MKT 346: Marketing of ServicesDr. Houston

Chapter 10:Creating theService Environment

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

The Mehrabian-Russell Stimulus-Response Model (Fig. 10.5)

Feelings Are a Key Driver of Customer Responses to Service Environments

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

The Russell Model of Affect(Fig. 10.6)

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

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

10.7)

Dimensions of the Service Environment

Ambient Conditions

Spatial Layout and Functionality

Signs, Symbols, and Artifacts

Ambient Conditions

Characteristics of our environment pertaining to our five senses Music

Temperature

Odors

Lighting

Colors

Sizes

Shapes

Spatial Layout and Functionality

Furnishings Floor plans Counters Equipment Parking

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

People are Also Part of the Servicescape

Appearance of service personnel

Performance of service personnel

Interactions between customers and service personnel

Service Environment Design

Consumers perceive service environments holistically

Design with a holistic view that incorporates ALL dimensions of the service environment

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

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