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.
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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The Mehrabian-Russell Stimulus-Response Model (Figure 10.2)

Environmental Stimuli & Cognitive Processes

Dimensions of Affect:
Pleasure and Arousal

Response Behaviors: Approach/ Avoidance & Cognitive Processes

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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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
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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The Russell Model of Affect

Arousing Distressing Exciting

Unpleasant

Pleasant

Boring

Relaxing

Sleepy

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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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)

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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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.
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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Behavioral Consequence of Affect

Basically, pleasant environments result in approach,

unpleasant environments result in avoidance

and

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
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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An Integrated Framework Bitners ServiceScape Model (Figure 10.4)

Environmental Dimensions Moderators Holistic Environment
Employee Response Moderator Perceived ServiceScape

Internal Responses Cognitive Emotional Psychological Employee Responses

Behaviour

Ambient Conditions

Approach or Avoid
Social Interaction Between Customers & Employees

Space/ Function

Signs, Symbols & Artefacts

Customer Response Moderator

Customer Responses Cognitive Emotional Psychological

Approach or Avoid

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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An Integrated Framework Bitners ServiceScape Model(cont)

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

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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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)
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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Dimensions of the Service Environment (cont)

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 firms image,

help consumers find their way and to convey the rules of behavior

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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Impact of Music on Restaurant Diners

(Table 10-2) Restaurant Patron Behavior Fast-beat Slow-beat Difference between Music Music Slow and Fast-beat Environment Environment Environments
Absolute Difference Consumer time spent at table Spending on food Spending on beverages Total spending Estimated gross margin 45min $55.12 $21.62 $76.74 $48.62 56min $55.81 $30.47 $86.28 $55.82 +11min +$0.69 +$8.85 +$9.54 +$7.20 % Difference +24% +1% +41% +12% +15%

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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The Effects of Scents on the Perceptions of Store Environments (Table 10-3)

Evaluation Unscented Scented Environment Environment Mean Ratings Mean Ratings Difference

Store Evaluation Negative/positive Outdated/modern Store Environment Unattractive/attracti ve Drab/colorful Boring/Stimulating 4.12 3.63 3.75 4.98 4.72 4.40 +0.86 +1.09 +0.65 4.65 3.76 5.24 4.72 +0.59 +0.96

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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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 Inadequate/adequate 4.71 3.80 5.43 4.65 +0.72 +0.85

Low/high quality
Low/high price

4.81
5.20

5.48
4.93

+0.67
-0.27

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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Aromatherapy: The Effects of Fragrance on People (Table 10-4)

Fragrance Aromath Aromather erapy apy Class Citrus Calming Tradition Potential Psychological al Use Impact on People Soothing agent, astringen t Muscle relaxant, soothing agent Emollient soothing agent Skin cleanser Calming and relaxing effect esp. for nervous people Relaxing and calming, helps create a homey and comfortable feel Helps makes people feel refreshed, joyful, comfortable Increase attention level and boosts energy
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Orange

Lavender

Herbaceo Calming, us balancing, soothing Floral Uplifting, balancing Energizing, stimulating

Jasmine

Peppermint Minty

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

Common Associations and Human Responses to Colors (Table 10-5)

Color Degree of Nature Common Association and Warmth Symbol Human Responses to Color Warm Earth High energy and passion; can excite, stimulate, and increase arousal and blood pressures Emotions, expressions, and warmth Nurturing, healing and unconditional love

Red

Orange

Warmest

Sunset

Green

Cool

Grass and Trees

Blue

Coolest

Sky and Relaxation, serenity and loyalty Ocean

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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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 customers perspective Design with a holistic view!
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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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.
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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