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  • 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
  • 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 Servicescape Other tangibles Facility exterior Business cards Exterior design Stationery Signage Billing statements Parking Reports Landscape Employee dress Surrounding environment Uniforms Brochures Facility interior Web pages Interior design Virtual servicescape Equipment Signage Layout Air quality/temperature
  • 7. Physical Evidence: Customer’s Point of View
  • 8. Factors influencing thedesign 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 servicescape2. 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 Servicescape Elaborate Lean usage Self-service Golf course ATM (customer only) eBay Car wash Simple Internet services Express mail drop-off Interpersonal Hotel Dry cleaner services Restaurant Retail cart (both customer and Health clinic Hair salon employee) Hospital Bank Airline School Remote service Telephone company Telephone mail-order desk (employee only) Insurance company Automated voice messaging Utility services Many professional services
  • 11. Roles of the Servicescape1. 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. 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)
  • 16. • Spatial layout and functionality: • Layout of machinery and equipment • Furnishings • Opportunities for privacy• Sign & symbols • Signage • Style of décor • Non-verbal communication
  • 17. Internal responsesCognitive (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)
  • 18. Individual behaviours• Approach behaviour: – Affiliation – Exploration – Stay longer – Commitment• Avoidance behaviour: – The opposite of these
  • 19. Social / Individual behaviours• Between customer and employee and• Between customer and customerIndividual Behavior:• Attraction• Spend money• Return• Stay / Explore
  • 20. THANK YOU !