1. Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Physical Evidence and the Servicescape  Physical Evidence  Types of Servicescapes  Strategic Roles of the Servicescape  Framework for Understanding Servicescape Effects on Behavior  Guidelines for Physical Evidence Strategy Chapter10 10-2

3. Objectives for Chapter 10: Physical Evidence and the Servicescape  Explain the impact of physical evidence, particularly the servicescape, on customer perceptions and experiences.  Illustrate differences in types of servicescapes, the roles played by the servicescape, and the implications for strategy.  Explain why the servicescape affects customer and employee behavior, using a framework based in marketing, organizational behavior, and environmental psychology.  Present elements of an effective physical evidence strategy. 10-3

4. Physical Evidence  “The environment in which the service is delivered and where the firm and the customer interact, and any tangible commodities that facilitate performance or communication of the service.”  Physical facility = Servicescape 10-4

5. Elements of Physical Evidence 10-5

6. Examples of Physical Evidence from the Customer’s Point of View 10-6

7.  Flow  Meaning  Satisfaction  Emotional connections to company  Clue management: the process of clearly identifying and managing all the various clues that customers use to form their impressions and feelings about the company. How Does Physical Evidence Affect the Customer Experience? 10-7

8. Typology of Service Organizations Based on Form and Use of the Servicescape 10-8

9. 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 10-9

10. Speedi-Lube Spells Out the Service Offering 10-10

11. A Framework for Understanding Environment-User Relationships in Service Organizations 10-11

12. Understanding Servicescape Effects on Behavior  Stimulus-organism-response theory  Stimulus = multidimensional environment  Organism = customers and employees  Response = behaviors directed at the environment 10-12

13. Individual Behaviors in the Servicescape  Environmental psychologists suggest that people react to places with two general, and opposite forms of behavior:  Approach: all positive behaviors that might be directed to a place  Desire to stay, explore, work, affiliate  Shopping enjoyment, spending time and money  Avoidance: negative behaviors  Desire not to stay, etc. 10-13

14. Social Interactions in the Servicescape  All social interaction is affected by the physical container in which it occurs  Customer-employee  Customer-customer  Scripts (particular progression of events)  Physical proximity  Seating arrangements  Size  Flexibility 10-14

15. Internal Responses to the Servicescape  Cognition: environment can affect beliefs about a place and the people and products found in that place  Emotion: color, décor, music, scent affect mood  Pleasure/displeasure  Degree of arousal (amount of stimulation)  Physiology: volume, temperature, air quality, lighting can cause physical discomfort and even pain  Ergonomics 10-15

16. Variations in Individual Response  Personality differences  Arousal seekers vs. arousal avoiders  Environmental screeners  Purpose for being in the servicescape  Business/pleasure  Utilitarian/hedonistic  Temporary mood state 10-16

17. Environmental Dimensions  Ambient Conditions: affect the 5 senses, but may be imperceptible or affect us subconsciously ◦ Temperature, lighting, noise, music, scent, color  Spatial Layout and Functionality: size, shape, and arrangement of machinery, equipment, and furnishings and the ability of such to facilitate customer and employee goals ◦ Accessibility, aesthetics, seating comfort  Signs, Symbols, Artifacts: explicit or implicit communication of meaning; often culturally embedded; important in forming first impressions ◦ Way-finding, labels, rules of behavior, creating aesthetic impression 10-17

18. Cheers: The Third Place 10-18

19. 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.  Update and modernize the evidence.  Work cross-functionally 10-19