Dimensions of the Service Environment - Case Study Example

Dimensions of the Service Environment Name: Lecturer: Course: Date: Table of Contents Table of Contents 2 Introduction 3 Background analysis: Prahran Hotel and Starbuck in Melbourne 3 Exterior design 4 Architectural style and exterior design 4 Parking lot 6 General interior 7 Colour scheme 9 Entertainment 10 Music 10 Scents 11 Store layout 12 Interior displays 14 Personnel characteristics 14 Crowding 15 Conclusion 16 References 17 Introduction Service environments are multifaceted and integrate many components intended to shape employee and customer responses. The capacity of the physical environment to impact behaviour and to establish an image is specifically oblivious for services providers, including hotels and restaurants. The Mehrabian and Russell Stimulus-Response Model show that affect or feeling facilitate in determining how humans respond to the varied elements within the environment. Russell’s Model of Affect also indicates how such feelings can better be understood, as well as their effects on the response behaviour (Lovelock et al. n.d). The models hypothesise that the environment and how it is viewed and interpreted whether knowingly or reflexively influences how people feel within that setting. People’s feelings are therefore the principle element in the model, as they trigger responses to that environment. At the same time, similar environments lead to varied feelings and consequent responses (Murray 2012). Studies show that consumer emotions influence buyer behaviour. In this respect, this paper aims to explore the use of situational factors by Prahran Hotel and Starbuck. It further investigates the association of the mediating factors variables, which are the emotional states suggested by Mehrabian and Russell. Prahran Hotel and Starbuck’s service environments are examined to show how they leverage emotional states and situation factors. Background analysis: Prahran Hotel and Starbuck in Melbourne The physical environment and the manner in which operations are done at Prahran Hotel and Starbucks play a significant role in creating particular institutional image, as well as the experience the customers are going to love. Compared to Prahran Hotel, which is also situated in Melbourne, Starbucks is relatively small and clattered with small chairs and tables and an outdoor seating area. It is situated in Melbourne’s famous Italian cafe district, Lygon Street (Winchester 2011). The environments in which Prahran Hotel and Starbuck markets themselves are essentially a reflection of the quality of services the companies offer. Hence, it is clear that their management has made efforts to stimulate such quality with the view of acquiring strong brand image. As a consequence, the environment of the hotel seeks to modify the perception on the quality of its services. In return, it is expected that the customers will attribute superior quality to the products that the Prahran Hotel and Starbuck seek to market in luxuriant and opulent locations, in contrast to those marketed as a discount atmosphere. Exterior design Architectural style and exterior design The location of the Prahran Hotel is a way from crowded streets of Melbourne. On the other hand, Starbucks is situated in crowded parts of Lygon Street, although adjacent to commercial galleries. Concerning Prahran Hotel’s architecture, the exterior has 17 concrete pipes that are stacked to create an illusion of a three-story facade, which bring out the feeling to a creator that the pub is modern and unique. Figure 1: Prahran Hotel visible from outside Accordingly, in both cases, the predominant pattern is that of renovated structures, with modern glass facades that have multitudes of purposes, such as creating the impression of modernity and contribute to the rise in tangibility of the services, by allowing the customers who are outside to view and anticipate the way in which operations are run from the inside. According to Graa and Dani-elKebir (2012), such features create responses to customers by inviting them to interact with the personnel (See Figure 1). The Prahran Hotel has its company name displayed at the shop-front. It also has an outdoor courtyard that has porthole windows, which is decorated by botanical hangings. Starbucks has its name and logo displayed. Critically, the display of the name and logo announce the imposing presence of the two service companies. In this regards, the customers will associate the Prahran Hotel and the Starbuck’s brand with the feeling of quality and credibility (See Figure 1 and 2). Figure 2: Prahran Hotel shopront Figure 3: Starbuck shopfront Indeed, Bohl (2012) argued in support of this perspective. According to Bohl (2012), the exterior dimensions and the architectural style lead to the formation and strengthening of the feelings towards particular brands. In the case of Starbucks, the remarkable logo contributes to brand recognition, since it enables customers to remember the service provided, each