Chapter 10

Managing the physical environment

Lecture objectives Understand the role of the physical environment in marketing a

hospitality business

Have an awareness of design principles used in the development of the hospitality product

Identify the external and internal elements of the hospitality physical environment

Recognize the importance of maintenance and refurbishment programs for hospitality properties in delivering customer satisfaction

Introduction The physical environment sends

important signals to an organization’s stakeholders, especially to customers

Customers intuitively respond to the signals that the external appearance and internal atmosphere project

If the physical environment is appropriate, then target markets are more likely to find the offer attractive

Potential customers who do not ‘fit’ into the target market profile can be deterred by the physical environment

Most of this lecture refers to the ‘built environment’ but many of the principles apply equally to the natural environment

Environmental psychology and the physical environment

Four elements influence our understanding of psychologyand the physical environment:

individual behaviour

social interaction

customer responses

characteristics of the physical environment

Figure 1.1 Customer behaviour and responses to the physical environment

Individual behaviourPeople respond to the physical environment with one of two diametrically opposed types of behaviour:

Approach behaviour people who are comfortable with the physical environment of a hospitality

unit demonstrate approach behaviour they are more likely to enter, stay and spend money, and return/

recommend the brand

Avoidance behaviour people who are uncomfortable with a physical environment demonstrate

avoidance behaviour they will probably walk or drive past the unit; if they enter the premises,

they may walk out without purchasing

The design of the physical environment needs to attract target markets and create a positive environment for employees; environments can also be designed to deter people who do not fit the target market profile

Social interaction The physical environment influences

how customers and employees interact and relate with each other

Design can encourage or discourage social interactions

Different types of hospitality product need to generate different types of social interaction

Many business products are designed to create more formal environments

Many hospitality leisure products are designed to encourage interaction; indeed, social interactions can be critical to delivering customer satisfaction

The character of social interactions needs to be considered when developing the product concept or creating a design brief

The physical environment sends signals to consumers about what is appropriate behaviour and what is not

Consumer responses to the physical environment

Three types of human response to the physical environment:1. Cognition (knowledge and perception) Physical environment influences people’s beliefs about places and creates

preconceptions about the product or brand The physical appearance of hospitality premises reinforces or challenges

people’s prior beliefs about the hospitality offer2. Emotion People have subconscious or overt emotional responses to the physical

environment There are two types of emotional response: pleasure and arousal (see Figure

10.2)3. Physiological response People have different physiological responses to environmental stimuli:

• visual stimuli (brightness/darkness, colours and shapes)• aural stimuli (the volume, cadence or rhythm of sounds)• olfactory stimuli (fresh or foul scents and smells)• taste stimuli (bitter/sweet/salty/savoury/sour tastes and hot/cold

temperatures)• tactile stimuli (the texture of food products, the softness of furnishings and the level of comfort)

Managing the sight, sound, smell, taste and feel of the product can be described as sensory marketing and is a key factor in creating a positive physical environment

Figure 10.2 Emotional responses to the physical environment

Dimensions in thephysical environment

Hospitality companies create atmosphere through design

Ambient dimension Refers to sensory elements colour,

lighting and temperature Minor irritations amusing, extreme

ambient conditions serious issue for distressed customers

Spatial layout Use of space – how furniture and

equipment are arranged in rooms Size of property influences spatial layoutSigns, symbols and artefacts The tools that companies use to

communicate with consumers via the physical environment

Contemporary hotels use modern art to convey a fashionable image; historic hotels can use antique furniture to convey the unique heritage

Servicescape Different hospitality product concepts have different servicescape characteristics

Self-service operation Relies on customers serving themselves and few (if any)

employees; the design of the physical environment focuses on convenience and low cost

Interpersonal service operation Involves both customers and employees using the same physical

environment at the same time; design needs to ensure customers are comfortable and employees can work efficiently

Remote service Means a physical environment where there are no customers, i.e.

contract catering – food production in remote kitchens, servicing multiple units; design focuses on employees and efficient production

External environment External environment for hospitality – a shop window in

retailing Visual displays send powerful messages about product,

service quality and price The surrounding environment, external appearance of

the building, landscaping, access routes, car parking facilities, signage and logos and lighting are the shop window for the hospitality business

