Post on 06-Apr-2018
8/3/2019 Services Cape 1
1/40
2010
8/3/2019 Services Cape 1
2/40
What is a Servicescape?
Components of the Servicescape
Roles of the Servicescape
Models for Understanding Servicescape
and Effects on Behaviour
8/3/2019 Services Cape 1
3/40
Facility exterior
8/3/2019 Services Cape 1
4/40
The facility interior
8/3/2019 Services Cape 1
5/40
Other Tangibles
Business cards
Stationery
Billing statements Employee dress
Brochures
Web pages
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
6/40
Langeard, E., Bateson, J., Lovelock, C. & Eigler, P. (1981)Marketing of services: New Insights from Consumers and Managers,Report No 81-104, Cambridge, MA: Marketing Sciences Institute
8/3/2019 Services Cape 1
7/40
The service environment influences buyer behaviour in 3
ways
Message-creating Medium
Attention-creating Medium
Effect-creating Medium
Helps the firm to create a distinctive image & positioning that
is unique.
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
8/40
Four Seasons Hotel, New York
Orbit Hotel and Hostel, Los Angeles
The servicescape is part of the value proposition!
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
9/40
Fairmont Empress, Victoria, British ColumbiaGenerator Youth Hostel, London
Each servicescape clearly communicates and reinforces itshotels respective positioning and sets service expectationsas guests arrive
8/3/2019 Services Cape 1
10/40
Response
Behaviours:
Approach/Avoidance &
CognitiveProcesses
EnvironmentalStimuli & Cognitive
Processes
Dimensions ofAffect:
Pleasure andArousal
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
11/40
Emotional responses to environments can bedescribed along two main dimensions, pleasure andarousal.
Pleasure is subjective depending on how much theindividual likes or dislikes the environment
Arousal quality of an environment is dependent onits information load, i.e., its degree of
Novelty (unexpected, surprising, new, familiar) and
Complexity (number of elements, extent of motion orchange)
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
12/40
8/3/2019 Services Cape 1
13/40
The environment, itsconscious andunconsciousperceptions and
interpretationinfluence how peoplefeel in thatenvironment
Feelings, rather thanperceptions/thoughtsdrive behaviour
8/3/2019 Services Cape 1
14/40
EnvironmentalDimensions
PerceivedServiceScape
Ambient
Conditions
Space/
Function
Signs,Symbols &
Artefacts
Cognitive
Emotional
Psychological
CustomerResponseModerator
EmployeeResponses
Approach
or
Avoid
Approach
or
Avoid
Social InteractionBetweenCustomers &Employees
HolisticEnviron-ment
Moderators Internal Responses Behaviour
CustomerResponses
Employee
ResponseModerator
Cognitive
Emotional
Psychological
Bitner (1992)
8/3/2019 Services Cape 1
15/40
Bitner (1992)
8/3/2019 Services Cape 1
16/40
8/3/2019 Services Cape 1
17/40
Identifies the main dimensions in a service environmentand views them holistically
Customer and employee responses classified under,
cognitive, emotional and psychological which would in
turn lead to overt behaviour towards the environment
Key to effective design is how well each individual
dimension fits together with everything else
8/3/2019 Services Cape 1
18/40
Customers and employees perceive the
environment holistically, as a composite of
three dimensions:
1. ambient conditions2. spatial layout and functionality
3. signs, symbols, and artifacts.
Each dimension may affect the overallperception independently and/or through its
interactions with the other dimensions.
8/3/2019 Services Cape 1
19/40
Ambient conditions are notable when:
They are extreme (hot, cold, etc.)
