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SERVICES
MARKETING
            The Servicescape
            Atmospherics / Physical
            Evidence
            Tom Chapman
            www.marketing101.co.uk
            Twitter @idlehans
+
 Introduction

  Toconsider the various elements that make up the
  service environment and to explore the concept of
  atmospherics and elements of environmental
  psychology.


   The  importance of the servicescape
   The effect of the servicescape on behaviour
   The classification of servicesape variables and
    their relative importance in different service
    environments.
+
 Kotler (1973, pg 48)

    People in their purchase decision-making respond to more
     than simply the tangible product or service being offered…
     buyers respond to the total product… in some cases, the
     atmosphere is the primary product.
+
 Obermiller and Bitner (1984)

    consumers who viewed retail products in an emotionally
     pleasing environment evaluated the products more
     positively than did subjects who viewed the same products
     in an unpleasing environment.
+
 Gardner (1985)

    Small changes in physical surroundings may influence
     consumers, moods at the point of purchase, and slight
     deviations in communications strategies may significantly
     affect moods upon exposure to advertising (Gardner, 1985,
     281).
+
 Donovan & Rossiter (1982)
   Citing   Mehrabrian and Russell (1976)
      approach or avoidance behaviours linked to, (1)
       physical desire, (2) a desire for exploration, (3) a desire
       to communicate and (4) a level of performance and
       satisfaction gained from the activity they are involved
       in.
   emotional     responses
      pleasure to displeasure, arousal to non-arousal and
       dominance to submissiveness.
   …persons  will enjoy spending more time and
   perhaps more money in those retail stores where
   they feel pleasure and a moderate to high
   degree of arousal. (Donovan & Rossiter, 1982, 42)
+
 Spies et al (1997, pg15)

  Spieset al (1997, 15) found that atmosphere
  did not affect the total amount of money
  spent but only the amount of money spent
  for spontaneous purchases. Customers
  spent more money for spontaneous
  purchases in the pleasant compared to the
  less pleasant store. (considered 2 differing
  furniture stores?)
+
 What is an atmosphere?

    Use of the senses, sight, sound, scent & touch.
      Visual - colour, brightness, size and shape (Charla et al 2002,
       Chebat & Morin 2007, Dijkstra 2008)
      Aural - volume & pitch (Michon et al 2002, Dube & Morin 2001,
       Morin et al 2007, Yalch & Spangenberg 2000)
      Olfactory – scent (Zemke & Shoemaker 2007, Mattila & Wirtz
       2001), freshness (Boyer & Hult 2006), ambient odor (Chebat &
       Michon 2003)
      Tactile - softness, smoothness, temperature (Bitner 1992)


        Affected by:
            Staff – Dress, Appearance (Kim et al 2009, Shao 2004), gender (Fischer et al
             1997)
            Other Customers (Grove & Fisk 1997)
+
 Perceived and Intended
 atmosphere
  The more dissimilar the customers of a
  particular establishment the more varied
  their perception of a given intended
  atmosphere?
     Consider Segmentation Variables (Haytko & Baker 2004, Jaeger
      2006, Kaufman-Scarborough 1999)
         Age
         Culture
         Gender
         Disability
+
 Atmospherics’ importance?

  Atmospherics   is important where
   The product is purchased / consumed (Allard et
    al 2009)
   The seller has design options (Newsom et al
    2009)
   The number of competitive outlets increase, but
    also in monopolistic circumstances to increase
    likely sales (Babin 2000)
   Product and / or price differences are small
    (Verhoeven et al 2009)
   Product entries are aimed at distinct social
    classes or life style buyer groups (Kubacki et al
    2007, Lee et al 2008)
+
 Atmosphere Planning?

    Who is the target audience?

    What are they seeking from the Experience?

    What variables can fortify the beliefs and emotional
     reactions they are seeking?

