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Chapter10.CraftingtheServiceEnvironmentEssentialsofServicesMarketing,SecondEdition

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Chapter 10. Crafting the Service Environment

LearningObjectives
Bytheendofthischapter,thereadershouldbeableto:

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LO1Recognizethefourcorepurposesserviceenvironmentsfulfill.

LO2Explainhowenvironmentalpsychologyhelpsustounderstandcustomeras

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wellasemployeeresponsestoserviceenvironments.

LO3Befamiliarwiththeintegrativeservicescapemodel.

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LO4Knowthedimensionsoftheserviceenvironment.

LO5Discussthekeyambientconditionsandtheireffectsoncustomers.

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LO6Determinetherolesofspatiallayoutandfunctionality.

LO7Understandtherolesofsigns,symbols,andartifacts.

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LO8Knowhowserviceemployeesandothercustomersarepartofthe
servicescape.
LO9Explainwhydesigninganeffectiveservicescapehastobedoneholisticallyand
fromthecustomersperspective.

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Figure10.1.ThecontemporarycurvesoftheGuggenheimhavedrawnin
largeamountsofpraiseandcrowds.

OpeningVignette:TheGuggenheimMuseuminBilbao

WhentheGuggenheimMuseuminBilbaoinnorthernSpainopeneditsdoorstothepublic,
therewaspraiseforitfromallovertheworld.Ithadfascinatingarchitecturethatresulted
initbeinghailedasthegreatestbuildingofourtimedesignedbyFrankGehry,the
influentialandfamousCanadianAmericanarchitect.ItputBilbaoontheworldmapasa
touristdestination.Beforethat,mostpeoplehadneverheardofBilbao.Bilbaowasoncean
industrialareawithashipyardandlargewarehousedistricts.Itsriverwasfilledwitha
centuryofwastefromthefactoriesthatlineditsshores.Theentirecitywastransformed
withthemuseumbeingthefirststepofthecitysredevelopmentplan.Sucha

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transformationisnowevencalledtheBilbaoeffect,andisbeingstudiedtounderstand
howthiskindofwoweffectarchitecturecanhelptotransformacity.
Thedesignfeaturesofthemuseumhaveanumberofmeaningsandmessages.Itisshaped
likeashipandblendsinwiththeenvironmentoftheriver.Themuseumisamixtureof
regularformsbuiltinstone,curvedformsmadeoftitanium,andhugeglasswallsthatallow
naturallighttopenetratethemuseumandprovidevisitorsinsidethebuildingwithaview
ofthesurroundinghills.Outside,thetitaniumpanelshavebeenarrangedtolooklikefish
scales,keepingintunewiththeimageofbeingbytheNervionRiver.A43foottallterrier
topiarymadeofpotsoffreshpansiesandahugespidersculpturecalledMamanbythe
leading20thcenturysculptorLouiseBourgeoisgreetsvisitors.
Fromthemuseumshuge,metaldomedatrium,patronscanvisit19othergalleries
connectedbycurvedwalkways,glasslifts,andstairways.Eventhedesignofthegalleriesis
meanttohintatwhatvisitorscanexpectinside.Therectangularshapedgallerieshave
limestonecoveredwalls.Therectangleisamoreconventionalshape,andthesegalleries
holdtheclassicartcollections.Theirregularlyshapedgalleriesholdcollectionsofselected
livingartists.Inaddition,therearespecialgallerieswithnostructuralcolumnswithinthe
museumsothatlargeartworkscanbedisplayed.Thestructuresofthesegalleriesarealsoa
workofartthatcomesfromaspeciallydesignedandplannedservicescape.
Whilenotallservicescapesaregreatworksofarchitecture,theGuggenheimMuseumin
Bilbaois.Itisanattentiondrawingmediumthatshapestheexpectationsofitsvisitors.
Theycanlookforwardtoanawesomeexperienceatthemuseum.

Figure10.2.TheextraordinarydesignoftheGuggenheimMuseumhas
drawnlargeamountsofpraiseandcrowds.

What Is the Purpose of Service Environments?

Thephysicalserviceenvironmentthatcustomersexperienceplaysakeyroleinshapingthe
serviceexperienceandenhancing(orundermining)customersatisfaction,especiallysoin
highcontactpeopleprocessingservices.TheDisneythemeparksareoftenusedas
examplesofserviceenvironmentsthatmakecustomersfeelcomfortableandhighly
satisfied,andleavealonglastingimpression.Infact,organizationssuchashospitals,hotels,
restaurants,andofficesofprofessionalservicefirmshavecometorecognizethattheservice
environmentisanimportantpartoftheirservicesmarketingmixandoverallvalue
proposition.

LO1
Recognizethefourcorepurposesserviceenvironmentsfulfill.
Designingtheserviceenvironmentisanartthattakesalotoftimeandeffort.Itcanalso
beexpensivetoimplement.Serviceenvironments,alsocalledservicescapes,relatetothe
styleandappearanceofthephysicalsurroundingsandotherelementsexperiencedby
customersatservicedeliverysites.

Oncedesignedandbuilt,serviceenvironmentsare

noteasytochange.
Letsexaminewhymanyservicefirmstakesomuchtroubletoshapetheenvironmentin
whichtheircustomersandservicepersonnelwillinteract.TheGuggenheimMuseumin
Bilbaowasmeanttoaddressseveralofthecitysproblemsandtocreateatourist
attraction.Forthemuseumandmanyservicefirms,therearefourcorepurposesof
servicescapes:(1)shapecustomersexperienceandbehaviors(2)conveytheplannedimage
ofthefirmandsupportitspositioninganddifferentiationstrategy(3)bepartofthevalue
propositionand(4)facilitatetheserviceencounterandenhancebothservicequalityand
productivity.Wewilldiscussthesekeypurposesinthenextfoursections.

Shape Customers Experiences and Behavior

Fororganizationsthatdeliverhighcontactservices,thedesignofthephysicalenvironment
andthewayinwhichtasksareperformedbycustomercontactpersonneltogetherplaya
veryimportantroleinshapingthenatureofcustomersexperiences.Physicalsurroundings
helptoshapeappropriatefeelingsandreactionsincustomersandemployees,whichinturn,
mayleadtoloyaltytothecompany.

Theenvironmentanditsaccompanyingatmosphereaffectbuyerbehaviorinthree
importantways:
1.Asamessagecreatingmediumusingelementsintheenvironmenttocommunicateto
theintendedaudienceaboutthedistinctivenatureandqualityoftheserviceexperience.
2.Asanattentioncreatingmediumtomaketheservicescapestandoutfromthatofits
competitorsandtoattractcustomersfromtargetsegments.
3.Asaneffectcreatingmediumusingcolors,textures,sounds,scents,andspatialdesignto
enhancethedesiredserviceexperienceand/ortoincreasethedesireforcertaingoods,
services,orexperiences.

For Image, Positioning, and Differentiation

Servicesoftenareintangible,andcustomerscannotassesstheirqualitywell.Socustomers
usetheserviceenvironmentasanimportantcueforquality.Therefore,firmsputinalotof
efforttosignalqualityandportraythedesiredimage.

Perhapsyouveseenthe

receptionareaofsuccessfulprofessionalfirmssuchasinvestmentbanksormanagement
consultingfirms,wherethedecorandfurnishingstendtobeelegantanddesignedto
impress.
ConsiderFigure10.3,whichshowsthelobbiesoftheGeneratoryouthhostelinLondonand
TheFairmontEmpressinVictoria,BritishColumbia,Canada.Twodifferenttypesofhotels
havetwoverydifferenttargetsegments.TheGeneratorcaterstoyoungerguestswholove
funandhavelowbudgets,andtheFairmontEmpresstargetsthemorematureand

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wealthycustomerswhoincludebusinesstravelers.Eachofthesetwoservicescapesclearly
communicatesandreinforcesitshotelsrespectivepositioningandsetsserviceexpectations
asguestsarrive.

Figure10.3.Comparethetwohotellobbiesdifferenttypesofhotelshave
verydifferenttargetsegments.

Part of the Value Proposition

Theservicescapecanformpartofthevalueproposition.Considerhoweffectivelymany
amusementparksusetheservicescapeconcepttoenhancetheirserviceofferings.Theclean
environmentofDisneylandorDenmarksLegoland(Figure10.4),plusemployeesin
colorfulcostumes,allcontributetothesenseoffunandexcitementthatvisitorsencounter
onarrivalandthroughouttheirvisit.

