Chapter 10

Planning the Service Environment

The Purpose of Service Environments

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

Helps the firm to create a distinctive image & positioning that is unique.

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

The Mehrabian-Russell StimulusResponse Model (Figure 10.2)

Environmental Stimuli & Cognitive Processes

Dimensions of Affect:
Pleasure and Arousal

Response Behaviors: Approach/ Avoidance & Cognitive Processes

The Mehrabian-Russell StimulusResponse 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

The Russell Model of Affect

Arousing Distressing Exciting

Unpleasant

Pleasant

Boring

Relaxing

Sleepy

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)

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 processes The more complex a cognitive process becomes, the more powerful its potential impact on affect.However, most service encounters are routine. Simple processes can determine affect.

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

An Integrated Framework Bitners ServiceScape Model (Figure 10.4)

Environmental Moderators Dimensions Holistic Environment Ambient Employee Conditions
Response Moderator

Internal Responses Cognitive Emotional Psychological Employee Responses

Behaviour

Approach or Avoid
Social Interaction Between Customers & Employees

Space/ Function

Perceived ServiceScape

Signs, Symbols & Artefacts

Customer Response Moderator

Customer Responses Cognitive Emotional Psychological

Approach or Avoid

An Integrated Framework Bitners ServiceScape Model(cont)

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

Service environments are complex and have many design elements. The main dimensions in the servicescape model includes:

Dimensions of the Service Environment

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)

Dimensions of the Service Environment (cont)

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 firms image, help consumers find their way and to convey the rules of behavior

Impact of Music on Restaurant Diners

Restaurant Patron Behavior Fast-beat Music Environment (Table 10-2) Slow-beat Music Environment Difference between Slow and Fast-beat Environments
Absolute Difference Consumer time spent at table Spending on food Spending on beverages Total spending Estimated gross margin 45min $55.12 $21.62 $76.74 $48.62 56min $55.81 $30.47 $86.28 $55.82 +11min +$0.69 +$8.85 +$9.54 +$7.20 % Difference +24% +1% +41% +12% +15%

The Effects of Scents on the Perceptions of Store Environments

Evaluation (Table 10-3) Unscented Scented Environment Environment Mean Ratings Mean Ratings Difference Store Evaluation Negative/positive Outdated/modern Store Environment Unattractive/attracti ve Drab/colorful 4.12 3.63 4.98 4.72 +0.86 +1.09 4.65 3.76 5.24 4.72 +0.59 +0.96

Boring/Stimulating

3.75

4.40

+0.65

The Effects of Scents on the Perceptions of Store Environments

(Table 10-3) Evaluation Unscented Environment Mean Ratings Scented Environment Mean Ratings Difference

Merchandise Outdated/up- to-date style Inadequate/adequate 4.71 3.80 5.43 4.65 +0.72 +0.85

Low/high quality
Low/high price

4.81
5.20

5.48
4.93

+0.67
-0.27

Aromatherapy: The Effects of Fragrance on People (Table 10-4)

Fragrance Aromath Aromather erapy apy Class Citrus Calming Tradition Potential Psychological al Use Impact on People Soothing agent, astringen t Muscle relaxant, soothing agent Emollient soothing agent Skin cleanser Calming and relaxing effect esp. for nervous people Relaxing and calming, helps create a homey and comfortable feel Helps makes people feel refreshed, joyful, comfortable Increase attention level and boosts energy Orange

Lavender

Herbaceo Calming, us balancing, soothing Floral Uplifting, balancing Energizing, stimulating

Jasmine

Peppermint Minty

Common Associations and Human Responses to Colors (Table 10-5)

Color Degree of Nature Common Association and Warmth Symbol Human Responses to Color Warm Earth High energy and passion; can excite, stimulate, and increase arousal and blood pressures Emotions, expressions, and warmth Nurturing, healing and unconditional love Red

Orange

Warmest

Sunset

Green

Cool

Grass and Trees

Blue

Coolest

Sky and Relaxation, serenity and loyalty Ocean

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 customers perspective

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