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) I

“SERVICESCAPE” – Emotions, Behavioural Intentions & Repatronage Intentions

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)

LILANI A. (H-1240) II

“SERVICESCAPE” – Emotions, Behavioural Intentions & Repatronage Intentions

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 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 INTRODUCTION ................................................................... FRAMING OF THE RESEARCH ISSUE .................................... STATEMENT OF AIM ............................................................ LIST OF OBJECTIVES ........................................................... SCOPE ................................................................................. LIMITATIONS ...................................................................... STRUCTURE OF THE DISSERTATION .................................... DISSERTATION STRUCTURE MODEL .................................... CONCLUSION ...................................................................... 1 2 4 4 5 5 6 6 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, and services environmental management,

psychology,

psychology,

operations

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 response a to starting point for this in analysis by suggesting setting‟s that built

consumers formulate approach / avoidance decisions based upon a physical elements consumption

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 or further to include the natural, cultural, of

temporal,

political

environment,

the

definition

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, Knutson & Zeithaml Patton, & Berry, 1998; & Raajpoot, Milliman, 2002; 2000;

Stevens,

1995;

Turley

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 (1973)

of

Servicescape that

varies

among can

service be an

providers.

Kotler

proposed

Servicescape

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 and subsequent external internal i.e. satisfaction / with the

Servicescape

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 that environment. perceptions Stone of light and Irvine (2004) people‟s have examined of the

relationship between light intensity and work productivity, revealing influence perceptions 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 a customers‟ pleasant behavioural and arousing

intentions.

Ambient

elements

create

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

service

failure

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 relaxation may create feelings of excitement, Russell & pleasure Pratt, or

(Mehrabian-Russell,

1974;

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 customers‟ authors. only. The servicescape intentions perceive in has the been shown to by affect various in a behavioural literature to be

Customers

would

them

important

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 perceiving between service the impact in of servicescape with and their

customers

quality

restaurants

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 and research. goes on It to builds on exploratory the reasons and for

descriptive

identify

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 literature to come back. on After these extensive reading the into the vast has

published

two

var iables,

researcher

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 Servicescape

+

Restaurants, + Research

Interior Papers,

Designing

Restaurants,

Servicescape + pdf, DINESCAPE + pdf, Physical Environment of a restaurant, Servicescape + Hedonic Consumption, Interior Designing + Consumer Behaviour, + + Customer Servicescape Retention, + C ustomer Repatronage, + Emotions, + Repeat

Servicescape Servicescape

Servicescape

Behavioural

Intentions,

Servicescape

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. ‘Customer to the Retention is or the customer dependent

Thus

in

this to

dissertation, come back

intentions variable.

restaurant’

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 statements:     be asked to react to the following four

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 – Rs. 1000. questionnaires amongst niche clientele in these

restaurants whose approximate spending power is more than Rs. 800

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., to 1998). However the

DINESCAPE

dimensions

were

subjected

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 RESTAURANT TRATTORIA PURE Thai Pavilion WINK Bombay Baking Company

HOTEL TAJ President TAJ Lands End TAJ President TAJ President J.W. Marriott

POPULATION SIZE 500 160 70 70 150 950

SAMPLE SIZE 26 21 22 27 20 116

Table 3.3: Population & Sample Size

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NAME OF THE RESTAURANT TRATTORIA PURE Thai Pavilion WINK Bombay Baking Company

HOTEL TAJ President TAJ Lands End TAJ President TAJ President J.W. Marriott

TIME OF VISIT 20:00-23:00 21:00-23:00 20:30-23:00 22:00-01:00 21:00-22:30

POPULATION : SAMPLE 5.20% 13.12% 31.42% 38.57% 13.33%

Table 3.3: Time of Visit & Population: Sample Percentage

QUESTIONNAIRE Number of Respondents Void Questionnaires TOTAL APPLICABLE QUESTIONNAIRES

NO. 116 16 100

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 April, 2008

Monthly Income:

