1. MKT 346: Marketing of Services Dr. Houston Chapter 10: Creating the Service Environment

2.  Shape customers’ experience and their behavior  Support image, positioning and differentiation  Part of the value proposition  Facilitate service encounter and enhance productivity Purpose of Service Environments

3. The Mehrabian-Russell Stimulus-Response Model (Fig. 10.5) Feelings Are a Key Driver of Customer Responses to Service Environments

4. Insights from Mehrabian-Russell Stimulus-Response Model  Simple yet fundamental model of how people respond to environments  The environment influences how people feel in that environment  Feelings, rather than perceptions/thoughts drive behavior  Typical outcome variable is ‘approach’ or ‘avoidance’ of an environment

5. The Russell Model of Affect (Fig. 10.6)

6. Insights from Russell Model of Affect  Affective Response  Feelings and emotions that are created by contact with a person, place, or thing  Two Main Dimensions of Affective Response  Pleasure  Arousal  Direct assessment of how customers feel

7. An Integrative Framework: Bitner’s Servicescape Model (Fig. 10.7)

8. Dimensions of the Service Environment  Ambient Conditions  Spatial Layout and Functionality  Signs, Symbols, and Artifacts

9. Ambient Conditions  Characteristics of our environment pertaining to our five senses  Music  Temperature  Odors  Lighting  Colors  Sizes  Shapes

10. Spatial Layout and Functionality  Furnishings  Floor plans  Counters  Equipment  Parking

11. Signs, Symbols, Artifacts  Explicit or implicit signals that:  Communicate a firm’s image  Help customers find their way  Help customers follow the service script  Help employees follow the service script

12. People are Also Part of the Servicescape  Appearance of service personnel  Performance of service personnel  Interactions between customers and service personnel

13. Service Environment Design  Consumers perceive service environments holistically  Design with a holistic view that incorporates ALL dimensions of the service environment

14. Tools to Guide Servicescape Design  Keen observation of customers’ behavior and responses to the service environment  Feedback and Ideas from frontline staff and customers  Photo audits by customers  Field experiments to manipulate specific dimensions in an environment and the effects observed  Service blueprinting - extended to include physical evidence in the environment

15. MKT 346 Key Concepts: Chapter 10  Service environment  Mehrabian-Russell stimulus-response model  Russell’s model of affect  Bitner’s integrated servicescape model  Dimensions of the servicescape  People are also part of service environment  Tools for guiding servicescape design