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chapter 10.pptx
1.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 1 Chapter 10: Crafting the Service Environment
2.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 2 Overview of Chapter 10 What is the Purpose of Service Environments? Understanding Consumer Responses to Service Environments Dimensions of the Service Environment Putting It All Together
3.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 3 What is the Purpose of Service Environments?
4.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 4 Purpose of Service Environments Shape customers’ experience and their behaviors Support image, positioning, and differentiation Part of the value proposition Facilitate service encounter and enhance productivity
5.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 5 Shape customers’ experience and their behaviors Message-creating medium symbolic cues to communicate the distinctive nature and quality of the service experience Attention-creating medium make servicescape stand out from competition and attract customers from target segments Effect-creating medium use colors, textures, sounds, scents, and spatial design to enhance desired service experience
6.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 6 Support Image, Position, and Differentiation Four Seasons Hotel, New York Orbit Hotel and Hostel, Los Angeles
7.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 7 Servicescape as Part of Value Proposition Physical surroundings help shape appropriate feelings and reactions in customers and employees e.g., Disneyland, Denmark’s Legoland Service scapes form a core part of the value proposition Las Vegas: repositioned itself to a somewhat more wholesome fun resort, visually striking entertainment center Florida-based Muvico: builds extravagant movie theatres and offers plush amenities. “What sets you apart is how you package it.” (Muvico’s CEO, Hamid Hashemi) The power of servicescapes is being discovered
8.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 8 Understanding Consumer Reponses to Service Environments
9.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 9 The Mehrabian-Russell Stimulus-Response Model Response/Behaviors: Approach Avoidance & Cognitive Processes Environmental Stimuli and Cognitive Processes Dimensions of Affect: Pleasure and Arousal Feelings Are a Key Driver of Customer Responses to Service Environments
10.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 10 Insights from Mehrabian-Russell Stimulus-Response Model It is a simple yet fundamental model of how people respond to environments that illustrates: The environment, its conscious and unconscious perceptions, and interpretation influence how people feel in that environment Feelings, rather than perceptions/thoughts drive behavior Typical outcome variable is ‘approach’ or ‘avoidance’ of an environment, but other possible outcomes can be added to model
11.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 11 The Russell Model of Affect
12.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 12 Insights from Russell’s Model of Affect Emotional responses to environments can be described along two main dimensions: Pleasure: subjective, depending on how much individual likes or dislikes environment Arousal: how stimulated individual feels, depends largely on information rate or load of an environment Separates cognitive emotions from emotional dimensions Advantage: simple, direct approach to customers’ feelings Firms can set targets for affective states
13.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 13 Drivers of Affect Caused by perceptions and cognitive processes of any degree of complexity Determines how people feel in a service setting If higher levels of cognitive processes are triggered, the interpretation of this process determines people’s feelings The more complex a cognitive process becomes, the more powerful its potential impact on affect
14.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 14 Behavioral Consequence of Affect Pleasant environments result in approach, whereas unpleasant ones result in avoidance Arousal amplifies the basic effect of pleasure on behavior If environment is pleasant, increasing arousal can generate excitement, leading to a stronger positive consumer response If environment is unpleasant, increasing arousal level will move customers into the “distressed” region Feelings during service encounters are an important driver of customer loyalty
15.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 15 An Integrative Framework: The Servicescape Model
16.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 16 An Integrative Framework: The Servicescape Model Identifies the main dimensions in a service environment and views them holistically Internal customer and employee responses can be categorized into cognitive, emotional, and psychological responses, which lead to overt behavioral responses towards the environment Key to effective design is how well each individual dimension fits together with everything else
17.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 17 Dimensions of the Service Environment
18.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 18 Main Dimensions in Servicescape Model Ambient Conditions Characteristics of environment pertaining to our five senses Spatial Layout and Functionality Spatial layout: - floorplan - size and shape of furnishings Functionality: ability of those items to facilitate performance Signs, Symbols, and Artifacts Explicit or implicit signals to: - help consumers find their way
19.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 19 Ambient Conditions Ambient conditions are perceived both separately and holistically, and include: Lighting and color schemes Size and shape perceptions Sounds such as noise and music Temperature Scents Clever design of these conditions can elicit desired behavioral responses among consumers
20.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 20 Music In service settings, music can have powerful effect on perceptions and behaviors, even if played at barely audible levels Structural characteristics of music―such as tempo, volume, and harmony―are perceived holistically Fast tempo music and high volume music increase arousal levels People tend to adjust their pace, either voluntarily or involuntarily, to match tempo of music Careful selection of music can deter wrong type of customers
21.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 21 Scent An ambient smell is one that pervades an environment May or may not be consciously perceived by customers Not related to any particular product Scents have distinct characteristics and can be used to solicit emotional, physiological, and behavioral responses In service settings, research has shown that scents can have significant effect on customer perceptions, attitudes, and behaviors
22.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 22 Aromatherapy: Effects of Selected Fragrances on People
23.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 23 Color Colors can be defined into three dimensions: Hue is the pigment of the color Value is the degree of lightness or darkness of the color Chroma refers to hue-intensity, saturation, or brilliance People are generally drawn to warm color environments Warm colors encourage fast decision making and are good for low-involvement decisions or impulse buys Cool colors are preferred for high-involvement decisions
24.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 24 Common Associations and Human Responses to Colors
25.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 25 Signs, Symbols, and Artifacts Communicates the firm’s image and helps customers find their way First time customers will automatically try to draw meaning from the signs, symbols, and artifacts Challenge is to guide customer through the delivery process Unclear signals from a servicescape can result in anxiety and uncertainty about how to proceed and obtain the desired service
26.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 26 Putting It All Together
27.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 27 Selection of Environmental Design Elements Consumers perceive service environments holistically No dimension of design can be optimized in isolation, because everything depends on everything else Holistic characteristic of environments makes designing service environment an art
28.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 28 Tools to Guide Servicescape Design Keen observation of customers’ behavior and responses Feedback and ideas from frontline staff and customers Photo audit – Mystery Shopper to take photographs of service experience Field experiments can be used to manipulate specific dimensions in an environment and the effects observed Blueprinting or service mapping – extended to include physical evidence in the environment
29.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 29 Summary Service environment: Shapes customers’ experiences and behavior Facilitates service encounters and enhances productivity Mehrabian-Russell stimulus-response model and Russell’s model of affect help us understand customer responses to service environments Main dimensions of servicescape model: Ambient conditions – music, scent, color, etc. Spatial layout and functionality Signs, symbols, and artifacts
30.
Services Marketing Slide ©
2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 10 – Page 30 Summary When putting it all together, firms should Design with a holistic view Design from a customer’s perspective Use tools to guide servicescape design
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