Love Lock 10
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Chapter 10
Planning the Service Environment
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 1
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. Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 2
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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 3
The Mehrabian-Russell Stimulus-Response Model (Figure 10.2)
Environmental Stimuli & Cognitive Processes
Dimensions of Affect:
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Pleasure and Arousal
Services Marketing 5/E
Response Behaviors: Approach/ Avoidance & Cognitive Processes
10 - 4
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 5
The Russell Model of Affect
Arousing Distressing
Exciting
Unpleasant
Pleasant
Relaxing
Boring
Sleepy Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 6
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)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 7
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. Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 8
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 9
An Integrated Framework – Bitner’s ServiceScape Model (Figure 10.4) Environmental Dimensions
Ambient Conditions Space/ Function Signs, Symbols & Artefacts
Moderators Holistic Environment
Internal Responses Cognitive Emotional Psychological
Employee Response Moderator
Employee Responses
Perceived ServiceScape
Customer Response Moderator
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Customer Responses Cognitive Emotional Psychological Services Marketing 5/E
Behaviour
Approach or Avoid Social Interaction Between Customers & Employees
Approach or Avoid
10 - 10
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 11
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) Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 12
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 13
Impact of Music on Restaurant Diners (Table 10-2) Restaurant Patron Behavior
Fast-beat Slow-beat Difference between Music Music Slow and Fast-beat Environment Environment Environments Absolute Difference
% Difference
Consumer time spent at table
45min
56min
+11min
+24%
Spending on food
$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%
Estimated gross margin
$48.62
$55.82
+$7.20
+15%
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 14
The Effects of Scents on the Perceptions of Store Environments (Table 10-3) Evaluation
Unscented Scented Environment Environment Mean Ratings Mean Ratings
Difference
Store Evaluation Negative/positive
4.65
5.24
+0.59
Outdated/modern
3.76
4.72
+0.96
Unattractive/attracti ve Drab/colorful
4.12
4.98
+0.86
3.63
4.72
+1.09
Boring/Stimulating
3.75
4.40
+0.65
Store Environment
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 15
The Effects of Scents on the Perceptions of Store Environments (Table 10-3) Evaluation
Unscented Environment Mean Ratings
Scented Environment Mean Ratings
Difference
Outdated/up- to-date style
4.71
5.43
+0.72
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
Merchandise
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 16
Aromatherapy: The Effects of Fragrance on People (Table 10-4) Fragrance
Aromath Aromather erapy apy Class
Tradition Potential Psychological al Use Impact on People
Orange
Citrus
Lavender
Herbaceo Calming, us balancing, soothing
Calming and relaxing effect esp. for nervous people Relaxing and calming, helps create a homey and comfortable feel
Jasmine
Floral
Soothing agent, astringen tMuscle relaxant, soothing agent Emollient soothing agent Skin cleanser
Increase attention level and boosts energy
Peppermint Minty
Calming
Uplifting, balancing Energizing, stimulating
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
Helps makes people feel refreshed, joyful, comfortable
10 - 17
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 and Trees
Nurturing, healing and unconditional love
Blue
Coolest
Sky and Relaxation, serenity and loyalty Ocean
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 18
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 Design with a holistic view! Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 19
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 effects observed.
Blueprinting or Service Mapping - extended to include the physical evidence in the environment.
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 20
Planning the Service Environment
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 1
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. Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 2
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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 3
The Mehrabian-Russell Stimulus-Response Model (Figure 10.2)
Environmental Stimuli & Cognitive Processes
Dimensions of Affect:
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Pleasure and Arousal
Services Marketing 5/E
Response Behaviors: Approach/ Avoidance & Cognitive Processes
10 - 4
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 5
The Russell Model of Affect
Arousing Distressing
Exciting
Unpleasant
Pleasant
Relaxing
Boring
Sleepy Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 6
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)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 7
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. Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 8
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 9
An Integrated Framework – Bitner’s ServiceScape Model (Figure 10.4) Environmental Dimensions
Ambient Conditions Space/ Function Signs, Symbols & Artefacts
Moderators Holistic Environment
Internal Responses Cognitive Emotional Psychological
Employee Response Moderator
Employee Responses
Perceived ServiceScape
Customer Response Moderator
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Customer Responses Cognitive Emotional Psychological Services Marketing 5/E
Behaviour
Approach or Avoid Social Interaction Between Customers & Employees
Approach or Avoid
10 - 10
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 11
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) Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 12
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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 13
Impact of Music on Restaurant Diners (Table 10-2) Restaurant Patron Behavior
Fast-beat Slow-beat Difference between Music Music Slow and Fast-beat Environment Environment Environments Absolute Difference
% Difference
Consumer time spent at table
45min
56min
+11min
+24%
Spending on food
$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%
Estimated gross margin
$48.62
$55.82
+$7.20
+15%
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 14
The Effects of Scents on the Perceptions of Store Environments (Table 10-3) Evaluation
Unscented Scented Environment Environment Mean Ratings Mean Ratings
Difference
Store Evaluation Negative/positive
4.65
5.24
+0.59
Outdated/modern
3.76
4.72
+0.96
Unattractive/attracti ve Drab/colorful
4.12
4.98
+0.86
3.63
4.72
+1.09
Boring/Stimulating
3.75
4.40
+0.65
Store Environment
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 15
The Effects of Scents on the Perceptions of Store Environments (Table 10-3) Evaluation
Unscented Environment Mean Ratings
Scented Environment Mean Ratings
Difference
Outdated/up- to-date style
4.71
5.43
+0.72
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
Merchandise
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 16
Aromatherapy: The Effects of Fragrance on People (Table 10-4) Fragrance
Aromath Aromather erapy apy Class
Tradition Potential Psychological al Use Impact on People
Orange
Citrus
Lavender
Herbaceo Calming, us balancing, soothing
Calming and relaxing effect esp. for nervous people Relaxing and calming, helps create a homey and comfortable feel
Jasmine
Floral
Soothing agent, astringen tMuscle relaxant, soothing agent Emollient soothing agent Skin cleanser
Increase attention level and boosts energy
Peppermint Minty
Calming
Uplifting, balancing Energizing, stimulating
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
Helps makes people feel refreshed, joyful, comfortable
10 - 17
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 and Trees
Nurturing, healing and unconditional love
Blue
Coolest
Sky and Relaxation, serenity and loyalty Ocean
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 18
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 Design with a holistic view! Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 19
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 effects observed.
Blueprinting or Service Mapping - extended to include the physical evidence in the environment.
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
10 - 20
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