’ Physical Evidence in Services (Unit 6) us Physical Evidence in Services a SSS 6.1. SERVICE PHYSICAL EVIDENCE 6.1.1. Introduction The physical setting or environment in which a firm delivers its services and interacts with customers is known as physical evidence. It involves tangible commodities that support service performance and facilitates communication involved in services. It also has an important role in augmenting or improving consumer's perception regarding service quality. Moreover, physical evidence is that part of service mix which enables the customers to make appropriate decision or judgment regarding the firm. For example, when a customer walks into a restaurant, he expects for a decent ambience, good food and certain level of hygiene to be maintained. Similarly, travellers in the business class of an airplane expect for luxury features like greater leg space and comfort. Physical evidence can also be understood as that part of an organisation which is exposed or physically exhibited to the customers. This includes components like the service outlet, interior & exterior designs, and various tangible components (machinery, furniture, service vans, signage, stationery, communication pamphlets, guidelines and certifications, service providers, employces, etc.). The physical evidence basically gives proof to the consumer about the quality of service that he is buying. tance both on the side of customers and service providers. The It also assists in enhancing the service perform: ‘cal evidence plays a major role in evaluating the efficiency inherent nature of services is intangible, and physi and utility of the services. 6.1.2. Elements of Physical Evidence Physical evidence comprises the following elements: ‘Elements of Physical Evidence Physical Environment vs ‘Communication Price Service Personnel ‘Tangible Products ‘Accompanying Service Brand! Corporate Identity 1) Physical Environment: The physical surroundings or the service environment also play a major role in determining if the consumer will avail the service again. The physical environment comprises the following factors: i) Layout: ‘The layout refers to the physical arrangement of the service elements. The service specifications should afford comfort and well-being to the customers. For example, the seating arrangement should be such that the customers feel comfortable while siting especially in case they heed to wait for a while to be attended. There should not be unnecessary obstacles, ii) Atmosphere: The atmosphere in which the service experience is enacted also has a big impact on the Customer, The atmosphere includes factors like the lighting conditions, sound levels, the fragrance,- MBA Third Sementer (Services Marketing) VTU an in be done ces co sme es aa king Tari eran at . in mos : beauty salons, and spa, light music is played to enhance the service environment. iii) Ambience/Aestheties: The ambience of the service environment also plays an important 70's in influencing customer's decision to avail the service again. For example, many palaces: WN Tuxery converted into hotels in India. This has been done to create the right ambience of grandeur for the customers. ffecti 2) Communication: Physical evidence also involves communication factor. Every firm needs ee communicate its customers abovt the services, their use and methods for using ete f seance ia Order 6 in shopping malls, retail stores, and multiplexes, the customers should Pe POS ards or by placing locate the items they want to buy. ‘This can be done through the effe ‘employees in prominent places to guide the customers. . service by the service 3) Price: Price is another element of service's physical evidence. The price charged {°° 1 SO ium price provider is used as a quality indicator by the customers. Normally when the #00" 2 ty when it is then the customers also have higher expectations from terms of quality ns compare priced lower or average. However, the maximum price that can be charged fora Sr of the service oe 4) Service Personnel: The behaviour, etiquettes and appearance ‘service quality. This Sino has an important role to ply in enhancing perception of the CuSO I note an dress in tidy, neat and clean uniform. Body odour, lena) ef factors for good appearance. Customers. " Products Accompanying Service: providers also tend to offer tangible products to the ° eee ocho dele service Seine For example, tls offer welcome aie ee hecthates to their valued puests. Even hospitals are practicing this to make their patients ee 6 ee firm, For example, people generally have greater trust in company service oulcts C207 te ite Mahindra, Hyundai, Maruti) rather than a local mechanic practicing himself in case of car service: ' att tet because the mechanic will not be capable of providing efficient service, but because value which provides deeper trust to the customers. G13. Physical Evidence Strategies ‘Some of physical evidence strategies are as follows: ‘Recognise the Suategic Impact of ‘Map the Physical Evidence of Physical Evidence Service "Assess and Identify Physical ‘Be Prepared to Update and Evidence Opportunities ‘Modemise the Evidence 1) Recognise the Strategic Impact of Physical Sividence: The physical evidence plays a big role in shaping the perceptions and the altitudes of the consumers. In the case of many firms, the first step towards providing physical evidence is recognising the need and impact of it on customers and service delivery process. They then take steps to examine the potential of the physical evidence and'make a strategic plan. It is therefore very essential that the physical evidence be a part ofthe strategic vision and mission of the company. 