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Chapter 10: Crafting the Service EnvironmentOverview of Chapter 10What Is the Purpose of Service Environments?Understanding Consumer Responses to Service EnvironmentsDimensions of the Service EnvironmentPutting It All TogetherWhat Is the Purpose of Service Environments?Purpose of Service EnvironmentsHelps firm to create distinctive image and unique positioningService environment affects buyer behavior in three ways:Message-creating medium: Symbolic cues to communicate the distinctive nature and quality of the service experienceAttention-creating medium: Make servicescape stand out from competition and attract customers from target segmentsEffect-creating medium: Use colors, textures, sounds, scents and spatial design to enhance desired service experience Comparison of Hotel Lobbies (Fig 10.1) Each servicescape clearly communicates and reinforces its hotel’s respective positioning and sets service expectations as guests arrive Orbit Hotel and Hostel, Los Angeles Four Seasons Hotel, New York Servicescape as Part of Value PropositionPhysical surroundings help shape appropriate feelings and reactions in customers and employeesFor example: Disneyland, Denmark’s LegolandServicescapes form a core part of the value propositionFor example: Club Med, Las Vegas, Florida-based MuvicoLas 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 Understanding Consumer Responses to Service EnvironmentsThe Mehrabian-Russell Stimulus-Response Model (Fig 10.2)Feelings Are a Key Driver of Customer Responses to Service Environments Dimensions of Affect:Pleasure and ArousalResponse/ Behavior:Approach Avoidance and Cognitive ProcessesEnvironmental Stimuli and Cognitive ProcessesInsights from Mehrabian-Russell Stimulus-Response ModelSi