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Mary Jo Bitner

Servicescapes: The Impact of


Physical Surroundings on
Customers and Employees
A typology of service organizations is presented and a conceptual framework is advanced for exploring
the impact of physical surroundings on the behaviors of both customers and employees. The ability of
the physical surroundings to facilitate achievement of organizational as well as marketing goals is ex-
plored. Literature from diverse disciplines provides theoretical grounding for the framework, which serves
as a base for focused propositions. By examining the multiple strategic roles that physical surroundings
can exert in service organizations, the author highlights key managerial and research implications.

T HE effect of atmospherics, or physical design and


decor elements, on consumers and workers is rec-
ognized by managers and mentioned in virtually all
cause the service generally is produced and consumed
simultaneously, the consumer is "in the factory," often
experiencing the total service within the firm's phys-
marketing, retailing, and organizational behavior texts. ical facility. The factory (or the place where the ser-
Yet, particularly in marketing, there is a surprising vice is produced) cannot be hidden and may in fact
lack of empirical research or theoretically based have a strong impact on customers' perceptions of the
frameworks addressing the role of physical surround- service experience. Even before purchase, consumers
ings in consumption settings. Managers continually
commonly look for cues about the firm's capabilities
plan, build, change, and control an organization's
and quality (Berry and Clark 1986; Shostack 1977).
physical surroundings, but frequently the impact of a
specific design or design change on ultimate users of The physical environment is rich in such cues (Ra-
the facility is not fully understood. poport 1982) and may be very influential in com-
municating the firm's image and purpose to its cus-
The ability of the physical environment to influ-
tomers. Research suggests that the physical setting may
ence behaviors and to create an image is particularly
also influence the customer's ultimate satisfaction with
apparent for service businesses such as hotels, restau-
rants, professional offices, banks, retail stores, and the service (Bitner 1990; Harrell, Hutt, and Anderson
hospitals (Baker 1987; Bitner 1986; Booms and Bitner 1980).
1982; Kotler 1973; Shostack 1977; Upah and Fulton Interestingly, in service organizations the same
1985; Zeithaml, Parasuraman, and Berry 1985). Be- physical setting that communicates with and influ-
ences customers may affect employees of the firm
(Baker, Berry, and Parasuraman 1988). Research in
Mary Jo Bitner is Assistant Professor of Marketing, Arizona State Uni-
versity. The author acknowledges the support of the First Interstate Center organizational behavior suggests that the physical set-
for Services Marketing, Arizona State University, in conducting the re- ting can influence employee satisfaction, productiv-
search. The extensive assistance of Michael Hutt and the comments of ity, and motivation (e.g., Becker 1981; Davis 1984;
Lawrence Crosby, Stephen Brown, Beth Walker, and Susan Kleine are
gratefully acknowledged, as are the helpful suggestions of three anon-
Steele 1986; Sundstrom and Altman 1989; Sundstrom
ymous JM reviewers. and Sundstrom 1986; Wineman 1986). The customer
is left out of that research stream, however, just as

Journal of Marketing
Vol. 56 (April 1992), 57-71
Sen^icescapes / 57
the employee typically is ignored in the limited at- tion experience. The position advanced here is that the
mospherics research in marketing (e.g., Donovan and physical surroundings are, in general, more important
Rossiter 1982; Kotler 1973; Milliman 1982, 1986). in service settings because customers as well as em-
For example, in the Milliman experiments, music tempo ployees often experience the firm's facility. However,
was varied and the effect on a variety of consumer not all service firms and industries are alike (Lovelock
behaviors was measured; however, the effects on em- 1983; Schmenner 1986), nor do they face the same
ployee satisfaction and productivity were not ex- strategic issues in planning and designing their ser-
plored. Because services generally are purchased and vicescapes. Figure 1 is a typology categorizing ser-
consumed simultaneously, and typically require direct vice organizations on two dimensions that capture im-
human contact, customers and employees interact with portant differences in the management of the
each other within the organization's physical facility. servicescape. Firms that share a cell within the matrix
Ideally, therefore, the organization's environment face similar issues related to the design of their phys-
should support the needs and preferences of both ser- ical spaces.
vice employees and customers simultaneously. The vertical dimension relates to who is perform-
The purpose of this article to take a first step to- ing actions within the servicescapethe customer, or
ward integrating theories and empirical findings from the employee, or both. One extreme is represented by
diverse disciplines into a framework that describes how the "self-service" organization in which few if any
the built environment (i.e., the manmade, physical employees are present and the level of customer ac-
surroundings as opposed to the natural or social en- tivity is high. At the other extreme is the "remote ser-
vironment), or what is referred to here as the "ser- vice" where there is little or no customer involvement
vicescape," affects both consumers and employees in in the servicescape and sometimes even little em-
service organizations. First, a typology of service or- ployee involvement, such as in fully automated voice-
ganizations is presented that illuminates important messaging services. Note from Figure 1 that "inter-
variations in form and usage of the servicescape. Next, personal services" are positioned between the two ex-
a conceptual framework is offered for explaining en- tremes. In those organizations, both customers and
vironment-user relationships in service organizations, employees are present and performing actions within
and specific research propositions are advanced. The the servicescape. The relative level of involvement of
framework is anchored in the environmental psychol- customers and employees determines whose needs
ogy research tradition and also draws together rele- should be consulted in the design of the environment.
vant literature in marketing, organizational behavior, In interpersonal servicescapes, special consideration
human factors/ergonomics, and architecture. Finally, must be given to the effects of the physical environ-
the linkages between the service organization typol- ment on the nature and quality of the social interaction
ogy and the framework are examined, and key man- between and among customers and employees.
agerial and research implications are discussed. Whether customers, employees, or both are pres-
ent within the servicescape also determines the types
of objectives a firm might expect to accomplish through
A Typology of Servicescapes use of its physical environment. In self-service set-
"The way the physical setting is created in organi- tings, the creative use of physical design could sup-
zations has barely been tapped as a tangible organi- port particular positioning and segmentation strategies
zational resource" (Becker 1981, p. 130). Manage- and enhance specific marketing objectives, such as
ment of the physical setting typically is viewed as customer satisfaction and attraction. At the other ex-
tangential in comparison with other organizational treme, for remote services, organizational objectives
variables that can motivate employees, such as pay such as employee satisfaction, motivation, and oper-
scales, promotions, benefits, and supervisory rela- ational efficiency could be the primary goals in phys-
tionships. Similarly, on the consumer side, variables ical setting design, because few customers would ever
such as pricing, advertising, added features, and spe- see or experience the firm's physical setting. For in-
cial promotions are given much more attention than terpersonal services, both organizational and market-
the physical setting as ways in which customers can ing objectives could potentially be targeted through
be attracted to and/or satisfied by a firm's services. careful design of the servicescape. Even marketing
A clear implication of the model presented here is that goals such as relationship building (Crosby, Evans,
the physical setting can aid or hinder the accomplish- and Cow Ies 1990) could be influenced by the design
ment of both internal organizational goals and exter- of the physical setting.
nal marketing goals. The horizontal dimension of Figure 1 captures the
As is true of any organizational or marketing vari- complexity of the servicescape. Some service envi-
able, the importance of physical setting depends on ronments are very simple, with few elements, few
the nature of the job and the nature of the consump- spaces, and few forms. They are termed "lean" en-

