicescape of quality perception customers on
their emotions and behavioural intentions but in the American
context. The researcher has modified the measurement items relevant
to facility aesthetics, layout, ambience, service product, and social
factors that are needed. This resulted in 23 items related to the
physical environment at the upsc ale restaurants.

Emotions were measured with eight items representing the pleasure


and arousal dimensions derived from the scale suggested by

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Mehrabian and Russell (1974) and adapted to fit the upscale


restaurant context. Subjects evaluated their feelings , moods and
emotional responses to the physical environment at the upscale
restaurant. All items were rated on a seven point semantic
differential scale, in which an emotion and its opposite set the two
ends of the scale.

Pleasure was measured with the fo llowing four items:

1. Unhappy – Happy
2. Annoyed – Pleased
3. Bored – Entertained
4. Disappointed – Delighted

Arousal comprised of the following four items:

1. Depressed – Cheerful
2. Calm – Excited
3. Indifferent – Surprised
4. Sleepy – Awake\

4.4.2 MEHRABIAN-RUSSELL MODEL

Research in environmental psychology has shown that properly


designed physical environments may create feelings of excitement,
pleasure or relaxation (Mehrabian-Russell, 1974; Russell & Pratt,
1980).

The Mehrabian-Russell (1974) model, which presented a basic model


of human emotion, has received strong support in environmental
psychology, retailing and marketing.

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The model claims that any environment will generate an emotional


state in one of the three ways:

 Pleasure
 Arousal
 Dominance

Those three emotional states mediate approach -avoidance behaviours


in a wide range of environments. Pleasure refers to the extent to
which individuals feel good, happy, pleased or joyful in a situation
whereas arousal refers to the degree to which individuals feel
stimulated, excited or active.

The Mehrabian-Russell (1974) model claimed that pleasure and


arousal were the two orthogonal dimensions representing individual
emotional or affective responses to a wide range of environments.

The Mehrabian-Russell (1974) model specified a conditional


interaction between pleasure and arousal in determining approach -
avoidance behaviour. In a pleasant environment, an increase in
arousal was argued to increase approach behaviours, whereas in
unpleasant environments, an increase in aro usal was suggested to
motivate more avoidance behaviours (Donovan & Rossiter, 1982).

Figure 4.1: Mehrabian-Russell Model

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4.5 DEMOGRAPHIC CHARACTERISTICS OF THE


SAMPLE

DEMOGRAPHICS
Gender Frequency Percentage (%)
Male 57 57
Female 43 43
Total: 100
Income
<25,000 30 30
25,000-50,000 31 31
>50,000 39 39

Table 4.2: Demographics

4.6 DESCRIPTIVE STATISTICS

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Dining areas are thoroughly


100 2.00 7.00 4.9900 1.54066
clean

Carpeting / Flooring is of
high quality and makes me 100 2.00 7.00 4.8600 1.35602
feel comfortable

Ceiling decor is attractive 100 1.00 7.00 4.5200 1.29084

Wall decor is aesthetically


100 1.00 7.00 4.6100 1.31729
appealing

Furniture is of high quality 100 1.00 7.00 4.6200 1.15277

Natural decor (plans,


waterfalls, etc.) / Paintings / 100 2.00 7.00 4.7800 1.22746
Pictures makes me happy

Colours used create a


comfortable atmosphere and 100 2.00 7.00 4.6000 1.23091
make me feel calm

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Open kitchens / wine cellars


