| 5 si crafting the ENVIRONMENT LEARNING OBJECTIVES (LOs) Recognize the four core purposes service environments ful © 102 know the theoretical underpinning from environmental psychology that helps us to understand how customers and employees respond to service environments, © 103 Be familiar with the integrative servicescape model. Qu: © 105 Know the three main dimensions of the service environment. © 105 Discuss the key ambient conditions and their effects on customers. Qos @07 Qos O.ws Determine the roles of spatial layout and functionality. Understand the roles of signs, symbols, and artifacts. Know how service employees and ather customers are part of the servicescape. Explain why designing an effective setvicescape has to be done holistically and from the customer's perspective, 8 Crag the serie envirment,n Eset of eres marketing ed, anon Eaton Limi, Hala sex, pp. 298-225‘THE SERVICE ENTERPRISE 200915, A publi VIGNETTE Guggenheim Museum in Bilbao! PART III a eels{Crating the Service Environment ‘THE SERVICE ENTERPRISE 200915, Cece Tpibicaton bon anon ser bib SERVICE ENVIRONMENTS—AN IMPORTANT ELEMENT OF THE SERVICES MARKETING MIX T: physical service environment plays 2 key role in shaping che service expe ind enhancing (or undermining) customer satisfaction. Organizations such as hospitals, hotels, restaurants, and the offices of professional service firms have come to recognize that the service environment is an important element of their services rmarkecing mix and overall value proposition. “The process of designing the service environment is an art that takes a lot of time and effort, and it can be expensive to implement, Service environments, also called servicescapes, relate to the styleand appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites. Figure 10.3 provides an overview of the key topics covered in this chapter. G01 WHAT IS THE PURPOSE OF SERVICE Recognize the fou core purposes. =» ENVIRONMENTS? serve environments fll T: four main purposes of servicescapes are: (1) 0 shape customers experiences and behaviors; (2) co signal quality and co position, differentiate, and strengthen the brand; (3) to be a core component of the value proposition; and (4) to facilitate the service encounter and enhance both service quality and productivity Shape Customers’ Service Experiences and Behaviors For organizations thar deliver high-contact services, the design ofthe physical environment and the way in which tasks ae performed by customer-contact personnel play a vita role in shaping the nature of customers’ experiences. Physical surroundings help to “engineer” appropriate feelings and reactions in customers and employees, which in turn ean help to build loyalty to the frm. Signal Quality and Position, Differentiate, and Strengthen the Brand Services are ofien intangible, and customers cannot assess their quality well. Thus, ceustomers use the service environment as an important quality proxy, and firms take ‘great pains to signal quality and portray the desired image.* Pethaps you've seen the reception areas of successful professional service firms such as investment banks or ‘management consulting firms. The décor and furnishings tend co be elegant and are designed co impress Like most people, you probably infer higher merchandise quality if the goods are displayed in an environment with a prestige image rather than in one that creates @ discount feel“ Consider Figure 10.4, which shows the lobbies of ewo different types of hotels that cater covery different rarget segments. The former caters to younger travelers ‘who have low budgets, while the later is designed to appeal toa more mature, affluent, and prestigious clientele, including business travelers. Each of these wwo servicescapes 300 Chapter 10 « Crating the Service Environment ‘ita 14 Lveock, 2018, “Crafting the serie emvimnme nent of serves marking ned, anon Education Lined, Harlow, se pp. 298-925,‘THE SERVICE ENTERPRISE 200015 6 Crating the Service Envnonment ‘A pablcaton rm arson Caso Pablishing age 77 Key Dimensions of Service Environments + Ambien condos (emusic, scents and ols '* Spatial layout and functionality {including floor plan, size and shape of furnishing, counters, equipment) '* Signs, symbols and artifacts: Appearance of service employees and other customers ‘The Mebrabian Russell timulus- Response Model = Perceptions ard interpretation of Response Moderators servicescapas influences how ‘+ Employoes (.g, liking of servicescape, personal censors el tolerance forstinlatenthrogh misc, nose ané ‘These felngs than erie consumer crowding) = responses to hore environments Customers = i Ausses Modal of Afect, = ‘Customers’ feelings (or emotions) x can be modelled with two Ll dimensions: Pleasure and arousal Pleasures subjective ‘Arousal largely depends on the information rate of an ervironment ‘Pleasure and arousal interacton response behaviors, whereby arousal generally amplties the effects of pleasure (or displeasure) Figure 10.3 Designing the service environment. Internal Responses Behavioral Responses: Cognitive (eg. belies, Approach (e4. explore, spend time, spend money inthe environment) atitudos) + Avoidance (eg, leave the Physiological e.g, environment) comfort, pain) + Interaction betwoen Managing the Customer Interface 301. ‘Wins, |& Leck, C2018, ‘ean the vic ernment Eset fences martin, nd, earn cation Line How Ese, pp. 298-925.(6 Crafeng the Serves Lnvonment ‘THE SERVICE ENTERPRISE 200915 page 178 ~~ A pullication from Pearson Custom Publishing clearly communicates and reinforces its hove’ respective positioning and secs service Figure 104 Compare the two hotel expectations as guests artive lobbies. Different types of hotels have vory differant targat segmants. Servieescapes often play an important role in building.a service firms brand image. For instance, the design of Starbucks outlets is closely associated with the company’s brand, identity Likewise, Apple is famous for its sleek design, and its shops ate no exception. With their airy and minimalist interiors, white lighting, silver stecl, and beige timber, Apple Stores create a bright, open, and futuristic servicescape that provides a carefive and casual atmosphere, Apple’ flagship stores feature dra the Louvre in Patis or under a 40-foot-high glass cy atic locations such as ins ighai (Figure 10.5). Apple’ retail operations are an important part ofits busines. The company has 453 retail stores in 16 countries: 30,000 ofits 43,000 employees in the United States work at Apple Stores, and its sales per squate foot of $4 nder in SI 1 per annum in 2014 were the highest of any retailer in the country! The consistent, differentiated, and hi quality service ence delivered by Apple Stores reinforces Apple's brand image and isin line with the upmarket and high- quality positioning of its products (Figure 10.5). expe Core Component of the Value Proposition The servicescape can even bea core component ofa firms value proposition. Resort hotels ae a perfect illustration of this principle, Club Med’s villages, designed to create a woaally carefree aun sphere, way have provided the original inspiration for “"getavay” holiday environments New destination resorts are not only far more luxurious than Club Med but also draw inspiration from theme parks 10 