Figure10.4.InLegoland,theservicescapeispartofthevalueproposition.

Newdestinationresortsalsodrawinspirationfromthemeparkstocreatefantasy
environments,bothinsideandoutside.Perhapsthemostextremeexamplescanbefoundin
LasVegas.Facingcompetitionfromnumerouscasinosinotherlocations,LasVegashas
repositioneditselfawayfrombeingapurelyadultdestination,toasomewhatmore
wholesomefunresortwherefamiliestoocanhavefun.Thegamblingisstillthere,but
manyofthehugehotelsrecentlybuilt(orrebuilt)havebeentransformedbyaddingvisually
attractivefeatureslikeeruptingvolcanoes,(Figure10.5)mockseabattles,andstriking
reproductionsofParis,thepyramidsofEgypt,andVeniceanditscanals.

Figure10.5.AttheMirageHotelandCasinoinLasVegas,anerupting
volcanoispartoftheservicescape.

Evenmovietheatersarediscoveringthepowerofservicescapes.Attendanceatmovieshas
beenfallingintheUnitedStates,andsomeofthebigchainsarehurting.Chainslike
FloridabasedMuvicoaretryingsomethingdifferent.Theywantpeopletogotothemovies
aspartofanoverallentertainmentexperience.Theyhavebuildingswithdifferentthemes,
themostmodernmovietheaters,welldecoratedbarsandrestaurants,andsupervised
playroomsforchildren.Moviegoersareattractedtothesetheaterseventhoughadmission
pricesaremuchhigher.MuvicosCEO,HamidHashemi,remarkedabouthiscompetitors,
Attheendoftheday,youallgetthesame35mmtape...Whatsetsyouapartishowyou
packageit.

AtoneFrenchoperahousethemedMuvicocinema(Figure10.6),

moviegoerswalkintoaBeauxArtsstyledParisoperahouse,surroundedbymarblefriezes,

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columns,andornatesculptures.Itsaverydifferentexperiencefromthemegaplexatthe
localmall.

Figure10.6.TheFrenchoperahousethemedMuvicocinema.

Facilitate the Service Encounter and Enhance Productivity

Finally,serviceenvironmentsareoftendesignedtofacilitatetheserviceencounterandto
increaseproductivity.Forexample,childcarecentersusetoyoutlinesonwallsandfloorsto
showwheretoysshouldbeplacedafteruse.Infastfoodrestaurantsandschoolcafeterias,
strategicallylocatedtrayreturnstandsandnoticesonwallsremindcustomerstoreturn
theirtrays.ServiceInsights10.1showshowthedesignofhospitalshelpspatientsrecover
andemployeesperformbetter.

ServiceInsights10.1:TheHospitalServicescapeandIts

EffectsonPatientsandEmployees
Thankfully,mostofusdonothavetostayinhospitals.Ifitshouldhappento
us,wehopeourstaywillallowustorecoverinasuitableenvironment.But
whatisconsideredsuitableinahospital?
Patientsmaycontractinfectionswhileinhospital,feelstressedbycontact
withmanystrangers,andyetfeelboredwithoutmuchtodo.Theymaydislike
thefoodorbeunabletorestwell.Allthesemaydelayapatientsrecovery.
Medicalworkersusuallyworkunderverydemandingconditionsandmay
contractinfectiousdiseases,bestressedbytheemotionallaborofdealing
withdifficultpatients,orbeatriskofinjurywhenexposedtovarioustypesof
medicalequipment.Researchhasshownthatgreatercareindesigningthe
hospitalservicescapereducestheserisksandcontributestopatientwell
beingandrecovery,aswellasstaffwelfareandproductivity.The
recommendationsinclude:
Providesinglebedrooms.Thesecanlowerthenumberofinfections
caughtinthehospital,improverestandsleepqualitybyreducingdisturbance
causedbyotherpatientssharingtheroom,increasepatientprivacy,facilitate
socialsupportbyfamilies,andevenimprovecommunicationbetweenstaff
andpatients.
Reducenoiselevels.Thisleadstodecreasedstresslevelsforstaffand
improvedsleepforpatients.
Providedistractionsforpatients,includingareasofgreeneryandnature
thattheycansee.Thiscanaidpatientrecovery.
Improvelighting,especiallyaccesstonaturallight.Alightedenvironment
increasescheerfulnessandmoraleinthebuilding.Naturallightingcanlead
toreducedlengthofstayforpatients.Staffworkbetterunderproperlighting
andmakefewererrors.
Improveventilationandairfiltrationtoreducethetransmissionofairborne
virusesandimprovetheairqualityinthebuilding.
Developuserfriendlywayfindingsystems.Hospitalsarecomplex
buildings,anditisveryfrustratingforvisitors,especiallyfirsttimers,when
theycannotfindtheirway,especiallywhenrushingtoseealovedonewho
hasbeenhospitalized.
Designthelayoutofpatientcareunitsandthelocationofnursestationsto
reduceunnecessarywalkingwithinthebuilding.Thiscanreducetiredness
andthewasteoftime.Inthisway,thequalityofpatientcarecanbe
improved.Welldesignedlayoutsalsoenhancestaffcommunicationand
activities.
Source:Ulrich,R.,Quan,X.,Zimring,C.,Joseph,A.,&Choudhary,R.
(2004).Theroleofthephysicalenvironmentinthehospitalofthe21st
century:Aonceinalifetimeopportunity.Reporttothecenterforhealth
designfortheDesigningthe21stCenturyHospitalProjectfundedbythe
RobertWoodJohnsonFoundation,(September).

The Theory Behind Consumer Responses to Service Environments

Wenowunderstandwhyservicefirmstakesomuchefforttodesigntheservice
environment.Butwhydoestheserviceenvironmenthavesuchimportanteffectsonpeople
andtheirbehaviors?Thefieldofenvironmentalpsychologystudieshowpeoplerespondto
particularenvironments.Wecanapplythetheoriesfromthisfieldtobetterunderstandand
managehowcustomersbehaveindifferentservicesettings.
LO2

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Explainhowenvironmentalpsychologyhelpsustounderstandcustomeraswellas
employeeresponsestoserviceenvironments.

Feelings Are a Key Driver of Customer Responses to Service Environments

Twoimportantmodelshelpusbetterunderstandconsumerresponsestoservice
environments.Thefirst,theMehrabianRussellStimulusResponseModelshowsthatour
feelingsarecentraltohowwerespondtodifferentelementsintheenvironment.The
second,RussellsModelofAffect,focusesonhowwecanbetterunderstandthosefeelings
andtheireffectsonresponsebehaviors.
The MehrabianRussell StimulusResponse Model

Figure10.7displaysasimpleandbasicmodelofhowpeoplerespondtoenvironments.The
environmentandhowpeopleviewandinterpretit,whetherconsciouslyorunconsciously,
influencehowpeoplefeelinthatsetting.

Peoplesfeelingsarethecentralandmost

importantelementinthemodel,andthesedrivestheirresponsestothatenvironment.
Similarenvironmentscanleadtoverydifferentfeelingsandsubsequentresponses.For
example,whenweareinarush,wemaydislikebeinginacrowdeddepartmentstorewith
lotsofothercustomers,findourselvesunabletogetwhatwewantasfastaswewish,and
thusseektoavoidthatenvironment.However,ifwearenotinarushandfeelexcited
aboutbeingpartofthecrowdduringseasonalfestivitiesintheverysameenvironment,
thenwemayhavefeelingsofpleasureandexcitementthatwouldmakeuswanttostay
andenjoytheexperience.

Figure10.7.Modelofenvironmentalresponses.

Inenvironmentalpsychology,thetypicaloutcomevariableisapproachoravoidanceof
anenvironmentthatis,peoplemaychoosetovisitorstayawayfromtheservicescape.Of
course,inservicesmarketing,wecanaddalonglistofmoredetailed,additionaloutcomes
thatafirmmightwanttomanage,includinghowmuchtimeandmoneypeoplespend,and
howsatisfiedtheyarewiththeserviceexperienceaftertheyhaveleft.
Russells Model of Affect

Sinceaffectorfeelingsarecentraltohowpeoplerespondtoanenvironment,weneedto
understandthosefeelingsbetter.Forthis,RussellsmodelofaffectinFigure10.8iswidely
used.Themodelproposesthatemotionalresponsestoenvironmentscanbedescribedalong
thetwomaindimensionsofpleasureandarousal.