2) Map the Physical Evidence of Service: The next critical step is to map the various elements of the service. The existing elements of physical evidence and service process should be visible to everyone. This can be done effectively by employing the tool of service blueprint or service map. The service blueprint has many advantages. One of the main advantages that it confers is that it allows the service firm to capture the manyPiysical Bvidence in Services (Unit 6) : physical evidence opportunities. The people, process and the physical evidence can Be very clearly visualised in the service blueprint " 3) Assess and Identity Ph, 1 After identifying the various types of physica evidence in the service rte the next step is to look (x scne fr improvement “For coon Sevice elements. It is important to look for missed opportunites in the current service desisy. Foe example, (he blueprint may show to the organisation that very litte of the physical eviden my yscal cridence oa ‘The organisation can thus devise a strategy for making more elements of the eet the consumer so that the efficiency of the service is improved. P fi 4) Be Prepared to Update and Modernise the Evidence; It has been seen thatthe #T™es *Pesifcations for physical evidence a to 5 constantly aes wad wooded This is also 20 cerpion and colours, styles and combinations need to be periodically changed so that different messages can be relayeq to the target consumers, Work Cross-Functionally: The communication or relaying of the orga the ieee is a very important aspect in marketing. The messages shoud be consistent and all POY This alo mene ald be present in such a manner that the message that is relayed to the consumer is aa the different departments in the organisation need to work in a cohesive and synch 6.1.4. Importance of Physical Evidence in Services J/, ~4/ ¢., Physical evidence is important because of the following reasons: 5 Importance of Physical Evidence in Services 7 in Developing Bewer Costomes 7 Enhances in Prodvctvity | “Managing Bete Service Quality Re Posiconing of Service 1) Enhances Productivity: Its important to achieve the right configuration of the tangible elements (service outlet, interior, sabi etc.) of the service. This ws chental not only from customer s perspective but also for improving the functional aspects of service delivery. A well-planned and implemented physical environment like soothing ambience, controlled temperature, pleasing interior designs, and pleasant fragrance motivates the employees as well in delivering their best performance without feeling restless. 2) Developing Better Customer Perception: Developing better customer perception means infusing positive imitations in customer's mind regarding services. Here, physical evidence plays an important in creating positive Perceptions. For example, a car mechanic needs to augment the image of his services by putting up posters which display the service offerings or various service credentials. This creates the right mindset in the customer. 3) Managing Better Service Quality: Appropriate physical evidence also helps in managing the service quality. For example, efficient housekeeping, cooperative staff, maintaining excellent facilities for customers, etc. assist in delivering high service quality to the customers. In the same way, firms that provide proper grooming to their staff, manages dress code and are sensitive about the customers associated with the firm are indirectly leading towards designing effective and quality services for the customers. 4) Re-Positioning of Service: The rebranding or repositioning of the services can also be done by changing the ications of the physical evidence. For example, modifying the modes of providing services or installing new infrastructure. The company may often not change the core elements of the service but instead other aspects like the physical ambience, the staff rendering the services, etc. for exhibiting the repositioning of service in front of the customers. 761.5. Guidelines for Physical Evidence/Guidance for Physical Evidence Strategies The management of the physical evidence is an absolutely vital segment of the strategy of the organisation. It is the employees as well as the customers. The guidelines for framing the physical evidence are as follows:— 180 Seme 7 MBA Third Semester (Services Marketing) VU ili) Remote Service: In the remote service environment, customers play a negligible role. This Services, telecom, etc. These types of service can be offered from a remote location and the custom need not even see the service being performed. Here, importance is given to the needs and preference, Of employees. The objective is to cfeate good working conditions, motivate the employees, enhance productivity, and achieve operational efficiency, Complexity of the Servicescape: The horizontal dimension of table 6.1 mentions another facet that can impact the servicescape. This states that servicescape can be categorised on the basis of complexity. Service denigns can be lean or very complex. Some servicescapes may be simple, involving few elements; some may have few paces and equipment, known as lean. For example, FedEx Courier points and information Tleaks at shopping malls, This type of servicescape has simple designs, especially in case of remote or self- Service situations where the interaction between customers and employees is very less. (On the other hand, some servicescapes can be very complex in design. For example, a hospital may have many floor, departments, employees, patients, doctors, sophisticated processes and equipment. There is thus great complexity in the service design of such hospitals. In such complex environments, the organisational and marketing objectives can be achieved through careful management of the service landscape. For example, the mnt’s room design can be designed in such a manner that it gives maximum comfort to the patients while at the eeme time ensuring maximum productivity and efficiency in operations of the hospital facilitating employees. | Typology Implications: Once the service firm locates exactly where it fits in the cell of typology, then it ‘can answer the resulting questions: j) Who should be Consulted in Making Servicescape and other Evidence Decisions?: If the service firm locates itself in self-service cell, then it