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
Exterior design
Signage
Parking
Landscape
Surrounding environment
Facility interior
Interior design
Equipment
Signage
Layout
Air quality/temperature
Business cards
Stationery
Billing statements
Reports
Employee dress
Uniforms
Brochures
Web pages
Virtual servicescape
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
Servicescape
usage
Elaborate Lean
Self-service
(customer only)
Golf course
eBay
ATM
Car wash
Simple Internet services
Express mail drop-off
Interpersonal
services
(both customer and
employee)
Hotel
Restaurant
Health clinic
Hospital
Bank
Airline
School
Dry cleaner
Retail cart
Hair salon
Remote service
(employee only)
Telephone company
Insurance company
Utility
Many professional services
Telephone mail-order desk
Automated voice messaging
services
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. 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 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)
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 customer
Individual Behavior:
• Attraction
• Spend money
• Return
• Stay / Explore