time they pass by. Additionally, the brands acquire positive response based on rational arguments, since modern locations can induce the appearance of credibility and quality. Parking lot Prahran Hotel and Starbucks have sufficient parking lots that are also tolerably disposed. According to Nistorescu and Barbu (2008), insufficient or inaccessible parking lots create a feeling that creating a relationship with the service company is difficult. At the same time, the customers may debate whether to enter the parking lot or to go to another store. The spatial layout of the parking lots is a key dimension of Starbuck and Prahran Hotel’s service environment. They affect the capacity and the user-friendliness to service customers effectively. Aside from their functionality of seeking to make performance of the services easier, they had a direct impact on the customers’ experience. Nistorescu and Barbu (2008) further suggested that parking lots can be categorised into representations or performance. The first is the pleasant experience of shopping, which customers may hope would make brand selection process effortless. Second is the efficiency of solving a problem or satisfaction of unsatisfied necessity, which determines whether customers appreciate a brand positively. In principle, customers get to complain about the poor parking to other customers, especially to those responsible for managing the store. General interior The interior elements at Prahran Hotel include the various aspects of the ceiling, the wall, the flow, in addition to the way in which the store is illuminated, background sound, interior temperature, olfactory aspects and the likelihood of inviting customers further inside the store. It has pipe booths that are outfitted with leather upholstery and acoustic absorption mats (See Figure 6). The pipes, which extend to three levels, provide sufficient space for patrons who can chat luxuriantly while watching action unfold in the bar. Daylighting from the pipe windows and the courtyard fill the room, thus providing a welcoming space compared to Starbuck’s dark and dingy space (See Figure 4 and 5). Figure 4: Starbucks spatial layout Figure 5: Prahran hotel showing illuminated free space Compared to Prahran Hotel, Starbucks is relatively small and is clattered with small chairs and tables and an outdoor seating area. These designs of the interior element create a positive feeling oriented at the brand. By being creative with the internal environment, the Prahran Hotel gets positive response from customers, since it believes that people want to eat in pleasant atmosphere that creates recreational feeling. According to Graa and Dani-elKebir (2012), consumer emotions are potentially mediating factors in the purchase process. Colour scheme Colour is also a critical factor employed by Starbucks and Prahran Hotel to influence customer response and behaviours. According to Bitner (1992), interior design plays a critical role in getting customers to the store. Nistorescu and Barbu (2008) suggest that colour can be an ideal stimulant, as well as symbolic or expressive. Starbucks is decorated in strands of monochromatic wooden colours to promote brand communion and recognition. The wooden features bring out a homely feeling to the customers, which the company seeks to achieve as an objective. Figure 6: Prahran monochromatic brownish colours Prahran Hotel has a series of chromatic combinations that are intended to induce the feelings of warmth and relaxation, intellect to the customers. Indeed, the Perhnam Hotel interior suggests a feeling of warmth, expression, emotions, mood enhancing, intellect and optimism. This is achieved by integrating brown colour. The streaks of green achieved by the plants inside the hotel balance the feeling of exuberance or warmth with cool, healing and nurturing (See Figure 6). The plants also bring about the feeling of relaxation, tranquillity and recuperation. Bohl (2012) also pointed out that colour schemes integrated in elements of a store’s interior design have an effect on the customer’s behaviour. Depending on the colours applied, customers get more attracted to stores’ display, and interior space are likely to make them stay, be aroused, spend more time inside the store as well as develop a positive image towards the store. Entertainment The Starbucks brand suggests the likelihood of entertainment. This is achieved through the existence of flat screen TB that presents various programs with ambient images, which induce customers into having a sensation of maximum intensity living. This, according to Nistorescu and Barbu (2008), has the potential to generate loyalty, particularly from the young people. Both Perhnam Hotel and Starbuck are able to achieve tangibility through the decoration of their interior. The perspective is consistent with that of Bohl (2012) who argued that since services are intangible, they can be made tangible through design and interior design. As seen in the case of Starbucks and Prahran Hotel, customers