Physical evidence plays a strategic role in services marketing by packaging the service, facilitating the service process, socializing employees and customers, and providing a means for differentiation. The development of servicescapes uses physical evidence to design the service environment through ambient conditions, space and function layout, and signs, symbols and artifacts. The stimulus-organism-response model shows how physical stimuli influence customer responses through their perceptions and internal reactions. Firms must consider sight, sound, scent, touch, and taste appeals when designing their service atmosphere and physical evidence to meet the needs of high versus low customer contact businesses.

1. SERVICES MARKETING
CHAPTER 7
MANAGING THE FIRM’S PHYSICAL EVIDENCE

2. OUTCOME
 Understand role of physical external
 The development of servicescape

3. TYPES OF PHYSICAL
EVIDENCE
 Facility exterior
Ex: exterior design, signage, parking, landscaping
& surrounding environment
 Facility interior
Interior design, equipment, signage & layout
 Tangibles
Business cards, stationery, billing statements,
reports, employee appearance, uniforms

4. STRATEGIC ROLE OF PHYSICAL
EVIDENCE
1. Packaging
2. Facilitating the service process
3. Socializing employees & customers
4. A means for differentiation

5. THE STIMULUS-ORGANISM-
RESPONSE
1. A set of stimuli (physical evidence)
2. An organism (recipient of the stimuli:
customers)
3. A set of responses or outcomes

6. THE DEVELOPMENT OF
SERVICESCAPES
 The use of physical evidence to design the
service environment
Includes:
1. Ambient conditions
2. Space/function
3. Signs , symbols & artifacts

7. AMBIENT CONDITIONS
 Distinctive atmosphere of the service setting
Ex: lighting, air quality, noise & music

8. SPACE/FUNCTION
 The layout of the facility
Ex: equipment, furniture

9. SIGNS, SYMBOLS &
ARTIFACTS
 Environmental physical evidence including
signage, personalized artifacts style of decor

10. SERVICESCAPES PORTION
(REALIZATION)
 Holistic environment (perception)
 Internal response moderators (SAR
components)
 Internal response to environment
includes: cognitive, emotional response,
physiological
 Behavioral responses to environment
Individual and/or social interactions

11. SPECIFIC TACTICS FOR
CREATING SERVICE
ATMOSPHERE
 Sight appeals
 Sound appeals
 Scent appeals
 Touch appeals
 Taste appeals (free samples)

12. DESIGN CONSIDERATIONS: HIGH VS. LOW
CUSTOMER CONTACT SERVICE FIRMS
1. Facility location
2. Facility layout
3. Product design
4. Process design

13. CONCLUSION
 Physical evidence is key
 Packaging “replacement” for services
 Point-of-perception, where customer forms a
mental image of services marketing

14. THANK YOU
Q&A