needs to focus more on the needs of the customers and make efforts in satisfying them. It should look at ways in which the convenience of the consumers can be increased while consuming the service. On the other hand, if the service firm locates itself in the interpersonal cell then it needs to look at the needs of both customers and employees and the interaction between them. Here, the decision process becomes difficult ji) What Organisational Goals might be Targeted through Servicescape Design?: The self-service firms should focus on achieving the marketing objectives like targeting customers and providing high- end customer satisfaction. On the other hand. if the model of service design is remote then the service firm needs to focus on the workgroup needs, targeting on enhancing employee's productivity and ‘motivation. In the case of interpersonal designs, both organisational and marketing objectives need to be targeted. The management here needs to understand that the solution for achieving organisational objectives may largely differ from solutions made for achieving marketing objectives. iii) How Complex is the Set of Decisions Regarding the Servicescape?: The decisions related to laborate service environment will be more complex as compared to decisions related to lean service ‘environment. The more elaborate the servicescape in regards to its facility or space, processes, ‘equipment, layout, diversified services, etc. the more complex the service design decisions are likely to be. The increased complexity will also entail greater investments in terms of money, people, time, etc. Typically the most complex designs can be seen where the template is interpersonal and elaborate as the service design will have to address the multiple needs of customers, employees and their interaction. 2» 3 3. Role of Servicescapes Servicescape plays following roles: Role of Serviceseapes Package HH Fraliator pea; Differentiator 1) Package: Servicescapes serves as a package for the services offered by the service firms image s and creates of what the consumers likely to get when be subscribes tothe service offering. They help in creating an image for the service and the creation of a suitable emotion and i mn and sensory perception which enhances the effici yf the serve offer I's thi ery gd way of mpmening hese that is being offered by the service Bm.a 1 physical Evidence in Services (Unit 6) Uy In a way, it also helps to give a realistic assessment ofthe expectation of the customer and senforcs the views and perceptions that he may have of the service offering. The servicescape isa very criucal Aspect ofthe service firm because itis the outward manifestation ofthe service paradigm of the organisation and can be instrumental in shaping the initial perceptions that the consumer may have of the service 2) Facilitator: The servicescape also acts as a facilitator of the service process. It assists both the customer and the employee to make maximum utilisation ofthe service opportunity so that the maximum satisfaction is provided. It also helps in providing convenient, user-friendly services to the customers and the employees find pleasure in rendering services to the customers. The manner in which the servicescape is designed can enhance or disrupt the smooth conduct of the service activities for the customers as well as employees which may further act as a constraint in achievement of their personal objectives. 3) Socialiser: Servicescape designs helps in the socialisation of both the customers and employees. It defines their expected roles, behaviour and relationship in the sence delivery. This can be seen when the servicescape of a private and a public sector bank are compared. In a public sector bank, large areas are restricted to the customer. A line is marked or signboards are used to define these restricted areas. The mindset is very clear —a very large part ofthe bank is out of bounds of the customer. This area is the place Where the operations of the bank are conducted - away from the gaze of the customers. However, in case of private ‘banks, the customers can more conveniently approach the operations department and higher authority. The approach in private sector banks isa stark contrast. Here the seating spaces forthe customers are comfortable. He can do his banking transactions in comfort. Amenities like drinking water and comfortable seating are adequately provided. This leads to positive interactions between the employees and the customers. Differentiator: This is one of the most important roles played by servicescapes. The layout of the service firm also conveys its nature to the customers. For example, one bank can be differentiated with the other on the basis, of colours used in layouts. IDBI bank can be distinguished from other banks because green is the main colour Whereas red is the main colour in the case of HDFC bank. Similarly, a restaurant also has a very different look and feel in the form of well laid out tables, candle-lit tables, polished cutlery, etc. The servicescape also helps to differentiate one service provider from its competitors and determining the target segment of the service firm. .4. _ Framework for Understanding Servicescape and its Effects on Behaviour: Experience Servicescape Elements is true that servicescape plays important roles in service firm’s strategic decisions. However, while designing a servicescape it is important to understand the effects that it has and how they can be effectively managed, 4) Architectural Holistic Internal | Eoctenmement Individual Behaviours oe Se ar | nt OE Ecos 3 See ee | [3 Sora sere, |) Seen Conditions a a ee = ae ees = 3a = ‘Space/Punction Perceived customers and employees 1) Layout r—| Servicescape employees. te 3 ee ara one a and Artifacts Responses 1) Attraction ieee = emer) ee a Fee Fay Pet [|S cata “ +3) Symbolic 3) Movement aed Hel igure 6.1: Experience Servicescape Elements (Source: Adapted from MJ. