Crafting the Service Environment, + TB Chapter 10 Flashcards
Purpose of service environments (2 components)
Shape
Signal
Shape
Shapes customers’ service experiences and behaviours
Signal
Signal quality and position, differentiate, and strengthen the brand
Core component of the value proposition
Mehrabian-Russell stimulus response model
Feelings are a key driver of customer responses to service environments
Russell’s model of affect
Four main quadrants of intensity (mild and intense), and pleasantness (pleasant and unpleasant). Services are able to crossover the quadrants
Bitner’s servicescape model
Perceived landscape
Employee responses
Customer responses
Employee response moderator
Customer response moderator
Dimensions of the service environment
Exterior facilities (height, size, colour of building, architectural style)
General interior (flooring, colour schemes, lighting)
Store layout (allocation of space, placement of merchandise)
etc
Impact of ambient conditions
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
Music in servicescapes
Structural characteristics of music (such as tempo, volume, and harmony) are perceived holistically
Careful selection of music can deter wrong type of cutomers
Scents in servicescapes
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
Aromatherapy
Effects of selected fragrances on people
Eg: Lavender is herbaceous, classed as calming, balancing, soothing, and psychological effects include relaxing and calming
Colour in servicescapes
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
Spatial layout and functionality
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
Signs, symbols, and artifacts
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
People in servicescapes
Appearance and behaviour of service personnel and customers can strengthen the impression of a servicescape
Holistic servicescape view
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
Tools to guide servicescape design
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
VRIO
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?
Sustained competitive advantage
When a company’s resources check all VRIO categories
Benefits of VRIO framework
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
