Crafting the Service Environment Place and time Place and time the service environment is an important component of the marketing mix and overall value proposition environment communicate and determine the positioning of the service, shape employee and customer productivity, guide customer through the delivery system, and may represent the core of a competitive advantage purpose of service environment service environment = servicescape > it affects the byuer behavior in three ways: • a message creating n • an attention creating • an affect creating me X" creates image, positioning and differentiation servicescape communicates and reinforces customer expectations :e environment service environment = servicescape > it affects the byuer behavior in three ways: • a message creating mediui • an attention creating medii • an affect creating medium e environment service environment = servicescape > it affects the byuer behavior in three ways: • a message creating m • an attention creating ] • an affect creating mei mt = servicescape avior in three ways: • a message creating medium • an attention creating medium • an affect creating medium distinctive nature and quality of the service experience the servicescape stand out from the competition, attracts customers enhances the experience and increase the 'appetite' for it ng and differentiation )mmunicates and distinctive nature and quality of the service experience mt = servicescape avior in three ways: • a message creating medium • an attention creating medium • an affect creating medium distinctive nature and quality of the service experience the servicescape stand out from the competition, attracts customers enhances the experience and increase the 'appetite' for it ng and differentiation )mmunicates and ature and quality e experience the servicescape stand out from the competition, attracts customers Derience and ietite' for it HO\N TO MAKE MONEY ON WEB 2.0 AT THE PAWNSHOP mt = servicescape avior in three ways: • a message creating medium • an attention creating medium • an affect creating medium distinctive nature and quality of the service experience the servicescape stand out from the competition, attracts customers enhances the experience and increase the 'appetite' for it ng and differentiation )mmunicates and enhances the experience and increase the 'appetite' for it • a message creating mec • an attention creating mi • an affect creating medi 7^r creates image, positioning and differentiation servicescape communicates and reinforces customer expectations creates the impression of the low price x high price environment age, positioning and differential servicescape communicates and reinforces customer expectations creates the impression of the low price x high price environment servicescape communicates and reinforces customer expectations creates the impression of the low price x high price environment physicial surroundings help to shape appropriate feelings and reactions in cutomers and employees understanding consumer responses to understand the responses, we have to focus on understanding the feelings of customers both, conscious and unconscious perception by better knowledge of pi inding consumer responses to understand the responses, we have to focus on understanding the feelings of customers both, conscious and unconscious perception by better knowledge of peop we ran drive their behavior onses, we have to focus :eelings of customers both, conscious and unconscious perception by better knowledge of people we can drive their behavior M unconscious perception by better knowledge of people we can drive their behavior T) J^clSUrG a direct, subjective response to the environment, depending on ktL how much the individual likes Jij or dislikes the environment by better knowledge of peopl we can drive their behavior there are two dimensions of affect pleasure tmi. a direct, subjective response to the environment, depending on how much the individual likes or dislikes the environment arousal how stimulated the individual feels, ranging from deep sleep to highest levels of adrenaline - less subjective, depends largely on the environment Russell model of affect A nničilin p fl rnctnnipr tn fppl pvritp/l - easure a direct, subjective response to the environment, depending on how much the individual likes or dislikes the environment ^ ^ 1 how stimulated the individual arousal how stimulated the individual feels, ranging from deep sleep to highest levels of adrenaline - less subjective, depends largely on the environment Russell model of affect Distressing Unpleasant ^ Pleasant e.g., customer to feel excited -pleasure + a relatively high-arousal in a bank - confident how customer feel during the service encounter is an important driver of loyalty I vort for MOf»e\$, get a dog. employee responses are also important If you warst lou get a dog. employee responses are also important and they affect the productivity onses can be categorized: quality perception beliefs responses can be categorized: cognitive emotional psychological o quality perception beliefs emotional dimensions