100 2.00 7.00 4.9100 1.19844
create a pleasing mood

Lighting creates a
100 2.00 7.00 4.8600 1.35602
comfortable atmosphere

Lighting makes me feel


welcome and creates a warm 100 1.00 7.00 4.5200 1.29084
atmosphere

Background music is
100 1.00 7.00 4.6100 1.31729
pleasing and relaxes me

Temperature is comfortable 100 1.00 7.00 4.6200 1.15277

Aroma is enticing and


100 2.00 7.00 4.8600 1.35602
tempting

Noise level is disturbing 100 1.00 7.00 4.5200 1.29084

Layout makes it easy for me


100 1.00 7.00 4.6100 1.31729
to move around

Seating arrangement gives


me enough space and does 100 1.00 7.00 4.6200 1.15277
not make me feel crowded

Seats are comfortable 100 2.00 7.00 4.8600 1.35602

Menu design is attractive 100 1.00 7.00 4.5200 1.29084

Food presentation is
100 1.00 7.00 4.6100 1.31729
aesthetically attractive

The table setting is visually


100 1.00 7.00 4.6200 1.15277
attractive

Tableware is of high quality 100 1.00 7.00 4.5200 1.29084

The linen is attractive 100 1.00 7.00 4.6100 1.31729

Employees are neat and well


100 1.00 7.00 4.6200 1.15277
dressed

In this restaurant, I feel


100 2.00 7.00 4.8600 1.35602
unhappy / happy

In this restaurant, I feel


100 1.00 7.00 4.5200 1.29084
annoyed / pleased

In this restaurant, I feel


100 1.00 7.00 4.6100 1.31729
depressed / cheerful

In this restaurant, I feel


100 2.00 7.00 4.8600 1.35602
disappointed / delighted

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In this restaurant, I feel bored


99 1.00 7.00 4.5152 1.29649
/ entertained

In this restaurant, I feel calm


100 2.00 7.00 4.8600 1.35602
/ excited

In this restaurant, I feel


100 1.00 7.00 4.5200 1.29084
indifferent / surprised

In this restaurant, I feel


100 1.00 7.00 4.6100 1.31729
sleepy / awake

I would like to come back to


100 2.00 7.00 4.9900 1.54066
this restaurant in the future

I would recommend this


restaurant to my friends or 100 2.00 7.00 4.8600 1.35602
others

I would like to stay longer


than I planned at this 100 1.00 7.00 4.5200 1.29084
restaurant

I am willing to spend more


than I planned at this 100 1.00 7.00 4.6100 1.31729
restaurant

Valid N (listwise) 99

Table 4.3: Descriptive Analysis

The researcher has performed a descriptive analysis to analyse the


mean of the responses and to also track the minimum and maximum
responses of each perspective on an average.

The researcher, after examining the table, has analysed that the
means for the independent variable i.e. servicescape, has a range
between 4.5 to 5.0. This denotes a positive effect of servicescape on
perceptions of customers. These means show a very strong range and
these are the factors that drive emotions into customers.

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As far as the dependent variables are concerned, the means noted for
emotions range between 4.5 and 4.9 (s emantic scale: -3,-2,-
1,0,1,2,3). This actually means that the range of means is between
0.5 and 0.9 which denotes a very low emotion effect which can
destruct customers‟ behavioural intentions of repurchasing,
repatronising or returning back to the same restaurant again.

Considering the second dependent variable, i.e. Behavioural


intentions the means range between 4.6 and 4.9 on a 7 point scale.
This entails that the customers have a strong effect on servicescape
and emotions and they would wish to return to the restaurant again.
This also indicates that the guests are willing to spend a longer
duration than what was expected and are also willing to spend more
money that what was expected.

4.7 VARIABLE WISE CORRELATION

Correlations

Emotions Behaviours Servicescape

Emotions Pearson Correlation 1.000 .810** .852**


(DV)
Sig. (2-tailed) .000 .000

N 100.000 100 100

Behavioural Pearson Correlation .810** 1.000 .761**


Intentions Sig. (2-tailed) .000 .000
(DV)
N 100 100.000 100

Servicescape Pearson Correlation .852** .761** 1.000


(IV) Sig. (2-tailed) .000 .000

N 100 100 100.000

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.4: Variable Wise Correlation

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The table provided above highlights the correlation between


„servicescape‟ and two factors, namely „emotions‟ and „behavioural
intentions‟. For instances where the strength of relationships is
observed as less significant, it is indicated as (*) as against where it
shows a relatively high strength of significance, it is symbolised as
(**). From the above table, it is observed that certain values do not
have any of the stated symbols assigned to them.

Through the correlation between emotions and servicescape the


researcher finds out that there exists a strong correlation between the
two variables. We see that the significance is at a value of (r) which
is equal to 0.852. This proves that there exists a strong relation
between emotions and servicescape.

Through the correlation between behavioral intentions and


servicescape we observe that the significance is at a strong for the
value of (r) being 0.810. With this v alue we can conclude that the
two mentioned variables are related and hence there exists a strong
relation between behavioral intentions and servicescape.

