Utsav Mahendra : Planning the Service Environment


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Planning the
Service Environment

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Utsav Mahendra : Planning the Service Environment

  1. 1. Chapter 10 Planning theService Environment
  2. 2. The Purpose of Service EnvironmentsThe service environment influences buyer behaviour in3 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 experiencesHelps the firm to create a distinctive image & positioning thatis unique.
  3. 3. Comparison of Hotel Lobbies (Figure 10.1) The servicescape is part of the value proposition!Orbit Hotel and Hostel, Los Angeles Four Seasons Hotel, New York
  4. 4. The Mehrabian-Russell Stimulus- Response Model (Figure 10.2) Response Environmental Dimensions of Behaviors:Stimuli & Cognitive Affect: Approach/ Processes Pleasure and Avoidance & Arousal Cognitive Processes
  5. 5. The Mehrabian-Russell Stimulus- Response Model• 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. 6. The Russell Model of Affect Arousing Distressing ExcitingUnpleasant Pleasant Boring Relaxing Sleepy
  7. 7. The Russell Model of Affect• 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)
  8. 8. Drivers of Affect• 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 processesThe more complex a cognitive process becomes, the morepowerful its potential impact on affect.However, most serviceencounters are routine. Simple processes can determine affect.
  9. 9. Behavioral Consequence of Affect• 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
  10. 10. An Integrated Framework – Bitner’s ServiceScape Model (Figure 10.4)Environmental Moderators Internal Responses Behaviour Dimensions Holistic Cognitive Environ- Emotional ment Psychological Ambient Approach Employee or Conditions Response Avoid Moderator Employee Responses Space/ Social Interaction Perceived Between Function ServiceScape Customers & Employees Customer Signs, Customer Responses Approach Symbols & Response or Artefacts Moderator Cognitive Avoid Emotional Psychological
  11. 11. An Integrated Framework – Bitner’s ServiceScape Model(con’t)• 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
  12. 12. Dimensions of the Service EnvironmentService environments are complex and have many designelements. The main dimensions in the servicescape modelincludes:• Ambient Conditions – Music (e.g, fast tempo and high volume increase arousal levels) – Scent (strong impact on mood, affect and evaluative responses, purchase intention and in-store behavior) – Color (e.g, warm colors associated with elated mood states and arousal but also increase anxiety, cool colors reduce arousal but can elicit peacefulness and calm)
  13. 13. Dimensions of the Service Environment (con’t)• Spatial Layout and Functionality – Layout refers to size and shape of furnishings and the ways it is arranged – Functionality is the ability of those items to facilitate performance• Signs, Symbols and Artifact – Explicit or implicit signals to communicate the firm’s image, help consumers find their way and to convey the rules of behavior
  14. 14. Impact of Music on Restaurant DinersRestaurant Fast-beat (Table 10-2) Slow-beat Difference betweenPatron Music Music Slow and Fast-beatBehavior Environment Environment Environments Absolute % Difference DifferenceConsumer time 45min 56min +11min +24%spent at tableSpending on $55.12 $55.81 +$0.69 +1%foodSpending on $21.62 $30.47 +$8.85 +41%beveragesTotal spending $76.74 $86.28 +$9.54 +12%Estimated $48.62 $55.82 +$7.20 +15%gross margin
  15. 15. The Effects of Scents on the Perceptions of Store EnvironmentsEvaluation (Table 10-3) Unscented Scented Difference Environment Environment Mean Ratings Mean RatingsStore EvaluationNegative/positive 4.65 5.24 +0.59Outdated/modern 3.76 4.72 +0.96Store EnvironmentUnattractive/attracti 4.12 4.98 +0.86veDrab/colorful 3.63 4.72 +1.09Boring/Stimulating 3.75 4.40 +0.65
  16. 16. The Effects of Scents on the Perceptions of Store Environments (Table 10-3)Evaluation Unscented Scented Difference Environment Environment Mean Ratings Mean RatingsMerchandiseOutdated/up- to-date 4.71 5.43 +0.72styleInadequate/adequate 3.80 4.65 +0.85Low/high quality 4.81 5.48 +0.67Low/high price 5.20 4.93 -0.27
  17. 17. Aromatherapy: The Effects of Fragrance on People (Table 10-4)Fragrance Aromath Aromather Tradition Potential Psychological erapy apy Class al Use Impact on PeopleOrange Citrus Calming Soothing Calming and relaxing agent, effect esp. for nervous astringen people tLavender Herbaceo Calming, Muscle Relaxing and calming, us balancing, relaxant, helps create a homey and soothing soothing comfortable feel agentJasmine Floral Uplifting, Emollient Helps makes people feel balancing soothing refreshed, joyful, agent comfortablePeppermint Minty Energizing, Skin Increase attention level stimulating cleanser and boosts energy
  18. 18. Common Associations and Human Responses to Colors (Table 10-5)Color Degree of Nature Common Association and Warmth Symbol Human Responses to ColorRed Warm Earth High energy and passion; can excite, stimulate, and increase arousal and blood pressuresOrange Warmest Sunset Emotions, expressions, and warmthGreen Cool Grass Nurturing, healing and and unconditional love TreesBlue Coolest Sky and Relaxation, serenity and loyalty Ocean
  19. 19. Selection of Environmental Design Elements• There is a multitude of research on the perception and impact of environmental stimuli on behaviour, including: – People density, crowding – Lighting – Sound/noise – Scents and odours – Queues• No standard formula to designing the perfect combination of these elements. – Design from the customer’s perspective
  20. 20. Tools to Guide in Servicescape Design• Keen Observation of Customers’ Behavior and Responses to the service environment by management, supervisors, branch managers, and frontline staff• Feedback and Ideas from Frontline Staff and Customers using a broad array of research tools ranging from suggestion boxes to focus groups and surveys.• Field Experiments can be used to manipulate specific dimensions in an environment and the