Ch10.pptx

PHYSICAL EVIDENCE Chapter 10 Objectives  How physical evidence can help firms close Gap 2 – Not Having the Right Service Standards  The impact of physical evidence  The roles of servicescape  How the servicescape affects customer and employee behavior  Physical evidence strategy Physical Eviden...

PHYSICAL EVIDENCE Chapter 10 Objectives  How physical evidence can help firms close Gap 2 – Not Having the Right Service Standards  The impact of physical evidence  The roles of servicescape  How the servicescape affects customer and employee behavior  Physical evidence strategy Physical Evidence  Physical Evidence   All aspects of an organization’s physical facility (the servicescape) and other forms of tangible communications. Let’s share our experiences of good and not so good physical evidence  Good ones  Bad ones Elements of Physical Evidence Servicescape Other Tangibles Facility exterior Business cards Stationery Billing statements Reports Employee dress Uniforms Brochures Web pages Virtual servicescape Exterior design Signage Parking Landscape Surrounding environment Facility interior Interior design Equipment Signage Layout Air quality/temperature Examples of Physical Evidence from the Customer’s Point of View Clue Management  Managing total customer experience in the service industry  Service is intangible  Provide & manage clues (evidence management)  Clues that customers use to form impression & perception  These clues include tangible clues  Some tangible clues can elicit emotional responses – sensory responses including sight, smell, taste, touch, sound  A wellness center: seasonal gardens, music, interior waterfall & pond; overstuffed chairs Typology of Service Organizations Based on Variations in Form and Use of the Servicescape Complexity of the Servicescape Servicescape usage Elaborate Lean Self-service (customer only) Golf course eBay ATM Car wash Simple Internet services Express mail drop-off Interpersonal services (both customer and employee) Hotel Restaurant Health clinic Hospital Bank Airline School Dry cleaner Retail cart Hair salon Remote service (employee only) Telephone company Insurance company Utility Many professional services Telephone mail-order desk Automated voice messaging services Roles of the Servicescape  Package   First impression  external image & sensory/emotional reaction  conveys expectations  influences perceptions Facilitator  Facilitates the flow of the service delivery process     Socializer  Facilitates interaction between:    provides information (how am I to act?) facilitates the ordering process (how does this work?) facilitates service delivery customers and employees customers and fellow customers Differentiator  sets provider apart from competition in the mind of the consumer Panera Bread Mayo Clinic Mayo Clinic  Goals   Patient centric healing environment Servicescape        5-story atrium  luxury hotel lobby Grand piano  beautiful relaxing music Plants & glass  nature feel  welcoming Nurses within 20 steps of any patient room Using cell phone instead of pages & announcements  peaceful, quiet environment Multi-shelf display area in patient room Specially designed ceilings in patient room A Framework for Understanding Environment-User Relationships in Service Organizations PHYSICAL ENVIRONMENTAL DIMENSIONS HOLISTIC ENVIRONMENT Ambient Conditions Temperature Air quality Noise Music Odor Etc. Space/Function Layout Equipment Furnishings Etc. Signs, Symbols, and Artifacts Signage Personal artifacts Style of décor Etc. INTERNAL RESPONSES BEHAVIOUR Cognitive Emotional Physiological Beliefs Categoriz ation Symbolic Meaning Mood Attitude Pain Comfort Movement Physical fit Employee Responses Individual Behaviors Affiliation Exploration Stay longer Commitment Carry out plan Social Interactions Perceived Servicescape Between and among customers and employees Customer Responses Individual Behaviors Cognitive Emotional Physiological Beliefs Categoriz ation Symbolic Meaning Mood Attitude Pain Comfort Movement Physical fit Attraction Stay/explore Spend money Return & carry out plan Source: M. J. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” Journal of Marketing 56 (April 1992), 57–71. Behaviors in the Servicescape  Individual Behaviors  Approach     Willingness to stay longer, explore more, spend more time in the facility, spend more money, shopping enjoyment, returning, affiliate, friendliness toward others Avoidance Efficiency Social Interactions   Facilitate  socialize Inhibit  efficiency Internal Responses to the Servicescape  Environment & Cognition   Environment & Emotion   Exciting, relaxing, distressing, boring Environment & Physiology   Thoughts, beliefs, categorization Ergonomic design Variations in Individual Responses  Individual differences in arousal/stimulus/sensation seeking  Individual differences in goals: buying vs. browsing  Gender differences Dimensions of the Servicescape   Ambient Conditions  Background characteristics  Temperature, lighting, noise, music, scent, color, etc. Spatial Layout and Functionality   esp. important for self-service, retail, hospitality, leisure, healthcare Signs, Symbols and Artifacts  Cues  first impression  categorization / expectation  Communication Effects of Lightning  When are consumers more likely to accept innovative solutions, with dim or bright lightning?  When are consumers likely to eat more food, at a bright restaurant or a dark restaurant?  When are consumers more likely to choose healthy vs. unhealthy food items, at a bright restaurant or a dark restaurant?  Why? Ambient Light & Food Choices Biswas, D. et al. (2017) “Shining Light on Atmospherics: How Ambient Light Influences Food Choices,” Journal of Marketing Research, 54. Effects of Scent & Color  Do you know the psychological effect of some scent and color?  Lemon, black pepper, lavender, Eucalyptus?  