58 / Journal of Marketing, April 1992


FIGURE 1
Typology of Service Organizations Based on Variations in Form and Usage of the Servicescape
Types of Service Organizations Based on
Who Performs Actions Within the Physicai Complexity of the Servicescape
Servicescape Elaborate Lean

Self-service (customer only) Golf Land ATM


Surf 'n Splash Ticketron
Post office kiosk
Movie theater
Express mail dropoff
Interpersonal services (both customer and Hotels Dry cleaner
employee) Restaurants Hot dog stand
Health clinic Hair salon
Hospital
Bank
Airline
School
Remote service (employee only) Telephone company Telephone mail order desk
Insurance company Automated voice-messaging-based
Utility services
Many professional services

vironments. Ticketron outlets and Federal Express by both customers and employees and that both groups
dropoff kiosks would qualify as lean environments, as may respond cognitively, emotionally, and physiolog-
both provide service from one simple structure. For ically to the environment. Those internal responses to
lean servicescapes, design decisions are relatively the environment influence the behavior of individual
straightforward, especially in self-service or remote customers and employees in the servicescape and af-
service situations in which there is no interaction be- fect social interactions between and among customers
tween customers and employees. Other servicescapes and employees. Though the model shares similarities
are very complicated, with many elements and many with other models (e.g., Mehrabian and Russell 1974),
forms. They are termed "elaborate" environments. An it is unique in its breadth of synthesis (for example,
example is a hospital with its many floors, rooms, so- Mehrabian and Russell focus on emotional responses
phisticated equipment, and complex variability in only), the incorporation of both customers and em-
functions performed within the physical facility. In such ployees and their interactions, and its application to
an elaborate environment, the full range of marketing commercial settings. In the following sections, each
and organizational objectives theoretically can be ap- of the components of the framework is defined and
proached through careful management of the service- developed. Attention centers first on the behaviors that
scape. For example, a patient's hospital room can be may be influenced by the servicescape and then on
designed to enhance patient comfort and satisfaction the internal responses and the controllable dimensions
while simultaneously facilitating employee productiv- that constitute the servicescape. Propositions based on
ity. Figure 1 suggests that firms such as hospitals that the framework are highlighted, and implications for
are positioned in the elaborate interpersonal service firms within specific cells of the service typology are
cell face the most complex servicescape decisions. discussed.

Conceptual Framework Behaviors in the Servicescape


Though the typology in Figure 1 highlights the rela- That human behavior is infiuenced by the physical
tive complexity of environmental decisions across dif- setting in which it occurs is essentially a truism. In-
ferent types of service organizations, it does not ex- terestingly, however, until the 1960s psychologists
plain what behaviors are influenced, or why, or how largely ignored the effects of physical setting in their
one would go about planning and designing an envi- attempts to predict and explain behavior. Since that
ronment to achieve particular objectives. Figure 2 is time, a large and steadily growing body of literature
a rich framework for addressing those questions and within the field of environmental psychology has ad-
for exploring the role of physical environment in ser- dressed the relationships between human beings and
vice organizations. The framework suggests that a va- their built environments (for reviews of environmental
riety of objective environmental factors are perceived psychology, see Darley and Gilbert 1985; Holahan

Servicescapes / 59
FIGURE 2
Framework for Understanding Environment-User Relationships in Service Organizations

ENVIRONMENTAL HOUSTIC
DIMENSIONS ENVIRONMRNT MODERATORS INTERNAL RESPONSES BEHAVIOR

Cognitive Emotional Phyjdoiogical


. beliefs . mood . pain
. affiliatixm
. categor- . alUlude . comfort
. eqdoration
i7iiiifiii ^ movement . stay longer
. symbolic . physical
fntfrtn^"rt fit . cany outplan
AmbiHilCffliditinna
. tempetatute
. air quality Amid
(opposites of
. noise
qqnoach)
. music
En^loyee
. odor
. etc. Response Responses
Modentars
Space/Punctioil
. layout Foceived Social Imeractians
Between and
. furnishings Servicescape Among Custotnecs
. etc. and Enqiloyees.

.<!ign!i, Symbols Customer CustamK

. signage Moderstois Responses


. pctsonai artifacts . attisctiGii
. style of decor . stay/e]q)lore
. etc.
1 .
.
spendmoney
retuin
Cosnitive Emadoaal Fhvsiolosical . carryautplan