When the customer spends large amounts of
time in them (i.e. at the office)
When they dont match ones expectations
8/3/2019 Services Cape 1
20/40
Restaurant
Patron
Behaviour
Fast-beat
Music
Environment
Slow-beat
Music
Environment
Difference between
Slow and Fast-beat
Environments
Absolute
Difference
%
Difference
Consumer timespent at table
45min 56min +11min +24%
Spending onfood
$55.12 $55.81 +$0.69 +1%
Spending on
beverages
$21.62 $30.47 +$8.85 +41%
Total spending $76.74 $86.28 +$9.54 +12%
Estimatedgross margin
$48.62 $55.82 +$7.20 +15%
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
21/40
8/3/2019 Services Cape 1
22/40
Colours have a strong impact on peoples feelings
8/3/2019 Services Cape 1
23/40
Particularly important in:
Self-service settings
Situations when tasks are
complex
Situations when time is short
8/3/2019 Services Cape 1
24/40
Are particularly important in:
Forming first impressions
Communicating new service concepts
Repositioning a service
Highly competitive industries (to
differentiate from competitors)
8/3/2019 Services Cape 1
25/40
8/3/2019 Services Cape 1
26/40
8/3/2019 Services Cape 1
27/40
8/3/2019 Services Cape 1
28/40
Perceptions lead to attributions
Perceptions lead people to categorize
Servicescapes influence is stronger for
inexperienced customers/employees
Servicescapes influence is stronger
when information is scarce
8/3/2019 Services Cape 1
29/40
Emotional Responses
Greater personal control increases
pleasureComplexity increases emotional
arousal
Compatibility increases pleasure
Feelings about the servicescapetransfer over to the organisation
8/3/2019 Services Cape 1
30/40
8/3/2019 Services Cape 1
31/40
Personality traits affect the relationship
between the perceived servicescape and internal
responses
Situational factors moderate the relationshipbetween the perceived servicescape and internal
responses
8/3/2019 Services Cape 1
32/40
Keen Observation of CustomersBehaviour
Feedback and Ideas from Frontline Staff
Field Experiments
Blueprinting or Service Mapping
Lovelock & Wirtz (2006)
8/3/2019 Services Cape 1
33/40
Packaging the service
Facilitating the flow of the service delivery
process
Socialising customers and employees in termsof their respective roles, behaviours, and
relationships; and
Differentiating the firm from its competitors
Hoffman and Bateson (2006)
8/3/2019 Services Cape 1
34/40
Elaborate Lean
Self-Service (customer only) Golf Land ATM
Surf & Splash Ticketron
Post office kiosk
Movie theater
Express mail dropoff
Hotels Dry cleaner
Restaurants Hot dog stand
Health clinic Hair salon
Hospital
Bank
Airline
School
Remote service (Employee only) Telephone company Telephone mail order desk
Insurance company Automated voice-messaging-based services
Utility
Many professional services
Typology of Service Organizations Based on Variations in Form and Usage of the Servicescape
Physical Complexity of the Servicescape
Types of Service Organizations
Based on Who Performs Actions
Within the Servicescape
Interpersonal services (both
customer and employee
(Bitner,
8/3/2019 Services Cape 1
35/40
The physical setting can
aid or hinder the
accomplishment of bothinternal organizational
goals and external
marketing goals.
8/3/2019 Services Cape 1
36/40
Servicescapes help achieve external marketing
goals and internal organisational goals
Servicescapes provide a visual metaphor for an
organisations total offering
Servicescapes can aid or hinder customers or
employees from fulfilling their responsibilities
Servicescapes can help segment, position, anddifferentiate a company from its competitors(Bitner 1992)
8/3/2019 Services Cape 1
37/40
Service environment:
Shapes customers experiences and behaviour Supports image, positioning and differentiation Part of the value proposition
Facilitates service encounter and enhances productivity Mehrabian-Russell stimulus-response model and
Russells model of affect help us understandcustomer responses to service environments
Pleasure and arousal Approach / avoidance
8/3/2019 Services Cape 1
38/40
Bitners Servicescape model is integrativeframework of consumer responses to serviceenvironments. Main dimensions:
Ambient conditions music, scent, color etc.
Spatial layout and functionality Signs, symbols and artifacts
People are also part of service environment
8/3/2019 Services Cape 1
39/40
Putting it all together, firms should Design with a holistic view
Design from a customers perspective
Use tools to guide servicescape design
Some tools for guiding servicescape design are
Keen observation of customers behaviour andresponses in service environments
Feedback and ideas from front-line staff and customers
Photo audits included in interviews and surveys
Field experiments to manipulate specific dimensions toobserve effects
Blueprinting physical evidence of environment
8/3/2019 Services Cape 1
40/40
Bitner, M. J. (1992) Servicescapes: The impact of physicalsurroundings on customers and employees, Journal ofMarketing, 56 (April, 1992), pp. 57-71.
Booms, Bernard H. and Mary J. Bitner (1982), Marketingservices by managing the environment, Cornell Hotel andRestaurant Administration Quarterly, 23 (May), 35-9.
Hoffman, K. D. & Bateson, J. E. G. (2006)ServicesMarketing: Concepts, Strategies & Cases. 3rd ed. ThomsonSouth Western.
Hoffman, K. D., Bateson, J. E. G., Wood, E. H. & Kenyon, A.J. Alexandra (2009)Services Marketing: Concepts, Strategiesand Cases. Cengage Learning.
Lovelock, C. & Wirtz, J. (2006)Services Marketing, Prentice-Hall.
Lovelock, C. H., Wirtz, J. & Chew, P. (2009)Essentials ofServices Marketing. Prentice Hall
Mehrabian, A. & Russell, J. A. (1974)An Approach to
Environmental Psychology, MIT Press, Cambridge, MA.