Servicescape

Ardhendu Shekhar Singh

 Exercise
• Elements of servicescape (2-3minutes)
• Best experience and lead to satisfaction and
loyalty
• Worst experience and lead to --- 10
Minutes
• Example of an element of servicescape
discriminating customers
• Sharing

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 Servicescape
[Link]

• “we shape our buildings and afterwards, they shape us”

(Churchill 1943)
• ‘atmospherics’ was coined by Kotler (1973) who first
recognised the influence of the in-store environment on the
perceptual processes of customers’
• Bitner (1992) coined the term “servicescape” to denote a
physical setting in which a marketplace exchange is
performed, delivered, and consumed within a service
organization.
• servicescape, includes all aspects of the physical environment
in which the service provider and customer interact.

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 Purpose of Service Environments
• Helps firm to create distinctive image and unique positioning
• Alleviate cognitive dissonance
• Service environment affects buyer behavior in three ways:
– Message-creating medium: Symbolic cues to communicate
the distinctive nature and quality of the service experience
– Attention-creating medium: Make servicescape stand out
from competition and attract customers from target
segments
– Effect-creating medium: Use colors, textures, sounds, scents
and spatial design to enhance desired service experience

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 The strategic role of Servicescape
o Packaging
• Creates external image
• Sets expectations
o Facilitator
• Aids performances of service providers
• Physical layout and functional design
o Socializer
• Suggests expected roles, behaviors and relationships
• facilitates interaction between:
• customers and employees
• customers and fellow customers
o Differentiator
• Distinguished from competitors
• Signals appropriate market segments
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 Elements of Servicescape
Facility Exterior Facility Interior Other Tangibles
Parking Layout Uniforms
Landscape Equipment Business cards
Signage Signage Stationary
Exterior design Air temperature Invoices
Interior design Brochures
Lighting Web pages
Employee dress
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 Types of Servicescapes

Self-service environment: customer performs most of the

activities and few if any employees are involved.

Interpersonal services: both customer and employee must

be present in the servicescape

Remote service: employee only; little or no customer

involvement with the servicescape.

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 Complexity of Servicescapes
Lean environment: simple; few elements, spaces, and pieces of
equipment

Elaborate environment: complicates servicescape; many

elements and forms.

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Typology of Service Organizations based on Variations in
Form and Use of the Servicescape
Complexity of the servicescape evidence
Servicescape Elaborate Lean
usage
Self-service Golf Land ATM
(customer only) Surf 'n' Splash Ticketron
Post office kiosk
Internet services
Express mail drop-off
Interpersonal Hotel Dry cleaner
services Restaurants Hot dog stand
(both customer and Health clinic Hair salon
employeee) Hospital
Bank
Airline
School
Remote service Telephone company Telephone mail-order desk
(employee only) Insurance company Automated voice-messaging-
Utility based services
Many professional services

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 The Mehrabian-Russell model (1974)

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Framework for Understanding Servicescape
Effects on Behavior
Individual Behaviors: response to physical setting

Servicescapes can create an approach or avoidance behavior

Approach behavior: (positive) - spending money, interacting

with employees, browsing, being brand loyal to a service

Avoidance behavior: (negative) - many customers will not

shop the day after Thanksgiving because of the crowds

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 Donovan and Rossiter (1982)
• Approach and avoidance behaviours possess four
aspects. These are:
– Physical approach and avoidance relating to store
patronage intentions at a basic level.
– Exploratory approach and avoidance relating to in-store
search and exposure to offerings.
– Communication approach and avoidance relating to
sales personnel and floor staff.
– Performance and satisfaction approach and avoidance
relating to repeat shopping frequency plus
reinforcement of time and money expenditures.
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 Bitner, 1992

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 Contd..
• Donovan and Rossiter (1982) assert that emotional
reactions are (1) difficult to verbalise, (2) transient
and thus difficult to recall, and (3) influence
behaviours within the store.
• Bitner (1992) suggests that servicescape stimuli
such as good ventilation, clear signage and
adequate space may increase customers’ perception
of personal control. This perception of increased
personal control is positively related to increased
pleasure (Hui and Bateson 1991).
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 Dimensions of the Service Environment
Service environments are complex and have many design
elements. The main dimensions in the servicescape model
includes:

• 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) (starbucks)

– 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)
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 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

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 Impact of Music on Restaurant Diners
Restaurant Fast-beat Slow-beat Difference between
Patron Music Music Slow and Fast-beat
Behavior Environment Environment Environments
Absolute %
Difference Difference
Consumer time 45min 56min +11min +24%
spent at table

