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Overview of Chapter 10 What Is the Purpose of Service Environments? Understanding Consumer Responses to Service Environments Dimensions of the Service Environment Putting It All Together Purpose of Service Environments Helps firm to create distinctive image and unique positioning Service environment affects buyer behavior in three ways: Message-creating medium: Symbolic cues to communicate the distinctive nature and quality of the service experience Attention-creating medium: Make servicescape stand out from competition and attract customers from target segments Effect-creating medium: Use colors, textures, sounds, scents and spatial design to enhance desired service experience Comparison of Hotel Lobbies (Fig 10.1) Servicescape as Part of Value Proposition Physical surroundings help shape appropriate feelings and reactions in customers and employees For example: Disneyland, Denmark’s Legoland Servicescapes form a core part of the value proposition For example: Club Med, Las Vegas, Florida-based Muvico Las Vegas: Repositioned itself to a somewhat more wholesome fun resort, visually striking entertainment center Florida-based Muvico: Builds extravagant movie theatres and offers plush amenities. “What sets you apart is how you package it..” (Muvico’s CEO, Hamid Hashemi) The power of servicescapes is being discovered The Mehrabian-Russell Stimulus-Response Model (Fig 10.2) Insights from Mehrabian-Russell Stimulus-Response Model Simple yet fundamental model of how people respond to environments The environment, its conscious and unconscious perceptions, and interpretation influence how people feel in that environment Feelings, rather than perceptions/thoughts drive behavior Typical outcome variable is “approach” or “avoidance” of an environment, but other possible outcomes can be added to model The Russell Model of AffectFig 10.3 Insights from Russell Model of Affect Emotional responses to environments can be described along two main dimensions: Pleasure: Dir