Physical Evidence and the Servicescape

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					Physical Evidence and
  the Servicescape
       Chapter 11
              Provider Gap 2
 Insert   Figure 2.6
   Gap 2 – Not Having the Right
  Service Designs and Standards
 Insert   Figure 2.3
                      Objectives
   This chapter’s objectives are to:
       1.Show how physical evidence can help close Gap 2
       2. Explain the impact of the servicescape and other
        physical evidence on customer perceptions and
        expectations
       3. Illustrate differences in types, roles and
        implications of the servicescape
       4. Using a framework, explain why the servicescape
        affects customer and employee behaviour
       5. Present elements of an effective physical evidence
        strategy
            Physical Evidence
         evidence is a key component of
 Physical
 the expanded marketing mix for services.
     Physical evidence is defined as “the
      environment in which the service is delivered
      and in which the firm and the customer
      interact, and any tangible commodities that
      facilitate performance or communication of
      the service.”
            Physical Evidence
 Insert   Figure 11.2
    What is Physical Evidence?
 Because of the intangibility of services,
  customers must rely on tangible cues, or
  physical evidence, to evaluate the service before
  its purchase and to assess their satisfaction with
  the service before and after consumption.
 Elements of physical evidence include all
  aspects of the organization’s physical facility,
  known as the servicescape, as well as all other
  forms of tangible communication.
 Elements of the servicescape that affect
  customers may be both exterior and interior
  attributes.
   What is Physical Evidence?
 Insert   Table 11.1
Examples of Physical Evidence
 Insert   Table 11.2
How Does Physical Evidence Affect
   the Customer Experience?
 Physical  evidence, and in particular the
  servicescape, can have a profound and
  meaningful effect on the customer
  experience.
 As marketers, it is important to pay
  attention to customer experiences and
  recognize the impact of physical space
  and tangible elements in the creation of
  those experiences.
      Types of Servicescapes
 Insert   Table 11.3
         Servicescape Usage
 Self-service environment – the customer
  performs most of the activities (ex. ATMs and
  movie theatres)
 Remote service – little or no customer
  involvement with the servicescape (ex. Financial
  consultants and mail-order services)
 Interpersonal services – represent situations in
  which both customers and employees are
  present in the servicescape (ex. Hotels,
  restaurants, schools, hospitals)
        Servicescape Complexity
   Lean service environments are very simple, with
    few elements, few spaces, and few pieces of
    equipment.
       Examples of lean environments include information
        kiosks and FedEx drop-off facilities.
   In contrast, elaborate service environments are
    very complicated.
       A good example of an elaborate environment is that
        of a hospital with many floors and rooms,
        sophisticated equipment and high variability.
                Strategic Roles of the
                    Servicescape
   Package
       The servicescape and
        other elements of physical
        evidence essentially “wrap”
        the service, and convey an
        external image to
        consumers.
       The servicescape is the
        outward appearance of the
        organization, and is critical
        in setting up customer
        impressions and
        expectations.
       Insert Figure 11.3 to right
               Strategic Roles of the
                   Servicescape
   Facilitator
       The servicescape can serve as a facilitator, aiding the
        performances of customers and employees within the
        environment.
       The design of the setting may enhance or inhibit the
        efficient flow of activities within the service setting.
         • A facility that is well designed and functional can make both
           the customer’s and employee’s experience pleasurable.
         • Poor and inefficient design can frustrate both customers and
           employees
           Strategic Roles of the
               Servicescape
 Socializer
     Servicescape design can help convey
      expected roles, behaviours and relationships
      of both employees and customers.
     Facility design suggests to customers what
      their role is relative to employees, what parts
      of the servicescape they are welcome in, how
      they should behave while in the environment,
      and what types of interactions are
      encouraged.
           Strategic Roles of the
               Servicescape
 Differentiator
     The design of the physical facility can
      differentiate a firm from its competitors and
      also signal the market segment that the
      service is intending to target.
           Strategic Roles of the
               Servicescape
 Insert   Figure 11.4
  Framework for Understanding
Servicescape Effects on Behaviour
 Insert   Figure 11.5
        The Underlying Framework
   The framework for understanding how the
    servicescape effects behaviour is derived from
    stimulus-organism-response theory.
       In our framework, the multidimensional environment
        is the stimulus, consumers and employees are the
        organisms responding to the stimuli, and their
        behaviours are the resulting responses.
   The assumption is that the impact of the
    servicescape on customers and employees will
    cause them to behave in certain ways
    depending on their internal reactions to the
    servicescape.
Behaviours in the Servicescape
   Individual Behaviours
       Psychologists suggest that individuals react to places
        with two general forms of behaviour: approach
        (positive behaviours) and avoidance (negative
        behaviours).
       The servicescape can actually influence the degree of
        success that an individual experiences in executing
        their plan once inside the service setting.
         • Each individual comes to a particular service organization
           with a goal or purpose that may be helped or hindered by the
           setting.
Behaviours in the Servicescape
   Social Interactions
       The servicescape
        influences the nature and
        quality of customer and
        employee interactions.
       “All social interaction is
        affected by the physical
        container in which it
        occurs.”
       Environmental variables
        such as physical proximity,
        seating arrangements, size
        and flexibility can define
        the service experience.
       Insert Figure 11.6 to right
          Internal Responses to the
                Servicescape
   Environment and Cognition
       The perceived servicescape can affect people’s
        beliefs about a place, as well as their beliefs about
        the people and products found in that place.
       The servicescape can be classified as a form on non-
        verbal communication.
       Overall perception of the servicescape allows the firm
        to be mentally categorized.
         • For example, in the restaurant industry a particular
           configuration of environmental cues may suggest “fast food,”
           while another configuration suggests “elegant restaurant.”
         Internal Responses to the
               Servicescape
   Environment and Emotion
      The perceived
       servicescape can elicit
       emotional responses
       that influence
       behaviours.
      Elements such as
       colours, décor and
       music can have
       subconscious effects
       on individuals.
      Insert Figure 11.7 to
       right
        Internal Responses to the
              Servicescape
 Environment       and Physiology
     The perceived servicescape may also affect
      people in purely physiological ways.
       • For example, it is well known that the comfort of
         seating in a restaurant influences how long people
         will stay.
       • Environmental design and physiological responses
         can also affect how well employees perform their
         job functions.
        Internal Responses to the
              Servicescape
 Variations    in Individual Responses
     People generally respond the environment
      cognitively, emotionally and physiologically,
      and their responses influence how they
      behave in the environment.
     However, the response will differ between
      individuals.
       • Personality differences, moods or the purpose for
         being in the particular environment can cause
         variations in how people respond to the
         servicescape.
 Environmental Dimensions of the
         Servicescape
 There is a complex mix of environmental
 features that influence the responses and
 behaviours of customers and employees.
     The multitude of potential influencing
      elements have been categorized into three
      main dimensions:
     Ambient Conditions
     Spatial Layout and Functionality
     Signs, Symbols and Artifacts
             Ambient Conditions
   Ambient conditions include background characteristics of
    the environment such as:
      Lighting

