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Purpose of Service Environments ?(Muvico's CEO, Hamid Hashemi) The power of servicescapes is being discovered Insights from Mehrabian-Russell

Stimulus-Response Model

It is a simple yet fundamental model of how people respond to

Environments that holds:

?use colors, textures, sounds, scents, and spatial design to

Enhance desired service experience Servicescape as Part of Value Proposition ?Florida-based Muvico: builds extravagant movie theatres and offers plush amenities.Las Vegas: repositioned itself to a somewhat more wholesome fun resort, visually striking entertainment center ?If higher levels of cognitive processes are triggered, the interpretation of this process determines people's feelings ?Facilitate service encounter and enhance productivity Shape customers' experience and

Their behaviors

?Typical outcome variable is 'approach' or 'avoidance' of an

Environment, but other possible outcomes can be added to model Insights from Russell's Model of Affect ?symbolic cues to communicate the distinctive nature and quality of

The service experience

?Emotional responses to environments can be described along two main dimensions: ?Pleasure: subjective, depending on how much individual likes or dislikes environment ?Arousal: how stimulated individual feels, depends largely on information rate or load of an environment ?Firms can set targets for affective states Drivers of Affect ?Caused by perceptions and cognitive processes of any degree of complexity ?Pleasant environments result in approach, whereas

Unpleasant ones result in avoidance

?If environment is pleasant, increasing arousal can generate

Excitement, leading to a stronger positive consumer response

?make servicescape stand out from competition and attract

Customers from target segments

?e.g., Disneyland, Denmark's Legoland ?The more complex a cognitive process becomes, the more powerful its potential impact on affect Behavioral Consequence of Affect

?Support image, positioning, and differentiation ?Message-creating medium

?Attention-creating medium

?Effect-creating medium

?Physical surroundings help shape appropriate feelings and reactions in customers and employees ?Servicescapes form a core part of the value proposition ?The environment, its conscious and unconscious perceptions, and

Interpretation influence how people feel in that environment

?Arousal amplifies the basic effect of pleasure on behavior

?Shape customers' experience and their behaviors ?Part of the value proposition ?Feelings, rather than perceptions/thoughts drive behavior

?It determines how people feel in a service setting ?"What sets you apart is how you package it."Advantage: simple, direct approach to customers' feelings ?

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

Their behaviors

 Message-creating medium

➔ symbolic cues to communicate the distinctive nature and quality of

The service experience

 Attention-creating medium

➔ make servicescape stand out from competition and attract

Customers from target segments

 Effect-creating medium

➔ use colors, textures, sounds, scents, and spatial design to

Enhance desired service experience
Servicescape as Part of Value
Proposition
 Physical surroundings help shape appropriate feelings and
reactions in customers and employees
➔ e.g., Disneyland, Denmark’s Legoland
 Servicescapes form a core part of the value proposition
➔ Las Vegas: repositioned itself to a somewhat more wholesome fun
resort, visually striking entertainment center
➔ Florida-based Muvico: builds extravagant movie theatres and
offers plush amenities. “What sets you apart is how you package it.”
(Muvico’s CEO, Hamid Hashemi)
The power of servicescapes is being discovered
Insights from Mehrabian-Russell

Stimulus-Response Model

It is a simple yet fundamental model of how people respond to

Environments that holds:

 The environment, its conscious and unconscious perceptions, and

Interpretation influence how people feel in that environment

 Feelings, rather than perceptions/thoughts drive behavior

 Typical outcome variable is ‘approach’ or ‘avoidance’ of an

Environment, but other possible outcomes can be added to model
Insights from Russell’s
Model of Affect
 Emotional responses to environments can be described
along two main dimensions:
➔ Pleasure: subjective, depending on how much individual likes or
dislikes environment
➔ Arousal: how stimulated individual feels, depends largely on
information rate or load of an environment
 Advantage: simple, direct approach to customers’ feelings
➔ Firms can set targets for affective states
Drivers of Affect
 Caused by perceptions and cognitive processes of any
degree of complexity
 It determines how people feel in a service setting
 If higher levels of cognitive processes are triggered, the
interpretation of this process determines people’s feelings
 The more complex a cognitive process becomes, the more
powerful its potential impact on affect
Behavioral Consequence of Affect

 Pleasant environments result in approach, whereas

Unpleasant ones result in avoidance

 Arousal amplifies the basic effect of pleasure on behavior

➔ If environment is pleasant, increasing arousal can generate

Excitement, leading to a stronger positive consumer response

➔ If environment is unpleasant, increasing arousal level will move

Customers into the “distressed” region

 Feelings during service encounters are an important driver Of customer loyalty
An Integrative Framework:
The Servicescape Model
 Identifies the main dimensions in a service environment and
views them holistically
 Internal customer and employee responses can be
categorized into cognitive, emotional, and psychological
responses, which lead to overt behavioral responses
towards the environment
 Key to effective design is how well each individual
dimension fits together with everything else
Main Dimensions in

Servicescape Model

 Ambient Conditions

➔ Characteristics of environment pertaining to our five senses

 Spatial Layout and Functionality

➔ Spatial layout:

• 
  

  Floorplan

  
  


• 
  

  Size and shape of furnishings

  
  

➔ Functionality: ability of those items to facilitate performance

 Signs, Symbols, and Artifacts

➔ Explicit or implicit signals to:

• Help consumers find their way


• Ambient Conditions




•  Ambient conditions are perceived both separately and




• Holistically, and include:




• ➔ Lighting and color schemes




• ➔ Size and shape perceptions




• ➔ Sounds such as noise and music




• ➔ Temperature




• ➔ Scents




•  Clever design of these conditions can elicit desired




• Behavioral responses among consumers


• Music




•  In service settings, music can have powerful effect on




• Perceptions and behaviors, even if played at barely audible




• Levels




•  Structural characteristics of music―such as tempo,




• Volume, and harmony―are perceived holistically




• ➔ Fast tempo music and high volume music increase arousal levels




• ➔ People tend to adjust their pace, either voluntarily or involuntarily,




• To match tempo of music




•  Careful selection of music can deter wrong type of




• Customers


• Scent




•  An ambient smell is one that pervades an environment




• ➔ May or may not be consciously perceived by customers




• ➔ Not related to any particular product




•  Scents have distinct characteristics and can be used to




• Solicit emotional, physiological, and behavioral responses




•  In service settings, research has shown that scents can




• Have significant effect on customer perceptions, attitudes,




• And behaviors


• Color




•  Colors can be defined into three dimensions:




• ➔ Hue is the pigment of the color




• ➔ Value is the degree of lightness or darkness of the color




• ➔ Chroma refers to hue-intensity, saturation, or brilliance




•  People are generally drawn to warm color environments




• ➔ Warm colors encourage fast decision making and are good for




• Low-involvement decisions or impulse buys




• ➔ Cool colors are preferred for high-involvement decisions


• Signs, Symbols, and Artifacts




•  Communicates the firm’s image and helps customers find their




• Way




• ➔ First time customers will automatically try to draw meaning from the




• Signs, symbols, and artifacts




•  Challenge is to guide customer through the delivery process




• ➔ Unclear signals from a servicescape can result in anxiety and uncertainty




• About how to proceed and obtain the desired service