Axdd
. symboUc . physical appfottd^

1986; Russell and Ward 1982; Stokols and Altman haviors reflect the opposite, in other words, a desire
1987).' Here it is assumed that dimensions of the or- not to stay, explore, work, and afflliate. In a study of
ganization's physical surroundings influence impor- consumers in retail environments, Donovan and Ros-
tant customer and employee behaviors. The types of siter (1982) found that approach behaviors in that set-
behaviors that are influenced are identified and dis- ting (including shopping enjoyment, returning, attrac-
cussed next. tion and friendliness toward others, spending money,
Individual Behaviors
time spent browsing, and exploration of the store) were
influenced by perceptions of the environment. Milli-
Environmental psychologists suggest that individuals man (1982, 1986) found that the tempo of background
react to places with two general, and opposite, forms music can affect traffic flow and gross receipts in both
of behavior: approach and avoidance (Mehrabian and supermarket and restaurant settings. In actual service
Russell 1974). Approach behaviors include all posi-
settings, examples of environmental cues being used
tive behaviors that might be directed at a particular
to change behavior are abundant. At one 7-11 store,
place, such as desire to stay, explore, work, and af-
filiate (Mehrabian and Russell 1974). Avoidance be- the owners played "elevator music" to drive away a
youthful market segment that was detracting from the
' Research on the built environment is only one aspect of environ- store's image. Cinnamon roll bakeries commonly pump
mental psychology. The field also encompasses the study of human the wonderful fragrance of their freshly baked prod-
beings and their relationships with the natural and social environment. ucts out into mall trafflc areas to entice customers into
What distinguishes environmental psychology from other areas of in-
quiry is its concern "with the reciprocal and interactive influences that the store.
take place between the thinking and behavior of an organism and the
environment surrounding that organism" (Darley and Gilbert 1985, p. In addition to attracting or deterring entry, the ser-
949). vicescape can actually influence the degree of success

60 / Journal of Marketing, April 1992


consumers experience in executing their plans once suggests that physical environments represent a subset
inside (Darley and Gilbert 1985; Russell and Snod- of social rules, conventions, and expectations in force
grass 1987). Each individual comes to a particular ser- in a given behavior setting, serving to define the na-
vice organization with a goal or purpose that may be ture of social interaction. In developing the concept
aided or hindered by the setting. For example, assume of behavior settings. Barker (1968) implies that re-
that a traveler enters an airport and (1) is confused curring social behavior patterns are associated with
because he or she cannot find signage giving direc- particular physical settings and that when people en-
tions to the assigned gate and (2) is emotionally dis- counter typical settings, their social behaviors can be
tressed because of crowds, poor acoustics, and high predicted.
temperature. The traveler is unable to carry out the Empirical studies confirm the impact of physical
purpose for entering the environment, at least not very setting on the nature of social interaction. Behaviors
easily. Here the servicescape directly inhibits the ac- such as small group interaction, friendship formation,
complishment of the customer's goal. Similarly, participation, aggression, withdrawal, and helping have
physical surroundings and 9onditions could constrain all been shown to be influenced by environmental
an employee's ability to do his or her work and thereby conditions (Holahan 1982). Similarly, in studies of
detract from the purpose for being in the servicescape. workplace design, researchers have found that com-
Clearly, firms want to encourage approach behav- munication patterns, group cohesion, and the forma-
iors and the ability of customers and employees to carry tion of friendships and small groups can be influenced
out their plans while at the same time discouraging by the physical setting (Sundstrom and Sundstrom 1986,
avoidance behaviors. As Figure 2 shows, the ap- Part III). By implication, those findings suggest that
proach/avoidance behaviors of employees and cus- the servicescape influences the nature of social inter-
tomers are determined largely by individual internal actions between and among customers and employ-
responses (cognitive, emotional, and physiological) to ees.
the environment. The three types of internal responses Examples are again abundant in actual service set-
are discussed in greater detail subsequently. The basic tings. Even casual observation of a Club Med facility
assumption is that positive (negative) internal re- confirms that the highly complex setting is designed
sponses lead to approach (avoidance) behaviors. to encourage social interaction among and between
Pi: Positive (negative) internal responses to the service- guests and employees. Seating arrangements and the
scape lead to approach (avoidance) behaviors. food preparation process at Benihana restaurants sim-
a. For employees, approach includes such behaviors ilarly encourage interactions among total strangers, as
as affiliation, exploration, staying longer, expres- well as contact between patrons and the Japanese chef
sions of commitment, and carrying out the purpose
for being in the organization. Avoidance is repre- who prepares their meals in full view. In most air-
sented by the opposite behaviors. ports, in contrast, research suggests that the arrange-
b. For customers, approach includes such behaviors ment of seating typically discourages comfortable
as coming in, staying, spending money, loyalty, conversation among travelers and their companions
and carrying out the purpose for being in the or- (Sommer 1974).
ganization. Avoidance is represented by the op-
posite behaviors. One of the challenges in designing environments
to enhance individual approach behaviors and en-
Social Interactions courage the appropriate social interactions is that op-
timal design for one person or group may not be the
In addition to its effects on their individual behaviors, optimal design for others. Research in a bank setting
the servicescape influences the nature and quality of suggests, for example, that employees and customers
customer and employee interactions, most directly in have different needs and desires for their physical sur-
interpersonal services. Bennett and Bennett (1970) state roundings (Baker, Berry, and Parasuraman 1988).
that "all social interaction is affected by the physical Similarly, an environment that is conducive to an em-
container in which it occurs." They go on to suggest
ployee's individual work needs may not enhance the
that the physical container affects the nature of social
employee's ability to converse and interact interper-
interaction in terms of the duration of interaction and
sonally with customers.
the actual progression of events. In many service sit-
uations, a firm may want to ensure a particular pro- P2: For interpersonal services, positive (negative) internal
gression of events (i.e., a "standard script") and limit responses to the servicescape enhance (detract from)
the duration of the service. Forgas (1979) suggests that the nature and quality of social interactions between
environmental variables such as propinquity, seating and among customers and employees.
arrangements, size, and flexibility can define the pos- P3: Optimal design for encouraging employee (customer)
approach behavior may be incompatible with the de-
sibilities and limits of social episodes, such as those
sign required to meet customer (employee) needs and/
between and among customers and employees. He also or facilitate positive employee-customer interactions.