Figure 105 The Shanghai Apple create fantasy environments, both indoors and oucdooss. Perhaps the most extreme store, ‘examples can be found in Las Vegas. Facing competition from numerous casinos 302 Chapter 10 » Crafting the Service Environment ‘Wins 18 Lveock, C2018 “Crain the see envi, n Ent of ervces marking ned, anon acon Lined, Mao, Ee, pp. 298-325THE SERVICE ENTERPRISE 200915 ‘ in other locations, Las Vegas has repositioned itself away from being a purely adule newhat more wholesome resort where families too can destination co become & have fun. The gambling is still chere, but many of the huge hotels recently built (or rebuilt) have been transformed by the addition of visually attractive features such as crupting “volcanoes” (Figure 10.6) mock sea battles; and striking reproductions of Pass, he pyramids of Egype, and Venice and its canals Pca ee ace uur) eres Service environments are often designed to facilitate the service encounter and increase productivity. In fast-food restaurants and school cafeterias, strategically located tray-return stands and notices on walls remind customers to return their trays. Finally, Service Insights 10.1 shovs how the design of hospitals helps patients to recover and eo eeetey tc tes rt THE THEORY BEHIND CONSUMER RESPONSES TO ea eS re now understand why service firms put so much effort into the desig the service environment. However, why does the service environment have such importane effects on people and their behaviors? The field of environmencal psychology studies how people respond to particular environments, We can apply the theories from this field to better understand and manage customer behavior in Figure 10.6 Atthe Mirage Hotel 8 and Casino in Las Vegas, an Cra Ry servicescape, different service settings.6 Crafung the Service Environment ‘THE SERVICE ENTERPRISE 200015 page 180 ‘A publication fom Pearson Custom Publishing Feelings Are a Key Driver of Customer Responses to Service Environments Two important models help us better understand consumer responses to service cenvieonments. The first, the Mehrabian-RussellStimulus-Response Model, holds that ‘our feelings are central to how we respond to different elements in the environment “The second, Russll’s Model of Affect, focuses on how we can better understand those feelings and their effects on response behaviors. ‘The Mehrabian-Russell Stimulus-Response Model. Figure 10.7 displays a simple yet fundamental model of how people respond to environments. ‘The model holds thar the conscious and unconscious perception and interpretation of the environment influence how people fel in chat sewing ° These feelings, rather than perceptions oF thoughts, drive customer behavior. Similar environments can lead to very different feelings and subsequent responses. For example, we may dislike being in a crowded department store with lots of other customers, find ourselves unable to get what we ‘want as fast as we wish, and thus seek co avoid char environment. We dont do this simply because there are a lot of people around us. Rather, we are deterred by the unpleasant feeling of exowding and of not being able to gee what we want fast enough. However, if we are not ina rush, we may feel pleased and excited about being part of the crowd during seasonal festivities in the very same environment. This may make tus want to stay and enjoy the exper In environmental-psychology research, the typical outcome variable studied is he “approach” or “avoidance” of an environment. Of course, in services marketing, weean, Pd es Cetert ‘Arousal Figure 10.7 Model of environmental responses. 304 Chapter 10 + Crafting the Service Environment ‘Wins, 14 Lveock €2018 “Cain the ee emvmrment nEsenth of envisaged, anon Eaton Lined, Mason, se, 2‘THE SERVICE ENTERPRISE 200915 6 Crating the Service Envkonment ‘A publication fom Pearson Custom Publishing page 18 oO SERVICE INSIGHTS 1 The Hospital Servicescape and Its Effects on Patients and Employees® i ‘Thankfully, most of us do not have to stay in itals. Tf such a: Cane arises, we hope: ees te uso recover ina suitable environment. But what is considered suitable in a hospital? During cher stay in a hospital patients may contract infections, feel stressed by contact with many steangers yet bored without much to do, dislike the food, oF be unable to rest well. All these factors may delay a patient's recovery. Research has shown that greater care in designing che hospital servicescape reduces these tulosand conatbuies eo the well belg and mearery of patients as well asthe welfare and productivity of staff. The recommendations include: + Provide single-bed rooms, These can lower the number of infections caughe in the hospital, improve rest and sleep quality by lessening disturbance caused by other patients sharing the room, increase patient privacy, facilitate social support by families, and even improve communication between staff and patients Reduce noise levels. This leads to decreased suress levels for staff and improved sleep for patients. Provide distractions for patients. ‘hese could include areas of greenery that the scan see; personalized. television ‘with headphones so that others do not get disturbed internet access for tablets and ‘an reduce the length of a patient's stay in the hospital. Staff members also work better under proper lighting and make fewer errors. Improve ventilation and air filtration. “This ‘an reduce the transmission of airborne viruses and improve air quality in the building. Develop user-friendly “way-finding” systems. Hospitals are complex buildings, and first- time or infrequent visitors are often frustrated when they cannot find their way, especial then rushing to aee a loved one who has been hospitalized, Design the layout of patient care units and the location of nurse stations to reduce unnecessary walking within the building and the resultant exhaustion and waste of time, ‘The quality of patient care can be improved in this way. Well-designed layouts also enhance staff ‘communication and activities. Sis Based on Uh X Qian, C2. Asha Chas, “Tho Plo ole Fy Enaran inte Hostal fhe et Canary: AOncesLitneOppertryrajr eG Heath Desi tthe Oi th 2st ary Hota Poe und ya bet Wo hon Fondation September 208) ‘Managing the Customer Int 001 PART ce 305 ‘Wins, |& Lovelock, 2018, ‘Cain the service ernment, Ese of sence martin, nd, earn Education Line How Ese, pp. 298-225,6 _Craking te Service Emvionment ‘THE SERVICE ENTERPRISE 200915 page 182 {A publication rom Pearson Custom Publishing ‘rousing add a long lis of additional outcomes that a firm might want to manage, including how much time and ‘money people spencl and how satisfied they are with the service experience after they hhave lefe the firm’s premises, Exciting Russell’ Model of Affeet. As affect or feelings are central to how people respond to an environment, we need Counderstand those feelings better. Pleasant Rasells Model of Alfect (Figure 10.8) is widely used for this purpose. It suggests that emotional responses to Relaxing environments can be described along the two main dimensions of pleasure and arousal” Pleasure isa direc, subjective response co che environment, depending on hhow much an individual likes or dislikes it. Arousal refers to how stimulated the individual feels, ranging Sleepy