Crafting the Service Environment

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Lovelock: Chapter 10
I would sincerely request you all to go through the chapters in the book, when you study.

What is the Purpose of Service Elements?



Service environments, also called servicescapes, relate to the style and appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites. Designing the service environment is an art that takes considerable time and effort, and can be expensive to implement. Once they are built, service environments are not easy to change.

Effect-creating Medium: colors.Shaping Customers’ Experiences and Behavior § § For high-contact services. and to attract customers from target segments. sounds. and/or to heighten an appetite for certain goods. services or experiences § § Helps the firm to create a distinctive image & positioning that is unique. textures. Attention-creating Medium: to make the servicescape stand out from other competing establishments. The servicescape affects buyer behavior in 3 ways: § Message-creating Medium: symbolic cues to communicate the distinctive nature and quality of the service experience. the design of the physical environment and the way in which tasks are performed by customer-contact personnel jointly play a vital role in creating a particular corporate identity and shaping the nature of customers’ experiences. scents and spatial design to enhance the desired service experience. .


have simple appearance.Image. Firms that wish to project the image of being low-price set up shop in inexpensive neighborhoods. and firms take great pains to signal quality and portray the desired image. . and minimize waste of space. and customers use the servicescape as an important proxy for quality. Positioning and Differentiation § § Services are often intangible. Many servicescapes are purely functional.

Las Vegas . Example: Disneyland.Servicescape as Part of Value Proposition § § Servicescape help to shape appropriate feelings and reactions in customers and employees.

Facilitate Service Encounter and Enhance Productivity § Servicescapes are usually designed to aid the service encounter. as well as improve productivity. place § § § § Means to reduce failures are in Color-coded keys on cash registers Mirrors for front-line staff Tray-return stands and notices in fast-food shops .

Understanding Consumer Responses to Service Environments .

Feelings are a Key Driver § There are two models that help us better understand consumer responses to service environments: § Mehrabian-Russell Stimulus-Response Model Russell’s Model of Affect § .

its conscious and unconscious perception and interpretation. rather than perceptions or thoughts. drive behavior. influence how people feel in that environment. People’s feelings in turn drive their responses to that environment. § We don’t avoid an environment simply because there are a lot of people around us. of people being in our way. . and of not being able to get what we want as fast as we wish to. of lacking perceived control. rather we are deterred by the unpleasant feeling of crowding. The model states that feelings.Mehrabian-Russell StimulusResponse Model § § The model holds that the environment.

Mehrabian-Russell Stimulus-Response Model Environmenta l Stimuli & Cognitive Processes Dimension s of Affect: Pleasure and Arousal .

new. ranging from deep sleep (lowest level of internal activity) to highest levels of adrenaline in the bloodstream – for example. Arousal quality of an environment is dependent on its “information load”. when bungee jumping. subjective response to the environment.Russell Model of Affect § § § § It is widely used to help understand feelings in service environments and suggests that emotional responses to environments can be described along two main dimensions. familiar) and Complexity (number of elements. depending on how much the individual likes or dislikes the environment. its degree of § § Novelty (unexpected. Arousal refers to how stimulated the individual feels. i. surprising. Pleasure is a direct.. extent of motion or change) .e.

Russell Model of Affect Arousin g Distressi ng Exciting Unpleasa nt Boring Relaxing Pleasan t Sleep y .

Perception of Stimuli § § cognitive tangible cues (of service quality) consumer satisfaction affective charged schemata processing attribution processes § Complex Cognitive Processes § § . Simple Cognitive Processes.Drivers of Affect § § Affect can be caused by perceptions and processes of any degree of complexity.

the more powerful is its potential on affect. Most of the time. However. colors. § § We usually have routine service encounters.Drivers of Affect § Affect can be caused by perceptions and cognitive processes of any degree of complexity. . it’s the simple cognitive processes that determine how people feel in the service setting. where we tend to function on auto-pilot mode. scents and so on. Those include the conscious and even the unconscious perceptions of space. § Example: Bad food in a restaurant cannot be compensated by good music. the more complex a cognitive process becomes.

. When customers have a strong affective expectation from services (candle-lit dinner. For example: loud. spa visit. Arousal acts as an amplifier of the basic effect of pleasure on behavior. managers need to make sure that the servicescape is designed to match those expectations. pleasant environments tend to draw people in. unpleasant environments drive us out.). etc. If customers feel positively about the environment. their loyalty increases.Behavioral Consequences of Affect § § § § § At the basic level. fast-beat music would increase the stress levels of shoppers when they are trying to make their way through crowded aisles on a pre-Eid evening.

Bitner’s Servicescape Model § § § Identifies the main dimensions in a service environment and views them holistically Customer and employee responses classified under. emotional and psychological which would in turn lead to overt behavior towards the environment Key to effective design is how well each individual dimension fits together with everything else . cognitive.

Bitner’s Servicescape Model Environmental Dimensions Moderators Holistic Environment Internal Responses Behavior Ambie nt Conditi ons Space/ Functio n Employee Response Moderator Perceived Servicescape Customer Response Moderator Cognitive Emotional Psychological Employee Responses Approac h or Avoid Social Interactions between Customers and Employees Customer Responses Cognitive Emotional Approac h or Avoid .

