Crafting the Service Environment, + TB Chapter 10

Question 1

Purpose of service environments (2 components)

Answer 1

Shape
Signal

Question 2

Shape

Answer 2

Shapes customers’ service experiences and behaviours

Question 3

Signal

Answer 3

Signal quality and position, differentiate, and strengthen the brand
Core component of the value proposition

Question 4

Mehrabian-Russell stimulus response model

Answer 4

Feelings are a key driver of customer responses to service environments

Question 5

Russell’s model of affect

Answer 5

Four main quadrants of intensity (mild and intense), and pleasantness (pleasant and unpleasant). Services are able to crossover the quadrants

Question 6

Bitner’s servicescape model

Answer 6

Perceived landscape
Employee responses
Customer responses

Employee response moderator
Customer response moderator

Question 7

Dimensions of the service environment

Answer 7

Exterior facilities (height, size, colour of building, architectural style)
General interior (flooring, colour schemes, lighting)
Store layout (allocation of space, placement of merchandise)
etc

Question 8

Impact of ambient conditions

Answer 8

Composed of hundreds of design elements and details to create a desired servicescape
Perceived both separately and holistically, can include:
Lighting and colours
Scents
Sounds such as noise and music
Air quality and temperature

Question 9

Music in servicescapes

Answer 9

Structural characteristics of music (such as tempo, volume, and harmony) are perceived holistically
Careful selection of music can deter wrong type of cutomers

Question 10

Scents in servicescapes

Answer 10

Can be consciously perceived by customers
Scents have distinct characteristics and can be used to obtain emotional, physiological, and behavioural responses
Scents have a significant effect on customer perceptions, attitudes, and behaviours

Question 11

Aromatherapy

Answer 11

Effects of selected fragrances on people
Eg: Lavender is herbaceous, classed as calming, balancing, soothing, and psychological effects include relaxing and calming

Question 12

Colour in servicescapes

Answer 12

Colours can be defined into three dimensions:
Hue
Value
Chroma

Colours can also have psychological effects
Eg: Red = high energy and passion, green = healing and nurturing

Question 13

Spatial layout and functionality

Answer 13

Spatial layout - size and shape of furnishings, counters, machinery, equipment, and how they are arranged
Functionality - the ability of those items to make the performance of the service easier

Question 14

Signs, symbols, and artifacts

Answer 14

Communicates the firm’s image
Help customers find their way
Let customers know about the service script
First-time customers will automatically try to draw meaning
Must design these in a way to guide customers through the service delivery process
eg: no smoking signs

Question 15

People in servicescapes

Answer 15

Appearance and behaviour of service personnel and customers can strengthen the impression of a servicescape

Question 16

Holistic servicescape view

Answer 16

Servicescapes have to be seen holistically; no dimension of design can be optimized in isolation because they all work in harmony
Holistic characteristics make designing servicescapes an art
Design from customer POV

Question 17

Tools to guide servicescape design

Answer 17

Observe customer behaviour and responses
Feedback from frontline staff and customers
Photo audit - ask customers to take photos of their experience and use as basis for interviews on experience
Field experiments
Blue printing - extended to include physical evidence in the environment

Question 18

VRIO

Answer 18

Value - Did the resources strengthen the firm to leverage a business opportunity and eliminate a business threat?
Rarity - Was the resource controlled by a limited number of competitors?
Inimitability - Was there a cost disadvantage for a company that did not have the resources to acquire it?
Organization - Did the firm have organized and systematic policies and procedures that enabled the leveraging of its valuable, rare, and inimitable resources?

Question 19

Sustained competitive advantage

Answer 19

When a company’s resources check all VRIO categories

Question 20

Benefits of VRIO framework

Answer 20

Allows firm to take advantage of previously unrecognized competitive advantages
Can help set course for future plans leading to better allocation of business resources
Can evaluate potential opportunities and identify threats