fiom dhe lowest level of internal activity (as in deep sleep) to the highest levels of adrenaline in che bloodstream (such as when bungee-jumping). The Figure 108 The Russell Mode! groysal quality of an environment is much less subjective than is pleasure quality OF Affect ‘Arousal quality depends largely on the information rate or load of an environment. For example, environments ate stimulating (i... havea high information rats) when they are complex, include motion or change, and have novel and surprising elements, A low-rate, relaxing environment has the opposite characteristics ‘You may ask: How can all my feelings and emotions be explained by only ewo dimensions? Russell separated the cognitive or thinking part of emotions from these ‘wo basic underlying emotional dimensions. Thus, the emotion of anger due to a service failure could be described in terms of high arousal and high displeasure, which ‘would locate it in che distessing region in our model. This is then combined with a cognitive attribution process. When a customer attributes a service failure vo the firm, the powerful cognitive attribution process Feeds directly into high arousal and displeasure. Similarly, most other emotions can be dissected into their cognitive and affective components “The strength of Russell's Model of Affect is its simplicity, as itallows a direct assessment ‘of how customers feel when chey are in che service environment. Therefore, firms can set targets for the affective states they want cheir customers to be in, For example, a roller-coaster operator wants its customers to fel excited. A spa may want cust to feel relaxed, a bank pleasant, and so on. Affective and Cognitive Processes. Affect can be caused by sensations, perceptions, and cognitive processes of any degree of complexity: However, the more complex a cognitive process becomes, the more powerful i its potential impact on affect. For example, a customer's disappointment with the service level and food quality in. a restaurant (a complex cognitive process in which perceived quality is compared co previously held service expectations) cannot be compensated by a simple cognitive process such asthe subconscious perception of pleasant background music. However, this doesnt mean that simple cognitive processes such as the subconscious perception. 306 Chaptar 10 + Crafting the Service EnvironmentTHE SERMCE ENTERPRISE 200015 © ating ie Sevice Enron] [A publication from Pearson Custom Publishing e183] ‘of scents oF music are unimportant. In practice, the large majority of cople’s service ‘encounters are routine, with lide high-level cognitive processing. We tend tof on “auto pilot” and follow our service scripts daring rout e transactions such as using, a bus or subway or entering a fastfood restaurant ora bank. Most of the time, itis, the simple cognitive processes that determine how people fel in the service setting However, if higher levels of cognitive processes are triggered—for instance, through. something surprising in the service environment—then it the interpretation of this surprise that determines people's feelings.” Behavioral Consequences of Affect. At the most basic level, plessant environments result imapproach behaviors and unpleasant onesin avoidance, Arousal amplifies the basic effet of pleasure on behavior. Ifthe environment is peasant increasing arousal can generate ‘excitementand lead toa stronger positive response. Conversely, if service environment is inherently unpleasant, increasing arousal levels will move customers into the “distressed region. For example, loud fast-paced music increases the stress levels of shoppers trying to make their way through crowded aisles on a pre-Christmas Friday evening, In such situations, retailers should try to lower the information load of the environment. Finally customers have strong affective expectations from some services. Think of such. ‘experiences as a romantic candlelit dinner in a restaurant, a relaxing spa vist, oF an exciting ime atthe stadium or the dance club. When customers have strong affective expectations, the environment must be designed to match those expectations." PART III The Servicescape Model—An Integrative Framework @ 103 Building on the basic models in environmental psychology; Mary Jo Bitner developed. Be familar with th integrative a comprehensive model that she named the “servicescape.”"' Figure 10.9 shows the seneiacepe mse main dimensions she identified in service envitonments: ambient conditions; space/ functionality: and sigos, symbols, and artifacts. As individuals tend co perceive these dimensions holistically, the key to effective des fits together with everything else. is how well each individual dimension Bitners model shows that there are customer- and employee-response moderators “This means thae the same service environment can have different effects on different ‘customers, depending on who the customer is and what he/she likes. Beauty lies in the eyes of the beholder and is subjective. For example, rap musie or an opera may be sheer pleasure to some customer segments and torture to others. An important contribution of Bitner’s model ithe inclusion of employee responses to the service enviconment. Afterall, employees spend much more time there than customers. es important for designers to be aware of how a particular em productivity of front-li yment enbanees the personnel and the quality of service that they deliver Incernal customer and employee responses can be grouped into cognitive responses (eg., quality perceptions and belief), emotional responses (eg, feelings and moods), and physiological responses (eg pain and comfort, These internal responses lead to obvere behavioral responses such as avoiding a crowded supermarket or responding positively to 2 relaxing environment by remaining there longer and spending extra ‘money on impulse purchases. The behavioral responses of customers and employees must be shaped in ways that aid the production and purchase of high-quality services ‘Managing the Customer Interface 307 Wits, Lovelock, 2018, Cringe service eminent neni of services marking edn Peron Eduction Line Haron, Ex, 9p 298-325,{6 Grating the Service Environment ‘THE SERVICE ENTERPRISE 200915 page 184 ‘Apulication fom Pearson Custom Publishing Environmental Holistic Moderators Internal Responses Behavior Dimensions Environment Figure 10.9 The servicescape model. @Olos DIMENSIONS OF THE SERVICE ENVIRONMENT Kia ty es eine ices) ‘ervice environments are complex and have many design elements. In Table 10.1, af soo anirorman = = for example, you can see an overview of the design clements chat might be encountered in a retail outlet. In this section, we focus on the main dimensions of the service environment in the sericescape model—ambient conditions; space and. functionality: and signs, symbols, and artifacts.” @tos The Effect of Ambient Conditions Discuss the kay ambient Ambient conditions refer co those characteristics of the environment chat pertain an to your five senses. Even when they're not nated consciously, they may still affect a person's emotional well-being, perceptions, and even attitudes and behaviors. They 3OB Chapter 10 + Crafting the Service Environment ‘ts, 18 Lneock 2018, “Cafing the sevice vite, nL sevice mashing rd, anon cation Lined Harlow ep. 290-225.