Service Product Marketing: Restaurant and Retail Store Services - Term Paper Example

Service Product Marketing Executive summary Consumers have been known to respond to products and services before making any purchase decisions by considering the total product. Total product encompasses not the product or service features only but also the place where they come from more specifically the atmosphere of the area. This basically greatly influences the decision to make a purchase. In today’s world it is increasingly being emphasized that service design elements are a crucial aspect that needs to be evaluated within the environment of a business. For quite some time many businesses globally still undervalue the importance of using the atmosphere within the environment around which the business operates as a tool for marketing. From an environmental psychologists perspective it has been discovered that the stimuli in a given environment in one way or another impacts on the feelings of different people as well as their behavior. In connection to this paper seeks to focus on and analyze how physical environment of a business impacts on emotions of customers and their behavior. Centrally the services focused upon in this are restaurant services and retail store services. Analysis of the service design elements in line with the two services herein is in relation with the Russell model of affect. The report analysis restaurant and retail store services in relation to Russell model of affect and service design elements. Table of Contents Executive summary 1 Introduction 3 Overview of service design 3 Overview of the Russell model of affect 4 Restaurant services 5 Exterior facilities 5 General interior 6 Store layouts 6 Interior displays 7 Social dimensions 7 Retail store services 8 Exterior facilities 8 General interior 9 Store layout 9 Interior displays 9 Social dimensions 10 Recommendations 10 Conclusion 12 References 14 Appendices 16 Introduction Restaurants and retail stores are places where people get the opportunity to meet their nutritional needs among other needs. Since the era of post industrialization consumers have shifted their motives as far as restaurants and retail stores are concerned. Today they are not only concerned about their basic needs of nutrition but also the fact there is need for them to have pleasurable moments as they enjoy their drinks and meals in restaurants and an in relation to retail stores that they are able to get the best services available from retailers whom they choose because they feel that it is them they prefer. In this case the idea of developing and improving the atmosphere within a restaurant and in retail stores has gained much interest among people who owners of restaurants and retail stores. To their realization the atmosphere of a restaurant and that of a retail store plays quite a big role in attracting customers. Not all customers are the same. Some seek more exceptional services in a restaurant or in a retail store such as to be able to have a sense of leisure and pleasurable moment as they are being attended to. It is therefore very important to note the atmosphere surrounding a business environment has the ability to cultivate as well as satisfy the social life of a customer. Overview of service design Service design implies to how a business is structured and designed from the physical look in the outside to the features inside. In this case design elements being focused upon include exterior facilities, general interior, store layout, interior displays and social dimensions. These elements are generally understood to impact on buyer’s as they make decisions in relation to where to make purchases and where not to. In a bid to analyze how buyer decision making is influenced by the elements the Russell model of affect may be applied. This model is quite fundamental as it tries to give an explanation in relation to the responses of people to the environment and how interpretations of the environment affect feelings of people leading to the ultimate outcome of either “avoidance” or “approach” of an environment. Overview of the Russell model of affect This model is built on three basic dimensions centered on emotions. They include; dominance, arousal and pleasure. Generally the emotions may be understood to be determined from what a person views or see the environment to be. Pleasure is regarded as the level to which an individual feels happy, joyful or good. Secondly arousal may be understood to be as the level to which an individual feels active, stimulated or rather excited. Thirdly dominance may understood as to imply to the level that demonstrates a sense of control of something or situation. The model hypothesizes the idea that these states of emotions provoke how an individual either avoids or approaches the environment in the manner they respond to it. A response to avoid simply means that a person averts a given environment for instance an individual having the desire to leave a restaurant. On the other hand a response of approach may be understood to imply the idea that a person yield positive reactions to a given environment, for instance an individual having the desire to stay for along in a restaurant (Chamberlain and Amanda 2007, p. 45). The PAD is a scale that was developed and designed to get information in line with the three states of emotions. The framework of the PAD has widely been used in areas such as consumer research and marketing especially in the evaluation of service environments in settings such as retailing among others. Restaurant services Russell