Environmental Dimensions of the Servicescape

The preceding sections have described customer and employee behaviors in the
servicescape and the three primary responses—cognitive, emotional, and
physiological—that lead to those behaviors. In this section, we turn to the
complex mix of environmental features that influence these responses and
behaviors (the left portion of Figure 10.1 on p. 295 shown earlier in the
chapter). Specifically, environmental dimensions of the physical surroundings
can include all the objective physical factors that can be controlled by the firm
to enhance (or constrain) employee and customer actions. There is an endless
list of possibilities: lighting, color, signage, textures, quality of materials, style
of furnishings, layout, wall decor, temperature, and so on. In Figure 10.1 and in
the discussion that follows, the hundreds of potential elements have been
categorized into three composite dimensions: ambient conditions; spatial layout
and functionality; and signs, symbols, and artifacts. Exhibit 10.3 illustrates how
the Mayo Clinic took into consideration all these dimensions in designing its
hospital to accommodate patients, doctors, employees, and visitors.
Although we discuss the three dimensions separately, environmental
psychology explains that people respond to their environments holistically. That
is, although individuals perceive discrete stimuli (e.g., they can perceive noise
level, color, and decor as distinct elements), it is the total configuration of
stimuli that determines their reactions to a place. Hence, although the
dimensions of the environment are defined independently in the following
sections, it is important to recognize that they are perceived by employees and
customers as a holistic pattern of interdependent stimuli. The holistic response
is shown in Figure 10.1 as the “perceived servicescape.”
Ambient Conditions
Ambient conditions include background characteristics of the environment such
as temperature, lighting, noise, music, scent, and color. As a general rule,
ambient conditions affect the five senses. Sometimes such dimensions are
totally imperceptible (gases, chemicals, infrasound) yet have profound effects,
particularly on employees who spend long hours in the environment.
All these factors can affect how people feel, think, and respond to a service
establishment. For example, a number of studies have documented the effects of
music on consumers’ perceptions of products, their perceptions of how long
they have waited for service, and the amount of money they spend. When there
is music, shoppers tend to perceive that they spend less time shopping and in
line than when there is no music. Slower music tempos at lower volumes tend to
make people shop more leisurely, and in some cases, they spend more. In the
Mayo Hospital lobby, piano music serves to reduce stress (see Exhibit 10.3).
Shoppers also spend more time when the music “fits” the product or matches
their musical tastes. Other studies have similarly shown the effects of scent on
consumer responses. Scent in bakeries, coffee shops, and tobacco shops, for
example, can be used to draw people in, and pleasant scents can increase
lingering time. The presence of a scent can reduce perceptions of time spent and
improve store evaluations. The effects of ambient conditions are especially
noticeable when they are extreme. For example, people attending a symphony
in a hall in which the air conditioning has failed and the air is hot and stuffy will
be uncomfortable, and their discomfort will be reflected in how they feel about
the concert. If the temperature and air quality were within a comfort tolerance
zone, these ambient factors would probably go unnoticed.
Spatial Layout and Functionality
Because service environments generally exist to fulfill specific purposes or
needs of customers, spatial layout and functionality of the physical surroundings
are particularly important. Spatial layout refers to the ways in which machinery,
equipment, and furnishings are arranged; the size and shape of those items; and
the spatial relationships among them. Functionality refers to the ability of the
same items to facilitate the accomplishment of customer and employee goals.
Previous examples in this chapter illustrate the layout and functionality
dimensions of the servicescape (e.g., the cruise ship photo earlier and the design
of the Mayo Hospital in Exhibit 10.3).
The spatial layout and functionality of the environment are particularly
important for customers in self-service environments, where they must perform
the service on their own and cannot rely on employees to assist them. Thus, the
functionality of an ATM machine and of self-serve restaurants, gasoline pumps,
and Internet shopping are critical to success and customer satisfaction.
The importance of facility layout is particularly apparent in retail, hospitality,
and leisure settings, where research shows it can influence customer
satisfaction, store performance, and consumer search behavior.

Signs, Symbols, and Artifacts

Many items in the physical environment serve as explicit or implicit signals that
communicate about the place to its users. Signs displayed on the exterior and
interior of a structure are examples of explicit communicators. They can be used
as labels (name of company, name of department, and so on), for directional
purposes (entrances, exits), and to communicate rules of behavior (no smoking,
children must be accompanied by an adult). Adequate signs have even been
shown to reduce perceived crowding and stress.
Other environmental symbols and artifacts may communicate less directly than
signs, giving implicit cues to users about the meaning of the place and norms
and expectations for behavior in the place. Quality construction materials,
artwork, certificates and photographs, floor coverings, and personal objects
displayed in the environment can all communicate symbolic meaning and create
an overall aesthetic impression. The meanings attached to environmental
symbols and artifacts are culturally embedded, as illustrated in this chapter’s
Global Feature. Signs, symbols, and artifacts are particularly important in
forming first impressions and for communicating service concepts. When
customers are unfamiliar with a particular service establishment, they look for
environmental cues to help them categorize the place and form their
expectations. A study of dentists’ offices found that consumers use the
environment, in particular its style of decoration and level of quality, as a cue to
the competence and manner of the service provider. Another interesting study
explored the roles of ethnicity and sexual orientation on consumers’
interpretation of symbols within consumption environments. Specifically, the
study found that people of Jewish descent observe particular symbols in places
that encourage them to feel at home and approach those places. The same study
found that homosexuals were also drawn to environments that included
particular symbols and artifacts that they identified with. In the presence of
other symbols, these groups felt unwelcome or even discriminated against.

Communicate the Criteria and Levels of Service Effectiveness

At times companies can establish the criteria by which customers assess service.
Consider a business customer who is purchasing market research services for
the first time. Because market research is an expert service, it is high in
credence properties that are hard for customers to judge. Moreover, the
effectiveness of this type of service differs depending on the objectives the
client brings to the service. In this situation, a service provider can teach the
customer the criteria by which to evaluate the service. The provider that teaches
the customer in a credible manner will have an advantage in shaping the
evaluation process.
As an example, consider research company A, which communicates the
following criteria to the customer: (1) a low price signals low quality, (2) the
reputation of the firm is critical, and (3) person-to-person interviews are the
only type of customer feedback that will provide accurate information. A
customer who accepts these criteria will evaluate all other suppliers using them.
If research company B had talked to the customer first, consider these (very
different!) criteria and their impact on the buyer: (1) market research companies
with good reputations are charging for their reputation, not their skill; (2) online
interviews have been found to work as well as person-to-person interviews; and
(3) price does not indicate quality level.
The same approach can be used with service levels rather than evaluative
criteria. If research company B provides four-day turnaround on the results of
the data analysis, the company has just set the customer’s expectation level for
all other suppliers.