The Servicescape in Manipulating Customers Decision Making - Essay Example

Introduction Globalization has made the markets turbulent; purchasing power has increased in the hands of the people. Consumers have grown but very little research is available on consumer satisfaction and their behavior. Services can be delivered through different channels – the customer can go to the service provider, the service provider comes to the customer or service can be available over phone, email or fax. This could also mean that the services are product intensive, for instance a retail store where the benefits are tangible; they could be hybrid where the benefit is equally attributable and both tangible and intangible benefits are received. Service could also be totally intangible like the cellular phone services. Servicescape refers to the style and appearance of the physical surroundings where the customers and the service provider interact. In the increasingly competitive environment companies have been challenged to augment their core services with value-added benefits which would help them to sustain competitive advantage. The outcome of service experience is evaluated not merely in terms of utility but also from an experiential perspective. For instance gourmet food can be made available at sporting events. Thus emphasis is given on managing the service firm’s physical facility. All these value-added service help to enhance revenue and hence servicescape has become a focal point in the delivery of customer delight. This paper will critically examine the role of the servicescape in manipulating customers decision making approach and avoidance behaviors in all three types of distribution channels. Physical environment and servicescape The physical environment is an important determinant of consumer perceptions and future behaviors. This makes it important to understand how the physical environment leads to consumer outcome behaviors. The role of physical environment is that it should attract attention. The servicescape acts as a package and the first impression is created which influences the customer what to expect inside the place of purchase. Compared to competition, the servicescape should stand out. In the case of Disneyworld it acts as a differentiator. The physical environment should also be able to create and deliver a message. Hotels use symbolic cues to communicate with customers about quality and the nature of service. It acts as a facilitator as a well-designed facility can make the experience pleasurable for the customer. Thirdly, the physical environment should create an impact through its décor and landscaping, through acoustics and designs. In other words, the physical environment acts as a socialiser. It helps to convey the expected roles, behaviors and relationships. According to Kotler, one of the most significant features of the total product is the place where it is bought or consumed (cited by Hightower, Brady and Baker, 2002). The atmosphere of the store is more influential than the product purchased in the purchase decision. Store interiors can create special feelings in shoppers that have an important signaling effect on the purchase. In the service industry, during the service encounter, there is lack of physical contact and the consumers are influenced by tangible cues like the physical environment. The design, the landscape, the surroundings, the interiors, the layout, equipments, décor, and the parking facilities – all create impression on the five senses (Brunswick, n.d.). Bitner develops a framework where the servicescape consists of ambient conditions, spatial layout and functionality, signs, symbols and artefacts (cited by Hightower et al.,). Servicescape also includes the service personnel to the physical setting. Service quality can be measured as the gap between the customer expectations and their perception of what they receive (Abubakar, Mavondo, Campus & Clulow, n.d.). Customer satisfaction occurs when the service exceeds customer expectations. Customers most often do not complain or express dissatisfaction; they just shop elsewhere. Retailers must realize that customers’ expectations always move upwards and only satisfied customers remain loyal in the long run. Apart from the physical environment, in a service environment the organization has to identify the potential customers, their desires and expectations, their likely emotional states which would help them to design a suitable service environment (Clarke & Schmidt, 1995). Environments can be made high-load or low-load to suit the people’s emotional needs and reactions at a given time. Bright colours, bright lights, loud noises are associated with high load environment which signifies a high information rate while a low load represents a low information rate. High-load environments communicate uncertainty and complexity while low-load environment communicates assurance and simplicity. The visible presence of the service organization is reassuring and desirable. These are the approach-avoidance behaviors influenced by the physical setting, the auditory, visual and olfactory cues. Behavior in servicescape Employee behavior Mossburg developed a servicescape model which is built upon the customer’s interactions within the servicescape (physical surroundings), the employees and other customers. The customers interact and undergo experience with the employees as well as other customers. These are known as internal responses to the servicescape. Initially interaction between the customer and the servicescape takes place and then with different parts that affect the customers’ emotions, control and absorption (Forsgren & Franchetti, n.d.). If the customer enjoys the experience, it can result in longer stay in the servicescape, which most often leads to higher grade of consumption. If the customer becomes involved in the servicescape, to offer the customer a positive experience, the employees need to improvise and add value to surprise the customer. The behavior of one influences the atmosphere between them