Chapter 8

Providing customer service through the servicescape

© 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

Facility Exterior

Parking Landscape Signage Exterior design

Table 8.1

Facility Interior

Layout Equipment Signage Air temperature Interior design Lighting

Other Tangibles

Uniforms Business cards Stationary Invoices Brochures 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 o Themed servicescapes Interactive servicescapes o Servicescapes developed around new market segments

Snapshot: Incheon Airport, Korea

First and last impressions.

o o o o Customer transit services • • Fast processing times, interactive LCD info screen Multi-lingual staff and signage Customer amenities • • • Free internet access, computers, showers, changing rooms Between flight tours, golf outings Shops, food courts, lounges, cultural centers Staff training and improvement • • • ICAO training center Service Improvement Committee Incentive program Technological innovations • • Cooperation and data sharing Passenger number forecasting

The effects of servicescapes on consumer behaviour

o o Customers loyalty incentives: • High perceived value • ‘Get’ should exceed ‘Give’ • Rewards for loyalty 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

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 Holistic Environment

Perceived Servicescape Signs, Symbols & Artifacts

 Signage  Personal artifacts  Style of décor

Staff and guests

 Behavior  Image Figure 8.1 (Source: Adapted from Bitner, 2002) 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 Social Interaction between and among customers and employees

Customer

Attraction Exploration Stay longer Continue purchasing Carry out plan Return Spread word of mouth Avoid opposite

Common associations and human responses to colors

Color Red Orange Yellow Green Blue Indigo Violet Degree of warmth

Warm Warmest Warm Cool Coolest Cool Cool

Common associations and human responses

Table 8.2 (Source: Based on Lovelock and Wirtz, 2007) High energy and passion; can excite, stimulate, and increase arousal levels and blood pressure Emotions, expression and warmth; noted for its ability to encourage verbal expressions of emotions Optimism, clarity, and intellect; bright yellow often noted for its mood-enhancing ability Nurturing, healing, and unconditional love 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 Meditation and spirituality Spirituality; reduces stress and can create an inner feeling of calm

Waiting line strategies

o o o Employ operational logic • Streamline operational processes • Eliminate inefficiencies • Queue configuration Establish a reservation system • • Shift demand to time less busy periods Inherent problem of ‘no-shows’ ⁻ ⁻ Charge fee Overbook capacity Differentiate waiting customers • • Need-based or customer priority Guest registering e.g. FASTPASS

The psychology of waiting lines

Table 8.3 (Source: Maister, 1985)

Case Study: Attention to Detail at Cavas Wine Lodge

We seek the best experience, effortless for our guests.

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