Planning the Service Environment

1. Chapter 10
Planning the
Service Environment

2. 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.

3. 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

4. The Mehrabian-Russell Stimulus-
Response Model (Figure 10.2)
Response
Environmental Dimensions of Behaviors:
Stimuli & Cognitive Affect:
Approach/
Processes Pleasure and Avoidance &
Arousal Cognitive
Processes

5. The Mehrabian-Russell Stimulus-
Response 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

6. The Russell Model of Affect
Arousing
Distressing
Exciting
Unpleasant Pleasant
Boring Relaxing
Sleepy

7. 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)

8. 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.

9. 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

10. An Integrated Framework – Bitner’s
ServiceScape Model (Figure 10.4)
Environmental Moderators Internal Responses Behaviour
Dimensions Holistic
Cognitive
Environ- Emotional
ment Psychological
Ambient Approach
Employee or
Conditions
Response Avoid
Moderator Employee
Responses
Space/ Social Interaction
Perceived Between
Function ServiceScape Customers &
Employees
Customer
Signs, Customer Responses Approach
Symbols & Response or
Artefacts Moderator Cognitive Avoid
Emotional
Psychological

11. An Integrated Framework – Bitner’s
ServiceScape Model(con’t)
• 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

12. 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)
– 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)

13. 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

14. Impact of Music on Restaurant
Diners
Restaurant Fast-beat (Table 10-2)
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

15. The Effects of Scents on the
Perceptions of Store Environments
Evaluation (Table 10-3)
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/attracti 4.12 4.98 +0.86
ve
Drab/colorful 3.63 4.72 +1.09
Boring/Stimulating 3.75 4.40 +0.65

16. The Effects of Scents on the
Perceptions of Store Environments
(Table 10-3)
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

17. Aromatherapy: The Effects of
Fragrance on People (Table 10-4)
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
astringen people
t
Lavender Herbaceo Calming, Muscle Relaxing and calming,
us balancing, relaxant, helps create a homey and
soothing soothing comfortable feel
agent
Jasmine Floral Uplifting, Emollient Helps makes people feel
balancing soothing refreshed, joyful,
agent comfortable
Peppermint Minty Energizing, Skin Increase attention level
stimulating cleanser and boosts energy

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

19. 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 customer’s perspective

20. 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