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Chapter10:CraftingtheServiceEnvironmentOverviewofChapter10WhatIsthePurposeofServiceEnvironments?UnderstandingConsumerResponsestoServiceEnvironmentsDimensionsoftheServiceEnvironmentPuttingItAllTogetherWhatIsthePurposeofServiceEnvironments?PurposeofServiceEnvironmentsHelpsfirmtocreatedistinctiveimageanduniquepositioningServiceenvironmentaffectsbuyerbehaviorinthreeways:Message-creatingmedium:SymboliccuestocommunicatethedistinctivenatureandqualityoftheserviceexperienceAttention-creatingmedium:MakeservicescapestandoutfromcompetitionandattractcustomersfromtargetsegmentsEffect-creatingmedium:Usecolors,textures,sounds,scentsandspatialdesigntoenhancedesiredserviceexperience

ComparisonofHotelLobbies

(Fig10.1)FourSeasonsHotel,NewYork

OrbitHotelandHostel,LosAngeles

Eachservicescapeclearlycommunicatesandreinforcesitshotel’srespectivepositioningandsetsserviceexpectationsasguestsarrive

PhysicalsurroundingshelpshapeappropriatefeelingsandreactionsincustomersandemployeesForexample:Disneyland,Denmark’sLegolandServicescapesformacorepartofthevaluepropositionForexample:ClubMed,LasVegas,Florida-basedMuvicoLasVegas:Repositioneditselftoasomewhatmorewholesomefunresort,visuallystrikingentertainmentcenterFlorida-basedMuvico:Buildsextravagantmovietheatresandoffersplushamenities.“Whatsetsyouapartishowyoupackageit..”(Muvico’sCEO,HamidHashemi)ThepowerofservicescapesisbeingdiscoveredServicescapeasPartofValuePropositionUnderstandingConsumerResponsestoServiceEnvironmentsTheMehrabian-Russell

Stimulus-ResponseModel(Fig10.2)Response/Behavior:ApproachAvoidanceandCognitiveProcessesEnvironmentalStimuliandCognitiveProcessesDimensionsofAffect:PleasureandArousalFeelingsAreaKeyDriverofCustomerResponsestoServiceEnvironmentsInsightsfromMehrabian-Russell

Stimulus-ResponseModelSimpleyetfundamentalmodelofhowpeoplerespondtoenvironmentsTheenvironment,itsconsciousandunconsciousperceptions,andinterpretationinfluencehowpeoplefeelinthatenvironmentFeelings,ratherthanperceptions/thoughtsdrivebehaviorTypicaloutcomevariableis“approach”or“avoidance”ofanenvironment,butotherpossibleoutcomescanbeaddedtomodelTheRussellModelofAffect

Fig10.3

ArousingPleasant

SleepyUnpleasantExcitingRelaxingBoringDistressingInsightsfromRussellModelofAffectEmotionalresponsestoenvironmentscanbedescribedalongtwomaindimensions:Pleasure:Direct,subjective,dependingonhowmuchindividuallikesordislikesenvironmentArousal:Howstimulatedindividualfeels,dependslargelyoninformationrateorloadofanenvironmentRussellseparatedcognitivepartofemotionsfromthesetwoemotionaldimensionsAdvantage:simplicity,allowsadirectassessmentofhowcustomersfeelFirmscansettargetsforaffectivestatesDriversofAffectAffectcanbecausedbyperceptionsandcognitiveprocessesofanydegreeofcomplexityIt’’sthesimplecognitiveprocessesthatdeterminehowpeoplefeelinaservicesettingIfhigherlevelsofcognitiveprocessesaretriggered,theinterpretationofthisprocessdeterminespeople’sfeelingsThemorecomplexacognitiveprocessbecomes,themorepowerfulitspotentialimpactonaffect.However,mostserviceencountersareroutineandsimpleprocessescandetermineaffect.BehavioralConsequenceofAffectPleasantenvironmentsresultinapproach,whereasunpleasantonesresultinavoidanceArousalamplifiesthebasiceffectofpleasureonbehaviorIfenvironmentispleasant,increasingarousalcangenerateexcitement,leadingtoastrongerpositiveconsumerresponseIfenvironmentisunpleasant,increasingarousallevelwillmovecustomersintothe““distressed”regionFeelingsduringserviceencountersareanimportantdriverofcustomerloyaltyAmbientConditionsSpace/FunctionSigns,Symbols,andArtifactsCognitiveEmotionalPsychologicalAnIntegrativeFramework:Bitner’’sServicescapeModel(Fig10.4)ENVIRONMENTALDIMENSIONSHOLISTICENVIRONMENTMODERATORSINTERNALRESPONSESBEHAVIORSource:MaryJ.Bitner,““Servicescapes:TheImpactofPhysicalSurroundingsonCustomersandEmployees,”JournalofMarketing56(April1992),pp.57-71.PerceivedServicescapeEmployeeResponseModeratorCustomerResponseModerator

