Managing the Physical Evidence Chapter 8 Managing the Physical Evidence

Chapter Objectives Appreciate the strategic role of physical evidence as it relates to the marketing of service firms. Outline the stimulus-organism-response (SOR) model. Discuss the major components of the servicescapes model. Describe the managerial use of sensory cues when developing tactical design strategies. Compare design considerations for low verses high-customer-contact firms. ©2011 Cengage Learning. All rights reserved.

Open Vignette: Dinner in the Sky Why, then, do people pay thousands of dollars to dine? The servicescape makes all the difference. Not only are customers given the opportunity to literally dine among the clouds while suspended at 130 feet in the air, they are given the chance to hoist their company logos over the heads of everyone down below. ©2011 Cengage Learning. All rights reserved.

The Strategic Role of Physical Evidence Physical evidence can fall into 3 broad categories Facility exterior Facility interior Other tangibles ©2011 Cengage Learning. All rights reserved.

Importance of managing physical evidence Packaging the service Facilitating the flow of the service delivery process Socializing customers and employees alike in terms of their respective roles, behaviors, and relationships Differentiating the firm from its competitors ©2011 Cengage Learning. All rights reserved.

Packaging the Service Conveys customer expectations Influences perceptions reduces perceived risk reduces cognitive dissonance after the purchase Physical Evidence Quality Ques Image Develop- ment ©2011 Cengage Learning. All rights reserved.

Facilitating the Service Process Provides information How am I to act? Facilitates the ordering process How does this work? Manages consumers Barriers separate different consumer groups or help to isolate the technical core ©2011 Cengage Learning. All rights reserved.

Socializing Employees and Customers Use of Uniforms identify the firm’s personnel physical symbol that embodies the group’s ideals and attributes implies a coherent group structure facilitates perceptions of consistent performance assists in controlling deviant members ©2011 Cengage Learning. All rights reserved.

A Means for Differentiation Well-dressed personnel are: perceived as more intelligent better workers more interactive Nicely designed facilities are: Perceived as having the advantage over poorly designed facilities ©2011 Cengage Learning. All rights reserved.

Figure 8.2: The SOR Model Environmental stimuli Emotional states Pleasure Arousal Dominance Approach or avoidance responses A set of stimuli An organism component A set of responses or outcomes ©2011 Cengage Learning. All rights reserved.

The SOR Model Organism Recipients of the set of stimuli in the service encounter; includes customers and employees Attempting to create emotional states pleasure (leads to satisfactions) arousal (leads to stimulation) dominance (leads to control) ©2011 Cengage Learning. All rights reserved.

Development of Servicescape The use of physical evidence to design service environment. Remote, Self-Service, and Interpersonal Services High-contact verses Low-contact Service Firms Facility Location Facility Layout Product Design Process Design ©2011 Cengage Learning. All rights reserved.

Figure 8.4: Facility Usage Interpersonal services (customers and employees) Self-service Remote services (Customers only) (Employees only) ©2011 Cengage Learning. All rights reserved.

Stage 1: Physical Environmental Dimensions Ambient conditions Temperature, air quality, noise, music, odor Space/Function Layout, equipment, furnishings Signs, symbols, and artifacts Signage, personal artifacts, style of decor ©2011 Cengage Learning. All rights reserved.

Stage 2: Holistic Environment Overall perceptions of the servicescape formed by employees and customers Perceived servicescape Economic customers Personalized customers Apathetic customers Ethical customers ©2011 Cengage Learning. All rights reserved.

Stage 4: Internal Responses Cognitive Responses beliefs, categorization, symbolic meaning Emotional Response mood, attitudes Physiological Response pain, comfort, movement, physical fit ©2011 Cengage Learning. All rights reserved.

Managing the Senses when creating Servicescapes Who is the firm’s target market? What does the target market seek from the service experience? What atmospheric elements can reinforce the beliefs and emotional reactions that buyers seek? How do these same atmospheric elements affect employee satisfaction and the firm’s operations? Does the suggested atmosphere development plan compete effectively with competitors’ atmospheres? ©2011 Cengage Learning. All rights reserved.

Specific Tactics for Creating Servicescapes Sight Appeals Size Perceptions Shape Perceptions Color Perceptions The Location of the Firm The Firm’s Architecture The Firm’s Signage The Firm’s Entrance Lighting ©2011 Cengage Learning. All rights reserved.

Figure 8.5: Perceptions of Colors Warm colors red love, romance, sex, courage, danger, fire, sinful, warmth, excitement, vigor, cheerfulness, enthusiasm, and stop yellow sunlight, warmth, cowardice, openness, friendliness, gaiety, glory, brightness, caution orange sunlight, warmth, openness, friendliness, gaiety, glory ©2011 Cengage Learning. All rights reserved.

Figure 8.5: Perceptions of Color Cool colors blue coolness, aloofness, fidelity, calmness, piety, masculine, assurance, sadness green coolness, restful, peace, freshness, growth, softness, richness, go violet coolness, retiring, dignity, rich ©2011 Cengage Learning. All rights reserved.

Specific Tactics for Creating Servicescapes Sound appeals mood setter, attention grabber, informer music, announcements, and sound avoidance ©2011 Cengage Learning. All rights reserved.

Specific Tactics for Creating Servicescapes Scent appeals pleasurable scents vs foul odors Touch appeals shaking hands with service providers Taste appeals the equivalent of providing the customer with free samples ©2011 Cengage Learning. All rights reserved.

Copyright © 2011 Cengage Learning. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Cengage Learning. ©2011 Cengage Learning. All rights reserved.