‘THE SERVICE ENTERPRISE 200015, 6 _Graing the Service Encrnment A publication ftom Pearson Custom Publishing page 185 11 Design elements of a retail store environment. ee a ee Acchitectural style Height of buiiing ‘Size of building Color of building Exterior walls and exterior signs Storefront Marquee Lawns and gardens Store layout 2 ‘Allocation offlor space for sollng, merchandise, personnel, ‘and customers Placement of merchandise Grouping of merchandise ‘Workstation placement Placement of equipment of cash register Social dimensions Personnel characteristics ‘+ Employee uniforms = Crowding are composed of literally hundreds of design elements and details that must work together to create the desired service environment. Ambient conditions re perceived both separately and holistically. They include music, sounds and noise, scents and smalls, color schemes and lighting, and temperature and air movement (Figure 10.10). “The clever design of these conditions can elicit desired behavioral responses amon consumers. Let us now discuss a number of important ambient dimensions, starting with music. ‘+ Window displays = Entrances | ‘+ Visiity + Uniqueness ‘+ Surrounding stores ‘= Surrounding areas, ‘+ Congestion ‘+ Parking and accessibility + Waiting areas, + Trafficflow ‘+ Waiting queues © Furniture + Dead areas ‘+ Department locations ‘+ Arrangements within departments ‘+ Customer characteristics Privacy + Sele-senvice Managing the Customer Interface 309 Wits & Lovelock, € 2018 Cain the sevice enviunmetn Est fees murat, ed, Peanon xan Limited, Huson Ene, pp. 298-2256 Crafting the Service Environment THE SERVICE ENTERPRISE 200915 page 186 A publication from Pearson Custom Publishing Music. Music can have a powerful effect on perceptions and behaviors in service settings, even if it is played at barely audible volumes. The various structural characteristics of musi ch as tempo, volume, and harmony are perceived holistically, and their effect on internal and behavioral responses is moderated by respondent characteristics (c.g., younger and older people often respond differently to the same piece of music).'* Numerous reseatch studies have found that fast tempo and high-volume music increases arousal levels, which can then cause customers to increase the pace of various behaviors.'* People tend to adjust their pace, either voluntarily or involuntarily, to march the tempo of music. This means that restaurants rve more diners n speed up table turnover and s Figure 10.10 Live folk music rey anheneethe diteey during busy lunch hours by increasing the tempo and volume of the music. They axpariania’ can also play slow beat music at a softer volume to keep evening diners longer in the restaurant and increase beverage revenues. A restaurant study conducted over eight weeks showed that customers who dined in a slow-music environment spent longer in the restaurant than individuals in a fast-musi ondition. As a result, beverage revenue increased substantially when slow-beat music was played.!5 Likewise, studies have shown that shoppers walked less rapidly and increased their level of impulse purchases when slow music was played." In situations that require the customer to wait for the service, the effective use of music may shorten the perceived waiting time and increase customer satisfaction. Relaxing music proved effective in lowering stress levels in a hospital’s surgery waiting room.'” Providing the right mix of music to restaurants, retail stores, and even call centers has become an industry in its own right. Mood Media, the market leader in this space, provides music to over 300,000 commercial locations in the United States. It tailors its playlists to outlets such as Christian bookstores, black barber shops, and bilingual malls where Anglo and Hispanic customers mingle, Italso uses “day parting” to target music to various client segments such as day-time mothers or after-school teens.’* Would it surprise you to learn that music can also be used to deter the wrong type of customer? Many service environments, including subway systems, supermarkets, and other publicly accessible lov attract individuals who are not bona fide custome s. Some are jay omers (s Figure 10.11 Classical music can be used to deter vandals 5 and loiterers. target customers. In the United Kingdom, an increasingly popular strategy for driving such individuals away is to play classical music, which is apparently unpleasant to the ears of vandals and loiterers (Figure 10.11). Co-op, a U.K. grocery chain, has been Chapter 12), whose behavior causes problems for a firm’s management as well as its 310 Chapter 10 » Crafting the Service Environment Winz, | & Lovelock, C 2018, ‘Crafting the service environment’, in Esser s of services marketing, 31d edn, Pearson Education Limited, Harlow, Essex, pp. 298-325.THE SERVICE ENTERPRISE 200015, ang the Service Envionment A pulieation rom Pearson Castom Publishing page 187, playing classical music outside its outlets ro stop teenagers from hanging around and intimidating customers. Steve Broughton of Co-op reports that the company’s staff memb “can turn che music on if ther sare equipped with a remote conerol and a situation developing and they need to disperse people.” Scent. The ambient scent or smell chat pervades an environment may or may not be perceived consciously by customers and is not related to any particular product. Sent can have a strong impact on mood, feelings, evaluations, purchase intentions, and in-store behaviors.” We experience the power of smell when we are hungry and get a whiff of freshly baked croissancs long before we passa local bakery. This smell _makes us aware of our hunger and points us to the solution. Likewise the smell of freshly baked cookies on Main Street in Disney's Magic Kingdom relaxes customers and provides a feeling of warmth, while the smell of potpourri in Victoria’ Secret stores creates the ambience of a lingerie closer. Olfaction rescarcher Alan R. Hirsch, M.D. of the Smell & Taste Treatment and Research Foundation based in Chicago, is convinced Il that at some point in the fature we will understand scents s0 well that we will be able rouse chem ro manage peoples behaviors. Service marketers are ineesed igure 12:12 Aromatherapy can in how ro make you hungry and thirsty in the restaurant, relax you in a dentisc’s induce a state of relaxation and waiting room, and energize you to work out harder in a gym. In aromatherapy, tis rejuvenation, = generally accepted that scents have special characteristics and can be used to solicit certain emotional, physiological, and behavioral responses (Figure 10.12). Table 10.2 shows the generally assumed effects of specific scents on people. Research has shown Table 102 Aromatherapy: The effects of selected fragrances on people. Fragrance | Aroma Type | Aromatherapy Class Deed eee oo Ceri Eucalyptus Camphoraceous Toning, stimulating Deodorant antiseptic, ‘Stimulating and energizing soothing agent Lemon Citrus Energizing upliting Antiseptic, soothing agent Soothing energy levels Managing the Customer interface 311 Wins, & Lando, € 2018, Cring the see environ nn services mareting, ede, Prin cation Lie Harlow, Ese 298-325[* Crating the Service Environment age 188 ‘THE SERVICE ENTERPRISE 200015 “A publication from Pearson Cust Publishing that scents can have a significant impact on customers’ perceptions, attitudes, and bbchavions in service setings. For example: D> Gamblers plunked 459% more quarters into slot machines when a Las Vegas casi ‘was scented with a pleasant artificial smell. When the intensity of the scent was increased, spending jumped by 538%.” D People were more willing to buy Nike sneakers and pay more for them (an average ‘of $10.33 more per pair) when they tied on the shoes in a floral-scented room. “The sume effect was observed even when the scent was o fain thar people could not detect i (i.e, the scent was perceived unconsciously).”