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Chapter 10

Chapter 10 BU412.docx

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Department
Business
Course
BU412
Professor
Lisa Giguere
Semester
Fall

Description
BU412Chapter 10Crafting the Service EnvironmentWeek 3What is the Purpose of Service EnvironmentsThe physical service environment that customers experience plays a key role in shaping the service experience and enhancing customer satisfaction Ex Disney makes customers feel comfortable and highly satisfiedDesigning the service environment is an art that takes a lot of time and effort Service environments are referred to as servicescapes and relate to the style and appearance of the physical surroundings and other elements experienced by customers at service delivery sitesOnce designed and built service environments are not easy to change Four core purposes of servicescapes1 Shape customers experience and behaviours 2 Convey the planned image of the firm and support its positioning and differentiation strategy 3 Be part of the value proposition 4 Facilitate the service encounter and enhance both service quality and productivity Shape Customers Experiences and BehaviourPhysical surroundings help to shape appropriate feelings and reactions in customers and employees which in turn may lead to loyalty in a company Affects buying behaviour in three ways1 As a messagecreating mediumcommunicate to the intended audience about the quality of the service experience 2 As an attentioncreating mediummakes the servicescape stand out from that of its competitors 3 As an effectcreating medium using colours textures sounds etc enhances the desired service experience For Image Positioning and DifferentiationThe service environment is a cue for quality Firms put a of effort to signal quality and portray the desired image Ex The service environment of a youth hostel in London would be different that the service environment of a fancy hotel such as the Fairmont Empress in Victoria BCPart of the Value PropositionEx Many amusement parks use the servicescape to enhance their service offerings Ex Turning the movies into an entertainment experiencesupervised playrooms welldecorated barsmovie goers are attracted to this even though admission prices are higher Facilitate the Service Encounter and Enhance ProductivityService environments are often designed to facilitate the service encounter and to increase productivity Ex Childcare centres using toy outlines on walls and floors to show where toys should be placed after use The Theory Behind Consumer Responses to Service EnvironmentsFeelings are a Key Driver of Customer Responses to Service EnvironmentsThe MehrabianRussell StimulusResponse ModelShows that our feelings are central to how we respond to different elements in the environmentThe environment and how people view and interpret it influence how people feel in that setting People may either want to approach or avoid the servicescape of a place Russells Model of Affect
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