1. SERVICESCAPE SERVICESCAPE & PHYSICAL EVIDENCE Ms.Megha Mody

2. TODAY’S AGENDA Explore the impact on customer perceptions of physical evidence, particularly the servicescape Illustrate differences in types and roles of servicescapes and their implications for strategy Explore how the servicescape affects employee and customer behavior

3. SERVICESCAPESERVICESCAPE

4. 1.the actual physical ENVIRONMENT where the service is performed, delivered, and consumed. 2.Where the firm and customer interact. 3.Consider impact on customer response, particularly perceptions, evaluation, assessment. 4.Situations, where customer experiences are important. Example: patient examination room in a doctor’s office; catering service: white linen cloths, eating utensils, menus, kitchen

5. Physical Evidence the environment in which the service is delivered and where the firm and the customer interact, and any tangible commodities that facilitate performance or communication of the service. Example: when you visit the web site for Taj hotels, you can look at pictures of its newest hotels and make reservations quickly.

6. Elements of Physical Evidence

7. Physical Evidence: Customer’s Point of View

8. Factors influencing the design of the servicescape 1. Who is the servicescape for  Customers?  Employees?  Employees may feel differently to customers about the décor - they experience it for longer –Both need to be involved in the design process

9. Factors influencing the design of the servicescape 2. The complexity of the service –Lean servicescapes (simple; few elements, spaces, and pieces of equipment) for less complex service E.g. Hair cut, Mail –Elaborate for the more complex services E.g. Hotels, Restaurant, Insurance

10. Types of Servicescapes

11. Roles of the Servicescape 1.Packaging –The service package offer & communicate an image to the customer. –The physical setting of the service is wrapped & convey an external image of what is inside to customers. –To evoke an image, particular sensory or emotional reaction –Important for new customers –Includes dress and general appearance of personnel (dress for success) Exp: FedEx – providing customer with strong metaphors & service packaging that convey the brand positioning.

12. 2.Facilitating –Ensuring efficiency in service delivery –Make the service consumption comfortable & convenient for customer. –E.g. airport – International Traveller –E.g. banking services

13. 3.Socialising –Convey expected roles and behaviours of both the employee and the customer –Ease the customer/ employee relationship –Provide balance between –Ex: A new employee in an organization / Private bank Vs. Public bank

14. 4.Differentiating –A segmentation device – the design of the physical facility can differentiate a firm from its competitor. –Ex: Shopping mall – signage, color, music. –Ex: Washington Mutual Bank

15. Framework for understanding Servicescapes, Effects on Behavior BEHAVIOUR Ambient Conditions Space/Function Signs, Symbols, and Artifacts Perceived Servicescape Cognitive Emotional Physiological Cognitive Emotional Physiological Employee Responses Customer Responses Individual Behaviours INTERNAL RESPONSES HOLISTIC ENVIRONMENT PHYSICAL ENVIRONMENTAL DIMENSIONS Social Interactions between and among customer and employees

16. Physical environment Ambient conditions (Explicit / implicit signals to communicate firm’s image) Temperature Lighting Noise Music Smell Colour –E.g. music affects perceptions of time –Scent (strong impact on mood, affect & evaluate responses)

17. Spatial layout and functionality: Layout of machinery and equipment Furnishings Opportunities for privacy Sign & symbols Signage Style of décor Non-verbal communication

18. Internal responses Cognitive (thinking / feeling) Beliefs, categorisation, symbolic meaning, and brand knowledge (E.g. parking lot – less – no good meal) –Affective (emotional – behavioural responses) Mood and attitude (arousing, sleeping, unpleasant) –Physiological (affects the sensory organs) Pain, comfort (air quality, temperature)

19. Individual behaviours Approach behaviour: –Affiliation –Exploration –Stay longer –Commitment Avoidance behaviour: –The opposite of these

20. Social / Individual behaviours Between customer and employee and Between customer and customer Individual Behavior: Attraction Spend money Return Stay / Explore

21. Guidelines for Physical Evidence Strategy  Recognize the strategic impact of physical evidence.  Blueprint the physical evidence of service.  Clarify strategic roles of the servicescape.  Assess and identify physical evidence opportunities.  Be prepared to update and modernize the evidence.  Work cross-functionally.

22. THANK YOU !