* Service firms have recognized the power of scent and increasingly make ita part of theit brand experience. For example, Westin Hotels uses a white tea fragrance throughout its lobbies, and Sheraton scents its lobbies with a combination of fg, clove, and jasmine As a response to the trend of scenting servicescapes, professional service firms have entered the scent marketing space. For example, Ambius, a Rentokil Initial companys offers scent-related services such as “sensory branding,” ‘ambient scenting,” and "odor remediation’ for retail, hospitality, healtheare, nancial services, and other services. Firms can outsource their servicescape scenting to Ambius, which offers one-stop solutions ranging from consulting and designing exclusive signature seents fora service firm to ‘managing the ongoing scenting of ll the outlets ofa chain.” Clients of Mood Media, a leading provider of music, scents, and signage for commercial establishments, can choose their ideal ambient scent from a 1,500-strong seent library!” Color. In addition to music and scent, researchers have found thac colors havea strong impact on people’ feelings. Color “is stimulating, calming, expressive, disturbing, impressional, cultural, exuberant, symbolic. It pervades every aspect of our lives, embellishes the ordinary, and gives beauty and drama to everyday objects.” Te de Facto system used in psychological rescarch isthe Munsell Sytem, which defines colors in the three dimensions of hue, value, and chroma.” Hue isthe pigment of the color (ie. the name of the color: sed, orange, yellow, green, blue, of violet). Value is the degree of lightness or darkness of the color, relative o a scale that extends from pure black to pure white, Chroma refets to hue intensity, saturation, or brilliance. High chroma colors have a high intensity of pigmentation and are perceived as rich and vivid, whereas low chroma colors are perceived as dull. Hues ae classified into warm colors (red, orange, and yellow) and cold colors (blue and green), with orange being the warmest and blue being the coldest. These colors can be tused to manage the warmth of an environment. For example, ifa violet is too warm, ‘you can cool it off by reducing the amount of red. Ifa red is too cold, you can warm it up by giving ita shot of orange. Warm colors are associated not only with clared ‘mood states and arousal buc also with heightened anxiety. Cool colors reduce arousal levels and can elicit emotions such as peacefulness, calmness, love, and happiness.” ‘Table 10.3 summarizes common associations and responses to colors, Research in a service en ynment context has shown that despite differing color preferences, people are generally drawn to watm-color environments (Figure 10.13). ‘Warm colors encourage fast decision making and are best suited for low-involvement 312 Chapter 10 + Crafting the Service Environment Wit.) & Lovelock € 201, Calting te sce eneoment inal of erie makati, Ie Person Exton Lined, Halon Es, pp. 298-225‘THE SERVICE ENTERPRISE 200915, 6 Crafting the Service Environment ‘publication from Pearson Custom Publishing page 189 Table 10.3 Common associations and human responses to colors, tat Warm ea a eee! Sn a rn eee See ero ete teats Blue ‘Sky and ocean Relaxation, serenity, and loyalty fee nc vole Val ova Shea SET service purchase decisions orimpuls buying, Cool clorsae favored when consumer need time to make high-involvement purchase decision 5 4 Recent examples of effective color an lighting are the new cabin designs in the Boeing 787 Dreamliner and Airbus A350 model. Inthe past, cabin lights were either tusned ‘on or off, but the new light-emitting diode (LED) technology has made a wider lighting = @) LOG paler avilable. Designers are now illuminating the cabin in all kinds of hues and Detainee rls of patil asking questions such as: “Does a pinkish-purpl glow soothe and calm passengers when leyout and functionality boarding better than an amber warmth?” o¢ “Can lighting be used to prevent jet lag as much as posible?” The Finnair A350 cabin has two dlozen light settings force different sages ofa long-haul fight. Ic also feasures a roughly 20-minute long “sunset” and aligns colors with the destination cg., warmer, amber colors when fyinginto Asia and cooler “Nordic blu” hues when arivingin Finland). Virgin Atlantic has afew main settings on its 787 fights, including rose-champagne for boarding, purple-pink for drinks, amber for dinner, a sver glow for overnight dep, anda waking colo. According to Nik Lusi, design manager at Virgin Atlantic: “We've always wanted ro create different kind of atmosphere aboard our aircraft and light plays exacy inco cur hands... You can get people energized or you can rela people ia very, very quickly” Spatial Layout and Functionality In addition co ambient conditions, spatial layout and functionality ate other key dimensions of the service envisonment. These are particularly important because a service environment generally has to full specific Figure 12.13 Many stores use purposes and customer needs warm colors to encourage impulse purchases. Managing the Customer Interface 313 Wine 14 Lovelock, € 2018 Crating the sie even Eel of vues maraig, ed, eanon Fexatln Limited, Harlow Ese, pp 298-325,6 Caaling te Service Ervivonment page 190 Figure 10.14 Uncomfortable chairs in a lecture theater make it harder for students to concentrate. @u07 Understand the roles of sign, symbols, and arcts, Figure 10.15 Prohibition sign in the Singapore MRT subway. ‘THE SERVICE ENTERPRISE 200015 ‘A publication from Pearson Custom Publishing Spatial layout refers to the floor plan: the size and shape of furnishings, ‘counters, and potential machinery and equipment; and the ways in which these are arranged. Fenetionality refers co the ability of these items co facilitate the performance of service transactions. Both dimensions affect the user-fiendliness ofthe facility and its ability to serve customers well. “Tables thar are to0 close in a café, counters in a bank thac lack privacy, uuncomfortable chairs in a lecuure theatre (Figure 10.14), and lack of carparking space can al leave negative impressions on customers. They also affect the service experience, buying behavior, and, consequently, the business performance of the service facility Signs, Symbols, and Artifacts ‘Many things in the service environment act as explicit orimplicit signals to communicate the firm’s image, help customers find their way (e.g. to certain service counters, departments, or the exit), and convey the service script (eg. for a queuing system). firs-ime customers will automatically