Dimensions of the Service Environment .

warm colors associated with elated mood states and arousal but also increase anxiety. expand. highlight. silhouette. affect and evaluative responses. sparkle. and most importantly can § § § . scale.Dimensions of the Service Environment § § Servicescapes are complex and have many design elements Ambient Conditions § Music (e. purchase intention and instore behavior) Color (e. cool colors reduce arousal but can elicit peacefulness and calm) Lighting (creative use of light can bring an interior to life – the interaction of light and shadow can sculpt.g. fast tempo and high volume increase arousal levels) Scent (strong impact on mood.g.

Symbols and Artifact § § . help consumers find their way and to convey the rules of behavior Customers become disoriented when they cannot derive clear signals from a servicescape § § Signs.Dimensions of the Service Environment § Spatial Layout and Functionality § Layout refers to size and shape of furnishings and the ways it is arranged Functionality is the ability of those items to facilitate performance Explicit or implicit signals to communicate the firm’s image.

too § The appearance and behavior of both service personnel and customers can reinforce or detract from the impression created by a service environment Termed as “aesthetic labor” § .Dimensions of the Service Environment § People are part of the service environment.

12 $21.54 +$7.69 +$8.62 $55.47 $86.28 $55.74 $48.62 $76.Impact of Music on Restaurant Diners Restaurant Patron Behavior Consumer time spent at table Spending on food Spending on beverages Total spending Estimated gross margin Fast-beat Music Environment Slow-beat Music Environment   56min Difference between Slow and Fast-beat Environments Absolute Difference +11min % Difference +24% 45min $55.81 $30.85 +$9.82 +$0.20 +1% +41% +12% +15% .

63 3.12 3.65 4.96 Unscented Environment Mean Ratings Scented Environment Mean Ratings Difference .24 4.72 +0.09 +0.The Effects of Scents on the Perceptions of Store Env Evaluation Store Evaluation Negative/positive Outdated/modern Store Environment Unattractive/attractive Drab/colorful Boring/Stimulating 4.40 +0.72 4.98 4.65 3.59 +0.75 4.86 +1.76 5.

81 5.71 3.48 4.The Effects of Scents on the Perceptions of Store Env Evaluation Unscented Environment Mean Ratings Merchandise Outdated/up.67 -0.20 style Inadequate/adequate Low/high quality Low/high price 4.27 Scented Environment Mean Ratings Difference .43 4.85 +0.93 +0.65 5.72 +0.80 4.

balancing.Aromatherapy: The Effect of Fragrance on People Fragrance Orange Aromatherap Aromatherapy Traditional y Class Use Citrus Calming Soothing agent. helps create a homey and comfortable feel Lavender Herbaceous Calming. balancing Jasmine Floral Emollientsoo Helps makes people feel thing agent refreshed. soothing agent Potential Psychological Impact on People Calming and relaxing effect esp. astringent Muscle relaxant. joyful. for nervous people Relaxing and calming. Skin cleanser stimulating . soothing Uplifting. comfortable Increase attention level and boosts energy Peppermint Minty Energizing.

e. it can evoke moods and emotions – excitement. Colors have both optical and emotional values. vibrant hues reserved for accent or highlight value. sadness. low-intensity color with strong. red. blue.g. . serenity. Color is composed of 3 elements: § § § Hue – the name of the color. happiness.Color § § Color has a language of it’s own. green Value – the lightness or darkness of a color Chroma – the intensity of strength or purity of color § § § Color can only be measured in relation to other colors. Large spaces are better balanced by using a scheme of soft. Much like music.

and increase arousal and blood pressures Emotions. can excite.Common Associations and Human Responses to Colors Color Degree of Warmth Warm Nature Symbol Common Association and Human Responses to Color High energy and passion. and warmth Nurturing. healing and unconditional love Relaxation. the most disliked color in terms of environmental settings Red Earth Orange Warmest Sunset Grass and Trees Sky and Ocean Green Blue Purple Cool Coolest Difficult . serenity and loyalty Disturbing. expressions. stimulate.

visibility and the perception of color. speed. glare. etc. The nature of the activity to be performed in the space – accuracy. penetration. § § .Lighting § When considering lighting design for a service setting. the following factors must be taken into account: § Daylighting – the way in which it is controlled influence heat. Most schemes take into account of the orientation of the building to the sun. Color – the direction and strength of daylight affect the perception of color. safety. recognition.

then even greater intensity of light will be required for the detailed work as the eyes become accustomed to the relative lessening of the contrast. If the background setting is well lit. or is it to reassure people about to board a plane? Levels of vision – if the task required detailed work from the customer or service provider then strong light is required. § § .Lighting § The service provider’s perception of the task – is it to sell visual satisfaction. while a fast-food diner or music store would wish to create a youthful. exciting. or is it to sell hamburgers? Is it to indicate the conservative solidity of a bank. Ambience – the desired mood – a church or library would generally exude a peaceful calm. gregarious atmosphere.

crowding Lighting Sound/noise Scents and odors Queues § No standard formula to designing the perfect combination of these elements. § § Design from the customer’s perspective Design with a holistic view! .Selection of Environmental Design Elements § There is a multitude of research on the perception and impact of environmental stimuli on behavior. including: § § § § § People density.

Tools to Guide in Servicescape Design § § § § Keen Observation of Customers’ Behavior and Responses to the service environment by management. Field Experiments can be used to manipulate specific dimensions in an environment and the effects observed. Blueprinting or Service Mapping . supervisors. . and frontline staff Feedback and Ideas from Frontline Staff and Customers using a broad array of research tools ranging from suggestion boxes to focus groups and surveys. branch managers.extended to include the physical evidence in the environment.

I would sincerely request you all to go through the chapters in the book. . when you study.

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