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4.8 FACTOR WISE CORRELATION

Correlations
Emotio Behavio Ambien Furnitur Colou Layo Lightin Musi Temperatu Arom
n ur ce e r ut g c re a
Emotion Pearson
Correlati .674*
on 1 .808** .435** .927** .313** .525** .883** *
.251* .577**
Sig. (2-
tailed)
0 0 0 0.002 0 0 0 0.012 0
N
99 99 99 99 99 99 99 99 99 99
Behaviour Pearson
Correlati .652*
on .808** 1 .680** .701** .288** .454** .642** *
0.117 .374**
Sig. (2-
tailed)
0 0 0 0.004 0 0 0 0.245 0
N
99 100 100 100 100 100 100 100 100 100
Ambience Pearson
Correlati .709* -
on .435** .680** 1 .395** 0.176 .603** 0.085 *
.269** 0.104
Sig. (2-
tailed)
0 0 0 0.08 0 0.398 0 0.007 0.303
N
99 100 100 100 100 100 100 100 100 100
Furniture Pearson
Correlati .483*
on .927** .701** .395** 1 0.169 .557** .855** *
.473** .703**
Sig. (2-
tailed)
0 0 0 0.093 0 0 0 0 0
N
99 100 100 100 100 100 100 100 100 100
Colour Pearson
Correlati .481*
on .313** .288** 0.176 0.169 1 .479** .354** *
.283** -.235*
Sig. (2-
tailed)
0.002 0.004 0.08 0.093 0 0 0 0.004 0.018
N
99 100 100 100 100 100 100 100 100 100
Layout Pearson
Correlati .728*
** ** ** ** ** ** *
on .525 .454 .603 .557 .479 1 .375 .770** -0.13
Sig. (2-
tailed)
0 0 0 0 0 0 0 0 0.196
N
99 100 100 100 100 100 100 100 100 100
Lighting Pearson
Correlati .365*
on .883** .642** 0.085 .855** .354** .375** 1 *
.305** .676**
Sig. (2-
tailed)
0 0 0.398 0 0 0 0 0.002 0
N
99 100 100 100 100 100 100 100 100 100
Music Pearson
Correlati -
on .674** .652** .709** .483** .481** .728** .365** 1 .265** 0.189
Sig. (2-
tailed)
0 0 0 0 0 0 0 0.008 0.059
N
99 100 100 100 100 100 100 100 100 100

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Temperatu Pearson
re Correlati .265* -
on .251* 0.117 .269** .473** .283** .770** .305** *
1 0.021
Sig. (2-
0.00
tailed)
0.012 0.245 0.007 0 0.004 0 0.002 8 0.832
N
99 100 100 100 100 100 100 100 100 100
Aroma Pearson
Correlati
on .577** .374** -0.104 .703** -.235* -0.13 .676** -0.19 -0.021 1
Sig. (2-
0.05
tailed)
0 0 0.303 0 0.018 0.196 0 9 0.832
N
99 100 100 100 100 100 100 100 100 100
**. Correlation is significant at the 0.01 level 2-
tailed).
*. Correlation is significant at the 0.05 level (2-
tailed).

Table 4.5: Factor Wise Correlation

In spite of the null hypothesis being accepted, the researcher would


like to perform an in depth factor -wise correlation of all three
variables in which he would like to analyse the maximum effect of
each perspective of servicescape with emotions and behavioural
intentions where servicescape, being the independent variable and
emotions and behavioural intentions , being the dependent variable.

By reviewing the table above, it clearly denotes that furniture and


lighting are of most importance to add on to the positive effects of
the independent variable i.e. the servicescape. All other aspects of
servicescape are of equal importance unlike temperature which is of
least importance and has a weak impact on emotions an d behavioural
intentions.

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CHAPTER 5: CONCLUSIO N AND


RECOMMENDATION

5.1 INTRODUCTION

In this chapter, the researcher has provided a brief view of the study
conducted. Results of this study have shown reliable, valid, and
useful measures of physical a nd human surroundings in the upscale
restaurant setting from the customer point of view. The researcher
has also furnished recommendations by discussing implications for
the restaurant managers / hotel managers. The researcher has
provided a scope for further research that can be carried out on the
same subject.

5.2 CONCLUSION

The foodservice industry in the present age is in India especially in


Mumbai is rapidly becoming more competitive day by day. The
researcher examines a comprehensive model of how the servicescape
may influence several key services of upscale restaurant settings. The
results show that the servicescape does have a significant influence
on consumer behavioural intentions. However, this impact is
mediated by a number of other constructs .

Firstly, the servicescape has a positive and significant effect on


positive effect, which is directly related to behavioural intentions. In
addition, the servicescape positively influences perceptions of
service quality, which in turn impacts value perceptions.