try to draw meaning feom the environment to guide them through the service processes." Tn particul Examples of explicc signals include signs, which can be used (1) as labels (eg. t0 indicate the name of the department or counter), (2) for giving directions (.., 0 cerain ance and the exit, of lifts and toilets), (3) for communicating the service script e.g. take a queue number and wait for your number to be called, or clear the tray after your meal), and (4) for reminders about behavioral rules (c.g. +o demarcate smoking/no-smoking areas or to instruct viewers to switch off thet _mobile devices during a performance). Signs are often used to teach behavioral rules in service settings. Singapore is sometimes ironically referred to as.a “fine” city because ic sticely enforces rules in many service settings, especially in public buildings and public eansport (Figure 10.15). However, the sign in Figure 10.16 is mote creative and perhaps equally effective. Some signs are quite interesting and may be obvious, ‘but other signs require he person to think a litle in order to understand the meaning (Figure 10.17). Table 10.4 provides an overview of the benefits well-designed signage can provide co customers and service organizations Figure 10.16 This sign uses a creative message to manage visitor behavior. 314 Chapter 10 » Crafting the Service Envitonment Witz) &evelock, C2008, Crating the teice emanate of erie marketing, ede ean Aaaton Lined, Harlow, Ete ip 28-325.‘THE SERVICE ENTERPRISE 200915, ‘A publication from Pearson Custom Publishing ‘The challenge for servicescape designers is use signs, symbols, and artifacts to guide customers clearly through the process of service delivery and to teach the service script in as intuitive a manner as possible. This task assumes particular importance in serviescapes with a high proportion of new or infeequent customers (e.g. airports and hospitals) and/or a hhigh degree of self-service (eg, self-service bank branch) Customers become disoriented when they cannot derive clear signals froma servicescape. This leads to anxiety and uncertainty about how to proceed and obtain the desited service. Think about the last time you were ina hurry and tried to find your way through an unfamiliar hospital, a shopping center, ora large government office where the signs and other directional cues were not intuitive to you. At many service facilities, customers’ frst point of contact is likely to be the car park. Service Insights 10.2 emphasizes how the principles of effective environment design apply even in such a mundane environment. ONG People Are Part of the Service Environment Too “The appearance and behavior of both service personnel and customers can strengthen the impression created by a service environment or ‘weaken it. Dennis Nickson and his colleagues use the term “aesthetic labor” to capture the importance of the physical image of service personnel who serve customers directly.” Employees ar Disney theme parks are called cast members. They may be acting as Cinderella or one of Snow White's seven dwarfs, or even as park cleaner or manager of Buzz Lightyear's Tomorrowland booth. In each ease, they must dress to look the part and then perform” for the guests Likewise, marketing communications may seek to attract customers who will not only appreciate the ambience created by the service provider but will also actively enhance ic by their own appearance and behavior. In hospitality and recail sevtings, newcomers often survey the array of existing customers before deciding whether 10 patronize the establishment Putting It All Together Although individuals often perceive particular aspects or individual design features of an environment, is the total configuration ofall those design features that determines consumer responses Design with a Holistic View ‘Whether a dark, glossy wooden floor isthe perfect flooring in a scrvicescape depends con everything else in that service environment. These include the type, color scheme, sof the Furniture; the lighting: the promotional materials: and the overall ption and positioning ofthe firm, Servicescapes have to be seen holistically. of the design can be optimized in isolation, because everything depends con everything else. and m brand pe No dimensi ‘Wins 14 Lovelock € 2078,“ the sevice envionment, n Eset of serve martin 3 dh, anon Exon Lied, Hato, ie, 2 6 Grating the Service Environment page 191 ONE ¥ Figure 10.17 Confusing signs can lead people nowhere. @uios Knowhow service employees and ther customers are pat of the servicescape @tos Explain why designing an afectie servcescape has to bo done holistically and from the customer’ perspective Managing the Customer Interface 315,6 Caing te Service Envionment ‘THE SERVICE ENTERPRISE 200015 page 192 ‘A publication tom Pearson Custom Publishing Table 10.4 Benefits of well-designed signage for customers and service organizations. “The process of planning the overall design of service environment isan art. Therefore, professional designers tend to focus on specific ypes of sericescapes. For example, a handful of famous interior designers do nothing but create hotel lobbies around the world, Similarly, there are design experts who focus exclusively on restaurants, bars, and clubs; cafés and bistros; retail outlets; healtheare facilities; and so forth, Design from a Customer's Perspective “Many service environments are buile with an emphasis on aesthetic values. Designers sometimes forget the most important factor to consider when designing service environments—the customers who will be using chem. Ron Kaufman, the founder of Up Your Service! College, experienced the following design flaws in two new high-profile service environments: > “A new Sheraton Hotel had just opened in Jordan without clear signage that ‘would guide guests from the ballrooms to the restrooms, The sign that did exist were etched in muted gold on dark marble pillars. More ‘obvious signs were apparently inappropriate amidst such elegant décor. Very swish, very chic, but who were they designing it for2” > “Aca new airport lounge in a major Asian city. a partition of colorful glass hung from the ceiling. My luggage lightly brushed againse ic as I walked inside. The entire partition shook and several panes came undone. A staff member hurried ‘over and began carefully reassembling the panels. (Thank goodness nothing broke.) I apologized profusely. ‘Dont worry’ she replied, “This happens all the time.” An ainpore lounge isa heavy traffic area, People are always moving in and ‘out, Kaufman keeps asking “What were the interior designers thinking? Who ‘were they designing it for” 316 Chaptar10 Crating to Sonica Enionmnt ‘Wits 18 Lovelock C2018 Cringe seni enone n Eero eres marketing, Sd ed, aon Eaton Lied, Halo, Ese pp. 298-325‘THE SERVICE ENTERPRISE 200915, 6 _ Crafting the Service Environment ‘A publication from Pearson Custom Publishing page 193, oe SERVICE INSIGHTS 10.2 - Guidelines for Parking Design Car parks play an important role at many service ieecines a heecreiaeet eget at tal artifacts in a parking lot or garage helps customers find thee way, manages thet behavior and portrays po age of the sponsoring organization, + Friendly warnings. All warning. signs should communicate a customer benefit. The