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customer loyees,” = Journal of Marketing 56 (April 1992), pp. 87-71) Snot12 MBA Third Semester (Services Marketing) VTU 1) Architectural Elements: The behaviour and responses of the customers and employees are influenced by a ‘complex mixture of various environmental factors. These factors have been broadly categorised imo the following types: i) Ambient Conditions: This refers to the background environmental characteristics, like lighting. sound levels, music, odour, interior, etc. These factors have a very strong impact on the way people level, mused intr, tne wen eon impact on the wy people frm period. The customer or employee develops an opinion after spending a substantial amount of time in the servicescape. ii) Spatial Layout and Functionality: The spatial layout refers to the way the various service ingredients (machinery, equipment and furnishings) are arranged. It also includes the shape and size of these ingredients and spatial relationship between them. The functionality refers to how well these items arc able to fulfil the function for which they have been deployed. These two factors are especially important in case of self-service design where customer has to undertake the services on his ows without or with least involvement of employee assistance. iii) Signs, Symbols and Artifacts: The various items in the servicescape serve as communication tools for the service in the form of explicit or implicit signals. Some examples of explicit communication are the exteriors and the interiors of the service process. These signs can be used for directional labels or for communicating the rules for behaviour both for employees and customers. Similarly, symbols and artifacts used as an indirect medium of communication are known as implicit cues. The photographs, certificates, artwork, and other such objects can act as an implicit medium in communicating the meaning and impression of the services. 2) Behaviours in the Servicescape: In servicescape behaviour can be categorised in two ways i) Individual Behaviours: Psychologists are of the opinion that individuals react to stimuli in two ways — positive behaviours and negative behaviours. This can also be termed as approach and avoidance, Where approach refers to positive behaviour while avoidance refers to negative behaviours. The servicescape helps in creating win-win situations in the service setting. It can enhance the chances of getting success for an individual while actualising the plan and achieving desired results. Every customer comes with a certain level of expectations regarding services. These expectations can either ‘be helped or disrupted by the service setting. Social Interactions: The servicescape also influences the interactions between the customer and the employee. It is said that all social interaction is affected by the physical setting in which it occurs, Many environmental factors like the physical proximity, size, the way the people are seated, and flexibility help to outline the service experience. 3) Internal Responses to the Servicescape: Servicescapes do not have a direct impact on the behaviour of people. In fact, the physical environment has an indirect way of impacting the behaviour through the internal states. The way the employees and customers respond cognitively, emotionally and psychologically to environmental dimensions. ii) ‘This is what in tum leads to certain types of behaviours. Firstly, the customers and employees perceive the physical environment which results in cognitive, emotional and physiological responses. Further, these responses affect their behaviour. Conversely, the internal responses lead to the framing of behavioural responses of an individual. i) Cognitive Responses: Cognitive responses can be of three types in reaction to what happens in the physical environment: a) Beliefs: Beliefs are subjective judgments in response to something. For example, with regards to ‘medical services, one can form a belief about a doctor based on factors like cleanliness at the hospital, location of clinic, arrangement of facilities, equipment, the dress and behaviour of the staff, ete. The environment can also lead to the formation of subjective beliefs among the employees in regards to the service firm. b) Categorisation: Individuals store information through a process of categorisation. For examy cars can be categorized as small, luxury, SUV, all-terrain, rugged, commercial etc. In brief, io process of categorisation adds label or meaning to an object. .r physical Evidence in Services (Unit 6) ie c) Symbolic Meaning: The physical environment can also possess symbolic meaning. These symbolic meanings are interpreted by users or employees in different ways. ii) Emotional Responses: Servicescapes can also impact the emotions of the employees and customers. Some environments can make the customers disappointed whereas others may make them happy and excited, iti) Physiological Responses: The physical environment can also have a physical impact on the customers and employees. The factors leading to physiological responses are temperature, noise, visibility, quality of air, odour, etc. For example, the presence of smoke in the physical environment can make the non- smokers feel uncomfortable. Similarly, when the surroundings of a restaurant lack required lightening, the customers may have difficulty in reading the menu. The physical environment can thus influence | the people to either avoid or seek such places. iv) Behavioural Response: The behavioural response of customers and employees usually seen in the form of avoidance or approach. The positive approach behaviour can take the form of desire to affiliate and work, explore, and stay. Individuals who want to approach tend to form meaningful relationships, buys more products, follow rules, co-operate with others, etc. On the other hand. someone with an avoid mindset will want to curtail the service, not willing to follow the rules or co-operate with other employees and customers. Employees also follow the same