model of affect can be used to analyze various aspects of a restaurant in a bid to demonstrate the understanding of how customers view the restaurant as well as how their decisions are affected. Exterior facilities The way a restaurant is designed and structured physically which is its exterior design influences customer’s processes of decision making as well as how attractive they find the restaurant to be to be able to enjoy leisure while in the place. For a restaurant the condition of the environment such as the size of the restaurant, architectural outlook, uniqueness and the surrounding areas influences customer as they respond to the environment of the restaurant. Restaurants need to be spacious. Customers seem to be more comfortable in places where there is no congestion. They have great value for personal space. Most importantly by restaurants having ample space chances of accidents taking place as waiters serve customers are highly reduced (Jang and Namkung 2009, p.455). There is also ease with each customers and staff in the restaurant move around minding their business without necessary colliding with one another. In this case customers wish to visit places where the environment is free from congestion. The architecture of a restaurant as well influences customer perception in line with their decision making processes in regards of whether to visit a restaurant or not. An artistically designed restaurant fosters uniqueness giving the restaurant an attractive physical look (Lukumon 2010, p.25). Incorporating artwork in the actual building of the restaurant attract customers especially new customers who have not even an idea of what kind of food or drinks are offered in the restaurant. Tourists tend to be highly attracted to works of art hence the artistic look of a restaurant highly operates as a marketing tool hence yielding positive outcomes to a business. The area surrounding a restaurant impacts on customer emotions and perceptions as well. By a restaurant being located in serene environment where there is wildlife it tends to attract customers since there is a sense of pleasure associated with the restaurant. Apart from taking food and drinks they can have fun and enjoy looking at the wild animals. General interior The general interior of a restaurant is an important consideration that restaurant owners should not overlook. Conditions such as lighting, temperature, color schemes and acoustic affect whether eating in a restaurant is pleasurable or not. There are restaurants that are bright lighted while others are dim lighted. Lighting in restaurant complements color schemes within the restaurants. There should be coordination between the two (Jooyeon Ha and SooCheong Jang 2010, p.47). Customers have different tastes in relation to the lighting aspect and color schemes in the general interior of a restaurant. It is crucial that the general interior of a restaurant should bear decorative elements making the atmosphere within the restaurant attractive to customers. Temperature regulation in a restaurant is important. Customers tend to visits restaurants where there is a feeling of rest and leisure in a pleasurable way without the temperatures by to high or low but rather moderated. Store layouts How a restaurant is laid out should as well be considered. This relates to waiting areas, queues and furniture. The time taken for a customer to be served in a restaurant demonstrates a lot about the restaurants ability to attend to its customers in a timely way. Customers would lose hope of ever visiting a restaurant just because their services are poor and that customers are delayed. Such a restaurant does not at all seem to be welcoming to customers. Restaurants should have furniture that is attractive and comfortable. This way a customer would always wish to visits the restaurant since it offers not only food but also pleasurable opportunities as they enjoy their meals and drinks. Interior displays Interior displays in restaurants impacts as well on the feelings of customers about how they view it. They include price displays, product displays, point-of-purchase displays as well as wall decorations. A restaurant should have an interior design that makes customers to feel excited and want to know more about the restaurant from the offerings in the to the kinds of art work on the wall. This is a positive aspect of a restaurant that definitely would make it to have increased sales as well as be able to retain customers. Social dimensions A restaurant can be designed in such a way that it supports casual gatherings. When people eat around those whom they re familiar with such as friends and family their appetite tends to increase as well as a sense of pleasure is identified. In connection to this pleasurable moments may be derived from sharing meals with a friend or family. Therefore restaurants should support such gatherings by being suitable places where people can freely socialize. This way social life of people is enhanced and apart from being satisfied by the meals or drinks that are offered, they also have fun sharing with those they can relate with hence being pleasurable moments. Retail store services Retail services as well relate to how consumers make purchasing decisions. In retail services the nature of the atmosphere is as well a crucial consideration in the determination of how consumers feel about the products being offered in terms of whether to avoid purchasing or instead purchasing the product. Retailers have developed the understanding that store design is far more crucial as it facilitates