Physical Evidence in Services

Services being intangible, customers often rely on tangible cues, or physical evidence to evaluate the service

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Servicescapes

“Servicescape” is a term popularized by Zeithaml and

Jo Bitner, two American researchers.

Kotler has used the term “Atmospherics”.

Like a landscape, a servicescape creates a mood, a

longing, an attraction or a desire to visit the service

provider.

Examples- a well-laid out mall where a youngster may

hang out with friends, or book shop with ample

seating

Purpose of Service Environments

Helps firm to create distinctive image and unique positioning

Service environment affects buyer behavior in 2 ways: Message-creating medium: Symbolic cues to communicate

the distinctive nature and quality of the service experience 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

Comparison of Hotel Lobbies

Four Seasons Hotel, New York Orbit Hotel and Hostel, Los Angeles

Each servicescape clearly communicates and reinforces its hotel’s respective positioning and sets service expectations as guests arrive

Physical surroundings help shape appropriate feelings and reactions in customers and employees For example: Disneyland

Servicescapes form a core part of the value proposition For example: Club Med

The power of servicescapes is being discovered

Servicescape as Part of Value Proposition

Insights from Mehrabian-Russell Stimulus-Response Model

Simple yet fundamental model of how people respond to environments

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

The Russell Model of Affect

Arousing

Pleasant

Sleepy

Unpleasant

Exciting

RelaxingBoring

Distressing

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

AmbientConditions

Space/Function

Signs,Symbols, and Artifacts

CognitiveEmotional

Psychological

An Integrative Framework: Bitner’s Servicescape Model

ENVIRONMENTAL DIMENSIONS

HOLISTIC ENVIRONMENT

MODERATORSINTERNAL RESPONSES BEHAVIOR

Source: Mary J. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” Journal of Marketing 56 (April 1992), pp. 57-71.

Perceived Servicescape

EmployeeResponse

Customer Response

Employee Responses

Customer

Responses

CognitiveEmotional

Psychological

Approach• Affiliation• Exploration• Stay longer• SatisfactionAvoid(opposite of approach)

Approach• Attraction• Stay/Explore• Spend More $$$• SatisfactionAvoid(opposite of approach)

Social Interaction Between

Customers and Employees

Elements of Physical Evidence1. Facility Exterior Exterior design Signage Parking Landscape Surrounding environment

2. Facility Interior Interior design Equipment

Elements of Physical Evidence Signage Layout Temperature

3. Other tangibles Business cards Stationery Billing statements Reports Uniforms

Examples of physical evidence from the customers point of view

Service Servicescape Other tangibles

Hospitals Building exteriorParkingSignsWaiting areaReceptionPatient care roomMedical equipmentRecovery room

UniformsReports/stationeryBilling

Courier Not applicable PackagingTrucksUniforms

Impact of Signs, Symbols, and Artifacts

Guide customers clearly through process of service delivery Customers will automatically try to draw meaning from

the signs, symbols, and artifacts Unclear signals from a servicescape can result in anxiety

and uncertainty about how to proceed and obtain the desired service

For instance, signs can be used to reinforce behavioral rules

Signs Teach and Reinforce Behavioral Rules in Service Settings

Note: Fines are in Singapore dollars (equivalent to roughly US $300)

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Physical and Remote Services

Obviously, the servicescape, or the design of the

service facility, has the maximum impact when the

customer physically uses the facility.

There are some services that he may be able to access

over the phone, or on the internet. There, the tangibles

may be the quality of the voice on the phone, or the

design of the webpage he goes to.

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Pleasure in Transacting Business Bank A is pleasantly decorated, with an air-conditioned

reception hall and its people greet customers with a friendly smile

Bank B- the surroundings are dingy, and poorly ventilated. Broken windows, dirty curtains, unpainted walls, unswept floors greet customers.

WHICH BANK would a customer choose?

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Post-purchase

Even after the customer has consumed a service, he

may remember the tangible features of the service

brand, and look forward to going there the next time, if

they were pleasant. Dissonance may set in if he has

been in unpleasant surroundings at the service

provider.

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Design Issues

The functional utility of the place needs to be kept

in mind while designing.

If there is going to be a queue, for example,

adequate comfortable standing space has to be

provided for.

Serving arrangements in a self-service restaurant

need to take into account scope for expanding the

counters during rush hour, with adequate sitting

area for people to eat their food in.

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Light, Sound, Music

For example, a theme restaurant with an aquarium,

and a waterfall, may provide one kind of ambience.

A rural theme can bring out plantain leaves instead of

plates and different seating arrangements from the

usual table and chair.

A dance floor may bring in certain types of customers,

while others may prefer a quiet ambience.

Impact of Music In service settings, music can have a 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

Impact of Music on Restaurant Diners Restaurant Patron Behavior

Fast-beat Music Environment

Slow-beat Music Environment  

Difference between Slow- and Fast-beat Environments

Absolute Difference

% Difference

Consumer time spent at table

45min 56min +11min +24%

Spending on food

$55.12 $55.81 +$0.69 +1%

Spending on beverages

$21.62 $30.47 +$8.85 +41%

Total spending

$76.74 $86.28 +$9.54 +12%

Estimated gross margin

$48.62 $55.82 +$7.20 +15%

Source: Ronald E. Milliman (1982), “Using Background Music to Affect the Behavior of Supermarket Shoppers,” Journal Of Marketing, 56 (3): pp. 86–91

Impact of 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

Effects of Scents on Perceptions of Store Environments

Evaluation Unscented Environment Mean Ratings

Scented Environment

Mean Ratings

Difference

Store Evaluation

Negative/positive 4.65 5.24 +0.59

Outdated/modern 3.76 4.72 +0.96

Store Environment Unattractive/ attractive

4.12 4.98 +0.86

Drab/colorful 3.63 4.72 +1.09Boring/Stimulating

3.75 4.40 +0.65

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Theme Parks

1. Theme parks offer differing ambience. Some are built

around cartoon characters like Mickey Mouse, or Asterix.

2. There are others with a variety of water slides, swimming

etc. Sea-shore parks have shows in which marine animals

like Seals, Sea Lions, and Dolphins perform. Each of

these parks tries to create an ambience suitable to its

audience, its theme, and its surroundings.

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Petroleum Outlets

In India, Bharat Petroleum has created a uniformly

branded, visible chain of retail outlets across the country.

The existing outlets have been given a makeover, with

highly visible signage in attractive colour schemes.

Cleanliness, modernity are as important as the fuels and

services sold by them.

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Buses

In most states, govt. buses are poorly maintained,

unwashed and look neglected.

This gives a poor impression to the person traveling in

them. On the same routes in some states, there are colorful

and well-maintained buses run by private operators.

In terms of physical evidence as well as comfort, many

long distance bus routes are dominated by the private

players

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Movie Theatres

Movie-going is now an experience, and needs to be

marketed as such, to differentiate it from the VCD or

home theatre.

One of the major attractions should be the ambience,

or the physical evidence of the “servicescape”.

The new multiplexes in are trying to attract all types

of audiences, including families, who had largely

disappeared from movie theatres.