are likely to seek brand meanings from their performances that materialise through the interior design and style. Music Associated to the interior design is music, which, according to Milliman (1982) also has powerful impact on the behaviours and perceptions of the customers. In which case, the elements of music, including the volume, rhythm and harmony are interpreted differently, based on the listener. Both Prahran Hotel and Starbucks have soft low music at a decelerated tempo, to bring a relaxed unhurried atmosphere. Studies have indicated that high volume and accelerated tempo music tends to increase nervous excitement that makes a person eat faster or precipitately at a hotel (Nistorescu & Barbu 2008; Bohl 2012). Wilson (2003) provided an analysis to indicate that music has an effect on the environment and customer arousal, the extent of which is dependent on the type of music, such as background or foreground music. Prahran Hotel has slow background music. The ambient of the music can be mediated by the nature of congruity, in addition to other environmental cues. The genre of the music is congruent with the atmosphere of the hotel, and is likely to increase length of time spent in the cafe and more spending. Milliman (1982) explains that when customers like the music, they get to assess the environment more positively and perceive the waiting time to be shorter, as a result spending more. Scents Starbucks has alluring aroma of burn coffee smell that brings the homely feeling. This is consistent with the layout of the chairs and the wooden colours, aimed at bringing a homely feeling. Prahran Hotel has lavender fragrance that seeks to bring calming, relaxing and soothing feeling. The fragrance is consistent with the brownish monochromatic colours that also bring out relaxing feeling. Indeed, the presence of perfume is argued to greatly influence effective reactions, people’s perception and intentions to purchase and behave while inside the store (Billings 1990). Hence, studies have indicated that respondents who are inside perfumed environments tend to appreciate the store, as well as perceive the store as being modern and the service quality as being superior (Bohl 2012). It should be assumed that pleasantly scented interior space contribute to approach behaviour, while unpleasantly scented ones cause customer avoidance. However, the effect is dependent on the scent type. The scent has to have a perceived association with the type of the store in order to fain positive response (Bohl 2012). Based on aromatherapy principles, certain properties of the perfume can be applied in generating specific types of psychological or emotional reactions. Aroma and scents are also critical interior variables, which have been investigated, although with varied outcomes. Some studies have established that the presence or absence of scent has a substantial influence on the behaviour of the consumer, despite the odour. Bohl (2012) identified 34 studies that showed statistically significant impacts of the presence of scent on customer’s response. Store layout At Starbucks, the tables are arranged close to each other so as to bring the feeling of communion between the customers, or promote interaction and interdependence between the customers. This is consistent with the objective of bringing a homely feeling. On the other hand, Prahran Hotel has chairs and tables arranged distantly to promote the feeling of independence, autonomy or an indication that the hotel values respect of personal space. Within the category of store layout, aspects of grouping and arrangement of furniture, work posts, high-tech equipment and organisational of departments are essential. Functionality entails the ability of these elements to sustain effective operation. On the other hand, spatial functionality and organisation influence customer’s purchase behaviours, brand attachment, and their satisfaction levels (Katelijin et al. 2001). They also contribute to brand recognition, feelings, performance and building. For instance, in regards to performance, Prahran Hotel customers enjoy a large free ergonomic free space, which satisfies their expectation of faster and quality delivery. Hence, they become more interested in prompt delivery of services within a functional and ergonomic space. From the perspective of representations, the organisation of the spaces contributes to the creation of pleasant experience that can generate pleasant memories. This is specifically so for the Prahran Hotel that has a pleasant arrangement of chairs at a distance, which has the psychological effect of triggering relaxing distant memories (See Figure 7). Figure 7: Freer spatial layout at Prahran hotel However, spatial organisation can bring feelings of closeness towards the brand, as well as the feelings of security. At Starbucks, the chairs and tables are arranged closely, which brings to customers the feeling of closeness, interdependence or intimacy with other customers as well as with the brand. The feeling