Spending on $55.12 $55.81 +$0.69 +1%

food
Spending on $21.62 $30.47 +$8.85 +41%
beverages
Total spending $76.74 $86.28 +$9.54 +12%

Estimated $48.62 $55.82 +$7.20 +15%

gross margin
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 The Effects of Scents on the Perceptions of
Store Environments
Evaluation Unscented Scented Difference
Environment Environment
Mean Ratings Mean Ratings

Store Evaluation
Negative/positive 4.65 5.24 +0.59

Outdated/modern 3.76 4.72 +0.96

Store Environment
Unattractive/ 4.12 4.98 +0.86
attractive
Drab/colorful 3.63 4.72 +1.09
Boring/Stimulating 3.75 4.40 +0.65

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 The Effects of Scents on the Perceptions of
Store Environments
Evaluation Unscented Scented Difference
Environment Environment
Mean Ratings Mean Ratings

Merchandise

Outdated/up- to-date 4.71 5.43 +0.72

style
Inadequate/adequate 3.80 4.65 +0.85

Low/high quality 4.81 5.48 +0.67

Low/high price 5.20 4.93 -0.27

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 Aromatherapy: The Effects of Fragrance on
People
Fragrance Aromath Aromather Tradition Potential Psychological
erapy apy Class al Use Impact on People

Orange Citrus Calming Soothing Calming and relaxing

agent, effect esp. for nervous
astringent people
Lavender Herbaceo Calming, Muscle Relaxing and calming,
us balancing, relaxant, helps create a homey and
soothing soothing comfortable feel
agent
Jasmine Floral Uplifting, Emollients Helps makes people feel
balancing oothing refreshed, joyful,
agent comfortable
Peppermint Minty Energizing, Skin Increase attention level
stimulating cleanser and boosts energy

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 Common Associations and Human
Responses to Colors
Color Degree of Nature Common Association and
Warmth Symbol Human Responses to Color

Red Warm Earth High energy and passion; can

excite, stimulate, and increase
arousal and blood pressures
Orange Warmest Sunset Emotions, expressions, and
warmth

Green Cool Grass Nurturing, healing and

and unconditional love
Trees
Blue Coolest Sky and Relaxation, serenity and loyalty
Ocean

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 Visual (Aradhna Krishna, 2013)

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The Service Setting as a Marketing Tool

• Managing Tangible Evidence

– Carefully consider the potential impact of even the
smallest physical element.
• Frontstage Versus Backstage Decisions
– The frontstage area of a service setting is always on
display to customers, while the backstage is concealed
from their view.
• Experimenting with the Service Setting
– Allows managers to try out new setting features on a
limited basis before embracing them on a full scale.

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 E-Servicescape as a Service Setting
• An e-servicescape setting is any web site on the
Internet. E-servicescape settings are subject to
the same concepts that apply to managing the
tangible evidence of a conventional service
environment.
– Atmospherics – functional and aesthetically
pleasing
– Measured for ambient conditions, their spatial
layout, functionality and their signs, symbols and
artifacts
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 Developing and Effective Physical Evidence
Strategy
Steps:
1. Recognize the strategic impact of physical evidence
2. Map the physical evidence of service
3. Clarify roles of the servicescape
4. Assess and identify physical evidence opportunities
5. Be prepared to update and modernize the evidence
6. Work cross-functionally

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 Service Blueprinting
• the directions in which processes flow;
• the time it takes to move from one process to
the next;
• the costs involved with each process step;
• the amount of inventory buildup at each step;
and
• the bottlenecks in the system.

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 Blueprint for Restaurant

Appetizer Salad Food Desert Drink Billing

Number 1 1 1 1 1 1
of
counters
Cost per 40 40 40 40 40 60
hour (in
Rs.)
Process 15 30 60 40 20 30
time (in
sec.)
Maximum 240 120 60 90 180 120
output
per hour

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 Cont..
• Bottleneck
• Service cost per meal

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 Waiting line strategies
o Employ operational logic
• Streamline operational processes
• Eliminate inefficiencies
• Queue configuration
o Establish a reservation system
• Shift demand to less busy periods
• Inherent problem of ‘no-shows’
⁻ Charge fee
⁻ Overbook capacity
o Differentiate waiting customers
• Need-based or customer priority
• Guest registering

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 The psychology of waiting lines

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