Servicescapes / 61
Service Topology and Behavior logical sensations which in tum influence behaviors.
Behaviors are thus mediated by a person's internal re-
The research tradition in environmental psychology
sponses to the place. Though the internal responses
strongly suggests that the physical environment can
(cognitive, emotional, and physiological) are dis-
influence behaviors in several ways. Therefore the fu-st
cussed independently here, they are clearly interde-
step in the purposeful design of the servicescape is to
pendent. For example, a person's beliefs about a place,
identify desirable customer and/or employee behav-
a cognitive response, may well influence emotional
iors and the strategic goals that the organization hopes
response to the place and vice versa.
to advance through its physical facility. For example,
in designing their corporate headquarters offices, Environment and Cognition
Scandinavian Airline Systems first identified partic-
ular goals that it wanted to achieve, among them As shown in Figure 2, the perceived servicescape may
teamwork and open and frequent communication among elicit cognitive responses (Golledge 1987; Kaplan and
managers. The employee behaviors associated with Kaplan 1982; Rapoport 1982), influencing people's
those goals were identified and architects were com- beliefs about a place and their beliefs about the people
missioned to propose designs that would be conducive and products found in that place. In that sense, the
to the behaviors and ultimately support the strategic environment can be viewed as a form of nonverbal
goals. communication (Broadbent, Bunt, and Jencks 1980;
Rapoport 1982), imparting meaning through what
The typology (Figure 1) provides a structure for
Ruesch and Kees (1956) called "object language." For
isolating the relevant behavioral issues. Self-service
example, particular environmental cues such as the type
firms will be most interested in predicting and under-
of office furniture and decor and the apparel worn by
standing customer behaviors (e.g., coming in, explo-
a lawyer may influence a potential client's beliefs about
ration, staying) in the physical setting and the poten-
whether the lawyer is successful or not successful, ex-
tial achievement of marketing objectives such as
pensive or not expensive, and trustworthy or not trust-
customer attraction, satisfaction, and retention. In
worthy. In a consumer study, variations in verbal de-
contrast, firms that operate remote services will focus
scriptions of store atmospherics were found to alter
on employee behaviors (e.g., productivity, affiliation
beliefs about a product (perfume) sold in the store
with coworkers) and the achievement of organiza-
(Gardner and Siomkos 1986). Another study showed
tional goals such as teamwork, productivity, and in-
that a travel agent's office decor affected customer at-
novation. Organizations that are positioned in the in-
tributions for the travel agent's behavior (Bitner 1990).
terpersonal service cell will be concerned with both
Variations in environmental cues may also affect em-
customer and employee behaviors, as well as the ef-
ployees' beliefs. For example, office size and type of
fects of physical setting on the interactions between
furnishings may affect an employee's beliefs about the
and among customers and employees. There the strat-
importance of his or her function within the firm in
egist must understand the plans and goals of all par-
relation to other employees. In all of those cases, per-
ticipants and anticipate compatibility dilemmas in de-
ceptions of the servicescape influence beliefs about
signing the servicescape. Once behaviors most likely
the environment itself, but also appear to affect beliefs
to be influenced by the servicescape are identified,
about other, seemingly unrelated, service attributes.
challenging questions emerge: What internal re-
In other cases, perceptions of the servicescape may
sponses (e.g., feelings, beliefs) will lead to the de-
simply help people to distinguish a firm by influenc-
sired behaviors and how should the environment be
ing how it is categorized. Categorization is the pro-
configured to bring about such responses? The next
cess by which people assign a label to an object; when
two sections address those questions.
people see a feathered animal flying through the air,
they categorize it as a "bird" and not a "fish" (Loken
Internal Responses to the and Ward 1990; Mervis and Rosch 1981). Similarly,
the overall perception of the servicescape enables the
Servicescape consumer or employee to categorize the firm men-
One can infer from the environmental psychology lit- tally. For example, research shows that in the restau-
erature that employees and customers in service firms rant industry a particular configuration of environ-
respond to dimensions of their physical surroundings mental cues suggests "fast food" whereas another
cognitively, emotionally, and physiologically, and that configuration suggests "elegant sit-down restaurant"
those responses are what influence their behaviors in (Ward, Bitner, and Barnes 1992). In such situations,
the environment. Hence, the perceived servicescape environmental cues serve as a mnemonic or shortcut
does not directly cause people to behave in certain device enabling customers to categorize and distin-
ways. As Figure 2 shows, perceptions of the service- guish among types of restaurants.
scape lead to certain emotions, beliefs, and physio- Because services are relatively intangible in com-

62 / Journal of Marketing, April 1992


parison with most manufactured goods (Shostack 1977) space) may also increase perceptions of personal con-
and because many services are high in experience and trol.
credence attributes (Zeithaml 1981), they generally Research also suggests that emotional responses to
afford fewer intrinsic cues on which to form beliefs the environment may be transferred to people and/or
about service quality, particularly in initial purchase objects within the environment (Maslow and Mintz
situations. Hence, in such situations consumers and 1956; Mintz 1956; Obermiller and Bitner 1984). In
employees tend to use extrinsic cues (such as the the Obermiller and Bitner study, respondents who
physical surroundings) to infer quality (Zeithaml 1988). viewed retail products in an emotionally pleasing en-
In other words, people may use their beliefs about the vironment evaluated the products more positively than
servicescape as surrogate indicators in forming beliefs did subjects who viewed the same products in an un-
about service quality and other attributes of the ser- pleasing environment. Hence, perceptions of the ser-
vice and/or the people who work in the organization. vicescape appear to have influenced seemingly unre-
lated feelings about the products.
P4: Perceptions of the servicescape and associated positive
(negative) cognitions can lead to positive (negative) Other researchers also have emphasized the emo-
beliefs and attributions associated with the organiza- tion-eliciting or affective qualities of environments,
tion, its people, and its products. suggesting that environments can be viewed as aes-
P5: Perceptions of the servicescape influence how people thetic stimuli capable of eliciting affect (Wohlwill
categorize the organization; thus, the environment serves 1976). In his work aimed at explaining the affective
as a mnemonic in differentiating among firms.
assessment of outdoor environments, Kaplan (1987)
P6: The servicescape's influence on beliefs, attributions,
and categorization of the organization is stronger for concluded that preference for or liking of a particular
inexperienced customers or new employees, and when environment can be predicted by three environmental
few intrinsic cues are available on which to categorize dimensions: complexity, mystery, and coherence.
or base beliefs. Complexity (visual richness, omamentation, infor-
mation rate) has been found consistently to increase
Environment and Emotion emotional arousal, whereas coherence (order, clarity,
In addition to influencing cognitions, the perceived unity) has been found to enhance positive evaluation
servicescape may elicit emotional responses that in tum (Nasar 1989). In addition, compatibility has been founds
infiuence behaviors. In a long stream of research, to influence perceptions of order, and preference has
Mehrabian and Russell and their colleagues have pro- been found to increase with compatibility (Nasar 1987).
grammatically explored emotional responses to envi- Compatibility in natural settings refers to how well a
ronments (e.g., Mehrabian and Russell 1974; Russell place blends in with its,_surroundings and is related
and Lanius 1984; Russell and Pratt 1980; Russell and inversely to contrasts (in color, texture, size, and shape)
Snodgrass 1987). Through their research they have with the natural background; in urban settings com-
concluded that the emotion-eliciting qualities of en- patibility results from replication of features such as
vironments are captured by two dimensions: plea- materials, style, and overall shapes (Nasar 1989). Other
sure-displeasure and degree of arousal (i.e., amount research has shown that people respond positively to
of stimulation or excitement). In other words, any en- nature and prefer natural to manmade elements (Ka-
vironment, whether natural or manmade, can be lo- plan and Kaplan 1982), whereas the presence of what
cated in a two-dimensional space reflecting peoples' Nasar (1989) terms environmental "nuisances" has been
emotional response to the place. Research shows that found to reduce preference and perceptions of quality
emotional response measured on those dimensions can in urban settings. In urban settings such things as poles,
predict behaviors with respect to the environment. For wires, signs, and dilapidated buildings and vehicles
example, environments that elicit feelings of pleasure are classified as nuisances. Research is needed to de-
are likely to be ones where people want to spend time fine the cues that would determine compatibility and
and money (Donovan anud Rossiter 1982; Mehrabian the objects that would be classified as nuisances in
and Russell 1974), whereas unpleasant environments service settings.
are avoided. Similarly, arousing environments are
viewed positively unless the excitement is combined P7: Customer and employee emotional responses to the
servicescape can be captured by two dimensions,
with unpleasantness (Mehrabian and Russell 1974). pleasure and arousal.
That is, unpleasant environments that are also high in a. Pleasure increases approach behaviors.
arousal (lots of stimulation, noise, confusion) are par- b. Arousal, except when combined with unpleasant-
ticularly avoided. Hui and Bateson (1991) found that ness, increases approach behaviors.
in the context of environmental crowding, increased Pg: Perceptions of greater personal control in the service-
perceptions of personal control are related positively scape increase pleasure.
to increased pleasure. Other environmental dimen- P9: Complexity in the servicescape increases emotional
arousal.
sions (e.g., clear signage, good ventilation, adequate
Pio: Compatibility, the presence of natural elements, and