    Will the resulting atmosphere compete effectively with the
     competition?
+
 A retail example? - Gender

  Grocery   shopping is the customary activity
  of the housewife. Attempts to eliminate
  "food shopping" through home delivery
  and telephone order have to date been
  relatively unsuccessful. Apparently, the
  process of grocery shopping has positive
  utility for a large segment of women who
  view it as an integral part of their role.
  Tauber (1972, 47)
+
 Gender Divide
 Raajpoot et al (2008)
    Relative to men, women are more ‘‘virtuous’’ and to a larger extent act in
     accord with positively valued health/nutritional and ethical principles.
     Beardsworth et al. (2002)

    Men seek more assistance from salespeople (Cleveland et al., 2003)

    Men are more negatively affected by waiting time than women (Grewal et al.,
     2003).

    Generally, women enjoy shopping more than do men (Alreck and Settle,
     2002) and make greater use of cues (Meyers-Levy and Sternthal, 1991)

    The visible nature of shopping and the importance of the social
     interaction that takes place during shopping suggest that social
     referents are likely to influence patronage behavior (Evans et al., 1996).
     Because women are more social than men, customer compatibility
     should have a greater effect on women than on men.
+
 Westbrook & Black (1985, pg 80)
   Motivationaltheorists have typically
   regarded human behaviour as the
   product of both internal states as well as
   external stimuli apperceived by the
   individual
   hypothesisedseven 'major dimensions' of
   shopping behaviour based on shopping
   motivations.
    (1)anticipated utility, (2) role enactment, (3)
    negotiation, (4) choice optimisation, (5)
    affiliation, (6) power and authority, (7)
    stimulation.
+
 Babin (1994)

    ... traditional product acquisition explanations may
     inadequately reflect the total value of a shopping experience
     (Babin et al., 1994, pg 644).

    Babin et al (1994) proposed to describe the shopping
     experience that consumers have based on utilitarian and
     hedonic shopping values.
+
 Turley & Milliman (2000)

    Classification of Atmospheric variables

    External

    General Interior

    Layout & Design

    Point of Purchase

    Human
+
 Conclusion

  Allof the above authors have a common
  purpose that links their research. They all
  propose in some form or another that there
  is more to making a purchase than simply
  the functional elements of the product itself.
  Some are more concerned with consumer
  behaviour, whilst others are concerned with
  generality or specific elements of
  competitive advantage but all realise that
  there are various elements or components
  that affect buying behaviour and product
  choice.

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Atmospherics - Physical Evidence, The Servicescape