and the behavior of the employee decides the customer’s return. If a customer ahs control over the consumption, for instance if he is allowed to choose the room type, the bed sized and the floor in a hotel, he feels responsible for the results and derives satisfaction. In the servicescape other customers are also important. Other customers Many times the customer experiences something with another customer and social bonding is formed. Other customers can either strengthen or reduce the service quality and satisfaction of a service or product. It is then important for the organization to create an atmosphere of compatible customers or a good mix of customers. Design of the servicescape Design environments enhance individual approach behavior and encourage appropriate social interaction. A positive internal response to the servicescape enhances the quality of social interactions between the customer, employees and other customers. There is no optimal design and the design should satisfy the needs of the customers to facilitate their interaction. Since services are intangible, intrinsic cues are difficult to define, under the circumstances, the service organization use extrinsic cues such as physical surroundings to infer the quality. Sex of the service providers Service environments may affect the perceptions of the service received. Gender stereotypes are attached in complex ways to a wide range of consumption behaviors (Fischer, Gainer & Bristor, 1997) Apart from the physical environment, cues in the environment influence customers’ satisfaction with services. The social environment includes the human component which includes both the customers and the employees. Importance has to be given to the number, behavior and appearance of people in a setting. Research suggests that men have better experience in a hardware store than women while women have better experience in a fabric stores and aerobic studios. Men feel intimidated and frustrated in a female dominate environment and women in male-dominated environments. Studies further suggest that reactions to employees are negative when the gender is incongruous with norms. Visual cues The visual cues within a servicescape include color, lighting, space and function, artifacts and plants, and layout and design. Research has shown that different colours stimulate varying personal moods and emotions (Lin, 2004). Some researchers found that consumers react more favorably to a blue environment in retail settings. Warm-colored backgrounds attract people to a store. Blue stores had higher simulated purchase rates and color’s influence people’s emotional pleasure. Children associated positive emotions with light colors and negative with dark colors. Children exhibited greater strength and positive mood in a pink room than a blue room. Furniture placement is important as it conveys a sense of closure, defines spatial movement, and communicates visible or invisible boundaries. High ceilings communicate feelings of spaciousness while low ceilings are associated with intimacy and coziness. Lighting influences his or her awareness of physical, emotional, psychological and spiritual aspects of the space. Light influences the perceptions of form, color, texture and space. Research suggests that people’s perceptions of light influences their perceptions of the environment. People have been found to perceive tasks more positively and reported decreased boredom in a room with windows against a room without windows. General communication is enhanced in brighter environments whereas more intimate conversation occurs in softer light which explains the reason why restaurants offer candle light dinner environment. Auditory cues Music has a significant effect on arousal and younger shoppers spend more time shopping when background music is played. At the same time, older shoppers spend more time when music is played in the foreground (Lin, 2004). Playing classical music results in higher sales as people tend to buy costlier goods. Music also influences buyer-seller relations. In a hospital setting music has a therapeutic effect. Quiet music can calm agitated patients with dementia and decrease stress whereas loud music can increase stress. Noise and loudness of sound have been found to be irritating and annoying. Loudness of sound is a negative stimulation and reduces concentration, increases irritation and tension. A constant quiet sound is equally irritating and hence a balance of loud and constant sound is the key to a pleasant environment. In the store setting, these responses have been classified as approach-avoidance behavior by Donovan and Rossiter (Moye, 2000). The negative responses would deter the customers from shopping or returning back the next time. These are the emotional responses that influence consumer behavior. Olfactory cues Scents can influence the customer’s desire to purchase and bakeries have been found to have increased sales (Lin, 2004). An olfactory cue can heighten awareness of the customer. Ambient odors may also simply influence the consumer’s mood which is the most visible effect on perception and behavior. Case of a retail store – Zara A pleasurable experience can arouse and capture customer and employee emotional responses to the servicescape. Servicescape is mediated by cognitive and affective factors. The physical environment is evaluated on the ambience and layout as well as consumer perceptions from physical cues. The store environment plays a significant role in customers’ willingness to buy. In the case of a retail environment the following outcome should be evident - a. The enjoyment of shopping at the store; the time spent browsing the store’s environment. b. The willingness to talk to employees and spending more time than scheduled. c. The chances of returning to the store. A single cue does not deter or stimulate a customer. It is the effect of all the cues put together that determines the customer’s moods and behavior. In the context of retail stores, which are product intensive and where the customers have to go to