the main servi nsions the main service dimensions of environment are: • ambient conditions • space • functionality • signs, symbols, artifacts ambient conditions affect our five senses • signs, symu ambient conditions affect our five senses clever design can elicit desired behavioral responses m, fast-tempo and high-volume increases arousal level people tend to adjust their pace (voluntarily or involuntarily) to match the tempo of music fast-tempo and high-volume increases arousal level people tend to adjust their pace (voluntarily or involuntarily) to match the tempo of music to keep jay customers away -play classical music f people tend to adjust their pace (voluntarily or involuntarily) to match the tempo of music to keep jay customers away -play classical music familiar x unfamiliar matcn tne tempo ot music to keep jay customers away -play classical music familiar x unfamiliar ...lighting, color schemes, size and shape, sounds, temperature, scents or smells fast-tempo and high-volume increases arousal level people tend to adjust their pace (voluntarily or involuntarily) to match the tempo of music to keep jay customers away -play classical music familiar x unfamiliar i@ scent may or may not be consciously perceived by customers powerful when we are hungry may or may not be consciously perceived by customers powerful when we are hungry aromatherapy I relaxing ».ycjlura ninagec at 21 agro-fowjy s/tter. (Jalandhai, aD. Iraa) enegizing has a strong effect on people's feelings hue - the pigment of the color (orange, yellow, green, blue) value - degree of lightness or darkness of the color (from pure black to pure white) chroma - hue intensity, saturation associated with reduced associated with elated mood and arousal but also heightened anxiety encourage fast decision making, good for low-involvement decisions or impulse purchases associated with reduced arousal levels, elicit emotions as peacefulness, calmness, love and happiness favored when consumers need time to make high-involvement purchases hot passion Love rebellious powerful sex radical excited bold devil warm fall summer retro mellow solar friendly rococo rnrranp feca\ xerox §s amazon.com Etsy RED ORANGE passion Love rebellious powerful sex radical excited bold devil warm fall summer retro mellow solar friendly rococo cottage inviting eca -so xerox £\ amazon.com Etsy solar happy cheerful summer fun energetic jubilant young sun ORANGE summer retro mellow solar friendly rococo cottage inviting Etsy i solar happy cheerful summer fun energetic jubilant young sun friendly GREEN environmental money natural organic Profit earthy grow Dublin nVIDIA cheerful summer fun energetic jubilant young sun friendly u BUY GREEN environmental money natural organic Profit earthy ■grow Dublin trust jealous nVIDIA *Jrnint ibera cold smart Progress music trust freedom iroval facebook GREEN Profit earthy grow Dublin trust jealous n VI DIA, BLU 1 iberaJ cold smart Progress music trust freedom royal medicine aunch facebook PURPLE royal mystical Victorian decadent vanity romantic elegant sttflhh orkut BLUE freedom 7\ v»l k\ 1 P1*T9 r ai lintel/ ^^caj*^ medicine L" 1 launch ^^m^^^ royal j ss£ orkut decadent ^ 1 vanity romantic _ _ elegant ^flkH^^^^^P^ stylish {^^Jjm|V9^3 eclectic Of YAHOOf BROWN rustic furniture earthy t cottage |1 library III. warm ^ mmantir . 1 : 1' i PURPLE victonan decadent vanity romantic elegant stylish sensual eclectic BROWN rustic furniture fall earthy cottage library warm romantic colonial book ■ ups ■ 71* MULTI Google mm BROWN Bill colonial ^^mm^r book MULTI Google" SS Windows you can play with colors, you can play with logos, but be careful and fit them into context decisions or impulse purchases r determine the user-friendlines spatial layout and functionality refers to the floorplan, size and refers to the ability of those items shape of furnishing, counters, to facilitate the performance of and potential machinery and service transactions equipment, and the ways in which they are arranged de spatial layout an refers to the floorplan, size and shape of furnishing, counters, and potential machinery and equipment, and the ways in which they are arranged 1 functionality refers to the ability of those items to facilitate the performance of service transactions signs, symbols, and artifacts WARNING CHILDREN LEFT UNATTENDED WILL BE SOLD TO THE CIRCUS if ur first-time customers will automatically try to draw meaning from the environment to guide them through the service process signs should be explicit gns should be explicit and intuitive if not - customers become disoriented, uncertain and even angry and frustrated Ä um Welcome to HARRISBURG Wayne County DEPARTMENT giving directions communicationg service script pt behavioral rules CAUTION THIS SIGN HAS SHARP EDGES 00 NOT TOUCH THE EDGES OF THIS SIGN ALSft, m man n m iitua TOILET NO PARKING EXCEPT FOR MICHAEL design for customers! ucsign iui i_ua luiiiei a: not only for esthetics holistic view - keen observation of customers - feedback and ideas from frontline staff and customers - field experiments - blueprinting