rules of avoid or approach. Approach behaviour in them is also reflected by long-term involvement and commitment with the firm, good affiliation with associates and customers, etc. Similarly, avoidance is reflected in their behaviour through unwillingness to perform well, misbehaving with customers and colleagues. etc. 6.1.6.5. Approaches for Understanding Servicescape Effects To design environments that work from both marketing and organisational behaviour perspectives. firms need to research environmental decisions and plan them strategically. The needs of ultimate users and the requirements of various functional units must be incorporated into environmental design decisions. Various means whereby an organisation can Jearn about users’ reactions to and preferences for different types of environments are as follows: 1) Environment Surveys: An environment survey asks people (either customers or employees) to express their needs and preferences for different environmental configurations by answering predetermined questions in a questionnaire format. ‘The advantages of surveys are the ease of administration and interpretation of results. Usually the data are collected via standardised questions and the results can be entered into a computer and easily interpreted. ‘Thousands of questionnaires can be sent-out or administered over the phone, so sample sizes can be very large and many environmental variables can be explored simultaneously. The primary disadvantage of an environmental survey is that sometimes the results may be less valid than results from other methods — ie., the answers to the survey questions may not truly reflect how people feel or how they will behave. 2) Direct Observation: Using observation methods, trained observers make detailed accounts of environmen- tal conditions and dimensions, also observing and recording the reactions and behaviours of customers and employees in the servicescape. The advantages of direct observation, when done by highly trained and skilled observers, are the depth of information acquired and its accuracy. The interrelationship of elements of the environment and the reactions and interactions of participants in the environment can be unobtrusively recorded, increasing the validity of the findings beyond what is typically found in a standardised survey. The findings could be very useful in re-designing the servicescape or in comparing different facilities. ‘The disadvantages of direct observation are primarily related to time and costs: i) The researchers who observe the servicescape must be highly trained and skilled in ethnographic ‘methods, which make data collection expensive. ii) They must be allowed to observe for some period of time, and the interpretation of their detailed records can be very labour intensive. Unlike the survey method, the data cannot as a rule be entered into a computer and analysed with nice, clean quantitative results.—y 184 MBA Third Semester (Services Martetiog, yy 3) Experiments: Experimental methods are among the best ways to assess specific customer and reactions to environmental changes or alternatives when it is important to know their true rece preferences. Experiments involve exposing groups of customers to different environmental configuraisn, fand measuring their reactions. In a study, background music type and tempo have been varied in proce stores and restaurants and the effect on traffic pace, sales and other variables has been measured. In bop ‘cases, the type of music played had an effect on sales. The advantages of experiments le primarily in the validity of the results; i. if the experiment is crea done, one can believe and rely on the results. Because environmental dimensions often affect subconsciously and the multitude of dimensions interacts to form a composite impression, it is difica w feet accurate responses to questions about the environment in the absence of actual experience. The disadvantages of experiments relate primarily to costs and time. Ideally, actual servicescaye prototypes would be designed and various groups of consumers would respond to the alternatives. 4) Photographic Blueprints: A photographic blueprint essentially provides a visualisation of the service each customer action step. The visual can be a slide, a photograph, or the entire service process w ‘videotaped from the customer's point of view. By combining a service blueprint with photos, managers ang other service employees can see the evidence of service from the customer's point of view. The photographic blueprint can provide a powerful analytic tool to begin assessing the service process. ‘As an advantage, Photographic blueprints are extremely useful in providing clear and logical docs. mentation of the physical evidence as it currently exists in a given service situation. The main disadvantage of a photographic blueprint is that it is just a starting point. In and of itself it does not answer any questions, but many questions can be asked of it. It does not give any clues as to customer and employee preferences and needs; it could, however, be used as a catalyst for gathering customer and employee opinions. 6.2.1. Very Short Answer Type Questions 1) Define brand or corporate identity as the element of physical evidence. 2) Define servicescapes. Explain environment surveys. 3) /& 4) What is meant by physical environment? » ‘What is physical evidence in services? Define. 6.2.2. Short Answer Type Questions ‘ype 7 1) Explain the importance of physical evidence. | 2) Discuss the guidelines for physical evidence strategies. 3) Bring out the objectives and goals of the servicescape. 4) Highlight any five elements of physical evidence. 5) What are the environmental dimensions of the servicescape? 6.2.3. Long Answer Type Questions 1)” plain the types of servicecapes im eal 2) Discuss the role of servicescapes. 3) Elaborate various approaches for understanding servicescape effects. 4 py Discuss the framework for understanding servicescape effects on behaviour. (/) ¥ 1)