1. Planning the Service Environment
Chapter 10
Planning the
Service Environment

2. 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.

3. 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

4. The Mehrabian-Russell Stimulus-Response Model (Figure 10.2)
Response Behaviors:
Approach/
Avoidance & Cognitive Processes
Dimensions of Affect:
Pleasure and Arousal
Environmental Stimuli & Cognitive Processes

5. 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

6. The Russell Model of Affect
Arousing
Pleasant
Sleepy
Unpleasant
Exciting
Relaxing
Boring
Distressing

7. 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)

8. 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.

9. 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

10. An Integrated Framework – Bitner’s ServiceScape Model (Figure 10.4)
Environmental Dimensions
Moderators
Internal Responses
Behaviour
Holistic Environ- ment
Cognitive
Emotional
Psychological
Ambient
Conditions
Space/
Function
Signs,
Symbols & Artefacts
Approach or
Avoid
Employee
Response Moderator
Employee Responses
Social Interaction Between Customers & Employees
Perceived ServiceScape
Customer Responses
Customer Response Moderator
Approach or
Avoid
Cognitive
Emotional
Psychological

11. 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

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)

13. 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

14. Impact of Music on Restaurant Diners (Table 10-2)
Restaurant Patron
Behavior
Fast-beat Music
Environment
Slow-beat Music Environment
Difference between
Slow and Fast-beat
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%

15. The Effects of Scents on the Perceptions of Store Environments (Table 10-3)
Evaluation
Unscented Environment Mean Ratings
Scented Environment Mean Ratings
Difference
Store Evaluation
Negative/positive
4.65
5.24
+0.59
Outdated/modern
3.76
4.72
+0.96
Store Environment
Unattractive/attracti ve
4.12
4.98
+0.86
Drab/colorful
3.63
+1.09
Boring/Stimulating
3.75
4.40
+0.65

16. The Effects of Scents on the Perceptions of Store Environments (Table 10-3)
Evaluation
Unscented Environment Mean Ratings
Scented Environment Mean Ratings
Difference
Merchandise
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

17. Aromatherapy: The Effects of Fragrance on People (Table 10-4)
Aromather apy Class
Tradition al Use
Potential Psychological Impact on People
Orange
Citrus
Calming
Soothing agent, astringen t
Calming and relaxing effect esp. for nervous people
Lavender
Herbaceo us
Calming, balancing, soothing
Muscle relaxant, soothing agent
Relaxing and calming, helps create a homey and comfortable feel
Jasmine
Floral
Uplifting, balancing
Emollient soothing agent
Helps makes people feel refreshed, joyful, comfortable
Peppermint
Minty
Energizing, stimulating
Skin cleanser
Increase attention level and boosts energy

18. Common Associations and Human Responses to Colors (Table 10-5)
Degree of Warmth
Nature Symbol
Common Association and 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 Ocean
Relaxation, serenity and loyalty

19. 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!

20. 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.