Pleasureisadirectresponsetothe

environment,dependingonhowmuchanindividuallikesordislikestheenvironment.
Arousalreferstohowstimulatedtheindividualfeels,rangingfromdeepsleep(lowestlevel
ofinternalactivity)tohighestlevelofstimulationsuchaswhenbungeejumping.Arousal
dependslargelyontheinformationrateorloadofanenvironment.Forexample,
environmentsareconsideredtobestimulating(i.e.,haveahighinformationrate)when
theyarecomplex,havemovementorchangeinit,andhavenovelandsurprisingelements.

Figure10.8.TheRussellmodelofaffect.

ThestrengthofRussellsmodelisitssimplicity.Itallowsdirectjudgmentofhowcustomers
feelwhiletheyareinaserviceenvironment.Therefore,firmscansettargetsforthe
affectivestatestheywanttheircustomerstobein.Forexample,arollercoasteroperator
wantsitscustomerstofeelexcited(whichisarelativelyhigharousalenvironment
combinedwithpleasure).Aspamaywantcustomerstofeelrelaxed,abankmaywantto
appearpleasanttoitscustomers,andsoon.Laterinthischapter,wewilldiscusshow
serviceenvironmentscanbedesignedtodeliverthetypesofserviceexperiencesdesiredby
customers.
Affective and Cognitive Processes

Affectisinfluencedbyhowpeoplesenseandinterpretanenvironment,i.e.theircognitive
processing.Themorecomplexacognitiveprocessbecomes,themorepowerfulisits
possibleimpactonaffect.However,thisdoesntmeanthatsimplecognitiveprocesses,such
astheunconsciousperceptionofscentsormusic,areunimportant.Inpractice,mostservice
encountersareroutine.Wetendtobeonautopilotwhencarryingoutourusualactivities
suchasusingthesubwayandenteringafastfoodrestaurantorabank.Onsuchoccasions,it
isthesimplecognitiveprocessesthatdeterminehowpeoplefeel.However,shouldhigher
levelsofcognitiveprocessesbetriggered,forinstance,throughsomethingsurprisinginthe
serviceenvironment,thenwhatdeterminespeoplesfeelingsishowtheyinterpretthis
surprise.
Behavioral Consequences of Affect

Atthemostbasiclevel,pleasantenvironmentsresultinapproachbehaviorsandunpleasant
onesinavoidance.Arousalincreasesthebasiceffectofpleasureonbehavior.Ifthe
environmentispleasant,increasingarousalcancreateexcitement,leadingtoastronger

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positiveresponse.Ontheotherhand,ifaserviceenvironmentisunpleasant,increasing
arousallevelswouldmovecustomersintothedistressedregion.Forexample,loud,fast
pacedmusicwouldincreasethestresslevelsofshopperstryingtomaketheirwaythrough
crowdedaislesonapreChristmasFridayevening.Insuchsituations,retailersshouldtryto
lowertheinformationloadoftheenvironment.
Finally,customershavestrongaffectiveexpectationsofsomeservices.Thinkofan
experiencesuchasaromanticcandlelitdinnerinarestaurant,arelaxingspavisit,oran
excitingtimeatthestadiumorthedanceclub.Whencustomershavestrongaffective
expectations,itisimportantthattheenvironmentbedesignedtomatchthose
expectations.

The Servicescape ModelAn Integrative Framework

LO3
Befamiliarwiththeintegrativeservicescapemodel.
Buildingonthebasicmodelsinenvironmentalpsychology,MaryJoBitnerdevelopeda
10

comprehensivemodelthatshenamedtheservicescape. Figure10.9showsthemain
dimensionssheidentifiedinserviceenvironments:ambientconditions,space/functionality,
andsigns,symbols,andartifactsBecauseindividualstendtoperceivethesedimensions
holistically,thekeytoeffectivedesignishowwelleachindividualdimensionfitstogether
witheverythingelse.

Source:Bitner,M.J.(1992)Servicescapes:Theimpactofphysical
surroundingsoncustomersandemployees,JournalofMarketing56(April):
5771.
Figure10.9.Theservicescapemodel.

Bitnersmodelshowsthattherearecustomerandemployeeresponsemoderators.This
meansthatthesameserviceenvironmentcanhavedifferenteffectsondifferentcustomers,
dependingonwhothatcustomerisandwhatsheorhelikes.Forexample,rapmusicmay
besheerpleasuretosomecustomersegments,andsheertorturetoothers.
AnimportantcontributionofBitnersmodelistheinclusionofemployeeresponsestothe
serviceenvironment.Afterall,employeesspendmuchmoretimetherethancustomers.It
isthereforeimportantthatdesignersbecomeawareofhowaparticularenvironment
enhances(oratleastdoesnotreduce)theproductivityoffrontlinepersonnelandthequality
ofservicethattheydeliver.
Internalcustomerandemployeeresponsescanbegroupedinto(1)cognitiveresponses
(e.g.,qualityperceptionsandbeliefs),(2)emotionalresponses(e.g.,feelingsandmoods),
and(3)physiologicalresponses(e.g.,painandcomfort).Theseinternalresponsesleadto
observablebehavioralresponsessuchasavoidingacrowdedsupermarket,orresponding
positivelytoarelaxingenvironmentbyremainingtherelongerandspendingextramoney
onimpulsepurchases.Itsimportanttounderstandthatthebehavioralresponsesof
customersandemployeesmustbeshapedinwaysthataidproductionandpurchaseofhigh
qualityservices.Considerhowtheoutcomesofservicetransactionsmaydifferinsituations
wherebothcustomersandfrontlinestafffeelstressedratherthanrelaxedandhappy.

Dimensions of the Service Environment

LO4
Knowthedimensionsoftheserviceenvironment.
Serviceenvironmentsarecomplexandhavemanydesignelements.InTable10.1,for
example,youcanseeanoverviewofthedesignelementsthatmightbeencounteredina
retailoutlet.Thedesignelementsinaserviceenvironmentcanleadtocustomershavinga
11

joyfulexperience,andthisinturncaninfluencecustomerloyalty. Inthissection,wefocus
onthemaindimensionsoftheserviceenvironmentintheservicescapemodel,whichare
12

theambientconditions,spaceandfunctionality,andsigns,symbols,andartifacts.
Table10.1.Designelementsofaretailstoreenvironment

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Sources:BarryBermanandJoelR.Evans,RetailmanagementAStrategic
Approach,8thed.UpperSaddleRiver,NJ:PrenticeHall,2001,604L.W.
TurleyandRonaldE.Milliman,AtmosphericEffectsonShoppingBehavior:A
ReviewoftheExperimentalLiterature,JournalofBusinessResearch49
(2000):193211.

The Effect of Ambient Conditions

LO5
Discussthekeyambientconditionsandtheireffectsoncustomers.
Ambientconditionsrefertothecharacteristicsoftheenvironmentthatrelatetothefive
senses.Evenwhentheyrenotconsciouslynoticed,theymaystillaffectapersons
emotionalwellbeing,perceptions,andevenattitudesandbehaviors.Theyaremadeupof
hundredsofdesignelementsanddetailsthatmustworktogetheriftheyaretocreatethe
13

desiredserviceenvironment. Theresultingatmospherecreatesamoodthatisperceived
14

andinterpretedbythecustomer. Ambientconditionsareperceivedbothseparatelyand
holistically.Theyincludelightingandcolorschemes,sizeandshapeperceptions,soundssuch
asnoiseandmusic,temperature,andscentsorsmells(Figure10.10).Cleverdesignofthese
conditionscanbringoutthedesiredbehavioralresponsesfromconsumers.Servicescapes
15

can,infact,beanimportantpartofbrandbuildingforafirm. Considerthenewtrendto
transformdentalclinicsintorelaxingdentalspas,asdescribedinServiceInsights10.2.

Figure10.10.Classicallivemusicmayenhancethedinersexperience.