 > 25,000 INR  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, 5Somewhat 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 were handed disagree over to to extremely agree. personally The in

questionnaires

respondents

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), calculated LISREL the mean and Analyse It!. The researcher (which has helps also in

(average

value),

median

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., to 1998). However the

DINESCAPE

dimensions

were

subjected

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 Male Female Total: Income <25,000 25,000-50,000 >50,000 30 31 39
Table 4.2: Demographics

Frequency 57 43 100

Percentage (%) 57 43

30 31 39

4.6 DESCRIPTIVE STATISTICS
Descriptive Statistics N Dining areas are thoroughly clean Carpeting / Flooring is of high quality and makes me feel comfortable Ceiling decor is attractive Wall decor is aesthetically appealing Furniture is of high quality Natural decor (plans, waterfalls, etc.) / Paintings / Pictures makes me happy Colours used create a comfortable atmosphere and make me feel calm 100 2.00 7.00 4.6000 1.23091 100 2.00 7.00 4.7800 1.22746 100 100 100 1.00 1.00 1.00 7.00 7.00 7.00 4.5200 4.6100 4.6200 1.29084 1.31729 1.15277 100 2.00 7.00 4.8600 1.35602 100 Minimum 2.00 Maximum 7.00 Mean 4.9900 Std. Deviation 1.54066

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Open kitchens / wine cellars create a pleasing mood Lighting creates a comfortable atmosphere Lighting makes me feel welcome and creates a warm atmosphere Background music is pleasing and relaxes me Temperature is comfortable Aroma is enticing and tempting Noise level is disturbing Layout makes it easy for me to move around Seating arrangement gives me enough space and does not make me feel crowded Seats are comfortable Menu design is attractive Food presentation is aesthetically attractive The table setting is visually attractive Tableware is of high quality The linen is attractive Employees are neat and well dressed In this restaurant, I feel unhappy / happy In this restaurant, I feel annoyed / pleased In this restaurant, I feel depressed / cheerful In this restaurant, I feel disappointed / delighted

100

2.00

7.00

4.9100

1.19844

100

2.00

7.00

4.8600

1.35602

100

1.00

7.00

4.5200

1.29084

100 100 100 100 100

1.00 1.00 2.00 1.00 1.00

7.00 7.00 7.00 7.00 7.00

4.6100 4.6200 4.8600 4.5200 4.6100

1.31729 1.15277 1.35602 1.29084 1.31729

100

1.00

7.00

4.6200

1.15277

100 100 100

2.00 1.00 1.00

7.00 7.00 7.00

4.8600 4.5200 4.6100

1.35602 1.29084 1.31729

100 100 100 100

1.00 1.00 1.00 1.00

7.00 7.00 7.00 7.00

4.6200 4.5200 4.6100 4.6200

1.15277 1.29084 1.31729 1.15277

100

2.00

7.00

4.8600

1.35602

100

1.00

7.00

4.5200

1.29084

100

1.00

7.00

4.6100

1.31729

100

2.00

7.00

4.8600

1.35602

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In this restaurant, I feel bored / entertained In this restaurant, I feel calm / excited In this restaurant, I feel indifferent / surprised In this restaurant, I feel sleepy / awake I would like to come back to this restaurant in the future I would recommend this restaurant to my friends or others I would like to stay longer than I planned at this restaurant I am willing to spend more than I planned at this restaurant Valid N (listwise)

99

1.00

7.00

4.5152

1.29649

100

2.00

7.00

4.8600

1.35602

100

1.00

7.00

4.5200

1.29084

100

1.00

7.00

4.6100

1.31729

100

2.00

7.00

4.9900

1.54066

100

2.00

7.00

4.8600

1.35602

100

1.00

7.00

4.5200

1.29084

100

1.00

7.00

4.6100

1.31729

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 Emotions (DV) Pearson Correlation Sig. (2-tailed) N Behavioural Intentions (DV) Servicescape (IV) Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 100.000 .810** .000 100 .852** .000 100 100.000 .761** .000 100 100.000 1.000 Behaviours .810** .000 100 1.000 Servicescape .852** .000 100 .761** .000 100 1.000