EmployeeResponsesCustomerResponsesCognitiveEmotionalPsychologicalApproachAffiliationExplorationStaylongerSatisfactionAvoid(oppositeofapproach)ApproachAttractionStay/ExploreSpendMore$$$SatisfactionAvoid(oppositeofapproach)SocialInteractionBetweenCustomersandEmployeesAnIntegrativeFramework:Bitner’’sServicescapeModel(2)IdentifiesthemaindimensionsinaserviceenvironmentandviewsthemholisticallyInternalcustomerandemployeeresponsescanbecategorizedintocognitive,emotional,andpsychologicalresponses,whichleadtoovertbehavioralresponsestowardstheenvironmentKeytoeffectivedesignishowwelleachindividualdimensionfitstogetherwitheverythingelseDimensionsoftheServiceEnvironmentMainDimensionsinServicescapeModelAmbientConditionsCharacteristicsofenvironmentpertainingtoourfivesensesSpatialLayoutandFunctionalitySpatiallayout:FloorplanSizeandshapeoffurnishings,counters,machinery,equipment,andhowtheyarearrangedFunctionality:AbilityofthoseitemstofacilitateperformanceSigns,Symbols,andArtifactsExplicitorimplicitsignalsto:Communicatefirm’simageHelpconsumersfindtheirwayConveyrulesofbehaviorImpactofAmbientConditionsAmbientenvironmentiscomposedofhundredsofdesignelementsanddetailsthatmustworktogethertocreatedesiredserviceenvironmentAmbientconditionsareperceivedbothseparatelyandholistically,andinclude:LightingandcolorschemesSizeandshapeperceptionsSoundssuchasnoiseandmusicTemperatureScentsCleverdesignoftheseconditionscanelicitdesiredbehavioralresponsesamongconsumersImpactofMusicInservicesettings,musiccanhaveapowerfuleffectonperceptionsandbehaviors,evenifplayedatbarelyaudiblelevelsStructuralcharacteristicsofmusic―suchastempo,volume,andharmony―areperceivedholisticallyFasttempomusicandhighvolumemusicincreasearousallevelsPeopletendtoadjusttheirpace,eithervoluntarilyorinvoluntarily,tomatchtempoofmusicCarefulselectionofmusiccandeterwrongtypeofcustomersImpactofMusiconRestaurantDinersRestaurantPatronBehaviorFast-beatMusicEnvironmentSlow-beatMusicEnvironmentDifferencebetweenSlow-andFast-beatEnvironmentsAbsoluteDifference%DifferenceConsumertimespentattable45min56min+11min+24%Spendingonfood$55.12$55.81+$0.69+1%Spendingonbeverages$21.62$30.47+$8.85+41%Totalspending$76.74$86.28+$9.54+12%Estimatedgrossmargin$48.62$55.82+$7.20+15%Source:RonaldE.Milliman(1982),“UsingBackgroundMusictoAffecttheBehaviorofSupermarketShoppers,”JournalOfMarketing,56(3):pp.86–91ImpactofScentAnambientsmellisonethatpervadesanenvironmentMayormaynotbeconsciouslyperceivedbycustomersNotrelatedtoanyparticularproductScentshavedistinctcharacteristicsandcanbeusedtosolicitemotional,physiological,andbehavioralresponsesInservicesettings,researchhasshownthatscentscanhavesignificanteffectoncustomerperceptions,attitudes,andbehaviorsEffectsofScentsonPerceptionsofStoreEnvironments(1)Evaluation

UnscentedEnvironmentMeanRatingsScentedEnvironmentMeanRatingsDifferenceStoreEvaluationNegative/positive4.655.24+0.59Outdated/modern3.764.72+0.96StoreEnvironment