  • 1. + SERVICES MARKETING The Servicescape Atmospherics / Physical Evidence Tom Chapman www.marketing101.co.uk Twitter @idlehans
  • 2. + Introduction  Toconsider the various elements that make up the service environment and to explore the concept of atmospherics and elements of environmental psychology.  The importance of the servicescape  The effect of the servicescape on behaviour  The classification of servicesape variables and their relative importance in different service environments.
  • 3. + Kotler (1973, pg 48)  People in their purchase decision-making respond to more than simply the tangible product or service being offered… buyers respond to the total product… in some cases, the atmosphere is the primary product.
  • 4. + Obermiller and Bitner (1984)  consumers who viewed retail products in an emotionally pleasing environment evaluated the products more positively than did subjects who viewed the same products in an unpleasing environment.
  • 5. + Gardner (1985)  Small changes in physical surroundings may influence consumers, moods at the point of purchase, and slight deviations in communications strategies may significantly affect moods upon exposure to advertising (Gardner, 1985, 281).
  • 6. + Donovan & Rossiter (1982)  Citing Mehrabrian and Russell (1976)  approach or avoidance behaviours linked to, (1) physical desire, (2) a desire for exploration, (3) a desire to communicate and (4) a level of performance and satisfaction gained from the activity they are involved in.  emotional responses  pleasure to displeasure, arousal to non-arousal and dominance to submissiveness.  …persons will enjoy spending more time and perhaps more money in those retail stores where they feel pleasure and a moderate to high degree of arousal. (Donovan & Rossiter, 1982, 42)
  • 7. + Spies et al (1997, pg15)  Spieset al (1997, 15) found that atmosphere did not affect the total amount of money spent but only the amount of money spent for spontaneous purchases. Customers spent more money for spontaneous purchases in the pleasant compared to the less pleasant store. (considered 2 differing furniture stores?)
  • 8. + What is an atmosphere?  Use of the senses, sight, sound, scent & touch.  Visual - colour, brightness, size and shape (Charla et al 2002, Chebat & Morin 2007, Dijkstra 2008)  Aural - volume & pitch (Michon et al 2002, Dube & Morin 2001, Morin et al 2007, Yalch & Spangenberg 2000)  Olfactory – scent (Zemke & Shoemaker 2007, Mattila & Wirtz 2001), freshness (Boyer & Hult 2006), ambient odor (Chebat & Michon 2003)  Tactile - softness, smoothness, temperature (Bitner 1992)  Affected by:  Staff – Dress, Appearance (Kim et al 2009, Shao 2004), gender (Fischer et al 1997)  Other Customers (Grove & Fisk 1997)
  • 9. + Perceived and Intended atmosphere  The more dissimilar the customers of a particular establishment the more varied their perception of a given intended atmosphere?  Consider Segmentation Variables (Haytko & Baker 2004, Jaeger 2006, Kaufman-Scarborough 1999)  Age  Culture  Gender  Disability
  • 10. + Atmospherics’ importance?  Atmospherics is important where  The product is purchased / consumed (Allard et al 2009)  The seller has design options (Newsom et al 2009)  The number of competitive outlets increase, but also in monopolistic circumstances to increase likely sales (Babin 2000)  Product and / or price differences are small (Verhoeven et al 2009)  Product entries are aimed at distinct social classes or life style buyer groups (Kubacki et al 2007, Lee et al 2008)
  • 11. + Atmosphere Planning?  Who is the target audience?  What are they seeking from the Experience?  What variables can fortify the beliefs and emotional reactions they are seeking?  Will the resulting atmosphere compete effectively with the competition?
  • 12. + A retail example? - Gender  Grocery shopping is the customary activity of the housewife. Attempts to eliminate "food shopping" through home delivery and telephone order have to date been relatively unsuccessful. Apparently, the process of grocery shopping has positive utility for a large segment of women who view it as an integral part of their role. Tauber (1972, 47)
  • 13. + Gender Divide Raajpoot et al (2008)  Relative to men, women are more ‘‘virtuous’’ and to a larger extent act in accord with positively valued health/nutritional and ethical principles. Beardsworth et al. (2002)  Men seek more assistance from salespeople (Cleveland et al., 2003)  Men are more negatively affected by waiting time than women (Grewal et al., 2003).  Generally, women enjoy shopping more than do men (Alreck and Settle, 2002) and make greater use of cues (Meyers-Levy and Sternthal, 1991)  The visible nature of shopping and the importance of the social interaction that takes place during shopping suggest that social referents are likely to influence patronage behavior (Evans et al., 1996). Because women are more social than men, customer compatibility should have a greater effect on women than on men.
  • 14. + Westbrook & Black (1985, pg 80)  Motivationaltheorists have typically regarded human behaviour as the product of both internal states as well as external stimuli apperceived by the individual  hypothesisedseven 'major dimensions' of shopping behaviour based on shopping motivations.  (1)anticipated utility, (2) role enactment, (3) negotiation, (4) choice optimisation, (5) affiliation, (6) power and authority, (7) stimulation.
  • 15. + Babin (1994)  ... traditional product acquisition explanations may inadequately reflect the total value of a shopping experience (Babin et al., 1994, pg 644).  Babin et al (1994) proposed to describe the shopping experience that consumers have based on utilitarian and hedonic shopping values.
  • 16. + Turley & Milliman (2000)  Classification of Atmospheric variables  External  General Interior  Layout & Design  Point of Purchase  Human
  • 17. + Conclusion  Allof the above authors have a common purpose that links their research. They all propose in some form or another that there is more to making a purchase than simply the functional elements of the product itself. Some are more concerned with consumer behaviour, whilst others are concerned with generality or specific elements of competitive advantage but all realise that there are various elements or components that affect buying behaviour and product choice.