following sign is an example: “Fire lane—for everyone's safety we ask you not to park in the fire lane.” + Safety lighting. Good lighting that penecrates all ateas makes life easier for customers and nhanees safety. Firms may want to draw attention to this feature with notices stating thac "Parking lots have been specially li for your spaces. A few thoughtful organizations have spss parking spaces for expectant mothers that ate marked with a blue/pink stork. This strategy demonstrates a sense of caring and an understanding of customer needs Fresh paint. Cats, cross walks, and lot lines should be repainted regularly before any cracking, pecling, or disrepair becomes evident. Proactive and frequent repainting gives positive cleanliness cues and projects a positive image. safety.” = + Help customers remember where they left their I vehicle. Forgerting where one left the family ear ina large parking structure can be a nightmare. IS Many car parks have adopted color-coded 4 floors to help customers remember which < level they parked on. In addition, many cat yarks also mark sections with sf il symbols ie eta eee ee alee customers to remember not only the level but also the section where the car is parked. Boston's Logan Airport has gone two steps further. Each level has been assigned a theme associated with Macochagers such as Pal Revert Ride , or the Boston Marathon. € posed Geet neers eae horseback, a lighthouse, or a female runner. While waiting for the elevator at a particular level, travelers hear a few bars of music that are tied to the theme for that level. For instance, che Boston, Marathon floor uses the theme music from Chariot of Fre, an Oscar-winning movie about an Olympic runner. Managing the Customer Interface 317Figure 10.18 The environmental design of shopping centers affects the shopping experi @ SERVICE INSIGHTS 10.3 318 Chapn Design of Disney's Magic Kingdom Walt Disney was one ofthe undisputed champions in the field of service environment design. His tradition of amazingly careful and derailed planning has become 2 hallmark of his company and is visible everywhere in its theme parks. For example, Main Screetis angled to make it seem longer upon entry into the Magic Kingdom than ic actually is. Myriad facilities and attractions are strategically inclined and located at each side of the street to make people look forward to the relatively long journey to the Castle. However, ‘when one looks down the slope from the Caste back: towards the entrance, Main Street appears shorter. This relieves exhaustion, rejuvenates guests, and even. ‘encourages strolling (thereby eliminating the problem. ‘of trafic congestion duc to too many buses). er 10 * Crafting the Servi Enironmant ‘THE SERVICE ENTERPRISE 200015 A publication rom Pearson Custom Publishing “Lam regularly amazed,” declared Kaufman, “by facilities that are obviously user ‘unfriendly'!” He draws che brand new following key learning point: “Ivs easy to get caught up in designing new things that are ‘cool’ ot ‘elegant’ or ‘hor’. But if you don’t keep your customer in mind throughout, you could ‘ead up with an investmenc thae’s not.” Along a similar vein, Alain d’Astous explored environmental aspects that irritate shoppers. His findings highlighted the following problems D> Ambiene conditions (ordered by level of ititation) © The store is not clean, © Ieis coo hot inside the store or the shopping center The music inside che store is too lou. The store smells bad, Environmental design variables (0 There is no mirror in the dressing room, © Customers are unable to find whac they need. o Disections wichin che store ate inadequate The arrangement of store items has been changed in a The meandering sidewalks with multiple attractions keep guests entertained, as they can participate in the planned activities and even watch other guests. Trash bins are plentiful and always in sight to convey the message that littering is prohibited. The repainting of facilites isa routine procedure that signals a high level of maintenance and cleanliness. Disney's servicescape design and upkeep help to script customer experiences and create pleasure and satisfaction for guests not only in its theme parks but aso in its «rus ships and hotels‘THE SERVICE ENTERPRISE 200015 (Crating the Service Envnonment [A publication rom Pearson Coston Publishing page 195, © Thestore is to0 small. © Customers lose their way in a large shopping center. (Figure 10.18) Contrast Kaufinan’s experiences and a’ Ascou’s findings with the Disney example in Service Insights 10.3. One can cleanly see how detailed attention o the design of the service environment can make a difference. Tools to Guide Servicescape De: A manage an use several cools to determine how customers use the sevicescape, which ofits aspects irritate them, and which aspects they like. Some ofthese areas Follows: D> Keen observation of customers behavior and responses tothe sevice environment by management, supervisors, branch managers, and front-line staf Table 10.5 A visitto the movies: the service environment as perceived by the customer. Eerste Piet a Tecate yoiaaia al Rasa mS RGR SCS TE (et with a security officer protecting your valual to park in another lot S| =) Check tickets to enter the Avery well-maintained lobby wit clear directions A dirty lobby with rubbish strewn and unclear ‘theater tathe theater and posters ofthe movie toenhance or misleading directions tothe movie theater patrons’ experience Entor the theater and Spotlosstheator; well designed with no bad seats; Rubbish onthe floor, broken seats, sticky locate your seat sulficiont lighting to locate your seat, spacious, floor, gloomy and insufcient lighting, burned comfortable chars. with drinkand popcom holders out ext signs on each seat, and a suitable tomperature Leave the theater and Friandly service staf gost patrons as they leave; _Aifculttrp, as patrons squeeze through a rotur to the ear an easy exithrough a brightly lt and safe parking _narrow exit, unable to find the car bocause of area, back tothe car withthe help of clear lt signs no or insufficient ighting Managing the Customer Interface 319 Wi.) Lovelock € 2018, Cling te svi emt navn of services aang, edn Peon Eduction Lined, Halon, Ese, 9p. 290-225SERVICE ENTERPRISE 200915, {Grating the Service Environment ton fom Pearson Custom Publishing page 195, © The store is 100 small © Customers lose their way ina large shopping enter.