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Module 1: Balancing Demand and Productive Capacity

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Crafting Service Environment - Part 1

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MODULE OVERVIEW

Torecognize the four core purposes service environments fulfill.
To know the theoretical foundation from environmental psychology that helps us understand how customers andemployees respond to service environments.
Tobe familiar with the integrative servicescape model.
Toknow the three main dimensions of the service environment.
Discuss the key ambient conditions and their as effects on customers.

INTRODUCTION
SERVICE ENVIRONMENTS — AN IMPORTANT ELEMENT OF THE SERVICE MARKETING MIX

The physical service environment that customers experience plays a key role in shaping the service experience and enhancing (or undermining) customer satisfaction, especially in high-contact people-processingservices.
Disney theme parks are often cited as vivid examples of service environments that make customers feel comfortable and highly satisfied and leave a long lasting impression.

PURPOSES OF SERVICE ENVIRONMENT

Shape customers’ experience and behaviours
Signal quality and position, differentiate the strength the brand
Be a core component of value proposition
Facilitate the service encounter and enhance both service quality and productivity

Mehrabian- Russell Stimulus- Response Model: Our feelings are central to how we respond to different elements in the environment.
Russell’s Model of Affect: How we can better understand those feelings and their implications on response behaviours.
THE SERVICESCAPE MODEL — AN INTEGRATIVE FRAMEWORK
Building on the basic models in environmental psychology, Mary Jo Bitner developed a comprehensive model that she named the “servicescape’ .
The main dimensions identified in service environments:

ambient conditions,
space/functionality, and
signs, symbols and artifacts.

THE EFFECT OF AMBIENT CONDITIONS

Ambient conditions refer to characteristics of the environment that pertain to your five senses.
Even when they’re not noted consciously, they may still affect a person’s emotional well-being, perceptions, even attitudes, and behaviors.
They are composed of literally hundreds of design a elements and details that must work together if they are to create the desired service environment.

Music: Have powerful effects on perception and behaviours in service setting

Scent: Can have strong impact on mood, feelings and evaluations
Warm Colours: Encourage fast decision making and are best suited for low-involvement service purchase decision
Cool Colours: Favoured when customers need time to make high-involvementpurchase decision

 
CONCLUSION

In this module, we studied the four core purposes service environments fulfill.
We also covered two models; Mehrabian—Russell Stimulus—Response Model and Russell’s Affect Model, in order to understand how customers and employees respond to service environments.
Next, we touched upon the integrative servicescape model and three main dimensions of the service environment.
Finally, we discussed the key ambient conditions and their effects on customers.