Servicescapes: The impact of physical surroundings on customers and employees

Group 7: Ankita Singh Ashutosh Vikram Jayantwin Katia Arnab Guha Malik Anshul Kumar Mahesh Koppad

Servicescapes
The environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service The ability of physical environment to influence behaviour and to create an image is particularly apparent for service businesses as services are produced and cosumed simultaneously Research shows that physical settings can influence: Employee satisfaction Productivity Motivation

Typology of Servicescapes
Complexity of the Servicescape
Servicescape usage
Self-service (customer only)

Elaborate
Golf course eBay

Lean
ATM Car wash Simple Internet services Express mail drop-off Dry cleaner Retail cart Hair salon

Interpersonal services (both customer and employee)

Hotel Restaurant Health clinic Hospital Bank Airline School Telephone company Insurance company Utility Many professional services

Remote service (employee only)

Telephone mail-order desk Automated voice messaging services

The vertical dimension relates to who is performing the actions The horizontal dimension essays the complexity of the servicescape from lean to elaborate

Mehrabian-Russell Framework

Behaviors in Servicescape
Individual Behaviors
Individuals react to places with two forms of behavior
Approach Avoidance

Individual Behaviors
Cognitive :knowledge structure Affective :feelings & emotions Physiological

Positive (negative) internal responses lead to approach ( avoidance) behaviors

Social Interactions
Servicescape influences the nature and quality of customer- employee interactions Recurring social behavior patterns are associated with typical physical settings. Ex: seating arrangement at airports

Internal responses to Servicescape

Environment and cognition
Environment is a form of non-verbal communication Consumers tend to use extrinsic cues and categorization

Environment and emotion

Pleasure-displeasure Degree of arousal

Environment and physiology

Physical responses can directly influence whether people want to enjoy a particular environment Example: Ergonomics, military, space programs etc Affective response is positive when people are physically comfortable

Affective Responses
Arousing

Distressing Unpleasant Gloomy

Exciting Pleasant Relaxing

Sleeping

Response moderators
Response moderators: Personal factors and situational factors Arousal seekers look for high level of stimulation whereas arousal avoiders prefer lower levels of stimulation

Situational factors: plan and purpose for being in the environment

Personal factors: mood ( ex: happy, sad, depressed, lonelyetc)

Dimensions of the Servicescape

Ambient Conditions Temperature, lighting, noise, music, and scent Applicable more to restaurants and supermarkets Spatial Layout and Functionality Spatial layout: Ways in which machinery , equipments and furnishings are arranged. Size, shape and spatial arrangement Functionality: ability of items to facilitate performance and goal accomplishment

Signs, Symbols and artifacts Explicit : Labels, directional signs, signage etc Implicit: quality of materials used, certificates on walls. Floor covering, artwork etc

Managerial Implications
Roles of the Servicescape:
Package conveys expectations influences perceptions Facilitator facilitates the flow of the service delivery process provides information (how am I to act?) facilitates the ordering process (how does this work?) facilitates service delivery Differentiator sets provider apart from competition in the mind of the consumer

Need of users and requirement of various functional units must be incorporated into environmental design
Through careful and creative management of servicescape, managers can achieve marketing and organizational goals

THANK YOU!