Servicescapes / 63
the absence of environmental "nuisances" in the Service Typology and Internal Responses
servicescape enhance pleasure.
Pi,: Perceptions of the servicescape and associated posi- Combining the typology of servicescapes (Figure 1)
tive (negative) emotions can lead to positive (nega- with the conceptual understanding of the internal re-
tive) feelings associated with the organization, its sponses of customers and employees leads to insights
people, and its products. for designing and managing the servicescape. For ex-
ample, a self-service firm that wants to enhance cus-
Environment and Physiology
tomer approach behaviors such as attraction and stay-
The perceived servicescape may also affect people in ing longer can assess the environmental dimensions
purely physiological ways. Noise that is too loud may or cues that may elicit particular cognitive, emotional,
cause physical discomfort, the temperature of a room or physiological responses. Attraction would most likely
may cause people to shiver or perspire, the air quality be facilitated by positive cognitive and emotional re-
may make it difficult to breathe, and the glare of light- sponses to the firm's exterior, whereas staying would
ing may decrease ability to see and cause physical pain. depend more on positive emotional and physiological
All of those physical responses may in tum directly responses to the organization's interior space. In mea-
influence whether or not people stay in and enjoy a suring the emotion-eliciting qualities of a particular
particular environment. For example, it is well known servicescape, attention might be given to emotional
that the relative comfort of seating in a restaurant in- dimensions identified by Mehrabian and Russell
fluences how long people stay. When they become (pleasure-displeasure and degree of arousal) as well
uncomfortable (subconsciously or consciously) sitting as to perceptions of control (Hui and Bateson 1991).
on a hard surface in a fast food restaurant, most peo- For interpersonal services, an effective service-
ple leave within a predictable period of time. Simi- scape design anticipates the likely responses of em-
larly, environmental design and related physiological ployees and customers to environmental conditions and
responses affect whether a person can perform his or creates the proper setting for the service encounter. In
her job function (e.g., Riley and Cochran 1984). such cases, several goals and behaviors will be iden-
A vast amount of research in engineering and de- tified for both customers and employees as well as for
sign has addressed human physiological responses to their interactions. The desired behaviors then can be
ambient conditions as well as physiological responses linked directly to their internal response counterparts.
to equipment design (Bennett 1977; Obome 1987; For example, what type of emotional response on the
Sanders and McCormick 1987). Such research fits un- part of customers will be needed to encourage them
der the rubric of human factors design or ergonomics. to interact comfortably with each other as in the case
Human factors research systematically applies rele- of a Club Med? Or, in the case of a hospital, what
vant information about human capabilities and limi- beliefs, emotions, and physiological responses will
tations to the design of things and procedures people encourage patients to get up and walk around the fa-
use. The primary focus and application of the research cility if that is a desired behavior for their recovery?
has been within the military, in space programs, and Because elaborate services (e.g., banks, hospitals,
in the design of computers, automobiles, and em- restaurants) consist of many forms and spaces, plan-
ployee work stations. Such research has great poten- ning for compatibility and coherence is a particularly
tial for application in the design of commercial en- challenging task. In lean environments, coherence
vironments, taking into account the effects of design would be easier to achieve and measure and nuisances
on both customers and employees who coexist and in- easier to identify and eliminate. Similarly, enhancing
teract in the environment. personal control is more straightforward in remote and
In addition to directly affecting behavior, physi- self-service firms than in interpersonal service firms,
ological responses may influence seemingly unrelated where giving a sense of control to both employees and
beliefs and feelings about the place and the people customers simultaneously may be difficult.
there. Research has shown that when people are phys-
ically uncomfortable because of ambient temperature, Response Moderators
their affective response to strangers is less positive than
when they are physically comfortable (Griffitt 1970). In general, people respond to environments in the ways
Mehrabian and Russell (1974, ch. 4) review numer- described herecognitively, emotionally, physiolog-
ous studies of emotional reactions to sensory stimuli icallyand their responses influence how they be-
such as color, thermal conditions, light intensity, sound, have in the environment. As with all behavioral re-
and odors. lationships, however, the strength and direction ofthe
relation between variables is moderated by personal
Pi2: Positive (negative) physiological responses to the ser-
vicescape can result in positive (negative) beliefs and
and situational factors. Here, and in Figure 2, those
feelings associated with the organization, its people, factors are referred to as "response moderators."
105and its products. Studies have shown that individual personality traits