ServiceInsights10.2:CuttingtheFearFactorattheDentist

Dentistryisnotaservicethatmostpeoplelookforwardto.Somepatients
simplyfindituncomfortable,especiallyiftheyhavetoremaininadental
chairforalongperiodoftime.Manyareafraidofthepainassociatedwith
certainprocedures.Othersrisktheirhealthbynotgoingtothedentistatall.
Now,however,somedentistsareturningtotheconceptofspadentistry.In
spadentistry,juicebars,neckrubs,footmassages,andevenscentedcandles
andthesoundofwindchimesareusedtopamperpatientsanddistractthem
fromthetreatmentsinsidetheirmouths.
Itsnotaboutgimmicks,saysTimothyDotson,ownerofthePerfectTeeth
DentalSpainChicago,asapatientbreathedstrawberryscentednitrous
oxide.Itstreatingpeoplethewaytheywanttobetreated.Ithelpsalotof
peopleovercomefear.Hispatientsseemtoagree.Nobodylikescomingto
thedentist,butthismakesitsomucheasier,remarkedonewomanasshe
waitedforacrownwhileaheatedmassagepadwaskneadingherback.
Hottowels,massages,aromatherapy,coffee,freshcranberryorangebread,
andwhitewinespritzersreflectdentistseffortstomeetchangingconsumer
expectations,especiallyatatimewhenthereisgrowingconsumerdemand
foraestheticcaretowhitenandreshapeteethtocreateaperfectsmile.The
goalistoattractpatientswhomightotherwisefindvisitingthedentista
stressfulsituation.Manydentistswhoofferspaservicesdonotchargeextra
forthem.Theyarguethatthecostsaremorethancoveredbyrepeatbusiness
andpatientreferrals.
InHouston,MaxGreenfieldhasdecoratedhisImageMaxDentalSpawith
fountainsandmodernart.Patientscanchangeintoarobe,tryeightdifferent
aromasofoxygen,andmeditateinarelaxationroomdecoratedlikea
Japanesegarden.Theactualdentalareahaslambskinleatherchairs,hot
aromatherapytowels,andaprocedureknownasbubblegumjetmassage
thatusesairandwatertocleanteeth.
AlthoughdentalofficesfromLosAngelestoNewYorkareadoptingspa
techniques,somequestionwhetherthisapproachisgooddentistryorjusta
passingfad.Ijustcantseeminglingthetwobusinessestogether,remarked
thedeanofoneuniversitydentalschool.
Source:AdaptedfromDentistsOfferNewServicestoCuttheFear
Factor,ChicagoTribunesyndicatedarticle,February2003.

Letusnextdiscussanumberofimportantambientdimensions,startingwithmusic.
Music

Musiccanhavepowerfuleffectsonperceptionsandbehaviorsinservicesettings,evenif
playedatvolumesonecanhardlyhear.Thevariouselementsofmusicsuchastempo,
volume,andharmonyareperceivedholistically.Theireffectoninternalandbehavioral
responsesdependsontheindividual.Forexample,youngerpeopletendtohavedifferent
tastesinmusicthanolderpeopleandthereforeresponddifferentlytothesamepieceof
16

music. Numerousresearchstudieshavefoundthatfasttempomusicandhighvolume
musicincreasearousallevels.Thiscanthenleadcustomersincreasingthepaceofvarious
behaviors.Peopletendtoadjusttheirpace,eithervoluntarilyorinvoluntarily,tomatchthe
tempoofmusic.Thismeansthatrestaurantscanspeeduptableturnoverbyincreasingthe
tempoandvolumeofthemusicandservemoredinersduringthecourseofanevening.
Alternatively,theycanslowdinersdownwithslowbeatmusicandsoftervolumetokeep
17

themlongerintherestaurantandincreasebeveragerevenues. Likewise,studieshave
shownthatshopperswalklessrapidlyandincreasetheirlevelofimpulsepurchaseswhen
slowmusicisplayed.Playingfamiliarmusicinastorewasshowntostimulateshoppersand
reducetheirbrowsingtime,whereasplayingunfamiliarmusicinducedshopperstospend
18

moretimethere. Insituationsthatrequirewaitingforservice,effectiveuseofmusicmay
shortentheperceivedwaitingtimeandincreasecustomersatisfaction.Relaxingmusic
provedeffectiveinloweringstresslevelsinahospitalssurgerywaitingroom.Andpleasant
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musichasevenbeenshowntoenhancecustomersperceptionsofservicepersonnel.

Providingtherightmixofmusictorestaurants,retailstores,andevencallcentershas
becomeanindustryinitsownright.Forexample,TexasbasedcompanyDMXprovides
musictoover300corporateclientsthroughcreatingsignaturemixesofbetween200and
800licensedsongsandpipesthemusicintotheirclientsoutlets.Thesemusicmixesare
20

updatedremotelyaboutonceamonth.

Woulditsurpriseyoutolearnthatmusiccanalsobeusedtodeterthewrongtypeof
customers?Manyserviceenvironments,includingsubwaysystems,supermarkets,and
otherpubliclocations,attractindividualswhodonothavetheintentiontobuy.Someare
jaycustomerswhosebehaviorcausesproblemsformanagementandcustomersalike(see
Chapter13).IntheUnitedKingdom,anincreasinglypopularstrategyfordrivingsuch
individualsawayisplayingclassicalmusic(Figure10.11).Peoplewholiketoloiteraroundor
destroypublicpropertyfinditverypainfultolistentoclassicalmusic.Coop,aUKgrocery
chain,hasbeenexperimentingwithplayingclassicalmusicoutsideitsstorestostop
teenagersfromhangingaroundandintimidatingcustomers.Itsstaffareequippedwitha
remotecontroland,asreportedbySteveBroughtonofCoop,canturnthemusiconif
21

theresasituationdevelopingandtheyneedtodispersepeople.

Figure10.11.Classicalmusiccanbeusedtodetervandalsandloiterers.

Scent

Aftermusic,letusfocusonscentasthenextimportantambientdimension.Ambientscent
orsmell,whichspreadsthroughoutanenvironment,mayormaynotbeconsciously
perceivedbycustomersandisnotrelatedtoanyparticularproduct.Thepresenceofscent
canhaveastrongimpactonmood,feelings,andevaluations,andevenpurchaseintentions
22

andinstorebehaviors. Weexperiencethepowerofsmellwhenwearehungryandwe
smellfreshlybakedcroissantslongbeforewepassalocalbakery.Thissmellmakesus
awareofourhungerandpointsustothesolution(i.e.,walkintothebakeryandgetsome
food).
Servicemarketersareinterestedinhowtomakeyouhungryandthirstyintherestaurant,
relaxyouinadentistswaitingroom,andenergizeyoutoworkoutharderinagym.In
aromatherapy,itisgenerallyacceptedthatscentshavespecialcharacteristicsandcanbe
usedtoobtaincertainemotional,physiological,andbehavioralresponses(Figure10.12).
Table10.2showsthegenerallyassumedeffectsofsomearomatherapyscentsonpeople.In
servicesettings,researchhasshownthatscentscanhavesignificantimpactoncustomer
perceptions,attitudes,andbehaviors.Forexample:

Figure10.12.Aromatherapycaninduceastateofrelaxationand
rejuvenation.
Table10.2.Aromatherapytheeffectsofselectedfragrancesonpeople

Sources:http://www.aromatherapy.com/ (http://www.aromatherapy.com/) ,accessed

March12,2012DanaButcher,AromatherapyItsPast&Future.Drugand
CosmeticIndustry16,no.3(1998):2224ShirleyPriceandLenPrice(2007),
AromatherapyforHealthProfessionals,3rded.Mattila,A.S.,&Wirtz,J.
(2001).Congruencyofscentandmusicasadriverofinstoreevaluationsand
behavior.JournalofRetailing77,273289.

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Gamblersplunked45%morequartersintoslotmachineswhenaLasVegascasinowas
scentedwithapleasantartificialsmell.Whentheintensityofthescentwasincreased,
23

spendingjumpedby53%.

PeopleweremorewillingtobuyNikesneakersandpaymoreforthemanaverageof
US$10.33moreperpairwhentheytriedontheshoesinafloralscentedroom.Thesame
effectwasfoundevenwhenthescentwassofaintthatpeoplecouldnotdetectit,i.e.,the
24

scentwasperceivedunconsciously.