the aspect of marketing of the store to the customers besides the offering of goods. Exterior facilities Exterior design of a retail store need to be in such a manner that customers have ease with which they can be able to have access to the good that they want. The building should be large in size hence spacious for proper easy arrangement of stock and as well as retrieval. Space premises have a direct impact on the behavior of customers. Adjusting the atmosphere of the retail store can be used in shaping or rather modifying customer’s behavior (Slåtten 2011, p.56). If the store is large enough to accommodate a wide range of products then consumers would definitely opt to still continue depending on the services of the business. A big retail store means added customer service attendants since many customers are expected to be attended to at a go. The reason may simply because they have a feeling that the chances of missing out on a certain product that they are in need of in the store are very low. The size of the store then is a significant factor that influences customer loyalty. General interior The general interior of retail store may influence customer’s behavior of purchasing. The lighting, color or music in a retail store when manipulated customer’s buying habits may be influenced. It may be seen as being subjective but the reason behind this is that customers may prefer to go retail store that has an appealing atmosphere and relaxing. For instance it may be perceived that with music, colors and good lighting purchasing decisions are made with ease as well interactions and negotiations with sellers being friendlier. Store layout The store layout as well may influence buyer’s decisions make a purchase. Aspects such as cash register placement, placement of work station, grouping merchandise and placement of equipment may influence decisions by customers (Young Ha and Sharron 2010, p.38) Most definitely customers are bound feel attracted to a retail store whose cash register is well positioned, the goods are well grouped in the store and the area of work for the workers in the store is in order. Undoubtedly such a work environment assures customers that there will not be delays as they are being attended to. The atmosphere created in the retail store reflects an image to the customers that propels to reason out in favor of the store as far as purchase of goods is concerned. Interior displays Interior displays in stores such as product and price displays and posters influence choice of buyers to make purchases. This features increases convenience to buyers such that they need to ask about some goods whether they are available and their prices. Posters are usually very informative to buyers about new products or any further developments about certain products. In connection to this customer attitudes are affected and their behavior is therefore shaped in a way. Customers are bound to decide to remain loyal to a store with such interior displays. Social dimensions Social dimensions bear some importance as well in retail stores as far as shaping customers decisions is concerned. For instance employee uniforms and personal characteristics may influence customer behavior (Wirtz, Mattila and Tan 2007, p.67). When the employees have a uniform that they can be identified with portrays an attractive image to the customers as well as of the business. The understanding of the same may be that the store is associated with employees who are professionals in their work and who are proud and love what they do. This may be translated by consumers that high level quality services are being provided in the store hence choosing to be loyal to the store. Personal characteristics may refer to qualities of those attending to customers. If a business has good customer service capabilities then customers would definitely opt to visit the same store whenever they need to make a purchase. Recommendations It is quite crucial for business’s in the service environment to realize that he atmosphere in the environment of the business forms quite a very important tool for marketing. It is a non verbal approach to marketing one’s business to the customers. In line with restaurant and retail store services the following are some suggestions which would highly aid in shaping the feelings of consumers about their view of the business influencing their choice of remaining to be loyal to the services of the businesses. Due to the complexity and dynamism of the behavior of consumer restaurant owners and retailers should be more sensitive about behavior and shift their focus as well on data in regards assessed over a wide range of time concerning the behavior of employees. In relation to retailers they mostly focus on prices, offering varieties as well as the location of the business rather than assessing the emotional aspects of consumers. As much as the choice by a consumer in regards to the store or restaurant they will go to is accounted for by cognitive factors, it is quite essential for owners of these business to clearly understand that emotional responses by customers that have been induced by the environment around the store or restaurant is what really determines the extents of consumer spending (Thomas, Scott and Dunn 2000, p.35). It is therefore very important for business owners to clearly identify what aspects of their businesses that they need to improve on in order to create an attractive atmosphere that is capable of influencing feelings of customers in favor of them being optioned as well as gaining their customer loyalty. Restaurant