64 / Journal of Marketing, April 1992


can influence a person's reaction to his or her physical ments, as well as what they have heard or read about
surroundings (Mehrabian and Russell 1974; Russell the place.
and Snodgrass 1987). Arousal-seeking is one such trait.
P13: Personality traits (such as arousal-seeking tendencies
Arousal-seekers enjoy and look for high levels of and ability to screen environmental stimuli) moderate
stimulation, whereas arousal-avoiders prefer lower the relationship between the perceived servicescape
levels of stimulation. Thus, an arousal-avoider who and internal responses.
found him- or herself in a loud, bright disco with P14: Situational factors (such as expectations, momentary
flashing neon might show strong dislike for the en- mood, plans and purposes for being in the service-
vironment whereas an arousal-seeker would be very scape) moderate the relationship between the per-
ceived servicescape and internal responses.
happy. In a related vein, Mehrabian (1977) proposed
that some people are better screeners of environmental
stimuli than others. Screeners of stimuli would be able Dimensions of the Servicescape
to experience high levels of stimulation, but not be
A complex mix of environmental features constitute
affected by it. In other words, they can ignore exter-
the servicescape and influence internal responses and
nal environmental stimulation. Nonscreeners would
behaviors. Specifically, the dimensions of the physi-
be highly affected and might exhibit extreme re- cal surroundings include all of the objective physical
sponses even to low levels of stimulation. factors that can be controlled by the firm to enhance
An individual's response to an environment often (or constrain) employee and customer actions. Those
depends on situational factors as well, such as his or factors include an endless list of possibilities, such as
her plan or purpose for being in the environment lighting, color, signage, textures, quality of materials,
(Russell and Snodgrass 1987; Snodgrass, Russell, and style of furnishings, layout, wall decor, temperature,
Ward 1988). Though the individual differences in per- and so on. On the basis of a review of diverse liter-
sonality traits are relatively stable, plans and purposes atures, three composite dimensions were identified as
for being in or seeking out a particular environment being particularly relevant to the present analysis:
may vary from day to day or hour to hour. What the ambient conditions, spatial layout and functionality,
individual notices and remembers about the environ- and signs, symbols, and artifacts (see Figure 2). Be-
ment, as well has how he or she feels about it, is in- cause the base of research findings is context-specific
fluenced by the purpose for being there. In a labo- and therefore not easily generalized, the effect of a
ratory study, subjects' knowledge of environmental single dimension on customers and employees is dif-.
details and affective response to a place were found ficult to forecast. However, relevant dimensions of the
to be influenced by what they had planned to do while servicescape can be isolated and general patterns can
therewait, explore, spy, or redecorate (Ward et al. be explored.
1988). Environmental psychologists contend that people
In addition to the plan or purpose, each individual respond to their environments holistically. That is,
enters an environment in a particular mood state (e.g., though individuals perceive discrete stimuli, it is the
happy, depressed, lonely, anxious, excited, impa- total configuration of stimuli that determines their re-
tient). Such mood states are likely to affect as well as sponses to the environment (Bell, Fisher, and Loomis
be differentially affected by variations in physical sur- 1978; Holahan 1982; Ittelson et al. 1974). Hence,
roundings (see Gardner 1985). A person who is feel- though the dimensions of the environment are defined
ing anxious and fatigued after a frustrating day at work independently here, it is important to recognize that
is likely to be affected differently by a highly arousing they are perceived by employees and customers as a
restaurant environment than he or she would be after holistic pattern of interdependent stimuli. Note in Fig-
a relaxing three-day weekend. Similarly, Harrell and ure 2 that the holistic pattern is refiected in the per-
Hutt (1976) suggest that people who are impatient or ceived servicescape construct.
very time sensitive on entering a retail store are more P15: Customers and employees perceive the environment
affected by crowding than those who are patient and holistically, as a composite of three dimensions: am-
not sensitive to time factors. bient conditions; spatial layout and functionality; signs,
symbols, and artifacts. Each dimension may affect the
What an individual expects to find in an environ- overall perception independently and/or through its
ment also affects how the individual responds to the interactions with the other dimensions.
place. In general, when expectations are negatively
disconfirmed, the person is likely to dislike the place. Ambient Conditions
The opposite occurs when expectations are met or when Several authors have identified ambient conditions as
the environment exceeds expectations. Expectations a factor that affects perceptions of and human re-
vary across individuals on the basis of their past ex- sponses to the environment (Baker 1987; Baker, Berry,
periences in the environment or in similar environ- and Parasuraman 1988; Becker 1981; Darley and Gil-