Unattractive/attractive4.124.98+0.86Drab/colorful3.634.72+1.09Boring/Stimulating3.754.40+0.65Source:EricR.Spangenberg,AynE.Crowley,andPamelaW.Hendersen(1996),““ImprovingtheStoreEnvironment:DoOlfactoryCuesAffectEvaluationsandBehaviors?,”JournalOfMarketing,(April):pp.67–80.EffectsofScentsonPerceptionsofStoreEnvironments(2)EvaluationUnscentedEnvironmentMeanRatingsScentedEnvironmentMeanRatingsDifferenceMerchandiseOutdated/up-to-datestyle4.715.43+0.72Inadequate/adequate3.804.65+0.85Low/highquality4.815.48+0.67Low/highprice5.204.93-0.27Source:EricR.Spangenberg,AynE.Crowley,andPamelaW.Hendersen(1996),““ImprovingtheStoreEnvironment:DoOlfactoryCuesAffectEvaluationsandBehaviors?,”JournalOfMarketing,(April):pp.67–80Aromatherapy:EffectsofSelectedFragrancesonPeople(Table10.2)FragranceAromaTypeAroma-TherapyClassTraditionalUsePotentialPsychologicalEffectonPeopleEucalyptusCamphor-aceousToning,stimulatingDeodorant,antiseptic,soothingagentStimulatingandenergizingLavenderHerbaceousCalming,balancing,soothingMusclerelaxant,soothingagent,astringentRelaxingandcalmingLemonCitrusEnergizing,upliftingAntiseptic,soothingagentSoothingenergylevelsBlackpepperSpicyBalancing,soothingMusclerelaxant,aphrodisiacBalancingpeople’semotionsImpactofColorColorscanbestimulating,calming,expressive,disturbing,impressional,cultural,exuberant,symbolicColorpervadeseveryaspectofourlives,embellishestheordinary,givesbeautyanddramatoeverydayobjectsColorshaveastrongimpactonpeople’sfeelingsColorscanbedefinedintothreedimensions:HueisthepigmentofthecolorValueisthedegreeoflightnessordarknessofthecolorChromareferstohue-intensity,saturation,orbrillianceCommonAssociationsandHumanResponsestoColors(Table10.3)ColorDegreeofWarmthNatureSymbolCommonAssociationandHumanResponsestoColorRedWarmEarthHighenergyandpassion;canexciteandstimulateOrangeWarmestSunsetEmotions,expressions,warmthYellowWarmSunOptimism,clarity,intellect,mood-enhancingGreenCoolGrowth,grass,andtreesNurturing,healing,unconditionalloveBlueCoolestSkyandoceanRelaxation,serenity,loyaltyIndigoCoolSunsetMediationandspiritualityVioletCoolVioletflowerSpirituality,reducesstress,cancreateaninnerfeelingofcalmImpactofSigns,Symbols,andArtifactsGuidecustomersclearlythroughprocessofservicedeliveryCustomerswillautomaticallytrytodrawmeaningfromthesigns,symbols,andartifactsUnclearsignalsfromaservicescapecanresultinanxietyanduncertaintyabouthowtoproceedandobtainthedesiredserviceForinstance,signscanbeusedtoreinforcebehavioralrules(seepictureonnextslide)SignsTeachandReinforceBehavioralRulesinServiceSettings(Fig10.7)Note:FinesareinSingaporedollars(equivalenttoroughlyUS$300)PeopleArePartofthe

ServiceEnvironment(Fig10.8)DistinctiveServicescapesCreateCustomerExpectationsPuttingItAllTogetherSelectionofEnvironmentalDesignElementsConsumersperceiveserviceenvironmentsholisticallyDesignwithaholisticviewServicescapeshavetobeseenholistically:Nodimensionofdesigncanbeoptimizedinisolation,becauseeverythingdependsoneverythingelseHolisticcharacteristicofenvironmentsmakesdesigningserviceenvironmentanartSeeResearchInsights10.2:MatchandMismatchofScentandMusicinSingaporeMustdesignfromacustomer’sperspectiveToolstoGuideServicescapeDesignKeenobservationofcustomers’behaviorandresponsestotheserviceenvironmentbymanagement,supervisors,branchmanagers,andfrontlinestaffFeedbackandideasfromfrontlinestaffandcustomers,usingabroadarrayofresearchtoolsfromsuggestionboxestofocusgroupsandsurveys.Fieldexperimentscanbeusedtomanipulatespecificdimensionsinanenvironme