™ (Figure 10.18) Contrast Kauiiman’s experiences and el Astou’s ndings with the Disney example in Service Insights 10.3. One can clearly see how detailed artention to the design of the service environment can make a difference, Tools to Guide Servicescape Design A manager can use several rools ro determine how cust ofits aspects ivitae them, and which aspects they lik. ce the servieeseape, which sme of these ate a follows: > Keen observation of customers’ behavior and responses tothe service environment by management, supervisors, branch managers, and front-line stall Table 105 A visitto the movias: the service environment as perceived by the customer, fee =I Se - Locate a parting lot Insufcient paring spaces, so patrons have toparkinanohor ot I Checkticketsto enterthe A vary well-maintained lobby with directions A dirty lobby with ubbish strewn and unclear theater tote theater and posters ofthe movie to enhance or misleading directions tothe movie theater patrons’ experiance Enter the theater and Spotless theater; well designed with no bad seats; Rubbish on the flor, broken seas, sticky locate your seat sufficient lighting to locate your seat; spacious, floor, gloomy and insufficient lighting, burned ‘comfortable chairs, with drink and popcorn holders out exit signs ‘on each seat; and suitable temperature Leave the theater and Friondly service staff grost patrons as they leave; _Aificult rip, as patrons squoeze through a ‘return tothe car ‘an easy exitthrough a brghtyItand safe parking narrow exit, unable to find the car because of ‘area, backto the carwith the help ofclearlat signs no orinsufficint lighting Managing the Customer Interface 319 ‘Wins Laveack, C2018, Crating the service enone, in Ea of evs maka, nl dh, earn Ean Lined, Harlow ie, pa. 2© Gating See Entorment THE SERVICE ENTERPRISE 2015 | vise 196 “pablo om eon Cxom Pang | D> Feedback and ideas from front-line staffand customers using a variery of research ‘ools ranging from social media and suggestion boxes to focus groups and surveys. D> Photo audit is 1 method of asking customers (or mystery shoppers) to take photographs of their service experience, These photographs can be used later as a basis for furcher interviews of their experience or included as part ofa survey about the service experience.” D> Field experiments can be used to manipulate specific dimensions in an environment so that their effects can be observed. For instance, researchers can experiment with various types of music and scents and then measure the time and money customers spend in the environment. Laboratory experiments with pictures, videos, or other ways co simulate real-world service environments (such as ireual tours via computer) can be effectively used co examine the impact of changes in design clements that cannot be casly manipulated in a field experiment. Examples include testing of different color schemes, spatial layouts, or styles of furnishing. D Blueprintingor lowchasting (described in Chapter 8) can be extended to include the physical evidence in the environment. Design elements and tangible cues can be documented as the customer moves through each step of the service delivery. process. Photos can supplement che map to make it more vivid. ‘Table 10.5 shows an examination of a customer’ visit to a movie theater. It identifies how the different environmental elements at each step exceeded or failed to meet expectations. The service process was broken up into steps, decisions, duties, and activities, all designed to take the customer through the entire service encounter. The more a service company can see, understand, and experience the same things as its, ‘customers, the better equipped will ic be co realize errorsin the design ofits environment and co improve what is already functioning well 320 Chapter 10 fing the Serves Environment ‘Wins, 14 Lear, €2018, “Crain the ie evant ns fence mating, eed, an Edacaton Lined, Hasan, Ee, pp. 298325.THE SERVICE ENTERPRISE 200915 ‘A publication rom Pearson Custom Publishing Quoi @oz> @io3> Qos @uos> Visi Service environments full four core purposes. Special, they: (0 Shape custome's' experiences and behaviors. (© Playan important ole in determining customor perceptions of the firm and its image and positioning. Customers often use the service environment as an imgortant quality signal (© Canbe a core part ofthe value propastion las for theme parks and resort nots) (© Faciitate the service encounter and enhance Producti Environmental psychology provides’ the theoretical underpinning for understanding the cffocts of sarvice environments an custamers and service employees. There are two key models: (© The Mehrebian-Russell Simulus-Response ‘model holds that environments influence peoples’ affective state (or emotions and feolings), wich in turn dvs their behavior © Russells Model of Affect holds that affect can be modeled with the twa interacting dimensions f pleasure and arousal Together they datermine whether psople aporoach an environment and spend time end money in it (or whether thay avoid it. The servicescepe model, which builds on the aforementioned theories, represents an integra tive framework thet expains how customers and service staff respond to key environmental dimer sions. The servicescape model emphasizes three dimensions ofthe serve environment ‘© Ambient candiions (ncluding music, sents, and colors) © Spatial layout and functionality (© Signs, symbols, and artifacts ‘Ambient conditions refer to those characteristics ofthe envronmentthatpertanto ourfive senses, Even when not consciously perceived, they can sill afect people's intemal and behavioral responses. Important ambient dimensions include: © Music: Its tempo, volume, harmony, and familenty shape behavier by alfecting emotions and moods. People tend to adjust their pace to1match the tempo ofthe music. ‘© Scant: Ambient scent can str paverfl mations and relax or stimulate customer. Qiocr Qu (Crating the Service Environment (© Color Colors can heve strong effects on people's ‘ealings, with warm (eg, ted and orange) and cold colors e.g, blue) having diferent impacts, \Warm colors are associated with elated moocs, ‘while cold colors are linked to peacefuiness ‘and happiness. Effective spatial layout and functionality ere important for making the service operation more cficient and enhancing its user friendliness. (© Spatial layout refers to the floor pian; the ‘ze and shape of furishings, counters, and potential machinery and equipment; and the ‘ways in wihich they ae arranged, (0 Functionality refers tothe ability of theso ams + facitate service operations. Sians, symbols, and artifacts help customers to draw mening from the envionment and guide them through the service process. They can be used to: (0 Label facilities, counters, or departments (© Show directions (eg, to the entrance, ext, elevator, or toet) (© Communicate the service serist (0.9. take a queuing number and wait for itt be called) (© Reinforce bahavieral ules (o.¢, "please tun your cell phones to silent mode") The appearance and behavior of service ‘employees and other customers ina servicescepe ‘can be patt of the value proposition end can reinforce (or undermine) the positioning of the firm, Service environments are perceived holistically ‘Therefore, no indivdval aspect can be optimized ‘without considering everything else, The process ‘of designing service environments is an art rathor than a scionce, (© Dus to this challenge, professional designers tend to specialize on specific types of envconments, such as hotel lbbies, clubs, health-care facies, and so on (© Tho best sarvice enviranments are designad notonly onthe bass of aesthetic considerations ‘but, more importantly, with the customer's Derspectve in mind. The purpose is to guide customers smoothly through te sevice process (0 Tool that can be used to design and improve servicescapes include careful observation, ‘rack from employees and customers, photo audits, field experiments, and blueprinting page 197, 008 = a Managing the Customer Interface 321 ‘Wits, 18 Loeack C2078 “Cig the sevice ervionmen,n Ese fever eed, exon aan Line, Halon Ee, p28