Services Cape 1

8/3/2019 Services Cape 1

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2010


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What is a Servicescape?

Components of the Servicescape

Roles of the Servicescape

Models for Understanding Servicescape

and Effects on Behaviour


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Facility exterior


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The facility interior


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Other Tangibles

Business cards

Stationery

Billing statements Employee dress

Brochures

Web pages

Lovelock & Wirtz (2006)


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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


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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.



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Four Seasons Hotel, New York

Orbit Hotel and Hostel, Los Angeles

The servicescape is part of the value proposition!



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Fairmont Empress, Victoria, British ColumbiaGenerator Youth Hostel, London

Each servicescape clearly communicates and reinforces itshotels respective positioning and sets service expectationsas guests arrive


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Response

Behaviours:

Approach/Avoidance &

CognitiveProcesses

EnvironmentalStimuli & Cognitive

Processes

Dimensions ofAffect:

Pleasure andArousal



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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)



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The environment, itsconscious andunconsciousperceptions and

interpretationinfluence how peoplefeel in thatenvironment

Feelings, rather thanperceptions/thoughtsdrive behaviour


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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)


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Bitner (1992)


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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


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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.


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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


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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%



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Colours have a strong impact on peoples feelings


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Particularly important in:

Self-service settings

Situations when tasks are

complex

Situations when time is short


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Are particularly important in:

Forming first impressions

Communicating new service concepts

Repositioning a service

Highly competitive industries (to

differentiate from competitors)


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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


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Emotional Responses

Greater personal control increases

pleasureComplexity increases emotional

arousal

Compatibility increases pleasure

Feelings about the servicescapetransfer over to the organisation


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Personality traits affect the relationship

between the perceived servicescape and internal

responses

Situational factors moderate the relationshipbetween the perceived servicescape and internal

responses


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Keen Observation of CustomersBehaviour

Feedback and Ideas from Frontline Staff

Field Experiments

Blueprinting or Service Mapping



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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)


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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,


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The physical setting can

aid or hinder the

accomplishment of bothinternal organizational

goals and external

marketing goals.


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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)


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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


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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


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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


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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.

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