4362ch5 sp10

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Chap. 5: What Is a Service Setting?

A service setting, sometimes called a servicescape, includes all aspects of the physical environment in which the service provider and customer interact.

Patient examination room; catering service: white linen cloths, eating utensils, menus, kitchen, etc.


Key Considerations inDesigning the Service Setting

• The Duration of the Service SettingPhysical setting becomes more significant when

customer spends considerable time in the environment

• Service Setting as an Operational ToolProperly designed setting lowers operational

costs and expedites the process of service delivery


Key Considerations inDesigning the Service Setting

• Service Setting as a Service IdentifierService setting becomes more important when

the service design can be used to differentiate the service performance from its competitors

• Service Setting as an Orientation Tool Design of service setting can facilitate or hinder

customer’s understanding of the service process.


Key Considerations inDesigning the Service Setting (cont’d)

• The Appeal of the Service Setting– An approach environment is a setting in which the

customer feels comfortable and wishes to spend time– An avoidance environment is a setting that the

customer finds undesirable and uninviting

• Service Setting as the Workers’ “Home Away from Home”– Comfortable setting for workers which will facilitate

their ability to perform


The Service Settingas a Marketing Tool

• Managing Tangible Evidence– Carefully consider the potential impact of even the

smallest physical element.

• Frontstage Versus Backstage Decisions– The frontstage area of a service setting is always on

display to customers, while the backstage is concealed from their view.

• Experimenting with the Service Setting– Allows managers to try out new setting features on a

limited basis before embracing them on a full scale.

4362ch5 sp10

Business