Servicefirmshaverecognizedthepowerofscentandincreasinglymakeitpartoftheir
brandexperience.Forexample,WestinHotelsusesawhiteteafragrancethroughoutits
lobbies,andSheratonscentsitslobbieswithacombinationoffig,clove,andjasmine.Asa
responsetothetrendofscentingservicescapes,professionalservicefirmshaveenteredthe
scentmarketingspace.Forexample,Ambius,aRentokilInitialcompany,offersscent
relatedservicessuchassensorybranding,ambientscenting,andodorremediationfor
retail,hospitality,healthcare,financial,andotherservices.Firmscanoutsourcetheir
servicescapescentingtoAmbius,whichoffersonestopsolutionsrangingfromconsulting,
anddesigningexclusivesignaturescentsforaservicefirm,tomanagingtheongoing
25

scentingofalltheoutletsofachain.
Color

Inadditiontomusicandscent,researchershavefoundthatcolorshaveastrongimpacton
peoplesfeelings.Colorisstimulating,calming,expressive,disturbing,impressional,
cultural,exuberant,symbolic.Itpervadeseveryaspectofourlives,embellishesthe
26

ordinary,andgivesbeautyanddramatoeverydayobjects.

ThecolorsystemnormallyusedinpsychologicalresearchistheMunsellsystem,which
27

definescolorsinthethreedimensionsofhue,value,andchroma. Hueisthepigmentofthe
color(i.e.,thenameofthecolor:red,orange,yellow,green,blue,orviolet).Valueisthe
degreeoflightnessordarknessofthecolor,relativetoascalethatextendsfrompureblack
topurewhite.Chromareferstohueintensity,saturation,orbrilliance.Highchromacolors
areseenasrichandvivid,whereaslowchromacolorsareseenasdull.
Huesareclassifiedintowarmcolors(red,orange,andyellowhues)andcoldcolors(blueand
green).Orange(amixofredandyellow)isthewarmestofthecolors,andblueisthe
coldest.Thesecolorscanbeusedtomanagetheperceivedwarmthofanenvironment.For
example,ifavioletistoowarm,youcancoolitoffbyreducingtheamountofred.Orifa
28

redistoocold,warmitupbygivingitashotoforange. Table10.3summarizescommon
associationsandresponsestocolors.
Table10.3.Commonassociationsandhumanresponsestocolors

Researchinaserviceenvironmentcontexthasshownthat,despitedifferingcolor
preferences,peoplearegenerallydrawntowarmcolorenvironments(Figure10.13).Warm
colorsencouragefastdecisionmakingandinservicesituationsarebestsuitedforlow
involvementdecisionsorimpulsepurchases.Coolcolorsarefavoredwhenconsumersneed
29

timetomakehighinvolvementpurchasedecisions.

Figure10.13.Brightandwarmcolorsareusuallyusedinenvironments
withchildrentoprovideanattractiveandcheeryeffect.

Sources:SaraO.MarberryandLaurieZagon,ThePowerofColorCreating
HealthyInteriorSpaces.NewYork:JohnWiley,1995,18SarahLynch,Bold
ColorsforModernRooms:BrightIdeasforPeopleWhoLoveColor.
Gloucester,MA:RockportPublishers,2001,2429.
Althoughwehaveanunderstandingofthegeneraleffectsofcolors,weneedtobearinmind
thatcolorsmayhavedifferentmeaningsindifferentcultures.Forexample,atransportation
companyinIsraeldecidedtopaintitsbusesgreenaspartofanenvironmentalismpublic
relationscampaign.Thisseeminglysimpleactresultedinunexpectedlynegativereactions
fromdifferentgroupsofpeople.Somecustomersfoundthegreenbusesblendedinwiththe
environmentandweremoredifficulttosee.Othersfeltitdidnotlookpleasant.Some
peoplefeltthatitrepresentedundesirablenotionssuchasterrorismoropposingsports
30

teams.

Spatial Layout and Functionality

Inadditiontoambientconditions,spatiallayoutandfunctionalityareotherkeydimensions
oftheserviceenvironment.Aserviceenvironmentgenerallyhastofulfillspecificpurposes
andcustomerneeds,soitsspatiallayoutandfunctionalityareparticularlyimportant.

LO6
Determinetherolesofspatiallayoutandfunctionality.
Spatiallayoutreferstothefloorplan,sizeandshapeoffurnishings,counters,andpotential
machineryandequipment,andthewaysinwhichtheyarearranged.Functionalityrefersto
theabilityofthoseitemstohelpintheperformanceofservicetransactions.Both
dimensionsaffecttheuserfriendlinessandtheabilityofthefacilitytoservicecustomers
well.Tablesthataretooclosetogetherinacaf,countersinabankthatlackprivacy,
uncomfortablechairsinalecturetheater(Figure10.14),andlackofcarparkingspacecanall
leavenegativeimpressionsoncustomersaswellasaffectserviceexperienceandbuying
behaviorand,consequently,thebusinessperformanceoftheservicefacility.

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Figure10.14.Uncomfortablechairsinalecturetheatermakesitharderfor
studentstoconcentrate.

Signs, Symbols, and Artifacts

Manythingsintheserviceenvironmentactassignalstocommunicatethefirmsimage.
Theyalsohelpcustomersfindtheirway(e.g.,tocertainservicecounters,departments,or
theexit)andtoletthemknowtheservicescript(e.g.,foraqueuingsystem).Firsttime
customerswillautomaticallytrytodrawmeaningfromthesigns,symbols,andartifactsto
guidethemthroughtheserviceenvironmentandserviceprocesses.
LO7
Understandtherolesofsigns,symbolsandartifacts.
Signsaresignalsthatcanbeused(1)aslabels(e.g.,toindicatethenameofthedepartment
orcounter),(2)forgivingdirections(e.g.,entrance,exit,waytoliftsandtoilets),(3)for
communicatingtheservicescript(e.g.,takeaqueuenumberandwatchforyournumberto
becalled,orclearthetrayafteryourmeal),and(4)forremindersaboutbehavioralrules
(e.g.,switchofforturnyourmobiledevicestosilentmodeduringtheperformance,or
smoking/nosmokingareas).Signsareoftenusedtoteachbehavioralrulesinservice
settings.Somesignsarequiteinterestingandmaybequiteobvious,butothersignsneed
thepersontothinkalittlebeforeunderstandingthemeaning(Figure10.15).

Figure10.15.Confusingsignscanleadpeoplenowhere.

Onechallengefordesignersistousesigns,symbols,andartifactstoguidecustomersclearly
throughtheprocessofservicedelivery.Thistaskisespeciallyimportantwhenthereare
manynewcustomersormanywhoseldomvisitaservicefacility.Itisalsoimportantin
selfservicesituations,especiallywhentherearefewserviceemployeesavailabletohelp
customersthroughtheprocess.
Customersbecomeconfusedwhentheycannotmakeoutclearsignalsfromaservicescape.
Theymaybecomeangryandfrustratedasaresult.Thinkaboutthelasttimeyouwereina
hurryandtriedtofindyourwaythroughanunfamiliarhospital,shoppingcenter,orairport
wherethesignswerenotclear.Atmanyservicefacilities,customersfirstpointofcontactis
likelytobethecarpark.AsemphasizedinServiceInsights10.3,theprinciplesofeffective
environmentdesignapplyeveninthisenvironment.

People Are Part of the Service Environment, Too

Theappearanceandbehaviorofbothservicepersonnelandcustomerscanstrengthen,or
weaken,theimpressioncreatedbyaserviceenvironment.DennisNicksonandhis
colleaguesusethetermaestheticlabortocapturetheimportanceofthephysicalimageof
32

servicepersonnelwhoservecustomersdirectly. EmployeesatDisneythemeparksare
calledcastmembers.WhetherthestaffareactingasCinderella,oneofSnowWhitesseven
dwarfs,orasaparkcleanerorthepersonmanagingBuzzLightyearsTomorrowlandbooth,
thesecastmembersmustdressupandlookthepart.Oncedressedup,theymustperform
fortheguests.

