Hoffman4e.ch 8 Physical Evidence 2.pptx PDF

Chapter 8 Managing the Physical Evidence  Chapter Objectives Appreciate the strategic role of physical evidence as it relates to the marketing of service firms. Outline the stimulus-organism-response (SOR) model. Discuss the major components of the serv...

Chapter 8 Managing the Physical Evidence  Chapter Objectives Appreciate the strategic role of physical evidence as it relates to the marketing of service firms. Outline the stimulus-organism-response (SOR) model. Discuss the major components of the servicescapes model. Describe the managerial use of sensory cues when developing tactical design strategies. Compare design considerations for low 2 ©2011 Cengage Learning. All rights reserved.  Open Vignette: Dinner in the Sky Why, then, do people pay thousands of dollars to dine? The servicescape makes all the difference. Not only are customers given the opportunity to literally dine among the clouds while suspended at 130 feet in the air, they are given the chance to hoist their company logos over the heads of everyone down below. 3 ©2011 Cengage Learning. All rights reserved.  Servicescape A servicescape is composed of numerous elements such as the color, music, scent, and layout and design and is the physical environment of a service organization where customers experience the service 4  The Strategic Role of Physical Evidence Physical evidence can fall into 3 broad categories: 1. Facility exterior 2. Facility interior 3. Other tangibles https://www.youtube.com/watch?v=p39Ud4MMM_g https://www.youtube.com/watch?v=pIC5ZlD8WJY https://www.youtube.com/watch?v=JKnUJT-6FPs https://www.youtube.com/watch?v=FO0h0z4mxPE Physical Evidence in Service Marketing mix 5  Importance of managing physical evidence 1. Packaging the service 2. Facilitating the flow of the service delivery process 3. Socializing customers and employees alike in terms of their respective roles, behaviors, and relationships 4. Differentiating the firm from its competitors 6 ©2011 Cengage Learning. All rights reserved.  Packaging the Service 1. Conveys customer expectations Physical Physical Quality Quality Image Image Evidence Evidence Ques Ques Develop- Develop- ment ment 2. Influences perceptions – reduces perceived risk – reduces cognitive dissonance* after the purchase * Is the mental discomfort (psychological stress) experienced by a person who holds two or more contradictory beliefs, ideas, or values. For example, when an individual in astrict diet plan (cognitive dissonance) eats too much sweet while knowing that will destroy the plan (cognition). 7 ©2011 Cengage Learning. All rights reserved.  Facilitating the Service Process 1. Provides information – How am I to act? 2. Facilitates the ordering process – How does this work? 3. Manages consumers – Barriers separate different consumer groups or help to isolate the technical core 8 ©2011 Cengage Learning. All rights reserved.  Socializing Employees and Customers Use of Uniforms 1. identify the firm’s personnel 2. physical symbol that embodies –stand for- the group’s ideals and attributes 3. implies a coherent group structure 4. facilitates perceptions of consistent performance 5. assists in controlling deviant members 9 ©2011 Cengage Learning. All rights reserved.  A Means for Differentiation Well-dressed personnel are: – perceived as more intelligent – better workers – more interactive Nicely designed facilities are: – Perceived as having the advantage over poorly designed facilities 10 ©2011 Cengage Learning. All rights reserved.  The SOR Model Theoretical model that explains the relation among the stimulus (S) the customer receive, what emotions they feel in their organism (O), and their responses or attitudes (R). EX: Lavender (Stimulus) in Spa helps customers (Organism or nose + Brain) to relax (pleasure) 1. The firm's physical evidence comprises the set of stimuli. 2. The organism is the recipient –receiver- of the set of stimuli 3. The response is influenced by three basic emotional states: I. pleasure (leads to satisfactions) II. arousal (leads to stimulation) III. dominance (leads to control) (Anger, fear, disgust, happiness, surprise, etc. 11 ©2011 Cengage Learning. All rights reserved.  Figure 8.2: The SOR Model Environmental Emotional stimuli states Approach Pleasure or Arousal avoidance Dominance responses 1. Set of stimuli 2. Organism component 3. Responses or outcomes 12 ©2011 Cengage Learning. All rights reserved.  Development of Servicescape the servicescape refers to the non-human elements of the environment in which service encounters occur. The use of physical evidence to design service environment. – Remote, Self-Service, and Interpersonal Services – High-contact verses Low-contact Service Firms 1. Facility Location 2. Facility Layout 3. Product Design 4. Process Design 13 ©2011 Cengage Learning. All rights reserved.  