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.