LO8
Knowhowserviceemployeesandothercustomersarepartoftheservicescape.
Forcustomers,marketingcommunicationsmayseektoattractthosewhowillnotonly
appreciatetheambiencecreatedbytheserviceproviderbutalsoactivelyenhanceitby
theirappearanceandbehavior.Inhospitalityandretailsettings,newcomersoftenlookat
theexistingcustomersbeforedecidingwhethertopatronizetheservicefirm.Figure10.16
showstheinterioroftworestaurants.Imaginethatyouhavejustenteredeachofthesetwo
diningrooms.Howiseachrestaurantpositioningitselfwithintherestaurantindustry?
Whatsortofmealexperiencecanyouexpectfromeachrestaurant?Andwhataretheclues
thatyouusetomakeyourjudgments?Inparticular,whatassumptionsdoyoumakefrom
lookingatthecustomerswhoarealreadyseatedineachrestaurant?Insummary,both
employeesandcustomersarepartoftheservicescape.Thephysicalappearanceisthe
hardwaretocreatetheatmosphere,andpeoplearethesoftwaretoshapetheexperience.

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Figure10.16.Distinctiveservicescapesfromtablesettingstofurnitureand
roomdesigncreatedifferentcustomerexpectationsofthesetwo
restaurants.

ServiceInsights10.3:GuidelinesforParkingDesign

Carparksplayanimportantroleatmanyservicefacilities.Effectiveuseof
signs,symbols,andartifactsinaparkinglothelpscustomersfindtheirway.It
alsodisplaysapositiveimagefortheservicefirm.
FriendlywarningsAllwarningsignsshouldcommunicateacustomer
benefit.Forinstance,Firelaneforeveryonessafety,weaskyounottopark
inthefirelane.
SafetylightingGoodlightinginallareasmakeslifeeasierforcustomers
andimprovessafety.Firmsmaywanttodrawattentiontothiswithnotices
statingthatparkinglotshavebeenspeciallylitforyoursafety.
HelpcustomersrememberwheretheylefttheirvehicleForgettingwhere
oneleftthefamilycarinalargeparkingstructurecanbeanightmare.Many
carparkshaveusedcolorcodedfloorstohelpcustomersrememberwhich
leveltheyparkedon.Inaddition,manycarparksalsomarksectionswith
specialsymbolssuchasdifferentkindsofanimals.Thishelpscustomersto
rememberboththelevelandthesectionwherethecarisparked.AtBostons
LoganAirport,eachlevelhasbeenassignedathemeconnectedwith
Massachusetts.ExamplesincludePaulReveresRide,CapeCod,orthe
BostonMarathon.Animageisattachedtoeachthemeamalefigureon
horseback,alighthouse,orawomanrunner.Whilewaitingfortheelevator,
travelershearafewbarsofmusicthataretiedtothethemeforthatlevel.For
theBostonMarathonfloor,itisthethememusicfromChariotsofFire,an
OscarwinningmovieaboutanOlympicrunner.

MaternityparkingHandicappedspacesinacarparkareoftenrequiredby
law,butparkinginthesespacesrequiresspecialstickersonthevehicle.A
fewthoughtfulorganizationshaveextendedthisideatocreatespecial
expectantmotherparkingspaces,paintedwithablue/pinkstork.Thisstrategy
showsasenseofcaringandunderstandingofcustomerneeds.
FreshpaintCurbs,crosswalks,andlotlinesshouldberepaintedregularly
beforeanycracking,peeling,ordisrepairbecomesobvious.Repaintingoften
31
givespositivecleanlinesssignalsandsendsoutapositiveimage.

Putting It All Together

Althoughindividualsoftenperceiveparticularaspectsorindividualdesignfeaturesofan
environment,itisthetotalconfigurationofallthosedesignfeaturesthatdetermines
33

consumerresponses.Thatis,consumersperceiveserviceenvironmentsholistically.

LO9
Discussthekeyambientconditionsandtheireffectsoncustomers.

Design with a Holistic View

Whetheradark,glossy,woodenflooristheperfectflooringdependsoneverythingelsein
thatserviceenvironment.Theseincludethetype,colorscheme,andmaterialsofthe
furniture,thelighting,thepromotionalmaterials,andtheoverallbrandperceptionand
positioningofthefirm(Figure10.17).Servicescapeshavetobedesignedasawhole,which
meansnodimensionofthedesigncanbeplannedwithoutconsideringotheraspectsbecause
everythingdependsoneverythingelse.Inthisway,servicescapedesignismorelikeanart.
Therefore,professionaldesignerstendtospecializeinspecifictypesofservicescapes.For

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example,ahandfuloffamousinteriordesignersdonothingbutcreatehotellobbiesaround
theworld.Similarly,therearedesignexperts,whofocusexclusivelyonrestaurants,bars,
34

clubs,cafesandbistros,orretailoutlets,orhealthcarefacilities,andsoforth.

Figure10.17.ArneJacobsonsenduringeggchairinstantlybrightensup
anyservicescape.

Design from a Customers Perspective

Manyserviceenvironmentsarebuiltwithafocusonphysicalappearance.Designers
sometimesforgetthatthemostimportantdesignfactorshouldbethecustomerswhowill
beusingtheenvironment.RonKaufman,thefounderofUPYourService!College,
experiencedthefollowingdesignweaknessesintwonewserviceenvironments:
AnewSheratonHoteljusthadopenedinJordanwithoutclearsignagethatwouldguide
guestsfromtheballroomstotherestrooms.Thesignsthatdidexistwereetchedinmuted
goldondarkmarblepillars.Moreobvioussignswereapparentlyinappropriateamidsuch
elegantdcor.Veryswish,verychic,butwhoweretheydesigningitfor?
AtanewairportloungeinamajorAsiancity,apartitionofcolorfulglasshungfromthe
ceiling.MyluggagelightlybrushedagainstitasIwalkedinside.Theentirepartitionshook
andseveralpanelscameundone.Astaffmemberhurriedoverandbegancarefully
reassemblingthepanels.(Thankgoodnessnothingbroke.)Iapologizedprofusely.Dont
worry,shereplied,Thishappensallthetime.Anairportloungeisaheavytrafficarea.
Peoplearealwaysmovinginandout.Kaufmankeepsasking:Whatweretheinterior
designersthinking?Whoweretheydesigningitfor?
Iamregularlyamazed,declaredKaufman,bybrandnewfacilitiesthatareobviouslyuser
unfriendly!Hugeinvestmentsoftimeandmoney...butwhoaretheydesigningitfor?
Whatwerethearchitectsthinkingabout?Size?Grandeur?Physicalexercise?Hedraws
thefollowingkeylearningpoint:Itseasytogetcaughtupindesigningnewthingsthatare
coolorelegantorhot.Butifyoudontkeepyourcustomerinmindthroughout,you
35

couldendupwithaninvestmentthatsnot.

AlaindAstousexploredenvironmentalaspectsthatirritateshoppers.Hisfindings
highlightedthefollowingproblems:
Ambientconditions(orderedbylevelofirritation):
Thestoreisnotclean.
Itistoohotinsidethestoreortheshoppingcentre.
Themusicinsidethestoreistooloud.
Thereisabadsmellinthestore.
Environmentaldesignvariables:
Thereisnomirrorinthedressingroom.
Acustomerisunabletofindwhatheorsheneeds.
Directionswithinthestoreareinadequate.
Thearrangementofstoreitemshasbeenchanged.
Thestoreistoosmall.
36

Itiseasytoloseoneswayinalargeshoppingcenter. (Figure10.18)

Figure10.18.Badlydesignedshoppingcentersaffecttheshopping
experience.