Servicescapes / 65
bert 1985; Russell and Snodgrass 1987; Sundstrom and ley 1984; Seidel 1983; Wener 1985), surprisingly lit-
Sundstrom 1986; Wineman 1982). Ambient condi- tle has been published about the effects of spatial lay-
tions include background characteristics of the envi- out and functionality on customers in commercial
ronment such as temperature, lighting, noise, music, service settings. Logic suggests that spatial layout and
and scent. As a general rule, ambient conditions affect functionality of the environment are highly salient to
the five senses. However, sometimes such dimensions customers in self-service environments where they must
may be totally imperceptible (gases, chemicals, infra- perform on their own and cannot rely on employees
sound), yet may have profound effects (Russell and to assist them. Similarly, if the tasks to be performed
Snodgrass 1987), particularly on employees who spend are very complex, efficiency of layout and function-
long hours in the environment. ality will be more important than when the tasks are
A very limited number of empirical studies in con- mundane or simple. When either the employees or
sumer research confirm that ambient factors may in- customers are under time pressure, they will also be
fluence customer responses. For example, in studies highly conscious of the relative ease with which they
of restaurants and supermarkets, it has been illustrated can perform their tasks in the environment.
that music tempo can affect pace of shopping, length P17: The effects of spatial layout and functionality are par-
of stay, and amount of money spent (Milliman 1982, ticularly salient in self-service settings, when the tasks
1986). In another study, familiarity of music played to be performed are complex, and when either the
in a department store setting was found to affect shop- employee or customer is under time pressure.
per's perceptions of how long they spent shopping;
when the music was unfamiliar to subjects, they be- Signs, Symbols, and Artifacts
lieved they had spent more time shopping (Yalch and Many items in the physical environment serve as ex-
Spangenberg 1988). Hundreds of studies of the work- plicit or implicit signals that communicate about the
place spanning many decades have shown that light- place to its users (Becker 1977, 1981; Davis 1984;
ing, temperature, noise, music, and color can all in- Wener 1985; Wineman 1982). Signs displayed on the
fluence employee performance and job satisfaction (see exterior and interior of a structure are examples of ex-
Sundstrom and Sundstrom 1986, Part II, for a re- plicit communicators. They can be used as labels (e.g.,
view). name of company, name of department), for direc-
tional purposes (e.g., entrances, exits), and to com-
Pi^: The effects of ambient conditions on the overall, ho- municate rules of behavior (e.g., no smoking, chil-
listic perception of the servicescajje are especially no-
ticeable when they are extreme (e.g., loud music, high dren must be accompanied by an adult). Signage can
temperature), when the customer or employee spends play an important part in communicating firm image.
considerable time in the servicescape (e.g., hospital Signs have even been found to reduce perceived
stay vs. visit to dry cleaner), and when they conflict crowding and stress in a jail lobby setting (Wener and
with expectations (e.g., loud music in a law office). Kaminoff 1982).
Spatial Layout and Functionality Other environmental objects may communicate less
directly than signs, giving implicit cues to users about
Because service encounter environments are purpose- the meaning of the place and norms and expectations
ful environments (i.e., they exist to fulfill specific needs for behavior in the place. Quality of materials used in
of consumers, often through the successful comple- construction, artwork, presence of certificates and
tion of employee actions), spatial layout and func- photographs on walls, floor coverings, and personal
tionality of the physical surroundings are particularly objects displayed in the environment can all com-
important. Spatial layout refers to the ways in which municate symbolic meaning and create an overall aes-
machinery, equiprnent, and furnishings are arranged, thetic impression. Restaurant managers, for example,
the size and shape of those items, and the spatial re- know that white table cloths and subdued lighting
lationships among them. Functionality refers to the symbolically convey full service and relatively high
ability of the same items to facilitate performance and prices, whereas counter service, plastic furnishings,
the accomplishment of goals. Much of the empirical and bright lighting symbolize the opposite. In office
research in organizational behavior and psychology environments, certain cues such as desk size and
has illustrated effects of the spatial layout and func- placement symbolize status and may be used to rein-
tionality dimension, always from the employee's point force professional image (Davis 1984; McCaskey 1979;
of view (for reviews, see Davis 1984; Sundstrom and Peters 1978; Pfeffer 1981; Sundstrom and Sundstrom
Sundstrom 1986; Wineman 1982, 1986). With the ex- 1986). Studies of faculty office design indicate that
ception of some research on retail store layout, crowd- desk placement, presence of diplomas on the wall, and
ing (Harrell and Hutt 1976; Harrell, Hutt, and An- tidiness of the office can influence students' beliefs
derson 1980; Hui and Bateson 1990, 1991), and use about the person occupying the office (Campbell 1979;
of orientation aids (e.g., Levine, Marchon, and Han- Morrow and McElroy 1981). In another study of fac-

66 / Journal of Marketing, April 1992


ulty offices, certain environmental cues were found to raises several challenging managerial implications. The
be symbolically associated with personality traits of overall conclusion is that through careful and creative
the faculty member believed to occupy the office management of the servicescape, firms may be able
(Ward, Bitner, and Gossett 1989). Such symbolic and to contribute to the achievement of both extemal mar-
aesthetic communication is extremely complexit may keting goals and internal organizational goals. Many
be intentionally conveyed or it may be accidental, it specific implications are discussed in preceding sec-
may be subject to multiple interpretations, and it may tions; some general strategic observations are offered
have intended and unintended consequences (Becker here.
1977; Davis 1984). The typology of service organizations combined
Pig: Signs, symbols, and artifacts are particularly impor- with the theoretical framework suggests that the phys-
tant in forming first impressions, for communicating ical environment may assume a variety of strategic
new service concepts, for repositioning a service, and roles in services marketing and management. First,
in highly competitive industries where customers are the servicescape provides a visual metaphor for an or-
looking for cues to differentiate the organization. ganization's total offering. In other words, the di-
mensions of the servicescape act as a package, similar
Service Typology and Environmental to a product's package, by conveying a total image
Dimensions and suggesting the potential usage and relative quality
In a classic study, Whyte (1980) observed human ac- of the service (Solomon 1985). Yet, the care given to
tivity in public spaces and found that even subtle product package design is commonly lacking in ser-
changes in design (e.g., adding plants and flowers, vice "package" design. Second, the servicescape can
providing comfortable perches) led to a rather dra- assume a facilitator role by either aiding or hindering
matic increase in activity and utilization. Similar re- the ability of customers and employees to carry out
sults might be achieved by examining the direction their respective activities. The floorplan, layout of
and flow of activities in a particular servicescape. For equipment, and equipment design can have a major
example, changes in the layout and furnishings of the impact on the ability of users to complete their tasks
service facility can be made to speed the flow of trans- and achieve their service goals. As a facilitator, the
actions, encourage particular forms of interaction be- servicescape can also encourage and nurture particular
tween and among customers and employees, or pro- forms of social interaction among and between em-
vide opportunities for customers to linger. ployees and customers. Finally, the physical environ-
The importance of particular environmental di- ment can serve as a differentiator in signaling the in-
mensions is likely to vary across the typology of ser- tended market segment, positioning the organization,
vice organizations (Figure 1). For example, for self- and conveying distinctiveness from competitors. Each
service situations such as Ticketron facilities, ATMs, of the roles can be shaped to a significant degree to
or Golf Land, the spatial layout and functionality di- support important services marketing and manage-
mension of the servicescape is extremely important. ment objectives of the organization.
Clear directions and simple layout aid the customer in The typology of service organizations (Figure 1)
completing the transaction. At the other extreme, for and the theoretical framework (Figure 2) help to direct
remote services, ambient conditions assume more im- managers to relevant issues and questions that should
portance because employees tend to spend extended be asked in forming servicescape strategy around the
periods of time in the servicescape. Their physical basic roles. In addition, service organizations can gain
comfort (temperature level, lighting) and responses to strategic insights by examining how the servicescape
noise level and/or music affect productivity and over- is designed and managed in other industries that oc-
all satisfaction. Ambient conditions are similarly im- cupy the same cell in the typology and thus share sim-
portant to employee productivity in many interper- ilar characteristics.
sonal service businesses such as banks, hospitals, and
To secure strategy advantages from the service-
hotels, but in those cases employee preferences must
scape, the needs of ultimate users and the require-
be balanced against customer needs. These are just a
ments of various functional units must be incorporated
few of many possible examples.
into environmental design decisions. The services
Rather than a single element, it is ultimately the marketing manager must be a strong advocate for us-
total configuration of environmental dimensions that ing the servicescape as an element of the organiza-
defines the servicescape. tion's strategy. Yet, in most organizations, environ-
mental management is a separate function performed
by persons with titles such as "environmental space
Managerial Implications manager," "facility planner," and "facility manager"
By isolating the impact of the servicescape on both (Becker 1981; Davis and Szigeti 1982). In many or-
customers and employees, the theoretical framework ganizations, environmental decisions are made rou-

