Planning the Service environment

1. Dr.Jayashree R. Kotnal
Asst. Professor , M.Com Vijayapur
ASP College of Commerce

2. The service environment influences buyer behaviour
in 3 ways
 Message-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
experiences

3.  The servicescape is part of the value proposition!

4. Dimensions of
Affect:
Pleasure and
Arousal
Environmental
Stimuli & Cognitive
Processes
Response
Behaviors:
Approach/
Avoidance &
Cognitive
Processes

5.  Simple and fundamental model of how people respond
to environments
 Peoples’ conscious and unconscious perceptions and
interpretation of the environment influence how they feel
in that environment
 Feelings, rather than perceptions or thoughts drive
behavior
 Typical outcome variable is ‘approach’ or ‘avoidance’ of
an environment, but other possible outcomes can be
added to the model as well

6.  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 environment
 Arousal quality of an environment is dependent on its
“information load”, i.e., its degree of
◦ Novelty (unexpected, surprising, new, familiar) and
◦ Complexity (number of elements, extent of motion or change)

7.  Affect can be caused by perceptions and cognitive
processes of any degree of complexity.
 Simple Cognitive Processes, Perception of Stimuli
◦ tangible cues (of service quality)
◦ consumer satisfaction
 Complex Cognitive Processes
◦ affective charged schemata processing
◦ attribution processes

8.  Basically, pleasant environments result in approach,
and unpleasant environments result in avoidance
 Arousal acts as an amplifier of the basic effect of
pleasure on behavior
 If 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
region
 Feelings during the service encounter is also an
important driver of customer loyalty

9.  Identifies the main dimensions in a service
environment and views them holistically
 Customer and employee responses classified
under, cognitive, emotional and psychological
which would in turn lead to overt behavior towards
the environment
 Key to effective design is how well each individual
dimension fits together with everything else

10.  Thank you