avail of the service and the product, Zara fashion clothing is a typical example of using servicescape. Zara, the Spanish clothing company has a very comfortable position for itself in the European Union. It started its first store in 1975 and today it has its presence in 45 countries with 531 stores located in more than 400 cities in Europe, the Americas, Asia and Africa. It constantly relocates and updates its stores to new more suitable sites. Every three or four years Zara refurbishes its stores (Ghemawat & Nueno, 2003). They select the theme for the interiors, color scheme and product presentation depending on the season and time of the year. Although initially these were as per the professional designers’ ideas, Zara subsequently adapted to the changing customer tastes and demands of the season. The store employees wear Zara clothes while working at the stores which enable the customer to immediately visualize how she would look in similar clothes. At the same time, they also ensure that what the employees wear differs across different stores in the same city depending upon the socio-economic differences in the neighborhood in which they were located. This acts as a socialiser because the customer feels comfortable to approach the employee and the employee also knows the expected role. The number of employees at each store depends on the size of the store which pertains to the spatial effect that it has on the consumer’s perception. Zara stores are ultra-modern with minimal décor in an all-white interior which gives prominence to the clothing (FFWD, 2002). They have an attractive ambience and a feel of freshness as they have new designs on offer each time a customer walks in. They create a sense of scarcity and opportunity by keeping the shelves sparsely stocked. This always gave an impression to the customers that the next time they would not be able to find such designs and they better make their purchases. This visual cue had an immediate effect on their purchases as it acts as a facilitator. Case of restaurants Restaurants and fast food centers offer both tangible and intangible benefits but to avail of the services, the customers have to visit the place. In the context of restaurants, fast-food outlets and the banks, servicescapes are dedicated to the interaction between customers and employees. Their perception and behavior of the environment are influenced by servicescapes and these act as interaction facilitator, thereby increasing performance. In the fast food segment website are interactive and a host of self-service activities can be found. Besides, the interaction between customers and employees is minimum. In such cases, direct customer targeting and convenience determine the consumer’s perception and attractiveness and thereby consumers’ actions. Personal needs influence customer satisfaction. In a restaurant setting, food is central to the basic function and must be provided. The following model illustrates what aspects influence a customer’s multi-dimensional experience: Source: Andersson & Mossberg (2004). Restaurant interior is an important satisfier when the customer stays for some time in the environment and when the motive is pleasure. Service encounters often occur in the presence of other multiple diners and one’s restaurant experience may be positively or negatively impacted by other customers present in the setting. Research suggests that customers are willing to pay for physical ambience more for dinners than for luncheon. They are also willing to pay for positive experience from other customers. The case differs in the fast food segment. In this hybrid segment, McDonalds are a typical example which started with a reputation for cleanliness, fast-service and a child-friendly atmosphere. As time advanced they were faced with new threats and challenges. While the restaurant industry in general has diversified and altered its menu, McDonalds remain with their sandwiches. They may change the ingredients and materials for the sandwich but it still is known as a sandwich. Fast food is termed as junk food and McDonalds have allegations and court cases against them on grounds of luring the children through advertisements. They are also responsible for environmental degradation due to usage of excessive packaging, and in the context of clearing forest and animal rearing. Since they are unable to differentiate in terms of the tangible product offered, they have to differentiate in the physical environment. Their outlets offer a low quality ambience compared to sit-down restaurants (Oboulo, 2007). To sustain competition, they have to necessarily concentrate on the physical environment to enhance the customers’ perception and foster employees’ behavior at the workplace. Customers at McDonalds may be satisfied but only a few will be delighted. This segment caters to contentment and to fill physiological needs. The customers are not very involved and the level of emotional arousal is low. The social interactions are low and satisfaction ought to be associated with feelings of pleasure and should be remembered. It could be something new or add to the customer’s experience. Service intensive companies These companies offer intangible benefits and services can be availed online. Cellular phone services are totally intangible in nature and customer satisfaction difficult to ascertain. Customers today are aware of their rights and demand and expect quality service from the service providers (Riel, Liljander, Lemmink & Streukens, 2003). Apart from customer satisfaction, high quality service differentiates them from others in the industry. The internet is a well suited platform for communication and information exchange. A huge amount of real-time information can be available at the click of a button. For mobile phone services, this is extensively used to provide support services. Online support system helps to customize documentation specific to that region. Online documentation can be kept more up-to-date than print materials and the quality of instructions can be improved