Presentation on theme: "Planning the Service Environment"— Presentation transcript:
1 Planning the Service Environment Chapter 10Planning theService Environment
2 The Purpose of Service Environments The service environment influences buyer behaviour in 3 waysMessage-creating Medium: symbolic cues to communicate the distinctive nature and quality of the service experience.Attention-creating Medium: to make the servicescape stand out from other competing establishments, and to attract customers from target segments.Effect-creating Medium: colors, textures, sounds, scents and spatial design to enhance the desired service experience, and/or to heighten an appetite for certain goods, services or experiencesHelps the firm to create a distinctive image & positioning that is unique.
3 Comparison of Hotel Lobbies (Figure 10.1) The servicescape is part of the value proposition!Orbit Hotel and Hostel, Los AngelesFour Seasons Hotel, New York
4 The Mehrabian-Russell Stimulus-Response Model (Figure 10.2) Response Behaviors:Approach/Avoidance & Cognitive ProcessesDimensions of Affect:Pleasure and ArousalEnvironmental Stimuli & Cognitive Processes
5 The Mehrabian-Russell Stimulus-Response Model Simple and fundamental model of how people respond to environmentsPeoples’ conscious and unconscious perceptions and interpretation of the environment influence how they feel in that environmentFeelings, rather than perceptions or thoughts drive behaviorTypical outcome variable is ‘approach’ or ‘avoidance’ of an environment, but other possible outcomes can be added to the model as well
6 The Russell Model of Affect ArousingPleasantSleepyUnpleasantExcitingRelaxingBoringDistressing
7 The Russell Model of Affect Emotional responses to environments can be described along two main dimensions, pleasure and arousal.Pleasure is subjective depending on how much the individual likes or dislikes the environmentArousal quality of an environment is dependent on its “information load”, i.e., its degree ofNovelty (unexpected, surprising, new, familiar) andComplexity (number of elements, extent of motion or change)
8 Drivers of AffectAffect can be caused by perceptions and cognitive processes of any degree of complexity.Simple Cognitive Processes, Perception of Stimulitangible cues (of service quality)consumer satisfactionComplex Cognitive Processesaffective charged schemata processingattribution processesThe more complex a cognitive process becomes, the more powerful its potential impact on affect.However, most service encounters are routine. Simple processes can determine affect.
9 Behavioral Consequence of Affect Basically, pleasant environments result in approach, and unpleasant environments result in avoidanceArousal acts as an amplifier of the basic effect of pleasure on behaviorIf the environment is pleasant, increasing arousal can lead to excitement and stronger positive consumer response. If the environment is unpleasant, increasing arousal level will move consumers into the Distressing regionFeelings during the service encounter is also an important driver of customer loyalty
10 An Integrated Framework – Bitner’s ServiceScape Model (Figure 10.4) Environmental DimensionsModeratorsInternal ResponsesBehaviourHolistic Environ- mentCognitiveEmotionalPsychologicalAmbientConditionsSpace/FunctionSigns,Symbols & ArtefactsApproachorAvoidEmployeeResponse ModeratorEmployee ResponsesSocial Interaction Between Customers & EmployeesPerceived ServiceScapeCustomer ResponsesCustomer Response ModeratorApproachorAvoidCognitiveEmotionalPsychological
11 An Integrated Framework – Bitner’s ServiceScape Model(con’t) Identifies the main dimensions in a service environment and views them holisticallyCustomer and employee responses classified under, cognitive, emotional and psychological which would in turn lead to overt behavior towards the environmentKey to effective design is how well each individual dimension fits together with everything else
12 Dimensions of the Service Environment Service environments are complex and have many design elements. The main dimensions in the servicescape model includes:Ambient ConditionsMusic (e.g, fast tempo and high volume increase arousal levels)Scent (strong impact on mood, affect and evaluative responses, purchase intention and in-store behavior)Color (e.g, warm colors associated with elated mood states and arousal but also increase anxiety, cool colors reduce arousal but can elicit peacefulness and calm)
13 Dimensions of the Service Environment (con’t) Spatial Layout and FunctionalityLayout refers to size and shape of furnishings and the ways it is arrangedFunctionality is the ability of those items to facilitate performanceSigns, Symbols and ArtifactExplicit or implicit signals to communicate the firm’s image, help consumers find their way and to convey the rules of behavior
14 Impact of Music on Restaurant Diners (Table 10-2) Restaurant PatronBehaviorFast-beat MusicEnvironmentSlow-beat Music EnvironmentDifference betweenSlow and Fast-beatEnvironmentsAbsolute Difference%DifferenceConsumer time spent at table45min56min+11min+24%Spending on food$55.12$55.81+$0.69+1%Spending on beverages$21.62$30.47+$8.85+41%Total spending$76.74$86.28+$9.54+12%Estimated gross margin$48.62$55.82+$7.20+15%
15 The Effects of Scents on the Perceptions of Store Environments (Table 10-3) EvaluationUnscented Environment Mean RatingsScented Environment Mean RatingsDifferenceStore EvaluationNegative/positive4.655.24+0.59Outdated/modern3.764.72+0.96Store EnvironmentUnattractive/attracti ve4.124.98+0.86Drab/colorful3.63+1.09Boring/Stimulating3.754.40+0.65
16 The Effects of Scents on the Perceptions of Store Environments (Table 10-3) EvaluationUnscented Environment Mean RatingsScented Environment Mean RatingsDifferenceMerchandiseOutdated/up- to-date style4.715.43+0.72Inadequate/adequate3.804.65+0.85Low/high quality4.815.48+0.67Low/high price5.204.93-0.27
17 Aromatherapy: The Effects of Fragrance on People (Table 10-4) Aromather apy ClassTradition al UsePotential Psychological Impact on PeopleOrangeCitrusCalmingSoothing agent, astringen tCalming and relaxing effect esp. for nervous peopleLavenderHerbaceo usCalming, balancing, soothingMuscle relaxant, soothing agentRelaxing and calming, helps create a homey and comfortable feelJasmineFloralUplifting, balancingEmollient soothing agentHelps makes people feel refreshed, joyful, comfortablePeppermintMintyEnergizing, stimulatingSkin cleanserIncrease attention level and boosts energy
18 Common Associations and Human Responses to Colors (Table 10-5) Degree of WarmthNature SymbolCommon Association and Human Responses to ColorRedWarmEarthHigh energy and passion; can excite, stimulate, and increase arousal and blood pressuresOrangeWarmestSunsetEmotions, expressions, and warmthGreenCoolGrass and TreesNurturing, healing and unconditional loveBlueCoolestSky and OceanRelaxation, serenity and loyalty
19 Selection of Environmental Design Elements There is a multitude of research on the perception and impact of environmental stimuli on behaviour, including:People density, crowdingLightingSound/noiseScents and odoursQueuesNo standard formula to designing the perfect combination of these elements.Design from the customer’s perspectiveDesign with a holistic view!
20 Tools to Guide in Servicescape Design Keen Observation of Customers’ Behavior and Responses to the service environment by management, supervisors, branch managers, and frontline staffFeedback and Ideas from Frontline Staff and Customers using a broad array of research tools ranging from suggestion boxes to focus groups and surveys.Field Experiments can be used to manipulate specific dimensions in an environment and the effects observed.Blueprinting or Service Mapping - extended to include the physical evidence in the environment.