Servicescapes / 67
tinely without much attention to the impact on em- the review of workplace research by Sundstrom and
ployee (or consumer) behavior (Becker 1981, p. 5). Sundstrom 1986) can be applied and extended into the
A clear implication of the conceptual framework consumer service setting. In other cases, as in the ef-
(Figure 2) is the need for cross-functional cooperation fects of the environment on social interactions among
in decision making about service environments. "Fa- customers and employees, the fact that there is rela-
cility planning and management . . . is a problem- tively little empirical work in any field to draw on
solving activity that lies on the boundaries between allows for true pioneering research to be done.
architecture, interior-space planning and product de- Given the complexity of environment/behavior
sign, organizational [and consumer] behavior, plan- relationships, a variety of methods will be appropriate
ning and environmental psychology" (Becker 1981, (see Bechtel, Marans, and Michelson 1987). Direct
p. 7). As such, decisions about the physical facility observation of environmental conditions and customer
can have an impact on human resource goals (e.g., and employee behaviors may be most appropriate in
worker retention, worker productivity), operations goals some casesfor example, in research on the effect of
(e.g., efficiency, cost reduction), and marketing goals facility layout options on customer/employee inter-
(e.g., consumer attraction, consumer satisfaction). action pattems. The application of direct observation
Ideally, therefore, major changes in physical design methods has just recently gained acceptance in the
or the planning of new environments should benefit marketing literature (e.g., Belk, Sherry, and Wallen-
from input from managers in all three areas, grounded dorf 1988; Belk, Wallendorf, and Sherry 1989), but
in direct input from actual usersthat is, employees has not yet been applied to the observation of con-
and customers. sumption environments (for an exception, see Sherry
and McGrath 1989). Using observation methods,
trained observers could make detailed accounts of cur-
Research Implications rent environmental conditions (i.e., environmental di-
The conceptual framework and the servicescape ty- mensions in Figure 2) and the actual behaviors of the
pology suggest a wide range of research possibilities. occupants. Such observations could be extremely de-
Given the scarcity of research reported in the con- tailed and useful in an applied sense in redesigning a
sumer behavior and marketing literature, there is a tre- facility or in comparing environments. For theory de-
mendous opportunity for theory building, empirical velopment, direct observation could be the source of
testing, development of better measures and methods, additional propositions.
and application/replication of findings from other fields. Experimental methods and surveys also would be
Figure 2 and the preceding specific propositions pro- appropriate for assessing the impact of design dimen-
vide numerous starting points for research. The prop- sions on consumers and employees. Because of the
ositions are purposefully general. Each one could be expense involved in constructing actual environments,
explored and expanded through empirical research. For some form of simulated environment (verbal descrip-
example, given a specific commercial environment, tions, photos/slides, scale models, videos) could be
how does a consumer's (or employee's) purpose for used in experimental studies (see Bechtel, Marans, and
being there affect the person's response to the place? Michelson 1987, ch. 5). The environmental psychol-
That question addresses the moderating effects of sit- ogy tradition has shown that simulated environments
uational factors in determining environmental re- work well in achieving generalizable results (Nasar
sponses. Alternatively, one could start with a partic- 1989). In designing experiments, the researcher should
ular social interaction behavior such as teamwork recall that people perceive environments holistically.
among employees and work back through the frame- It may be necessary to vary several environmental di-
work to discover the types of intemal responses and mensions (e.g., artifacts, layout, color, tidiness) si-
relevant environmental dimensions that would en- multaneously to achieve an overall perception of the
courage such behavior. In addition to the basic re- surroundings that will significantly infiuence behav-
search suggested by the framework and propositions, ior. User surveys are likely to be most appropriate in
there is a need for research that will illuminate the
assessing basic customer/employee needs and pref-
differential importance and differential effects of
erences prior to the design of experimental simula-
physical surroundings across types of service indus-
tions, and later for postdesign evaluation.
tries such as those identified in Figure 1. Research
For both experiments and surveys, applicable re-
opportunities also are available in exploring the ability
of the physical environment to achieve particular ob- sponse measures are needed. If one uses Figure 2 as
jectives of the firm, and at what cost. a guide, appropriate measures of cognitive, emo-
tional, and physiological response to environments are
In many cases, extensive work in environmental needed, as well as measures of relevant individual dif-
psychology and organizational behavior (e.g., the ferences. Though several standardized measures al-
stream of research by Russell and his colleagues and ready are available (e.g., Lemke et al. 1979; Mc-

68 / Journal of Marketing, April 1992


Kechnie 1974; Mehrabian 1977; Russell and Snodgrass meaning of service environments that adapts and ex-
1987), most have not been applied to consumers in tends ideas from research on object meaning (Kleine
commercial settings, thus opening an opportunity for and Keman 1988; Szalay and Deese 1978).
replication and assessment of generalizability. Other, The typology, framework, and propositions pro-
more novel approaches to measuring customer and vide direction for research on a topic that is incredibly
employee responses to environments also could be rich, and invite application of the full range of con-
considered. For example. Ward, Bitner, and Gossett sumer and organizational methods and theories to gain
(1989) suggest an approach to measuring the symbolic a better understanding of its impact.

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