Tools to Guide Servicescape Design

Asamanager,howwouldyoufindoutwhichaspectsoftheservicescapeirritatecustomers
andwhichaspectstheylike?Someofthetoolsthatyoucanuseare:
Keenobservationofcustomersbehaviorandresponsestotheserviceenvironmentby
management,supervisors,branchmanagers,andfrontlinestaff.
Feedbackandideasfromfrontlinestaffandcustomersusingavarietyofresearch
toolsrangingfromsuggestionboxestofocusgroupsandsurveys.(Thistypeofsurveyis
calledenvironmentalsurveysiftheyfocusonthedesignoftheserviceenvironment.)
Photoauditisamethodofaskingcustomers(ormysteryshoppers)totakephotographs
oftheirserviceexperience.Thesephotographscanbeusedlaterasabasisforfurther

37

interviewsoftheirexperienceorincludedaspartofasurveyabouttheserviceexperience.
Fieldexperimentscanbeusedtocontrolspecificdimensionsinanenvironmentand
observeitseffects.Forinstance,researcherscanexperimentwithvarioustypesofmusic
andscentsandthenmeasurethetimeandmoneycustomersspendintheenvironment.
Laboratoryexperiments,usingslidesorvideos,orotherwaystocreaterealworldservice
environments(suchasvirtualtoursviacomputer)canbeusedtoexaminetheimpactof

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changesindesignelements.
Thesemethodsareusedwhentherealenvironmentcannotreallybecontrolled.Examples
includetestingofdifferentcolorschemes,spatiallayouts,andstylesoffurnishing.
Blueprintingorflowcharting(describedinChapter8)canbeextendedtoincludethe
physicalevidenceintheenvironment.Designelementsandtangiblecuescanbe
documentedasthecustomermovesthrougheachstepoftheservicedeliveryprocess.
Photosandvideoscansupplementthemaptomakeitclearer.
Table10.4showsanexaminationofacustomersvisittoamovietheater.Itidentifieshow
differentenvironmentalelementsateachsteparebetterthanexpectedorfailstomeet
expectations.Theserviceprocesswasbrokenupintosteps,decisions,duties,andactivities,
alldesignedtotakethecustomerthroughtheentireserviceencounter.Themoreaservice
companycansee,understand,andexperiencethesamethingsasitscustomers,themoreit
willbeabletorealizemistakesinthedesignofitsenvironmentandfurtherimproveon
whatisalreadyworkingwell.
Table10.4.Avisittothemovies:Theserviceenvironmentasperceivedby
thecustomer

Source:AdaptedfromAlbrecht,S.(1996).Seethingsfromthecustomers
pointofviewhowtouseTheCyclesofServicetounderstandwhatthe
customergoesthroughtodobusinesswithyou.WorldsExecutiveDigest.
(December)5358.

Chapter Summary
LO1Serviceenvironmentsfulfillfourcorepurposes.Specifically,they:
Shapecustomersexperiencesandtheirbehaviors.
Playanimportantroleindeterminingcustomerperceptionsofthefirm,anditsimageand
positioning.Customersoftenusetheserviceenvironmentasanimportantqualitysignal.
Canbeacorepartofthevalueproposition(e.g.,asforthemeparksandresorthotels).
Facilitatetheserviceencounterandenhanceproductivity.
LO2Environmentalpsychologyhelpsustounderstandtheeffectsservice
environmentshaveoncustomersandserviceemployees.Therearetwokeymodels:
TheMehrabianRussellStimulusResponsemodelholdsthatenvironmentsinfluence
peoplesaffectivestate(oremotionsandfeelings),whichinturndrivestheirbehavior.
Russellsmodelofaffectholdsthataffectcanbemodeledwiththetwointeracting
dimensionsofpleasureandarousal,which,together,determinewhetherpeopleapproach,
spendtimeandmoneyinanenvironment,oravoidit.
LO3Theservicescapemodel,whichbuildsontheabovetheories,representsan
integrativeframeworkthatexplainshowcustomersandservicestaffrespondtokey
environmentaldimensions.

LO4Theservicescapemodelemphasizesthreedimensionsoftheservice
environment:
Ambientconditions(includingmusic,scents,andcolors).
Spatiallayoutandfunctionality.
Signs,symbols,andartifacts.

LO5Ambientconditionsrefertothosecharacteristicsoftheenvironmentthat
relatetoourfivesenses.Evenwhennotconsciouslyperceived,theystillcanaffectpeoples
internalandbehavioralresponses.Importantambientdimensionsinclude:
Musicitstempo,volume,harmony,andthefamiliarityshapebehaviorbyaffecting
emotionsandmoods.Peopletendtoadjusttheirpacetomatchthetempoofthemusic.
Scentambientscentcanstirpowerfulemotionsandrelaxorsimulatecustomers.
Colorcolorscanhavestrongeffectsonpeoplesfeelings,withwarm(e.g.,amixofred
andorange)andcoolcolors(e.g.,blue)havingdifferentimpact.Warmcolorsareassociated
withelatedmoodstates,whilecoolcolorsarelinkedtopeacefulnessandhappiness.
LO6Effectivespatiallayoutandfunctionalityareimportantforefficiencyofthe
serviceoperationandenhancementofitsuserfriendliness.
Spatiallayoutreferstothefloorplan,sizeandshapeoffurnishing,counters,potential
machineryandequipment,andthewaysinwhichtheyarearranged.
Functionalityreferstotheabilityofthoseitemstofacilitateserviceoperations.

LO7Signs,symbols,andartifactshelpcustomerstodrawmeaningfromthe
environmentandguidethemthroughtheserviceprocess.Theycanbeusedto:
Labelfacilities,counters,ordepartments.
Showdirections(e.g.,toentrance,exit,elevator,toilet).

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Communicatetheservicescript(e.g.,takeanumberandwatchittobecalled).
Reinforcebehavioralrules(e.g.,pleaseturnyourcellphonestosilent).

LO8Theappearanceandbehaviorserviceemployeesandothercustomersina
servicescapecanbepartofthevaluepropositionandcanstrengthen(orweaken)the
positioningofthefirm.
LO9Serviceenvironmentsareperceivedholistically.Therefore,noindividual
aspectcanbeoptimizedwithoutconsideringeverythingelse,makingdesigningservice
environmentsanartratherthanascience.
Becauseofthischallenge,professionaldesignerstendtospecializeinspecifictypesof
environments,suchashotellobbies,clubs,healthcarefacilities,andsoon.
Thebestserviceenvironmentsshouldbedesignedwiththecustomersperspectivein
mind,guidingthemsmoothlythroughtheserviceprocess.
Toolsthatcanbeusedtodesignandimproveservicescapesincludecarefulobservation,
feedbackfromemployeesandcustomers,photoaudits,fieldexperiments,andblueprinting.

Unlock Your Learning

ThesekeywordsarefoundwithinthesectionsofeachLearningObjective(LO).Theyare
integraltounderstandingtheservicesmarketingconceptstaughtineachsection.Havinga
firmgraspofthesekeywordsandhowtheyareusedisessentialtohelpingyoudowellon
yourcourse,andintherealandverycompetitivemarketingsceneoutthere.

LO11Attentioncreatingmedium
2Differentiation
3Effectcreatingmedium
4Enhanceproductivity
5Image
6Messagecreatingmedium
7Positioning
8Serviceenvironments
9Servicescapes
10Shapecustomersexperiences
11Valueproposition

LO212Affectiveexpectations
13Affectiveprocesses
14Approach
15Arousal
16Avoidance
17Behavioralconsequences
18Cognitiveprocesses
19Environmentalpsychology
20MehrabianRussellStimulusResponsemodel
21Pleasure
22Russellsmodelofaffect

LO323Bitner
24Cognitiveresponses
25Emotionalresponses
26Internalresponses
27Physiologicalresponses
28Servicescapemodel
LO429Dimensionsofserviceenvironment

LO530Ambientconditions
31Ambientscenting
32Aromatherapy
33Brilliance
34Chroma
35Color
36Hue
37Music
38Odorremediation

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39Saturation
40Scent
41Sensorybranding
42Value

LO643Functionality
44Spatiallayout

LO745Artifacts
46Parkingdesign
47Signs
48Symbols
LO849Aestheticlabor

50People
LO951Ambientconditions

52Blueprinting
53Customersperspective
54Environmentaldesign
55Fieldexperiments
56Flowcharting
57Holisticview
58Observation
69Photoaudit
60Servicescapedesign

Howwelldoyouknowthelanguageofservicesmarketing?Quizyourself!

Notfortheacademicallyfaintofheart

Foreachkeywordyouareabletorecallwithoutreferringtoearlierpages,give
yourselfapoint(andapatontheback).Tallyyourscoreattheendandseeifyou
earnedtherighttobecalledaservicesmarketeer.

Score
011ServicesMarketingisdoneagreatdisservice.
1222Themidnightoilneedstobelit,pronto.
2333Iknowwhatyoudidntdoallsemester.
3444Acloseshavewithsuccess.
4555Now,goforthandmarket.
5660Thereshouldbeamarketingconceptnamedafteryou.

