Chapter 10

Planning the
Service Environment

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 1
 The Purpose of Service Environments

The service environment influences buyer behaviour in 3 ways

 Message-creating Medium: symbolic cues to communicate the
distinctive nature and quality of the service experience.
 Attention-creating Medium: to make the servicescape stand out
from other competing establishments, and to attract customers
from target segments.
 Effect-creating Medium: colors, textures, sounds, scents and
spatial design to enhance the desired service experience,
and/or to heighten an appetite for certain goods, services or
experiences

Helps the firm to create a distinctive image & positioning that

is unique.
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 2
 Comparison of Hotel Lobbies
(Figure 10.1)

The servicescape is part of the value proposition!

Orbit Hotel and Hostel, Los Angeles

Four Seasons Hotel, New York

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 3
 The Mehrabian-Russell Stimulus-Response
Model (Figure 10.2)

Response
Environmental Dimensions of Behaviors:
Stimuli & Affect:
Approach/
Cognitive Pleasure and Avoidance &
Processes Arousal Cognitive
Processes

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 4
 The Mehrabian-Russell Stimulus-Response
Model

 Simple and fundamental model of how people respond to

environments

 Peoples’ conscious and unconscious perceptions and

interpretation of the environment influence how they feel in
that environment

 Feelings, rather than perceptions or thoughts drive behavior

 Typical outcome variable is ‘approach’ or ‘avoidance’ of an
environment, but other possible outcomes can be added to
the model as well

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 5
 The Russell Model of Affect

Arousing

Distressing
Exciting

Unpleasant Pleasant

Boring Relaxing

Sleepy

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 6
 The Russell Model of Affect

 Emotional responses to environments can be described

along two main dimensions, pleasure and arousal.

 Pleasure is subjective depending on how much the

individual likes or dislikes the environment

 Arousal quality of an environment is dependent on its

“information load”, i.e., its degree of
 Novelty (unexpected, surprising, new, familiar) and
 Complexity (number of elements, extent of motion or change)

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 7
 Drivers of Affect

 Affect can be caused by perceptions and cognitive

processes of any degree of complexity.

 Simple Cognitive Processes, Perception of Stimuli

 tangible cues (of service quality)
 consumer satisfaction

 Complex Cognitive Processes

 affective charged schemata processing
 attribution processes

The more complex a cognitive process becomes, the more

powerful its potential impact on affect.However, most service
encounters are routine. Simple processes can determine affect.

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 8
 Behavioral Consequence of Affect

 Basically, pleasant environments result in approach, and

unpleasant environments result in avoidance

 Arousal acts as an amplifier of the basic effect of pleasure

on behavior

 If the environment is pleasant, increasing arousal can lead

to excitement and stronger positive consumer response. If
the environment is unpleasant, increasing arousal level will
move consumers into the Distressing region

 Feelings during the service encounter is also an important

driver of customer loyalty
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 9
 An Integrated Framework – Bitner’s
ServiceScape Model (Figure 10.4)
Environmental Moderators Internal Responses Behaviour
Dimensions
Holistic Cognitive
Environ- Emotional
ment Psychological
Ambient Approach
Employee or
Conditions
Response
Employee Avoid
Moderator
Responses
Space/ Social Interaction
Perceived Between
Function ServiceScape Customers &
Employees
Customer
Signs, Customer Responses Approach
Symbols & Response or
Artefacts Moderator Cognitive Avoid
Emotional
Psychological

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 10
 An Integrated Framework – Bitner’s
ServiceScape Model(con’t)

 Identifies the main dimensions in a service environment

and views them holistically

 Customer and employee responses classified under,

cognitive, emotional and psychological which would in turn
lead to overt behavior towards the environment

 Key to effective design is how well each individual

dimension fits together with everything else

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 11
 Dimensions of the Service Environment

Service environments are complex and have many design

elements. The main dimensions in the servicescape model
includes:
 Ambient Conditions
 Music (e.g, fast tempo and high volume increase arousal
levels)

 Scent (strong impact on mood, affect and evaluative

responses, purchase intention and in-store behavior)