based on customer feedback. Global support can be organized which eliminates the need for local offices. Customers compare between the traditional forms of support and the various online support services available. In the traditional servicescape there used to be interaction with the service staff but with online support this interaction is eliminated. For some customers high quality service would mean not having to interact with customers at all. Supporting services also play an important role in the creation of expectations and customer satisfaction. Support services occur before, during and after the purchase of the core service but to lack of empirical evidence on the quality of online services, no standards can be set. The first requirement for online support is that customers must be able to find the support website and access it. Then the customer must know how to navigate through the electronic servicescape. The ease of navigation determines the perceived amount of effort needed to find what the customer searches on the site. The help functions and the search engines should be easily accessible by the customer. Reliability is essential which requires technical functionality, accuracy of links and supply of correct and real-time information. Efficiency relates to the usability of the service and the general rule says that the customer should have to click more than twice to avail of any service. The customer should feel comfortable while using the service which means that the servicescape of the brick-and-mortar units should be available online. The aesthetic experience of the customer while navigating the e-scape is also important. Customization of services gives importance to the customer where the customer can find the stored data of his previous purchases, his preferences, payments, shipping address etc. Privacy and security have to be guaranteed which is an important part of total customer experience an satisfaction. The e-scape should be responsive, which means be able to respond to fresh support as human interaction in traditional servicescape could provide. The European mobile telecommunications market is a saturated market and hence very important that existing customers be retained (Riel, Liljander, Lemmink & Streukens, 2003). Supporting websites have become an inseparable part of the product offering. The websites offer pre and post purchase support as information about the different products, prices, contact centers, product technical specifications and service are available online. Email forums and chatrooms are provided as platforms of learning, discussion and exchange of experiences. Supplementary services like online SMS, WAP, downloading logos and music are also provided. Research suggests that those who have an above normal technology-readiness are less sensitive to security issues although the existing literature suggests otherwise. The issue is even less important if the service provider happens to be a reputed mobile service provider. The study further revealed that responsiveness is very critical to customer satisfaction. At the moment the internet or the support website are not interactive. The customers are seldom able to enter into an interactive dialogue with the site. Responsiveness becomes important when the customers need an immediate response to a solution which cannot be provided from the database of the FAQ. If customers leave a query on the website which remains unattended, it can have a negative effect on the overall customer experience and satisfaction. For mobile telecommunications service providers, the perceived quality of online supporting services is extremely important for the creation of desired behavioral intensions and loyalty. Eircell Vodafones online store combine e and m-commerce which allows customers to purchase their products either using an internet PC or a mobile phone (OMA, 2001). The new online store offers enhanced Store Manager Administration, Customer Service Representative Support, credit card verification, full transaction auditing, and stock control. This store is very convenient to use and provides all information on how to purchase and make payments. There is also a MyAccount facility which enables a shopper to see the entire transaction history. The online store also enables the existing customers to top up their credit on pre-paid accounts or buy new connections or handsets. Users are validated which ensures that transactions are secure. Users can even opt for order verification via email or SMS which ensures further security. This is an example or e-scape which offers the customers convenience in terms of service and ease of use. Research thus demonstrates that servicescape does have a positive or negative impact on the customer attitude, or approach-avoidance attitude as buying behavior and impressions created from the experience. Research has been undertaken of the cues that impact the servicescape and this suggests that both in the case of product-intensive and hybrid segment where tangible benefits are perceived, the physical environment plays a great role in positive customer experience. In both these cases, positive customer-employee interaction and interaction with other customers play a vital role. In the fast food segment, while satisfaction may be attained, customer delight is seldom attained. In the case of restaurants, this could be possible as the customers are willing to pay for the servicescape and for the right ambience. Retail stores can alter the servicescape and enhance the sales through changes in color, space, and other attributes which alter the buying experience. In the service-intensive segment like online stores there are no interactions between the service provider and the customer and the servicescape is totally dependent on the ease and convenience of the online store. in all cases, emotions and moods can be altered with the right ambience, the right colors chosen and the attitude of the employees, the auditory and the olfactory cues. 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