Chapter 10:

Planning the Service

Environment

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.
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

The Mehrabian-Russell
Stimulus-Response Model
(Figure 10.2)
Environmental
Stimuli &
Cognitive
Processes

Dimensions of
Affect:
Pleasure and
Arousal

Response
Behaviors:
Approach/
Avoidance &
Cognitive
Processes

The Mehrabian-Russell StimulusResponse 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
5

The Russell Model of Affect

Arousing
Distressing

Exciting

Unpleasant

Pleasant

Relaxing

Boring

Sleepy

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)

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.

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

An Integrated Framework
Bitners Moderato
ServiceScape
Environment
Internal
Behaviour
al
Responses
Cognitive
Holistic
rs
Model
(Figure 10.4)
Dimensions
Emotional
EnvironAmbient
Conditions
Space/
Function
Signs,
Symbols &
Artefacts

Psychological

ment
Employee
Response
Moderator

Employee
Responses

Perceived
ServiceScape

Customer
Response
Moderator

Customer
Responses
Cognitive
Emotional
Psychological

Approach
or
Avoid
Social Interaction
Between
Customers &
Employees

Approach
or
Avoid

10

An Integrated Framework Bitners

Servicescape Model(cont)
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

11

Complexity of the
Servicescape

Lean Environment

Simple environment with

few elements, few spaces
and few pieces of
equipment

Elaborate Environment

Complicated servicescape
with many elements and
many forms

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)

Healthcare interior

13

Dimensions of the Service

Environment (cont)

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 firms image,
help consumers find their way
and to convey the rules of
behavior
Customers become disoriented
when they cannot derive clear
signals from a servicescape

Theme park

14

Dimensions of the Service

Environment (cont)

People are part of the

Service Environment, Too

The appearance and

behavior of both service
personnel and customers
can reinforce or detract
from the impression
created by a service
environment
Termed as aesthetic labor

15

Impact of Music on Restaurant

Diners
Restaurant
Fast-beat
Slow-beat
Difference between
Patron
Behavior

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%

16

The Effects of Scents on the

Perceptions of Store Env. (Table 10-3)
Evaluation

Store Evaluation

Unscented
Scented
Environment Environment
Mean
Mean Ratings
Ratings

Difference

Negative/positive

4.65

5.24

+0.59

Outdated/modern

3.76

4.72

+0.96

Unattractive/attrac
tive
Drab/colorful

4.12

4.98

+0.86

3.63

4.72

+1.09

Boring/Stimulating

3.75

4.40

+0.65

Store Environment

17

The Effects of Scents on the

Perceptions of Store Env.
Evaluation
Unscented
Scented
Difference
(Table 10-3)Environment Environment
Merchandise

Mean
Ratings

Mean
Ratings

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

18

Aromatherapy: The Effects of

Fragrance on People (Table 10-2)

Fragrance

Aromat Aromathe
herapy rapy
Class
Citrus
Calming

Traditio Potential
nal Use Psychological Impact
on People
Orange
Soothing Calming and relaxing
agent,
effect esp. for nervous
astringe people
nt
Lavender
Herbace Calming,
Muscle
Relaxing and calming,
ous
balancing, relaxant, helps create a homey
soothing
soothing and comfortable feel
agent
Jasmine
Floral
Uplifting,
Emollien Helps makes people
balancing
tsoothin feel refreshed, joyful,
g agent comfortable
Peppermint Minty
Energizing, Skin
Increase attention level
19
stimulating cleanser and boosts energy

Common Associations and Human

Responses to Colors (Table 10-3)
Color
Red

Degree
of
Warmth
Warm

Orange

Warmest

Green

Cool

Blue

Coolest

Nature Common Association and

Symbol Human Responses to
Color
Earth
High energy and passion;
can excite, stimulate, and
increase arousal and blood
pressures
Sunset Emotions, expressions, and
warmth
Grass
and
Trees
Sky and
Ocean

Nurturing, healing and

unconditional love
Relaxation, serenity and
loyalty

20

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 customers perspective
Design with a holistic view!

21

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.

22