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The ServiceScape

ASIS Year 1 Services Week 2
by

Alinda Kokkinou

on 16 November 2015

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Transcript of The ServiceScape

The ServiceScape
Servicescape
Environment in which the service is assembled and in which the seller and customer interact,

Includes tangible commodities that facilitate performance or communication of the service.
Perceived Risk
Inseparability
Variability
Intangibility
Use the Tangibles to Reduce Perceived Risk
Functional Risk
What if the outcome is unsatisfactory?
Financial Risk
What if there are unexpected costs?
Temporal Risk
What if there are delays?
Physical Risk
What if you get injured? Or your possessions are damaged?
Psychological Risks
Include fear and other negative emotions as a result of the service.
Sensory Risk
What if the service has a negative effect on any of the five senses?

Obviously, one type of risk, does not exclude another...
Social Risk
How will others think and react?
How to mitigate customer risk?
How Do Customers Handle Perceived Risk?
Search information & compare offerings
Search for reviews
Seek information from personal sources
Look for (service) guarantees
Visit facilities / go for trials
Use customer's
psychological impressions
to reduce their perceived risk.
Ambient Conditions
Temperature
Air Quality
Noise
Music
Odor
Space / Function
Layout
Equipment
Furnishing

Signs, Symbols & Artifacts
Signage
Style of Décor
...
Perceived Servicescape
How do customers and employees perceive the environment?
Hard Standards
Basic requirements of the service that are needed to satisfy the customer.
Does that remind you of anything?
Performance Measures...
(Y1Q1 Business Processes)
Moments of Truth
Customers interact with the service process (and service employees) during service encounters.

These are called moments of truth.
Employee (Internal) Responses to Perceived Servicescapce
Customer (Internal) Responses to Perceived Servicescape
How do Employees Behave?
How do Customers Behave?
How do Employees and Customers Interact?
Cognitive
Physiological
Emotional

Cognitive
Physiological
Emotional
Avoidance
Approach
Loyalty to Employer
Satisfaction with Job
Indifference
Job Dissatisfaction
Higher Turnover
Higher Customer Satisfaction
They "follow the script" , or not...
They leave satisfied or dissatisfied.
Panera Bread is a Fast Food Restaurant.
You have 30 seconds to pick what you want to eat. GO!
A well-designed servicescape can help the service provider fulfill the service design.
For Example:
McDonalds used to design its restaurants to encourage customers to eat and leave quickly.
E.g. Customers may perceive the environment as utilitarian.
Customers may feel uncomfortable after sitting for a while.
But if they have been "prompted" by the service provider that this is only a short stop, they might still be satisfied.
Physical Evidence of the Service
Customer Actions
Onstage Employee Actions
Backstage Employee Actions
Support Processes
Service Blueprint
How comfortable do you think those uniforms are?
Homework for next week:
Finish your Service Blueprint
Do the readings
When a service fails to satisfy: it's considered a "service failure"
Soft Standards
Crucial to reach customer satisfaction!
Being treated as an individual (empathy, people)
Being able to help (responsiveness, people, process)
Facilitate = provide the needed service
Enhance = add extra value for the customer
Core Service
Core service is a benefit that a customer gets from the service

Augmented Service
Augmented services are additional offerings that differentiate the firm
Full transcript