CSU Service Marketing presentation on Servicescapes.

1. ServiceScapes By: Brittany Daugherty Sabra Epp Elise Hoskins Craig Johnson Jackie Mailton Larissa McHugh

3. Overview What is a servicescape? Intangibility of services Elements of the servicescape Packaging the service Facilitating the service delivery process Socializing the customers and employees Differentiating from customers The SOR model Positives/Negatives Examples of good and bad Ways to improve servicescape Key take-away’s

4. What is a Servicescape? Servicescape:the use of physical evidence to design service environments (Hoffman/Bateson). Or:“Totality of the ambiance and physical environment in which the service occurs.” Ithaa Undersea, Conrad Maldives Rangali Island www.murrayontravel.com

5. Intangibility of Services “The mother of all unique differences” (Hoffman/Bateson) Unique characteristics of services that makes it difficult for customers to objectively evaluate: quality of services compare service alternatives. Result: customers rely on physical evidence that surrounds the core benefit to assist in forming service evaluations.

6. The Jane New York City, New York Designed by William A. Boring Built for Sailors Cabin-like rooms Communal bathrooms/amenities

8. 5 star amenities and location

10. Elements of the servicescape Facilitating the service delivery process Information Guidance What does customer see first, then where do they go? Customer Management Is there something to keep waiting customers occupied? Something to look at/ do?

11. Elements of the servicescape Socializing the customer and employees Definition of Socialization Importance of Physical Evidence Employee Uniforms

12. Elements of the servicescape Differentiating from competitors Physical Evidence Service Factory Layout Repositioning

13. The SOR Model Definition: A model created by psychologists to describe the effects that the service environment has on consumer behavior.

14. 3 Part Model A set of Stimuli Physical evidence of the business (using 5 senses to appeal to consumer) An Organism component The recipients of the stimuli (Includes employees and customers) A set of Responses or Outcomes The reactions and behaviors the consumer has in response to the stimuli 3 emotional states Pleasure- Displeasure (level of satisfaction with service) Arousal- Nonarousal (degree of excitement and stimulation) Dominance- Submissiveness (degree to which consumers feel in control and the ability to act freely within service environment) Approach/Avoidance Behaviors

15. Rainforest Café Example Stimulus: Restaurant exhibiting the ambiance of a tropical forest with living trees and plants, fake animals, and a retail store located within the café. Organism: Theme is targeted towards younger children. Responses: Excitement, entertainment, relaxed, natural, outdoorsy, etc.

16. Positives/Negatives A good way to differentiate Create ambiance Determine customer flow Enhance the overall service experience Only tangible way to differentiate Difficult to integrate all aspects of the service just through visuals Easy to copy Build a Bear vs. Foothills mall bear shop

17. A Great Servicescape The Rainforest Cafe’ Logistics 13 location in U.S. Laundry’s Restaurants Inc. Most of the inside built by Disney Submerses customer in an experience Not just any restaurant Tons of physical evidence Everything you see is consistent with the theme including the wait staff A huge gift shop Provides opportunity for extra revenue Keeps waiting customers busy

21. A Terrible Servicscape Department of Motor Vehicles Complete lack of function in the servicscape Does not direct customers in orderly fashion Cold White Noises Other customer Nothing to do when you wait

22. http://www.youtube.com/watch?v=42nmmZXn_hE&feature=related

23. Ways to Improve Servicescape Research what your target market likes Make sure it’s relevant Set a mood that appeals to target market Create appealing atmosphere Link target markets needs with what you offer Example: Sports Clips

25. Ways to Improve Servicescape As an owner, use your 5 senses to enhance customer attraction response Scent Appeals Touch Appeals Taste Appeals Site Appeals Sound Appeals

26. Ways to Improve Servicescape Create a theme Keep it consistent this includes staff, decorations, furniture, attitude and business policies

27. Key Take-away’s Effective management of physical evidence is key to establishing service differentiation Unifying all aspects of the servicescape with the service itself will strengthen the actual service experience Anticipate all 5 senses when designing/evaluating a servicescape

29. Sources B. Barbara. "How to Remember." Age Wise Living. Age wise living LLC, 2005. Web. 1 Feb. 2010. <http://www.agewiseliving.com/remember-more.htm>. C. Hoffman, Doug, and John E.G. Bateson. Services Marketing, Concepts, Strategies, and Cases. Laundry's Restaurants Inc. "Rainforest Cafe." Rainforest Cafe. Web. 22 Mar. 2010. <http://www.landrysrestaurants.com/>. 3rd ed. Mason, OH: Thompson Higher Education, 2006. Print. "No title." Business Dictionary. Web. 1 Feb. 2010. <http://www.businessdictionary.com/definition/service-setting.html>.