Transcript 1. What is the Purpose of Service Environments?

Services Marketing 7e, Global Edition
Chapter 10:
Crafting the
Service Environment
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Chapter 10 – Page 1
Overview of Chapter 10
1. What is the Purpose of Service Environments?
2. Understanding Consumer Responses to Service
Environments
3. Dimensions of the Service Environment
4. Putting It All Together
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Chapter 10 – Page 2
1. What is the Purpose of
Service Environments?
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Chapter 10 – Page 3
Purpose of Service Environments
1. Shape customers’ experience and their behaviors
2. Support image, positioning, and differentiation
3. Part of the value proposition
4. Facilitate service encounter and enhance productivity
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1. Shape customers’ experience and their behaviors
 Message-creating medium
 symbolic cues to communicate the distinctive nature and quality of
the service experience
 Attention-creating medium
 make servicescape stand out from competition and attract
customers from target segments
 Effect-creating medium
 use colors, textures, sounds, scents,and spatial design to enhance
desired service experience
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2. Support Image, Position, and Differentiation: cosmetic surgery patients
reactions to doctor's office: 1. health spa, 2. hospital ward (graphic posters)
Four Seasons Hotel, New York
Orbit Hotel, Los Angeles
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3. Servicescape as Part of Value Proposition
 Physical surroundings help shape appropriate feelings and
reactions in customers and employees
 e.g., Disneyland, Denmark’s Legoland
 Servicescapes form a core part of the value proposition
 Las Vegas casino: repositioned itself to a somewhat more
wholesome fun resort, visually striking entertainment center
 Florida-based Muvico: builds extravagant movie theatres and
offers plush amenities. “What sets you apart is how you package it.”
(Muvico’s CEO, HamidHashemi)
The power of servicescapes is being discovered
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4. Facilitate the service encounter, enhance productivity
 Fail-safe methods
 Toy outlines on walls and floors
 Tray-return stands and notices on walls
 Hospitals helps patients recover
 Single-bed rooms, reduce noise levels, improve lighting, design
layout, provide distractions……
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2. Understanding Consumer
Reponses to
Service Environments
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Mehrabian-Russell Stimulus-Response Model
Feelings are a key driver of Customer Responses to Service Environments.
Environmental Stimuli
& Cognitive Processes
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Dimensions of
Affect:
Pleasure and
Arousal
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Response Behaviors:
Approach / Avoidance,
Cognitive Processes
Chapter 10 – Page 10
Insights from Mehrabian-Russell Model
It is a simple yet fundamental model of how people respond to
environments that illustrates:
 X: The environment, its conscious and unconscious perceptions, and
interpretation influence how people feel in that environment
 Z: Feelings, rather than perceptions/thoughts drive behavior
 Y: Typical outcome variable is ‘approach’ or ‘avoidance’ (Y1) of an
environment, but other possible outcomes (Y2) can be added to model
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The Russell Model of Affect, Z1, Z2, Z3, Z4
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Insights from Russell’s Model
 Emotional responses to environments can be described
along two main dimensions:
 Pleasure: subjective, depending on how much individual likes or
dislikes environment
 Arousal: how stimulated individual feels, depends largely on
information rate or load of an environment
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Drivers of Affect, X
 A customer’s disappointment (Emotion) with service level
and food quality
 If higher levels of cognitive attribution processes (under
firm’s control) are triggered, the interpretation of this
process determines people’s feelings
 The more complex a cognitive process becomes, the more
powerful its potential impact on affect
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Behavioral Consequence of Affect, Y
 Pleasant environments result in approach (Y1), whereas
unpleasant ones result in avoidance
 Arousal amplifies the basic effect of pleasure on behavior
 If environment is pleasant, increasing arousal can generate
excitement, leading to a stronger positive consumer response
 If environment is unpleasant, increasing arousal level will move
customers into the “distressed” region
 Feelings during service encounters are an important driver
of customer loyalty (Y2)
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An Integrative Framework: The Servicescape Model,
Bitner, environmental psychology
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An Integrative Framework: The Servicescape Model
 Identifies the main dimensions in a service environment (
X1, X2, X3) and views them holistically
 Internal customer and employee responses (Z1, Z2) can be
categorized into cognitive, emotional, and psychological
responses, which lead to overt behavioral responses (Y1,
Y2) towards the environment
 Key to effective design is how well each individual
dimension fits together with everything else
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3. Dimensions of the
Service Environment
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Main Dimensions in Servicescape Model
1. Ambient Conditions
 Characteristics of environment pertaining to our five senses
2. Spatial Layout and Functionality
 Spatial layout:
- Floor plan
- size and shape of furnishings
 Functionality: ability of those items to facilitate performance
3. Signs, Symbols, and Artifacts
 Explicit or implicit signals to:
- help consumers find their way
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1. Ambient Conditions
 Ambient conditions are perceived both separately and
holistically, and include:
 Lighting and color schemes
 Size and shape perceptions
 Sounds such as noise and music
 Temperature
 Scents
 Clever design of these conditions can elicit desired
behavioral responses among consumers, e.g., 客人多店面小
太擠，太熱，太吵，氣味不好聞，垃圾沒處丟
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Music
 In service settings, music can have powerful effect on
perceptions and behaviors, even if played at barely audible
levels
 Structural characteristics of music―such as tempo,
volume, and harmony―are perceived holistically
 Fast tempo music and high volume music increase arousal levels,
加快翻桌率， slow tempo, unfamiliar music: 坐久些，走得慢些，增加
飲料...收入
 People tend to adjust their pace to match tempo of music, e.g.,
younger （多變）/ older people （不變），classical music: 嚇阻不熟
悉此音樂的人
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Scent
 An ambient smell is one that pervades an environment
 May or may not be consciously perceived by customers
 Not related to any particular product
 Scents have distinct characteristics and can be used to
solicit emotional, physiological, and behavioral responses,
e.g., freshly baked bread, flower…
 In service settings, research has shown that scents can
have significant effect on customer perceptions, attitudes,
and behaviors, e.g., pleasant artificial smell, outsourced to
Ambius
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Aromatherapy: Effects of Selected Fragrances on People
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Color
 Colors can be defined into three dimensions:
 Hue is the pigment of the color
 Value is the degree of lightness or darkness of the color
 Chroma refers to hue-intensity, saturation, or brilliance
 People are generally drawn to warm color environments
 Warm colors encourage fast decision making and are good for
low-involvement decisions or impulse buys
 Cool colors are preferred for high-involvement decisions
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Common Associations and Human Responses to Colors
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2. Spatial Layout and Functionality
 Spatial layout: Floor plan, size and shape of furnishings ,
e.g., 廁所設在兩樓層的中間，餐廳方向指示不清楚，垃圾桶太少
且位置不明顯 (Disney)
 Functionality: ability of those items to facilitate performance
, e.g., 停車位不夠，演講聽座位不舒服，銀行櫃臺缺乏隱私，餐
廳座位靠太近，洗手間沒鏡子
 Clever design of these conditions can elicit desired
behavioral responses among consumers
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3. Signs, Symbols, and Artifacts
 Communicates the firm’s image and helps customers find their
way