of interdependence evokes the feeling of mutual security among the customers. Interior displays A series of elements such as symbols, signs and artefacts that form the atmosphere of a service play the critical role of transporting a firm’s image or allowing customers to orientate themselves or the rules that they should comply with. Unlike customers visiting Starbucks for the first time, those visiting Prahran Hotel for the first time may find it difficult locating the information to guide them. For instance, the signs that guide visitors to the toilets are not conspicuously displayed. These may cause a feeling of confusion that would accentuate frustration and fury. The minimal use of symbols, signs and artefacts at Prahran Hotel shows limited explanation of the unfolding services, hence increases the time customers spend and may actually create a feeling of ineffectiveness for customers. In contrast, Starbucks is better signalled, which increases the feeling of quality and effectiveness to the customers. According to Bohl (2012), attaching signs in large letters increases the feeling of effectiveness. Social dimensions Personnel characteristics Both Starbuck and Prahran Hotel have high number of personnel, who are also well-groomed, friendly and who appear as looking proficient and customer-focused. The members of staff have tags (with either numbers or names) and are professionally attired, which make contacting or identifying them easy. This is since, in case of service failure, employees dressed in professional attire can be identified easily, hence giving the customers a feeling of satisfaction and reliability. These are likely to positively influence customer purchasing behaviour. Bohn (2012) noted that the number of the personnel, their behaviour and appearance influence consumers perception of the retailer and hence influence their behaviour. Bohl (2012) also examined the impact of friendliness and the number of employees. In his view, the friendliness and number of employees positively impacts the levels of arousal and pleasure that in turn impacts the willingness to buy. Studies have also indicated that stores possessing one sales personnel at any single floor are often viewed as providing high service quality. Based on this review, Starbucks and Prahran Hotel are likely to be perceived as providing high quality service based on the high number of personnel it keeps. Crowding Crowding refers to the evaluation of the presence of people, mainly customers, within a limited space. It is critical to distinguish between perceptions of crowding from density, which is the actual number of buyers present (Bohl 2012). The perception of crowding can be spatial crowding, where there is a feeling of restricted movement because of spatial density, or human crowding, which depicts confined feeling of high human density. Both have been found to have negative influence on customer behaviour. Because of Prahran Hotel’s spatial layout, spatial crowding can less be perceived, as there is more free space between the stations. Starbuck’s has a more limited spatial layout which brings the feeling of crowding. Customers at Prahran Hotel are more likely to benefit from satisfaction and happy relaxed feeling. Starbucks is less likely to benefit in this regard. However, as indicated by Bohl (2012) density may not contribute to negative perception of crowding when the customers are in control, on the environment. This implies that since the crowding at Starbucks is as a result of the spatial layout, it is expected to give customers control over the space, which implies that it is less likely to lead to negative perception of crowding. Indeed, studies have confirmed that crowding has negative implications on atmospheric perceptions, leading to negative emotions or irritation or unhappiness, as well as negative effect on satisfaction. In some extreme cases, they could lead to emotional venting. Conclusion The situational factors analysed include Prahran Hotel and Starbuck’s service environment, such as design, atmosphere and employee assistance, the perceived crowding and time pressure. It is established that pleasure is linked to design while arousal is linked to the perception of crowding. However, dominance is associated with the time spent within the hotel. The physical environment and the manner in which operations are done at Prahran Hotel and Starbucks play a significant role in creating particular institutional image, as well as the experience the customers are going to love. As a consequence, the environment of the hotel seeks to modify the perception on the quality of its services. In return, it is expected that the customers will attribute superior quality to the products that the Prahran Hotel and Starbuck seek to market in luxuriant and opulent locations, in contrast to those marketed as a discount atmosphere. References Billings , W 1990, "Effects of Store Atmosphere on Shopping Behavior" Honors Projects. 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