      Noise

      Music

      Scent

      Colour

   These factors can have a profound effect on how people
    think, feel and respond to a particular service
    establishment.
   Ambient conditions have a greater effect on the
    customer or employee when considerable time is spent
    in the servicescape; their impact builds over time.
Spatial Layout and Functionality
 Spatial layout refers to the ways in which
  machinery, equipment and furnishings are
  arranged, the size and shape of those items,
  and the spatial relationship among them.
 Functionality refers to the ability of those items
  to facilitate the accomplishment of customer and
  employee goals.
       Spatial layout and functionality becomes particularly
        important in a self-service environment, where
        customers cannot rely on employees for assistance.
    Signs, Symbols and Artifacts
   Many items in the physical environment serve as either
    explicit or implicit signals that communicate about the
    place.
      Exterior and interior signs are examples of explicit

       communicators. They can be used as labels, for
       directional purposes, and to communicate rules of
       behaviour.
      Environmental symbols and artifacts that

       communicate less directly are referred to as implicit
       cues. Artwork, certificates and photographs, and
       personal objects can communicate meaning and
       create an impression.
   Signs, symbols and artifacts are particularly important in
    forming first impressions and for communicating service
    concepts.
 Guidelines for Physical Evidence
             Strategy
 Recognize   the Strategic Impact of
  Physical Evidence
 Blueprint the Physical Evidence of Service
 Clarify Strategic Roles of the Servicescape
 Assess and Identify Physical Evidence
  Opportunities
 Be Prepared to Update and Modernize the
  Evidence
 Work Cross-Functionally
                  Summary
 The physical evidence of the service serves as a
  primary cue for setting customer expectations.
 Tangible cues, particularly the servicescape,
  influence customers’ responses as they
  experience the service.
 The servicescape can serve as a package, a
  facilitator in aiding the goal accomplishment of
  customers and employees, a socializer in
  prescribing environmental behaviours, and a
  differentiator to distinguish the organization from
  its competitors.
                        Summary
   The servicescape can affect the approach and
    avoidance behaviours of individuals, as well as
    their social interactions.
       These behavioural responses arise because the
        physical environment influences people’s
        beliefs/cognitions about the service organization, their
        feelings or emotions in response to the environment,
        and their actual physiological reactions while in the
        physical facility.
   The impact of physical evidence must be
    researched and planned as part of the overall
    marketing strategy.
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