final anil 2

8/8/2019 Final Anil 2

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Physical Evidence and the Servicescape

Explain the profound impact of physical evidence, particularly the servicescape, on customer perceptionsand experiences.

Illustrate differences in types of servicescapes, the roles played by the servicescape, and the implications for strategy.

Explain why the servicescape affects customer andemployee behavior, using a framework based inmarketing, organizational behavior, and environmental psychology.

Present elements of an effective physical evidence

strategy.



Customer-Driven Service

Designs and Standards

Company Perceptionsof Customer

Expectations

K ey Factors Leading to Provider

Gap 2

Key Factors Related to Physical Evidence:

Overpromising through physical evidence

Lack of physical evidence

Failure to develop Tangibles in line with customer expectations

Servicescape design does not meet customer & employee

needs

Inadequate maintenance and updating of servicescape

Gap

2



Definition of Physical Evidence

Servicescape: the environment inwhich the service is delivered

and where the firm and the

customer interact

Any tangible commodities that facilitate performance or

communication of the service

Can be critical to the ultimate success or failure of the service



Elements of Physical Evidence Servicescape: Facility exterior: exterior signage,

parking, landscape, surrounding environment

Facility interior: interior design, equipment,signage, layout, air quality/temperature

other tangibles: business cards, stationery, billing

statements, reports, employee dress, uniforms,

brochures, web pages, virtual servicescape



Examples of Physical Evidence from

the Customer¶s Point of View



Typology of Service Organizations Based on

Variations in Form & Use of the ServicescapeComplexity of the servicescape evidence

Servicescapeusage

Elaborate Lean

Self-service(customer only)

Golf LandSurf 'n' Splash

ATMTicketronPost off ice kioskInternet servicesExpress mail drop-off

Interpersonalservices(both customer andemployeee)

HotelRestaurantsHe alth clinicHospital

Bank AirlineSchool

Dry cleaner Hot dog standHa ir salon

Remote service(em ployee only)

Telephone comp anyInsurance compa nyUtilityMany professional services

Telephone m ail-order desk Automated voice-m essaging-based services



Role of servicescape Functionally:

± facilitate or hamper service delivery

± Helps to frame expectations ± Plays a communication and promotions role

Strategically:

± Fosters approach rather than avoidance behaviour

± Provides a means of competitive differentiation ± Represents the quality and value of the service offering

± Can also establish particular ambient mood for customers and employees



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

Socializer

± facilitates interaction between:

customers and employees

customers and fellow customers

Differentiator

± sets provider apart from competition in the mind of the consumer



Packaging Utilizing firm¶s physical evidence to

package the service sends quality cues to

consumers and adds value.

Image development improves consumer

perception of service, reduces perceived

purchase risk and post-purchase cognitivedissonance.



Packaging Chinese restaurants often utilize specific

types of architectural designs that

communicate firm¶s offering to customers.



Facilitating Service Process Physical evidence can provide information

about how service production process

works.

Examples: signage that instructs customers,

menus and brochures that explain the firms¶

offering, and physical structures that directthe flow of consumers while waiting.



Socializing Employees and

Customers Physical evidence, such as uniforms,

facilitates employee socialization toward

firm¶s goals and affects consumer

perceptions.

Studies show uniforms aid in identifying

firm¶s personnel, presents a physicalsymbol, and implies a coherent group

structure.



Means for

Differentiation

Banks experience difficulties indifferentiating themselves from

competitors. Physical evidence provides strategy for

service differentiation.

Numerous studies have shown that well-dressed individuals are perceived as moreintelligent.



Understanding Servicescape

Effects on Behavior Stimulus-Organism-Response Theory

Multidimensional environment is the

stimulus

Consumers and employees are the

organisms

Behaviors are the responses

Stimulus Organism Response



The Effect of Physical Evidence and

Atmosphere on Buyer Behaviour

As an attention creating medium: the use of colour,

noise, smell and so on (sensory impacts)

As a message creating medium: the use of symboliccues to communicate with the intended audience

As an effect creating medium: using colours,

sounds, spatial design and so on to heighten the

buyer¶s desire

K otler (1973)



A framework for understanding the impact

of the physical environment

Customers,

employees

Cognitive

Emotional

Physiological

Ambience

Space

Signs,

symbols

Customers

Approach

AvoidE mployees

Productivity

Job Satisfaction

Service quality

Staff turnover

Environmental

stimuliThoughts

and feelings

Behavioural

responses



³Response´: Behaviors

in the ServicescapeArousal

Nonarousal

Exciting

Pleasure

Relaxing

Distressing

Displeasure

Gloomy

M ehrabian-Russell M odel



³Organism´: Internal

Responses to the Servicescape Cognitive

± Beliefs

± Categorization

± Symbolic meanings

Emotional

± Mood

± Attitude

Physiological

± Pain

± Comfort

± Movement

± Physical fitness



³Organism´: Internal

Response Moderators Personality

Purchase situation

Temporary mood states



³Stimulus´: Environmental

Dimensions of the Servicescape Ambient conditions

± Temperature

± Air quality

± Noise

± Music

± Odor




Dimensions of the Servicescape Spatial Layout/Function

± Layout

± Equipment ± Furnishings

Signs, Symbols, and Artifacts

± Signage ± Personal artifacts

± Style of decor




Dimensions of the Servicescape Sound appeals

Scent appeals

Sight appeals

± Size perceptions

± Shape

± Color perceptions



A Framework for Understanding Environment-User

Relationships in Service Organizations



Tools for Designing

Servicescapes/ UnderstandingServicescape Effects

Environmental Surveys-ask customers/

employees

Direct Observation- see problems/

unobtrusive

Experiments

Photographic Blueprints



Guidelines for Physical Evidence Strategy

Recognize the strategic impact of physical

evidence.

Blueprint the physical evidence of service.

Clarify strategic roles of the servicescape.

Assess and identify physical evidence

opportunities.

Be prepared to update and modernize theevidence.

Work cross-functionall y



Servicescape Exercise

Describe the ³atmosphere´ (layout, colors, sounds,smells, etc.) of your organization . How does the

atmosphere make you feel?

Describe the customers. How are they dressed, and

how do they act? Are they alone or with others? Anyinferences regarding their lifestyles or incomes?

Describe the customer contact personnel. How are they

dressed, and how did they behave?



A Framework for Understanding

Environment-User Relationships in

Service Organizations

Source: Adapted from Mary Jo Bitner (1992)

PHYSIC AL

ENVIRONMENTAL

DIMENSIONS

HOLISTIC

ENVIRONMENT

INTERNAL

RESPONSES

BEHAVIOR

AmbientConditions

Space/Function

Signs, Symbols,

and Artifacts

PerceivedServicescape

Cognitive

Emotional

Physiological

Cognitive

Emotional

Physiological

EmployeeResponses

Customer Responses

IndividualBehaviors

SocialInteractionsbetween and

amongcustomer and

employees

IndividualBehaviors

Figure 11.2

final anil 2

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