Figure 8.4: Facility Usage Interpersonal services (customers and employees) Self-service Remote services (Customers only) (Employees only) 14 ©2011 Cengage Learning. All rights reserved.  Facility Location If customers are an essential part of the process (Clinic), locations that offer customer convenience offer the firm a differential advantage over competitors In contrast, low-contact businesses should consider locations that may be more convenient for labor (Bike rental), closer to sources of supply, and closer to major transportation routes 15 ©2011 Cengage Learning. All rights reserved.  Facility Layout Facility layout should also reflect the needs of the individuals involved in the service delivery process. Layouts will vary depending upon the amount of customer participation in the process 16 ©2011 Cengage Learning. All rights reserved.  Product Design With regards to low-contact services, the outcome of the process defines the product (drive through service & fast food) With regards to high-contact services, the process as well as the outcome defines the product (eating inside & High End Restaurant) 17 ©2011 Cengage Learning. All rights reserved.  Process Design In high-contact operations, the physical presence of the customer in process itself must be considered (Clinic) Each stage in the process will influence consumer perceptions 18 ©2011 Cengage Learning. All rights reserved.  Physical Environmental Dimensions 1. Ambient conditions – Temperature, air quality, noise, music, odor –aroma- 2. Space/Function – Layout, equipment, furnishings 3. Signs, symbols, and artifacts – Signage, personal artifacts, style of decor 19 ©2011 Cengage Learning. All rights reserved.  Holistic Environment Overall perceptions of the servicescape formed by employees and customers Perceived servicescape Economic customers Personalized customers Apathetic –indifferent- customers Ethical customers 20 ©2011 Cengage Learning. All rights reserved.  Internal Response Moderators The three basic emotional states of the SOR model that mediate the reaction between the perceived servicescape and customers’ and employees’ responses to the service environment 21 ©2011 Cengage Learning. All rights reserved.  Internal Responses 1. Cognitive Responses – beliefs, categorization, symbolic meaning 2. Emotional Response – mood, attitudes 3. Physiological Response – pain, comfort, movement, physical fit 22 ©2011 Cengage Learning. All rights reserved.  Managing the Senses when creating Servicescapes 1. Who is the firm’s target market? 2. What does the target market seek from the service experience? 3. What atmospheric/Vibe elements can reinforce the beliefs and emotional reactions that buyers seek? 4. How do these same atmospheric elements affect employee satisfaction and the firm’s operations? 5. Does the suggested atmosphere development plan compete effectively with competitors’ atmospheres? 23 ©2011 Cengage Learning. All rights reserved.  Specific Tactics for Creating Servicescapes Sight Appeals – Size Perceptions – Shape Perceptions – Color Perceptions – The Location of the Firm – The Firm’s Architecture – The Firm’s Signage – The Firm’s Entrance – Lighting 24 ©2011 Cengage Learning. All rights reserved.  Figure 8.5: Perceptions of Colors Warm colors – red love, romance, sex, courage, danger, fire, sinful, warmth, excitement, vigor, cheerfulness, enthusiasm, and stop – yellow sunlight, warmth, cowardice, openness, friendliness, gaiety, glory, brightness, caution – orange sunlight, warmth, openness, friendliness, gaiety, glory 25 ©2011 Cengage Learning. All rights reserved.  Figure 8.5: Perceptions of Color Cool colors – blue coolness, aloofness, fidelity, calmness, piety, masculine, assurance, sadness – green coolness, restful, peace, freshness, growth, softness, richness, go – violet coolness, retiring, dignity, rich 26 ©2011 Cengage Learning. All rights reserved.  Specific Tactics for Creating Servicescapes 1. Sound appeals – mood setter, attention grabber, informer – music, announcements, and sound avoidance 27 ©2011 Cengage Learning. All rights reserved.  Specific Tactics for Creating Servicescapes 2. Scent appeals – pleasurable scents vs disgusting smell 3. Touch appeals – shaking hands with service providers 4. Taste appeals – the equivalent of providing the customer with free samples 28 ©2011 Cengage Learning. All rights reserved.  Essay Quiz scuss the Servicescape elements of t coffee shop you visit frequently? 29 ©2011 Cengage Learning. All rights reserved.  https://www.youtube.com/watch?v=p 39Ud4MMM_g https://www.youtube.com/watch?v=p IC5ZlD8WJY https://www.youtube.com/watch?v=J KnUJT-6FPs https://www.youtube.com/watch?v=F O0h0z4mxPE Physical Evidence in Service Marketin g mix 30 ©2011 Cengage Learning. All rights reserved.  https://www.youtube.com/watch?v=p 39Ud4MMM_g 31 ©2011 Cengage Learning. All rights reserved.  All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Cengage Learning. 32 ©2011 Cengage Learning. All rights reserved.