Red, orange, yellow, blue, green, indigo, violet? Aromatherapy: The Claimed Effects of Selected Fragrances Fragrance Aroma Type Aromatherapy Class Traditional Use Eucalyptus Psychological Effect Claimed Camphoraceous Toning, stimulating Deodorant, antiseptic, soothing Stimulating, energizing, feeling of cleanliness & hygiene Lavender Herbaceou s Calming, balancing, soothing Muscle relaxant, soothing, skin conditioner Relaxing, calming, homey & comfortable feel Lemon Citrus Energizing, uplifting Antiseptic, soothing Boosts energy level, feel happy & rejuvenated Black pepper Spicy Balancing, soothing Muscle relaxant, aphrodisiac Balance emotion & enable sexual arousal Common Associations & Responses to Colors Color Degree of Warmth Nature Symbol Common Associations & Human Responses Red Warm Earth High energy & passion, can excite, stimulate, increase arousal level & blood pressure Orange Warmest Sunset Emotions, expression, warmth, encourage verbal expression of emotions Yellow Warm Sun Optimism, clarity, intellect, bright yellow can enhance mood Green Cool Growth, grass, trees Nurturing, healing, unconditional love Blue Coolest Sky & ocean Relaxation, serenity, loyalty; lower blood pressure, healing color for nervous disorders, relieve headaches due to its cooling, calming nature Indigo Cool Sunset Meditation, spirituality Violet Cool Violet flower Spirituality, reduces stress, create an inner feeling of calm Scent & Shopping Behavior  Which is important?     The presence/absence of scent The type & intensity of the scent Results: the present/absence of scent Scent & time perception  When scent is present  Consumers thought they had spent less time in the store  Why?  Scent  “flow” state (forget about time) the same effect of background music Scent & Music  How do scent and music together influence consumers’ evaluation of a retail store?  None, Christmas scent only, Christmas music only, Christmas scent + music  Results    Christmas scent + music leads to better outcome than Christmas scent only Christmas scent only may lead to negative outcomes The congruence of the scent and music    Slow tempo music + lavender (low arousal) Fast tempo music + grapefruit (high arousal)  positive evaluation of the environment, more impulse buying behaviors, enhanced satisfaction Physical Temperature & Responses to Emotional Ad  Homeostasis theory  Below the optimum, i.e., physically cold  Emotionally  Above the optimum, i.e., physically hot  Emotionally  cold ad less favorably warm ad less favorably “Temperature and Emotions: Effects of Physical Temperature on Responses to Emotional Advertising,” International Journal of Research in Marketing,” 2017, 34(1). Ambient Temperature Online “Ambient Temperature in Online Service Environments,” Journal of Consumer Research, 2023, 26(2). Temperature on Consumer Choice  What’s the perfect temperature? Temperature on Consumer Choice  What’s the perfect temperature?      72°F (22.2°C): best for memory task 68°F (20°C): best for office work (feeling cold) 80°F (26.7°C): work least (feeling most comfortable) Warm (vs. cool): consumers don’t want to make difficult decisions or just make simple decisions “Influence of Warm Versus Cool Temperatures on Consumer Choice: A Resource Depletion Account,” Journal of Marketing Research, 2012. Temperature on WTP  Color and aggression   Temperature and aggression     Red vs Blue Warm vs. Cold Auction: bid for a higher price Negotiation: argue for a lower price “Role of Ambient Temperature in Influencing Willingness to Pay in Auctions and Negotiations,” Journal of Marketing, 2019, 83(4). Social Factors  A study at Singapore:   Higher than desired excitement  more impulse purchase Employee assistance can mitigate the negative impact of crowding on impulse purchase Social Factors  Does a consumer’s subjective feeling of age depend on others (social cue)?   “When Feeling Younger Depends on Others: the Effects of Social Cues on Older Consumers,” Journal of Consumer Research, Vol. 45, 2018. Does social density influence WOM?  “The Effect of Social Density on Word of Mouth,” Journal of Consumer Research, Vol. 45, 2018. Social Factors  Ethnic Consumers & Place Identity  Place Identity – the social elements in the servicescape   Consumers feel more comfortable to shop at places where they feel they belong to    The impact of other customers? Hispanics possess positive views of retailers that hire a diverse workforce, participate in Hispanic community events, and use Spanish-language advertising. African American men are likely to patronize barbershops where they can socialize with other African Americans. Place identity diversification  Verbal cues & non-verbal cues of employees & other customers Social Factors  Men buy more from manly men?   The Abercrombie & Finch Effect: the Effect of Physical Dominance on Male Customers’ Status-Signalling Consumption    HBR, 2018 Journal of Marketing Research, Feb., 2018 When a physically imposing guy in a store uniform was a the front door  Average bill for males: $165  Average bill for women: $72 When that employee was absent  Average bill for males: $92  Average bill for women: $97 Guidelines for Physical Evidence Strategy  Recognize the strategic impact of physical evidence  Blueprint the physical evidence of service  Clarify strategic roles of the servicescape  Perceived service quality  Enhanced customer experience  Differentiation  Assess and identify physical evidence opportunities  Be prepared to update and modernize the evidence  Work cross-functionally Build a Brand into a ‘Third Place’    Third Place  Home, work/school  Starbucks How to build a ‘third place’?  In-store experience  Community Sweetgreen: https://www.sweetgreen.com/  Store location: share the same value  Locally sourced food, fresh, healthy  The same employee stays with a customer from begin to end  App for ordering online: 30%  Store design: local art, music festival