The external appearance of the hospitality premises – the building, its size, age, architecture and, in particular, the quality of maintenance sends cues to customers

Attractive, well-maintained properties inspire confidence Buildings that appear neglected can deter potential

customers

Internal environmentInternal factors include: layout décor furniture and furnishings equipment internal signage temperature and air quality music smell

Together, they convey the all-important atmosphere of the premises

Employees Appearance, attitude and behaviour of

employees should complement the positioning, product concept and physical environment

Employees’ cleanliness and dress should reinforce design theme and send a consistent message to customers

For formal, business-orientated hospitality operations, professional uniforms reflect the business environment

With leisure and themed hospitality concepts, casual uniforms designed as part of the theme or no uniforms are appropriate

Customers may not notice employees’ dress and behaviour when it matches the brand concept and physical environment

If an employee’s appearance, attitude and behaviour is inconsistent with the design concept, then customers will notice inconsistency and may be dissatisfied

Customers Hospitality experiences are variable in content and quality due to the

presence or absence, and behaviour, of other customers

Customers in the physical environment contribute to the atmosphere

Customers see and hear other customers; if what they see/hear conforms to their expectations, then other customers will feel comfortable

If other customers’ dress/behaviour seems inappropriate, this may cause embarrassment or offence and dissatisfy customers

Maintenance and refurbishment

Maintenance and refurbishment has to maintain the hospitality product at an acceptable level to ensure customer satisfaction and efficient operations

Unfortunately, customers and employees accidentally, and occasionally deliberately, cause damage to the property

Bathrooms and washrooms suffer particularly from abuse and accidental water damage

The costs of not maintaining a property include:

Loss of current/future revenue streams from customers

Loss of revenue from inability to sell rooms out of operation because of maintenance problems

Inefficient performance caused by faulty equipment and employee productivity

Liability for health, safety and other legal infringements

Maintenance/refurbishment life cycle Effective maintenance should be planned; financial planning includes

depreciation to cover the costs of wear and tear Depreciation calculated by estimating life expectancy of décor, fittings,

furniture and equipment1. Preventative maintenance comprises the regular servicing of equipment – elevators, kitchen equipment, air-conditioning, etc. – to ensure they do not break down2. Breakdown maintenance includes all the minor damage caused during the normal daily operations of the business3. Corrective maintenance includes regular redecoration according to a planned schedule; when the hospitality product becomes tired, major refurbishment is needed4. Designing out faults is necessary when design faults emerge during the operation of the facility, and can improve guest comfort and operational efficiency

Refurbishment of public rooms, bars and restaurants varies according to usage and product concept

Conclusion

Physical environment is important to attract customers into hospitality premises and in contributing to the customer experience during the service encounter

Hospitality businesses need to continually invest in refurbishment to enjoy high repeat and recommended business and nurture customer loyalty

Hospitality businesses that fail to maintain the physical environment of their premises will eventually become tired and will reduce their profit potential

References and further reading Bitner, M. J. (1992). ‘Servicescapes: the impact of

physical surroundings on customers and employees’. Journal of Marketing, 56 (April), pp. 57–71.

Heide, M., Lærdal, K. and Grønhaug, K. (2007). ‘The design and management of ambience: implications for hotel architecture and service’. Tourism Management, 28 (5), pp. 1315–1325.

Hulten, B., Broweus, N. and Van Dijk, M. (2009). Sensory Marketing. Palgrave Macmillan.

Krishna, A. (2010). Sensory Marketing: Research on the Sensuality of Products. Routledge.

Lashley, C. (2001). Employing Human Resource Strategies for Service Excellence. Butterworth-Heinemann.

Lawson, F. (1996). Hotels and Resorts: Planning, Design and Refurbishment. Butterworth-Heinemann.

Riewoldt, O. (2006). New Hotel Design. Watson-Guptill.

Zeithaml, V. A., Bitner, M. J. and Gremler, D. D. (2009). Services Marketing (5th ed.). McGraw-Hill.

Zemke, D. M. and Shoemaker, S. (2008). ‘Sociable atmosphere’. Cornell Hospitality Quarterly, (August), pp. 316–329.