owners and retailers can create an atmosphere that is more rare, surprising and novel. This is due to the fact that novelty to some extents is understood as to increase a person’s degree of pleasure. After some certain period a business environment that has the ability of provoking what customers feel that is in terms of pleasure is in apposition to make a lot of sales hence good business performance. As much as restaurant and retail owners take into consideration how customers feel about the atmosphere of the business environment. It is quite crucial for them to note that different people react differently and that that their reactions may vary. This important to note since it should be ensured that the atmosphere that is to be created supports and is directed solely to the entire target market that is being eyed by the business. Business owners and retailers need not see beyond the impact of modifying the feelings of customer and focus on what is really the final impact of shaping the attitudes of customers. It may be said to be strategically gaining competitive advantage against other similar businesses. Immediately a business realizes that the atmosphere is capable of shaping the feelings of customers regarding the business it should capitalize on that and keep the information in a very secretive way in a bid to gain a competitive edge. Conclusion Service Environments are known to aid business in the creation of a uniquely positioned service environment that is distinctive from other competitive businesses. This is through affecting and shaping the behaviors of buyers. The use of symbolic cue for communication of the distinct nature of the business as well as the quality of services attracts customers. As discussed herein use of sounds, colors and art works may enhance the desirability of services that are being offered to customers. It has been realized that consumers respond differently to products and services before making any purchase decisions. The place that is actually the source of a product or service has been identified as key aspect in as far as shaping what customers think about the business is concerned (Shostack 2005, p. 50). Customer decision making has been reflected to dependent on what they feel about the atmosphere of a business. Great importance has thus been placed on the modification of the business atmosphere, this being the central driving and determining factor of consumer purchases. From a strategic pointy of view the modification of the environment of the business turns out to be a very important tool for marketing which many business people have no idea about. It is quite efficient and effective and has a unique influence on customers without necessarily confronting them. It is quite important for business owners to note that the future of any given business lies in the hand of the customers and their loyalty (Len Tiu Wright Newman and Dennis 2006, p.35). Customers are the individuals who are basically the consumers of the goods and services being provided by business and if they do not make purchases then a business is bound to fail. As already identified a business atmosphere is one way of gaining trust as well as loyalty from customers. There are a number of positive benefits that result when a business modifies its atmospheric environment. They include; good performance through the achievement of success, competitive advantage as well as business sustainability. In connection to this customers form quite an integral part within any given business environment or market and it is quite crucial to understand their dynamic behaviors and complexities of how and what they feel about the business and its environment. References Chamberlain, L and Amanda, J 2007, “The application of physiological observation methods to emotion research”, International Journal of Qualitative Market Research, vol. 10, no. 2, p. 45-67. Foster, S., Sampson, T & Dunn, S 2000, “The impact of customer contact on environmental initiatives for service firms”, International Journal of Operations & Production Management, Vol. 20, no. 2, p. 35-57. Jang, S and Namkung Y 2009, “Perceived quality, emotions, and behavioral intentions: Application of an extended Mehrabian–Russell model to restaurants”, Journal of Business Research; Vol. 62, no. 4, p. 451–460. Jooyeon, H and SooCheong, J 2010, “The effects of dining atmospherics on behavioral intentions through quality perception”, Journal of Services Marketing, Vol. 26, no. 3, p. 47-56. Len Tiu Wright Newman, A and Dennis C 2006, Enhancing consumer empowerment, European Journal of Marketing, vol.40, no. 9, p. 35-78. Lukumon, O 2010, “Sustaining architects' and engineers' motivation in design firms: An investigation of critical success factors”, Engineering, Construction and Architectural Management journal, vol. 17, no. 2, p. 25-63. Shostack, L 2005, "How to Design a Service," European Journal of Marketing, vol.16, no. 1, p. 49–63. Slåtten, T 2011, “Antecedents and effects of employees' feelings of joy on employees' innovative behavior”, International Journal of Quality and Service Sciences, Vol. 3, no. 1, p. 56-64. Wirtz, J., Mattila, A and Tan, R 2007, “The role of arousal congruency in influencing consumers' satisfaction evaluations and in-store behaviors”, International Journal of Service Industry Management, vol. 18, no. 1, p. 67-78. Young, Ha and Sharron, J 2010, “Effects of site design on consumer emotions: role of product involvement”, Journal of Research in Interactive Marketing, vol. 4, no. 2, p. 38-54. Appendices Restaurant view Retail store view Read More