Ethical Implication

BUS225_Chapter10_Servicescape.pdf

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X Chapter 10

Crafting the Service Environment

X Beyond Hardcore Gambling: Understanding Why Mainland Chinese Visit Casinos in Macau IpKin Anthony Wong and Mark S. Rosenbaum (2010) Beyond Hardcore Gambling: Understanding Why Mainland Chinese Visit Casinos in Macau Journal of Hospitality & Tourism Research

Casinos are important travel attractions, but they are often overshadowed by hardcore

gambling behaviors. Although gambling has been found as a key tourism driver, it is

unclear how casinos, as hospitality service providers, are able to fulfill other travel needs.

This article highlights an emerging but under studied phenomenon in tourism and

hospitality research: casino tourism. Based on empirical data collected in the world

gaming capital, Macau, the results reveal that tourists’ casino excursions are primarily

motivated by five factors: entertainment and novelty seeking, leisure activity, escape

from pressure, casino sightseeing, and socialization. The findings suggest that although

gambling is part of the casino experience tourists seek, mainland Chinese tourists are

looking for assorted travel and leisure experiences. These experiences can further be

classified into two segments: entertainment-for-socialization seekers and sightseeing-for-

relaxation seekers. Demographic differences in addition to two- and three-way

interactions of the motivational factors are also discussed.

X What is the purpose of service environments? Shape customer experiences and behaviours

• As a message-creating medium

• Symbolic cues to communicate nature and quality of service experience

• As an attention-creating medium

• Stand out from competitors

• Attract customers

• As an effect-creating medium

• Use scent, colour, touch etc to enhance service experience

X What is the purpose of service environments? For image positioning and differentiation

• Proxy for quality

• Portray distinct image

Act as part of the value proposition

• Shape feelings and reactions in customers ad employees

Facilitate service encounter and enhance service delivery

• Reduce service failures

• Smooth service delivery

X Figure 10.3 The servicescape model

X The servicescape model

• Identifies the main dimensions in a service environment and views them holistically

• Customer and employee responses classified under, cognitive, emotional and psychological -> overt behavior towards the environment

• Understand how well each dimension fits together with everything else

X Dimensions of the service environment Service environments are complex and have many design elements.

• Ambient conditions

• Spatial layout and functionality

• Signs, symbols and artefacts

• People are part of the service environment too

X The effect of ambient conditions • Characteristics of environment pertaining

to our five senses

• Music

• Scent

• Colour

• Classical music can be used to deter vandals and loiterers

X The effect of music

• Music -> Impact on perceptions and behaviors, even softly

• Structural characteristics are perceived holistically

• Fast tempo or high volume increase arousal

• People adjust their pace to match tempo of music

• Use music to deter wrong customer types

X Impact of Music on Restaurant Diners

Restaurant Patron

Behavior

Fast-beat Music

Environment

Slow-beat Music

Environment

Difference between Slow- and Fast-beat

Environments

Absolute Difference

% Difference

Consumer time spent at

table

45min 56min +11min +24%

Spending on food

$55.12 $55.81 +$0.69 +1%

Spending on beverages

$21.62 +$8.85 +41%

Total spending

$76.74 $86.28 +$9.54 +12%

Estimated gross margin

$48.62 $55.82 +$7.20 +15%

Source: Ronald E. Milliman (1982), “Using Background Music to Affect the Behavior of Supermarket Shoppers,” Journal Of Marketing, 56 (3): pp. 86–91

$30.47

Bankwest’s success can be

X The effect of scent

• An ambient smell pervades an environment

• May or may not be consciously perceived by customers

• Not related to any particular product

• Scents

• Distinct characteristics

• Used to solicit emotional, physiological, and behavioral responses

• In service: scents have significant effect on customer perceptions, attitudes, and behaviors

X The effects of scents on the perceptions of store environments Evaluation Unscented

Environment Mean Ratings

Scented Environment Mean Ratings

Difference

Store Evaluation

Negative/positive 4.65 5.24 +0.59

Outdated/modern 3.76 4.72 +0.96

Store Environment

Unattractive/attra ctive

4.12 4.98 +0.86

Drab/colorful 3.63 4.72 +1.09

Boring/Stimulatin g

3.75 4.40 +0.65

X Effect of fragrances on people

Fragrance Aromathera py

Aromatherapy Class

Traditional Use

Potential Psychological Impact on People

Lavender Herbaceous Calming, balancing, soothing

Muscle relaxant, soothing agent

???

Peppermint Minty Energizing, stimulating

Skin cleanser

???

X The effect of colour (1) • Colors -> stimulating, calming, expressive,

disturbing, impressional, cultural, exuberant, symbolic

• Color gives beauty and drama to everyday objects

• Colors -> impact on people’s feelings

• Colors can be defined into three dimensions: • Hue is the pigment of the color • Value is the degree of lightness or darkness of

the color • Chroma refers to hue-intensity, saturation, or

brilliance

X The effect of colour (2)

Red

Blue

Neutral

X Spatial layout and functionality

• Spatial layout: Refers to size and shape of furnishings and the ways it is arranged

• Functionality: Refers to ability of those items to facilitate performance of service

• The layout of today’s modern international airports is designedwith customer convenience in mind (access, good signage) as well as cues that reflect a (desired) image of a country and to induce the desired mood among travellers

• Apple’s servicescape is designed to portray it as an innovative, forward-thinking company, consistent with its brand

X Signs, symbols and artefacts

Figure 10.4

Explicit or implicit signals to: •Communicate the firm’s image •Help consumers find their way •Convey the rules of behavior

X People are part of the service environment too

Figure 10.5 Distinctive servicescapes—from table settings to furniture and room

design—create different customer expectations of these two restaurants

• Appearance & behaviour of personnel and customers important

• Detract from impression of service environment

The picture can't be display ed.

X Putting it all together

• Consumers perceive service environments holistically -> design from a customer’s perspective

• Design with a holistic view: No dimension of design can be optimized in isolation, because everything depends on everything else

• Holistic characteristic of environments makes designing service environment an art

RETAILING STORE DESIGN

X Store Design Objectives

• Execution of retail strategy

• Influence on customer behavior

• Control store design and maintenance costs

• Provision of flexibility

• Meet legal requirements

X Retailer Strategy

• Meets needs of target market

• Provide sustainable competitive advantage

• Portray the retailer’s image

X Impact on Customers’ Behaviour

X Store Design and Maintenance

• Tradeoff:

• Maintain ease of locating merchandise for planned purchases

• Helps consumers to explore store or stimulate impulse purchases

X Retail Store Layout

• Grid

• Free Form

• Racetrack

X Grid Layout

Advantages

• Cost efficient

• Well organised

• Easy to clean

• Simplified security

• Potential for self-service

• More displays and exposure to merchandise

Disadvantages

• Plain and uninteresting

• Does not allow for exploration

• Rushed shopping

X Free Flow Layout (Boutique)

Advantages

• Allows wandering and browsing

• Pleasant relaxing store experience

• Flexible design

• Allows for impulse purchases

Disadvantages

• Encourages loitering

• Possibility of confusion

• Difficult to clean

• Space is inefficient, higher costs

X Racetrack Layout

Advantages

• Encourages browsing and exploration

• Provide good shopping experience

• Major aisle that loops around

• Point of sales located at borders

Disadvantages

• May waste consumers’ time

• Not suited for high traffic stores

• May not browse at will