Providing customer service through the servicescape

Chapter 8

© Hudson & Hudson. Customer Service for Hospitality & Tourism

Topics Covered

o Elements of the servicescape

o The strategic role of the servicescape

o Developing servicescapes

o The effects of servicescapes on consumer behaviour

o Waiting line strategies

‘At Your Service’ Spotlight: Hospitality Starbucks-style

‘Third place’ - a social, yet personal environment ….where people connect with others and reconnect with themselves.

o Themes inspired by Italian espresso bars

• Inviting, comfortable, compelling servicescapes • Sensory pleasures and ambiance • Italian terminology

o Customer focused

• First names on paper cups• Free WiFi for work, social networking• Meeting place, community hub

o Long-term brand integrity

• Espresso machines replaced• Modified menu items• Slowed expansion, new products

Key characteristics of the servicescape

o Physical facility referred to as the ‘servicescape’• Facilitates performance or communication of

service

o Physical environment or service arena• Service delivery • Firm and customers interactions

o Customer assessment of intangible services• Physical evidence• Tangible cues and components

Elements of the servicescape

Table 8.1

Facility Exterior Facility Interior Other Tangibles Parking Layout Uniforms Landscape Equipment Business cards Signage Signage Stationary Exterior design Air temperature Invoices Interior design Brochures Lighting Web pages Employee dress

The strategic role of the servicescape

o Packaging

• Creates external image

• Sets expectations

o Facilitator

• Aids performances of service providers

• Physical layout and functional design

o Socializer

• Suggests expected roles, behaviors and relationships

o Differentiator

• Distinguished from competitors

• Signals appropriate market segments

Developing servicescapes

o Effective servicescapes include:

• Holistic designs

• Complementary e.g. arousal elements

• Service products match design elements

o Themed servicescapes

o Interactive servicescapes

o Servicescapes developed around new market segments

Snapshot: Incheon Airport, Korea

First and last impressions.

o Customer transit services

• Fast processing times, interactive LCD info screen• Multi-lingual staff and signage

o Customer amenities

• Free internet access, computers, showers, changing rooms• Between flight tours, golf outings • Shops, food courts, lounges, cultural centers

o Staff training and improvement

• ICAO training center • Service Improvement Committee• Incentive program

o Technological innovations

• Cooperation and data sharing • Passenger number forecasting

The effects of servicescapes on consumer behaviour

o Customers loyalty incentives:

• High perceived value • ‘Get’ should exceed ‘Give’

• Rewards for loyalty

o Company benefits:

• Higher profits through retaining customers⁻ More purchases overall⁻ More frequent purchases

• Lowers operating costs⁻ No acquisition costs

• Increases company referrals

How the servicescape impacts consumers and employees

Figure 8.1 (Source: Adapted from Bitner, 2002)

Environmental Dimensions

Ambient Conditions

Music Temperature Air quality Noise Smell Color

Spatial layout and functionality

Spatial layout Floor plan Size Shape of Furnishings Counters Equipment Arrangement

Functionality Ability to facilitate the

performance of service transactions

Signs, Symbols & Artifacts Signage Personal artifacts Style of décor Staff and guests Behavior Image

Holistic Environment

Perceived Servicescape

Moderators

Employee Response

Moderators

Customer Response

Moderators

Internal Response Both Employees and

Customers

Cognitive Responses

Beliefs (about place, people and products)

Categorization Symbolic meaning

Emotional Response

Mood (The Russell model of affect )

Attitude

Physiological responses

Comfort Shiver Pain Dizzy

Behavioral responses Employee

Affiliation

Exploration

Stay longer

Commitment

Carry out plan

Avoid opposite

Customer

Attraction

Exploration

Stay longer

Continue purchasing

Carry out plan

Return

Spread word of mouth

Avoid opposite

Social Interaction

between and among

customers and employees

Common associations and human responses to colors

Table 8.2 (Source: Based on Lovelock and Wirtz, 2007)

Color Degree of warmth

Common associations and human responses

Red Warm High energy and passion; can excite, stimulate, and increase arousal levels and blood pressure

Orange Warmest Emotions, expression and warmth; noted for its ability to encourage verbal expressions of emotions

Yellow Warm Optimism, clarity, and intellect; bright yellow often noted for its mood-enhancing ability

Green Cool Nurturing, healing, and unconditional love Blue Coolest Relaxation, serenity, and loyalty; lowers blood

pressure; is a healing color for nervous disorders and for relieving headaches, because of its cooling and calming nature

Indigo Cool Meditation and spirituality Violet Cool Spirituality; reduces stress and can create an

inner feeling of calm

Waiting line strategies

o Employ operational logic• Streamline operational processes• Eliminate inefficiencies • Queue configuration

o Establish a reservation system

• Shift demand to time less busy periods

• Inherent problem of ‘no-shows’⁻ Charge fee ⁻ Overbook capacity

o Differentiate waiting customers

• Need-based or customer priority

• Guest registering e.g. FASTPASS

The psychology of waiting lines

Table 8.3 (Source: Maister, 1985)

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Case Study:Attention to Detail at Cavas Wine Lodge

o Exterior design complements landscape

o Interior design:

• Unique décor, color schemes

• Mood enhancing music, atmospheric lighting, “clean and fresh” smell

• Hand-selected objects, furniture by local craftsmen, artists

• Regional, organic fruit and vegetables o Customer service

• Staff uniforms

• Frontline service

• Guest expectations

• Surprise events e.g. tango evenings outdoor cooking lessons

We seek the best experience, effortless for our guests.