First time customers will automatically try to draw meaning from the
signs, symbols, and artifacts, e.g., Kuala Lumpur International Airport,
“fine” city (Singapore), Boston Logan Airport, 五楊高架路去機場

Unclear signals from a servicescape can result in anxiety and uncertainty
about how to proceed and obtain the desired service, e.g.,車位、餐廳、
廁所的位置不好找
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4. Putting It All Together
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Selection of Environmental Design Elements
 Consumers perceive service environments holistically
 No dimension of design can be optimized in isolation, because
everything depends on everything else, e.g., 薰衣草香味（放鬆），
應配合慢節奏音樂，讓書店客人較滿意，停留較久，購買較多（輕快音
樂則應配葡萄柚喚醒香味）
 Design from a customer's perspective, e.g., user unfriendly
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Tools to Guide Servicescape Design
 Keen observation of customers’ behavior and responses
 Feedback and ideas from frontline staff and customers
 Photo audit – Mystery Shopper to take photographs of service
experience, e.g., 有圖有真相
 Field experiments can be used to manipulate specific dimensions
in an environment and the effects observed, e.g., Before/ After
 Blueprinting or service mapping–extended to include physical
evidence in the environment
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Summary
 Service environment:
 Shapes customers’ experiences and behavior
 Facilitates service encounters and enhances productivity
 Mehrabian-Russell stimulus-response model and Russell’s model
of affect help us understand customer responses to service
environments
 Main dimensions of servicescape model:
 Ambient conditions – music, scent, color, etc.
 Spatial layout and functionality
 Signs, symbols, and artifacts
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Chapter 10 – Page 31
Summary
 When putting it all together, firms should
 Design with a holistic view
 Design from a customer’s perspective
 Use tools to guide servicescape design
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Chapter 10 – Page 32