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Crafting the Service Environment

Service environments Designing service
(i.e., servicescapes) environment is an
relate to art;

style and appearance

of involves time and
• physical surroundings effort, and
and other experiential
elements

encountered by
can be expensive to
customers at service
implement.
delivery sites
 Purpose of Service Environment

Signal Quality, and Position,

Differentiate and Strengthen
the Brand

Shape customers’
Service Experience and
Behaviors Facilitate the Service
Encounter and
Enhance Productivity

Core Component of the

Value Proposition

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• Purpose of Service Environment

• Physical surroundings help shape appropriate feelings and

reactions in customers and employees.

• Servicescapes form a core part of the value proposition.

• Each servicescape here clearly communicates and reinforces its

hotel’s respective positioning and sets service expectations as
guests arrive.
The Theory Behind Consumer Responses to Service Environments

•The Mehrabian-Russell
Two models to Stimulus-Response
understand consumer Model
responses to service
environments: •The Russell Model of
Affect
The Mehrabian-Russell Stimulus-Response Model
• Feelings are a key driver of customer responses to service environments
Conscious and
unconscious
perception, and
interpretation of
the environment
influences how
people feel in that
setting.

People’s feeling in
turn drive their
responses to that
environment.
• Fundamental model of how people respond to environments

• The environment, its conscious and unconscious perceptions and

interpretation influence how people feel in that environment

• Feelings, rather than perceptions/thoughts, drive behaviour

• Typical outcome variable is ‘approach’ or ‘avoidance’ of an

environment, but other possible outcomes can be added to model
The Russell Model of Affect
Emotion of anger about a service failure is modelled as high arousal and high displeasure
Emotional responses to environments can be described
along two main dimensions
•Pleasure: direct, subjective, depending on how much individual likes or
dislikes environment
•Arousal: how stimulated individual feels, depends largely on information
rate or load of an environment

Advantage: simplicity, allows a direct assessment of how

customers feel
•Firms can set targets for affective states they want their customers to be
in.
The integrative servicescape model: Bitner’s Servicescape Model
Dimensions Of Service Environment — Effect Of Ambient 16

Conditions

Ambient conditions refer to characteristics of environment that pertain to the five senses

Composed of hundreds of design elements and details that work together to create desired
service environment.

Ambient conditions are perceived both separately and holistically, and include
• music,
• sounds and noise,
• scents and smells,
• color schemes and lighting, and
• temperature and air movement.
 Impact of Music

Music can have powerful effect on perceptions and behaviours

• Fast tempo music and high volume music increase arousal levels
• People tend to adjust their pace, either voluntarily or involuntarily, to match tempo
of music

In situations that require waiting for service, effective use of music may shorten
perceived waiting time and increase customer satisfaction

Pleasant music has even been proved to enhance customers’ perceptions of the
service personnel

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 Impact of Scent

Can be used to obtain emotional, physiological, and behavioural responses

• research has shown that scents can have significant effect on customer perceptions,
attitudes, and behaviours

Presence of scent can have a strong impact on mood, feelings, and evaluations, and even
purchase intentions and in-store behaviors

Scents have special characteristics and can be used to solicit certain emotional, physiological,
and behavioral responses.

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 Aromatherapy
The Effects of Selected Fragrances on People

Can be used to obtain emotional, physiological, and behavioural responses

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 Impact of Color

Have a strong impact on people’s feelings

Despite differing colour preferences, people are generally drawn to warm

colour environments.

Warm colours encourage fast decision making and are good for low-
involvement decisions or impulse buys

Cool colours are preferred for high-involvement decisions

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Spatial Layout and Functionality
Spatial Layout Functionality

•Floorplan; •The ability of those

•Size and shape of items to make the
furnishings, counters, performance of the
machinery, equipment, service easier
and how they are
arranged
Signs, Symbols, and Artifacts

Explicit signals include signs used

Communicates the firm’s image
1.1. as labels,
2.2. for giving directions,
3.3. for communicating the
service script, and
4.4. for reminders about
behavioral rules
Unclear signals from a
servicescape can result in anxiety
and uncertainty about how to
proceed and obtain the desired
service
People are part of the service environment

Appearance and behaviour of both service personnel and customers can strengthen
impression created by service environment or weaken it

For employees, once they are dressed up, they must perform their parts

For customers, marketing communication may seek to attract those who appreciate the
service environment and are also able to enhance it by their appearance and behaviour

In hospitality and retail settings, newcomers often look at existing customers before
deciding whether to patronize the service firm
Aspects That Irritate Shoppers
Ambient conditions:
◦ Store is not clean.
◦ Too hot inside the store or
the shopping center.
◦ Music inside the store is too
loud.
◦ The store smells bad.
Environmental design variables:
◦ No mirror in the dressing room.
◦ Unable to find what one needs.
◦ Directions within the store are inadequate.
◦ Arrangement of store items has been
changed in a way that confuses customers.
◦ Store is too small.
◦ Losing one’s way in a large shopping center.
Tools To Guide Servicescape Design

Keen observation of customers’ behavior and responses

Feedback and ideas from frontline staff and customers using a variety of
research tools
Photo audit
◦ Ask customers (or mystery shoppers) to take photos of their service experience

Field experiments to manipulate specific dimensions in an environment for

certain effects to be observed
Blueprinting or flowcharting
 Putting It All Together

Selection of Environmental Design Elements

Design with a holistic view

• Servicescapes have to be seen holistically:
• No dimension of design can be optimized in isolation, because
everything depends on everything else
• Holistic characteristic of environments makes designing service
environment an art

Design should be from a customer’s perspective

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CRAFTING THE SERVICE ENVIRONMENT

Copyright © 2018 Pearson Education Ltd.