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Value perceptions act to influence positive effect and behavioural


intentions. Hence, the relationship between servicescape and these
marketing constructs appears to be somewhat complex. Given that all
hypotheses are strongly supported, it would a ppear that the
relationships between the servicescape, service quality, value,
positive effect, waiting time, enduring involvement and behavioural
intentions hold true. These findings shed light on a number of
insights for both researchers and managers of leading upscale
restaurants of Mumbai, INDIA.

This research adds to a relatively new body of literature, which


explores the role of the servicescape in hedonic service consumption.
Although this has been studied extensively within the retailing area
(Babin and Darden, 1996), it is only recently that this has begun to
be studied in the hedonic services area. The researcher‟s findings
support research reported by Wakefield et al. (1996), Turly and
Fugate (1992), Bitner (1991), etc. regarding the role of the
servicescape.

Moreover, the research extends existing research in two ways.


Primarily, it explored the influence of the servicescape on key
services constructs such as service quality, positive effect, value,
waiting time, enduring involvement and behavio ural intention in a
comprehensive model. Secondly, the research investigates the upscale
restaurant setting in a more holistic manner. In other words, the
items used to conceptualize the physical environment may be more
applicable to a broader range of ser vice firms than the “upscale
restaurant settings only” items conta ined in the current literature.

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As marketers continue to move away from issues related to the


conceptualization and measurement of service quality and positive
effect to embrace more comp rehensive models of the service
experience, the research would seem to indicate the servicescape as
an important construct to include in these models. This would appear
to be especially true for more leisure services such as upscale
restaurants.

5.2.1 IMPLICATION FOR RESTAURANT OWNERS /


MANAGERS

Although this study is exploratory in nature, it still provides some


guidelines to managers in regard to managing their restaurant‟s
physical environment. It is known that the marketing of hedonic
services in India especially in Mumbai has become a large business
within which the restaurant segment is booming. The cost of dining
in such high end upscale restaurants is extremely high.

The researcher suggests that from a managerial perspective, the


results highlight the importance of the servicescape as it related to
the quality of experience that the guests perceive, positive effect and
the level of involvement within the same.

The role of the servicescape in an upscale restaurant context gains


added importance when one takes into consideration the involvement,
positive effect and value were positively and significantly related to
behavioural intentions in this study. Thus it would appear that
managers could improve the probability of positive behavioural
intentions by enhancing the perceptions of value and positive effect
as well as increasing the involvement level via the enhancement of
servicescape.
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5.3 FINDINGS

There are positive links between involvement and the servicescape,


as well as between involvement and positive effect. This would seem
to imply that the marketers of leisure services should attempt to
increase the involvement of customers with their service.

The researcher found that respondents have rated all elements of the
servicescapes positively. Thi s enables the researcher to highlight the
overall importance of the servicescape for a customer. It also allows
the researcher to infer from the arguments stated in the previous
literature discussed in chapter two.

The primary data collected fro m the respondents (high profile guests
in upscale restaurants of five star hotels in Mumbai) who comprehend
entirely that servicescape positively affect their behavioural
intentions. Restaurant owners / managers should pay more attention
to the design of the servicescape as it can also help them gain a
competitive advantage since the level of restaurants is the same.
Servicescapes affect the customer in the time he spends waiting for
service and would have an impact on the overall evaluation of the
service experience.

5.4 SCOPE FOR FURTHER RESEARCH

The researcher has attempted to study the servicescape construct and


how it affects overall evaluations of the service experience, thus
affecting the behavioural intentions of consumers in an upscale
restaurant setting where the service is consumed for hedonic
purposes.

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Firstly, this study was intended to tap a broad range of elements of


the physical environment in the upscale restaurant industry which
Bitner (1992) has defined as Servicescape. Secondly, this study was
conducted to address the internal environment and not the external
environment because the latter was considered relatively less
important than the former. It was not intended for the researcher to
capture all aspects of the physical environment at any restaurants.

There is certain scope for further research related to this field.

 The researcher believes that a n analogous research could be put


into rooms of five star hotels, fast food restaurants like
McDonalds, SUBWAY, etc. and also in retail stores like
Reliance Retail and Spencers.

 Further studies can be also include the exterior environment of


the restaurant as the exterior physical environment is as
important as the interior and as the researcher mentioned
earlier, this study is only based on the interi or physical
environment of a restaurant.

 A study can also be conducted in regards with the age, income


group and gender on how these different aspects have different
perceptions about servicescape.

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