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 n Emotion Pearson Correlati on Sig. (2tailed) N Behaviour Pearson Correlati on Sig. (2tailed) N Ambience Pearson Correlati on Sig. (2tailed) N Furniture Pearson Correlati on Sig. (2tailed) N Colour Pearson Correlati on Sig. (2tailed) N Layout Pearson Correlati on Sig. (2tailed) N Lighting Pearson Correlati on Sig. (2tailed) N Music Pearson Correlati on Sig. (2tailed) N Behavio ur Ambien ce Furnitur e Colou r Layo ut Lightin g Musi c .674* 1 .808** 0 99 99 .435** 0 99 .927** 0 99 .313** 0.002 99 .525** 0 99 .883** 0 99
*

Temperatu re

Arom a

.251* 0.012 99

.577** 0 99

0 99 .652*

.808** 0 99 .435** 0 99

1

.680** 0

.701** 0 100 .395** 0

.288** 0.004 100

.454** 0 100 .603** 0 100

.642** 0 100

*

0.117 0.245 100 .269** 0.007 100

.374** 0 100 0.104 0.303 100

0 100 .709*
*

100 .680** 0 100

100

1

0.176 0.08 100

0.085 0.398 100

0 100 .483*

100

100

.927** 0 99 .313** 0.002 99

.701** 0 100 .288** 0.004 100

.395** 0 100

1

0.169 0.093

.557** 0 100 .479** 0

.855** 0 100 .354** 0 100

*

.473** 0 100 .283** 0.004 100

.703** 0 100 -.235* 0.018 100

0 100 .481*
*

100

100

0.176 0.08 100

0.169 0.093 100

1

0 100 .728*

100

100

.525

**

.454

**

.603

**

.557

**

.479

**

1

.375

**

*

.770** 0 100 .305** 0.002 100

-0.13 0.196 100 .676** 0 100 0.189 0.059 100

0 99 .883** 0 99

0 100 .642** 0 100

0 100

0 100 .855** 0 100

0 100 .354** 0 100 100 .375** 0 100

0 100

0 100 .365*
*

0.085 0.398 100

1

0 100 100

.674** 0 99

.652** 0 100

.709** 0 100

.483** 0 100

.481** 0 100

.728** 0 100

.365** 0 100

1

.265** 0.008

100

100

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Temperatu re Pearson Correlati on Sig. (2tailed) N Aroma Pearson Correlati on Sig. (2tailed) N

.265* .251* 0.012 99 0.117 0.245 100 .269** 0.007 100 .473** 0 100 .283** 0.004 100 .770** 0 100 .305** 0.002 100
*

1

0.021 0.832

0.00 8 100 100

100

.577** 0

.374** 0

-0.104 0.303 100

.703** 0 100

-.235* 0.018 100

-0.13 0.196 100

.676** 0 100

-0.19 0.05 9 100

-0.021 0.832 100

1

99 100 **. Correlation is significant at the 0.01 level 2tailed). *. Correlation is significant at the 0.05 level (2tailed).

100

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 relationships are strongly the supported, it would service a ppear that the

between

servicescape,

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 purposes. setting where the service is consumed for hedonic

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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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Wu, K., Hoover, L., & Williams, C. (2000). Measuring customer satisfaction level in a casual dining restaurant. Proceedings of Fifth Annual Graduate Education and Graduate Students Research Conference in Hospitality & Touris m, 269-272. (January 6-8, 2000)

Zemke, R., & Albrecht, C. (1985). Service America. Homewood, IL. Down Jones-Irwin

BOOKS
 Sekaran, U. (1992), „Research Methods for Business: A Skill Building Approach‟, New York, John Wiley & Sons

LILANI A. (H-1240) 88

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