 Color (e.g, warm colors associated with elated mood states

and arousal but also increase anxiety, cool colors reduce
arousal but can elicit peacefulness and calm)

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 12
 Dimensions of the Service Environment (con’t)

 Spatial Layout and Functionality

 Layout refers to size and shape of furnishings and the ways it
is arranged
 Functionality is the ability of those items to facilitate
performance

 Signs, Symbols and Artifact

 Explicit or implicit signals to communicate the firm’s image,
help consumers find their way and to convey the rules of
behavior

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 13
 Impact of Music on Restaurant Diners
(Table 10-2)

Restaurant Fast-beat Slow-beat Difference between

Patron Music Music Slow and Fast-beat
Behavior Environment Environment Environments
  Absolute %
Difference Difference
Consumer time 45min 56min +11min +24%
spent at table

Spending on $55.12 $55.81 +$0.69 +1%

food
Spending on $21.62 $30.47 +$8.85 +41%
beverages
Total spending $76.74 $86.28 +$9.54 +12%

Estimated $48.62 $55.82 +$7.20 +15%

gross margin

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 14
 The Effects of Scents on the Perceptions of
Store Environments (Table 10-3)

Evaluation Unscented Scented Difference

Environment Environment
Mean Ratings Mean Ratings
Store Evaluation
Negative/positive 4.65 5.24 +0.59

Outdated/modern 3.76 4.72 +0.96

Store Environment
Unattractive/attracti 4.12 4.98 +0.86
ve
Drab/colorful 3.63 4.72 +1.09
Boring/Stimulating 3.75 4.40 +0.65

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 15
 The Effects of Scents on the Perceptions of
Store Environments (Table 10-3)

Evaluation Unscented Scented Difference

Environment Environment
Mean Ratings Mean Ratings

Merchandise

Outdated/up- to-date 4.71 5.43 +0.72

style
Inadequate/adequate 3.80 4.65 +0.85

Low/high quality 4.81 5.48 +0.67

Low/high price 5.20 4.93 -0.27

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 16
 Aromatherapy: The Effects of Fragrance on
People (Table 10-4)

Fragrance Aromath Aromather Tradition Potential Psychological

erapy apy Class al Use Impact on People
Orange Citrus Calming Soothing Calming and relaxing
agent, effect esp. for nervous
astringen people
t
Lavender Herbaceo Calming, Muscle Relaxing and calming,
us balancing, relaxant, helps create a homey and
soothing soothing comfortable feel
agent
Jasmine Floral Uplifting, Emollient Helps makes people feel
balancing soothing refreshed, joyful,
agent comfortable
Peppermint Minty Energizing, Skin Increase attention level
stimulating cleanser and boosts energy

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 17
 Common Associations and Human Responses
to Colors (Table 10-5)

Color Degree of Nature Common Association and

Warmth Symbol Human Responses to Color

Red Warm Earth High energy and passion; can

excite, stimulate, and increase
arousal and blood pressures
Orange Warmest Sunset Emotions, expressions, and
warmth

Green Cool Grass Nurturing, healing and

and unconditional love
Trees
Blue Coolest Sky and Relaxation, serenity and loyalty
Ocean

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 18
 Selection of Environmental Design Elements

 There is a multitude of research on the perception and

impact of environmental stimuli on behaviour, including:
 People density, crowding
 Lighting
 Sound/noise
 Scents and odours
 Queues

 No standard formula to designing the perfect combination of

these elements.
 Design from the customer’s perspective
 Design with a holistic view!

Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 19
 Tools to Guide in Servicescape Design

 Keen Observation of Customers’ Behavior and Responses

to the service environment by management, supervisors,
branch managers, and frontline staff

 Feedback and Ideas from Frontline Staff and Customers

using a broad array of research tools ranging from
suggestion boxes to focus groups and surveys.

 Field Experiments can be used to manipulate specific

dimensions in an environment and the effects observed.

 Blueprinting or Service Mapping - extended to include the

physical evidence in the environment.
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 10 - 20