MGT345_545Class5.ppt

Class 5

Physical Evidence & Servicescape

Physical Evidence – What is it?

  • Physical evidence is:
  • The environment/physical facility in which the service is delivered and where the firm and the customer interact (the “Servicescape” )
  • Any tangible commodities that facilitate performance or communication of the service

Customers often rely on tangible cues, or physical evidence, to evaluate the service before its purchase and to asses their satisfaction during and after consumption

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Examples of Physical Evidence from
the Customer’s Point of View

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Virtual Servicescapes

  • A webpage and “virtual servicescapes” conveyed over the internet are more recent forms of physical evidence that companies can use to communicate aspects of the service experience
  • This reduces the risk of purchase and assists in establishing a more accurate expectation of the service
  • Other Examples…???

Servicescape Usage

  • Organizations differ in terms of whom the servicescape will affect
  • That is, who actually comes into the service facility and thus is potentially influenced by its design
  • This can include:
  • Customers, employees, or both

2 Types of Servicescape Complexity

  • Lean - Some servicescape environments are very simple, with few elements, few spaces, and few pieces of equipment
  • Airport check-in kiosk
  • Elaborate - complicated with many elements and many forms
  • Hospital (many floors, many rooms, complex and variability in functions, sophisticated equipment, etc.)

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Why is Physical Evidence Important?

  • Key aspect of service system design – Gap2
  • Communicates the experience and credence qualities to customers by providing tangible cues
  • The “stage” for the performers
  • Helps create the service experience – can facilitate performance of the service
  • Can enhance customer perceptions of service quality
  • Most hospitality environments are ‘elaborate’ in complexity

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Strategic Role of Servicescape

  • Servicescapes can play many strategic roles simultaneously, and in many cases, the servicescape is frequently one of the the most important elements used in positioning a service organization
  • Facilitator
  • Socializer
  • Differentiator

Roles of Servicescape (cont.)

  • Facilitator
  • Facilitates the flow of the service delivery process
  • Provides information (How should I to act?)
  • Facilitates the ordering process (How does this work?)
  • Facilitates service delivery
  • Socializer
  • Facilitates interaction between:
  • Customers and employees / Customers and fellow customers
  • Differentiator
  • Sets provider apart from competition in the mind of the consumer

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Dental laser “drill”

Physical Evidence

  • Can classify physical evidence into three dimensions:
  • Ambient conditions

Noise, lighting, music, scent, etc.

  • Space/function

Way in which machinery, equipment, and furnishings are arranged

  • Signs, symbols & artifacts

Company logos, artwork, floor coverings, etc.

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Physical Evidence – Key Ideas

  • By planning the physical evidence to match customer expectations, Gap 2 can be closed
  • Both customers AND employees are affected by the servicescape
  • Should be a conscious design
  • Be prepared to update & modernize the physical evidence
  • Consider ALL the dimensions
  • Remember that not all individuals respond in the same way to the perceived servicescape

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Questions

Break
20 Minutes

Questions

  • How is Legoland planning to achieve success in the vigorously competitive Central Florida market given the previous failure of Cypress Gardens?
  • How does Legoland protect its investment from unforeseen events like hurricanes which were mainly responsible for sending Cypress Gardens Adventure Land into bankruptcy?
  • Why were attempts to rejuvenate the park not successful before the arrival of Legoland?