KnowYourESM
ReviewQuestions
1.Whatarethefourmainpurposesserviceenvironmentsfulfill?
2.DescribehowtheMehrabianRussellStimulusResponsemodeland
Russellsmodelofaffectexplainconsumerresponsestoaservice
environment.
3.WhatistherelationshiporlinkbetweenRussellsmodelofaffectandthe
servicescapemodel?
4.Explainwhydifferentcustomersandservicestaffrespondverydifferentlyto
thesameserviceenvironment.
5.Explainthedimensionsofambientconditionsandhoweachcaninfluence
customerresponsestotheserviceenvironment.
6.Whataretherolesofsigns,symbols,andartifacts?
7.Whataretheimplicationsofthefactthatenvironmentsareperceived
holistically?
8.Whattoolsareavailableforaidingourunderstandingofcustomer
responsesandforguidingthedesignandimprovementofservice
environments?

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Chapter10.CraftingtheServiceEnvironmentEssentialsofServicesMarketing,SecondEdition

WorkYourESM
ApplicationExercises
1.Identifyfirmsfromthreedifferentserviceindustrieswheretheservice
environmentisacrucialpartoftheoverallvalueproposition.Analyzeand
explainindetailthevaluethatisdeliveredbytheserviceenvironmentin
eachofthethreeindustries.
2.Visitaserviceenvironment,andhaveadetailedlookaround.Experience
theenvironmentandtryandfeelhowthevariousdesignelementsshape
whatyoufeelandhowyoubehaveinthatsetting.
3.Selectabadandagoodwaitingexperienceandcontrastthetwo
situationswithrespecttotheserviceenvironmentandotherpeoplewaiting.
4.Visitaselfserviceenvironmentandanalyzehowthedesigndimensions
guideyouthroughtheserviceprocess.Whatdoyoufindmosteffectivefor
you,andwhatseemsleasteffective?Howcouldthatenvironmentbe
improvedtofurthereasethewayfindingforselfservicecustomers?
5.Takeadigitalcameraandconductaphotoauditofaspecificservicescape.
Photographexamplesofexcellentandverypoordesignfeatures.Develop
concretesuggestionsonhowthisenvironmentcouldbeimproved.

Endnotes
1 .BeatrizPlaza,TheBilbaoEffect,MuseumNews,(September/October2007):13
15,68DennyLee,Bilbao,10YearsLater,TheNewYorkTimes,September23,2007in
http://travel.nytimes.com/2007/09/23/travel/23bilbao.html
(http://travel.nytimes.com/2007/09/23/travel/23bilbao.html),accessedMarch12,2012.

http://en.wikipedia.org/wiki/Guggenheim_Museum_Bilbao
(http://en.wikipedia.org/wiki/Guggenheim_Museum_Bilbao),accessedMarch12,2012.

2 .ThetermservicescapewascoinedbyMaryJoBitnerinherpaperServicescapes:
TheImpactofPhysicalSurroundingsonCustomersandEmployees,JournalofMarketing
56,(1992):5771.

3 .MadeleineE.PullmanandMichaelA.Gross,AbilityofExperienceDesignElements
toElicitEmotionsandLoyaltyBehaviors,DecisionSciences35,no.1(2004):551578.

4 .AnjaReimerandRichardKuehn,TheImpactofServicescapeonQualityPerception,
EuropeanJournalofMarketing39,7/8(2005):785808.

5 .LisaTakeuchiCullen,IsLuxurytheTicket?Time,August22,2005,3839.

6 .Forareviewoftheliteratureonhospitaldesigneffectsonpatients,see:Karin
Dijkstra,MarcelPieterse,andAdPruyn,PhysicalEnvironmentalStimuliThatTurn
HealthcareFacilitiesintoHealingEnvironmentsthroughPsychologicallyMediatedEffects:
SystematicReview,JournalofAdvancedNursing56,no.2(2006):166181.Seealsothe
painstakingefforttheMayoClinicextendstoloweringnoiselevelsintheirhospitals:
LeonardL.BerryandKentD.Seltman,ManagementLessonsfromMayoClinic:Inside
OneoftheWorldsMostAdmiredServiceOrganizations.McGrawHill,2008,171172.For
astudyontheeffectsofservicescapedesigninahospitalsettingonserviceworkersjob
stressandjobsatisfaction,andsubsequently,theircommitmenttothefirm,see:Janet
TurnerParish,LeonardL.Berry,andShunYinLam,TheEffectoftheServicescapeon
ServiceWorkers,JournalofServiceResearch10,no.3(2008):220238.

7 .RobertJ.DonovanandJohnR.Rossiter,StoreAtmosphere:AnEnvironmental
PsychologyApproach,JournalofRetailing58,no.1(1982):3457.

8 .JamesA.Russell,ACircumplexModelofAffect,JournalofPersonalityandSocial
Psychology39,no.6(1980):11611178.

9 .JochenWirtz,AnnaS.Mattila,andRachelL.P.Tan,TheModeratingRoleof
TargetArousalontheImpactofAffectonSatisfactionAnExaminationintheContextof
ServiceExperiences,JournalofRetailing76,no.3(2000):347365.JochenWirtz,AnnaS.
MattilaandRachelL.P.Tan,TheRoleofDesiredArousalinInfluencingConsumers
SatisfactionEvaluationsandInStoreBehaviours,InternationalJournalofServiceIndustry
Management18,no.2(2007):624.
10.MaryJoBitner,Servicescapes:TheImpactofPhysicalSurroundingsonCustomersand
Employees,JournalofMarketing56,(April1992):5771.
11.TerjeSlatten,MehmetMehmetoglu,GoranSvenssonandSanderSvaeri,Atmospheric
ExperiencesThatEmotionalTouchCustomers:ACaseStudyfromaWinterPark,
ManagingServiceQuality19,no.6(2009):721746.
12.Foracomprehensivereviewofexperimentalstudiesontheatmosphericeffectsrefer
to:L.W.TurleyandRonaldE.Milliman,AtmosphericEffectsonShoppingBehavior:A
ReviewoftheExperimentalLiterature,JournalofBusinessResearch49,(2000):193211.
13.PatrickM.Dunne,RobertF.LuschandDavidA.Griffith,Retailing,4thed.,Orlando,
FL:Hartcourt,2002,518.
14.BarryDaviesandPhilippaWard,ManagingRetailConsumption,WestSussex,UK:John
Wiley&Sons,(2002),179.
15.SaminanGheorgheandSilviaHodges,BrandingServicesthroughServicescapes:
UnderstandingtheRoleofServicescapesasanIdentitybuildingToolforServicesand
PerceptionShapingToolforCustomers.Paperpresentedat2009FrontiersinService
Conference,Honolulu,Hawaii,October31.
16.SteveOakes,TheInfluenceoftheMusicscapewithinServiceEnvironments,Journalof
ServicesMarketing14no.7(2000):539556.
17.LauretteDubandSylvieMorin,BackgroundMusicPleasureandStoreEvaluation
IntensityEffectsandPsychologicalMechanisms,JournalofBusinessResearch54,(2001):
107113
18.ClareCaldwellandSallyA.Hibbert,TheInfluenceofMusicTempoandMusical
PreferenceonRestaurantPatronsBehavior,PsychologyandMarketing19,no.11(2002):

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Chapter10.CraftingtheServiceEnvironmentEssentialsofServicesMarketing,SecondEdition

895917.
19.Forareviewoftheeffectsofmusiconvariousaspectsofconsumerresponsesand
evaluationssee:SteveOakesandAdrianC.North,ReviewingCongruityEffectsinthe
ServiceEnvironmentMusicscape,InternationalJournalofServiceIndustryManagement
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20.Seewww.dmx.com (http://www.dmx.com)forinstoremusicsolutionsprovidedbyDMX
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2008,10.
21.Thissectionisbasedon:TheEconomist,ClassicalMusicandSocialControl:Twilightof
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Casino,PsychologyandMarketing12,no.7(1995):585594.
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brandingservicesat:http://www.ambius.com/services/microfresh.aspx
(http://www.ambius.com/services/microfresh.aspx)accessedonMarch12,2012.

26.LindaHoltzschuhe,UnderstandingColorAnIntroductionforDesigners,3rdedn.New
Jersey:JohnWiley,2006,51.
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1996.
28.LindaHoltzschuhe,UnderstandingColorAnIntroductionforDesigners,3rdedn.New
Jersey:JohnWiley,2006.
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AppearanceintheServiceEncounterinRetailandHospitality,ManagingServiceQuality
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Sons,Inc.,2007MartinM.Pegler,Cafes&Bistros.NewYork:RetailReporting
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