MBA Elective Fall 2011 Muhammad Talha Salam, Asst. Professor FAST School of Business talha.salam@nu.edu.

pk

MG 550 Services Marketing

Chap 4: The Service Setting

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> The service setting and consumer behavior > Environmental dimensions of the service setting > Three service settings Examples of Service Settings

Class Presentation | Session 11

The Service Settings and Consumer Behavior

Consumer Behavior model considered:

Cognitive, Affective, Connative/Behavior

Cognitive

Developing a certain belief about the service

MG 550 Services Affective Marketing

The Service Settings and Consumer Behavior

Consumer Behavior model considered:

Cognitive, Affective, Connative/Behavior

Exciting

Affective (from prev. slide)

Research in Environmental Psychology reveals behaviors on two dimensions:

Pleasant/Unpleasant Arousing/Exciting

Unpleasant

Pleasant

This is how consumers can feel

Unexciting

MG 550 Services Marketing

Environmental Dimensions of the Service Setting

Bitners model of Servicescape Framework for service setting

MG 550 Services Marketing

Environmental Dimensions of the Service Setting

Ambient Conditions

Lighting Color

Spatial Planning

Space Planning Furniture/Equipment/Furnishings

Signs, Symbols & Artifacts

Signage

MG 550 Services Marketing

Environmental Dimensions of the Service Setting

Ambient Conditions

Lighting key factors impacting lighting

Daylight Color Nature of the activity to be performed in the space(s) Service providers perception of the task Levels of vision mood

The desired MG 550 Services Marketing

Environmental Dimensions of the Service Setting

Ambient Conditions

Color

How does it impact? Main distinction: warm colors / cool colors Finer distinction also possible Pragmatism shouldnt be there generic answers dont exist Composition of colors (factors to be considered)

MG 550 Services Marketing

Hue the name, e.g. red, blue, yellow

Environmental Dimensions of the Service Setting

Ambient Conditions

Color

Another importance/use of colors in service setting Class discussion vis--vis characteristics of colors

MG 550 Services Marketing

Environmental Dimensions of the Service Setting

Spatial Planning

Space Planning

Main thing an interior designer does alongside architect Questions at the start:
1.

The brief - The identification of the issue (the brief) Synthesis/creating a solution Developing the design Final solution the efficacy

2.

3.

4.

MG 550 Services 5. Testing Marketing

Environmental Dimensions of the Service Setting

Spatial Planning

Furniture/Equipment/Furnishings

Importance & Considerations Longevity Help in productivity Creating the service setting

MG 550 Services Marketing

Environmental Dimensions of the Service Setting

Signs, Symbol, Artifacts

Signage

Facilitating role Should be helpful Creating the service setting & needs to be coherent with the brand psyche

MG 550 Services Marketing

Three Service Settings

Financial Services

Metamorphosis from:

Elegant, dark, expensive and foreboding interiors to the fun money shop era of the past decade to the current trend of serious design, professional service and interaction between people

Applicable in Pakistan as well

MG 550 Services Marketing

Three Service Settings

Fast Food Restaurants

Focus remains on speed Give information clearly No exclusivity New developments McDonalds UK Self-Read

Hotels

MG 550 Services Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

ASID (American Society of Interior Designers) publication This work is mainly focusing on employees

But is of importance for services operations revealing how interiors can bring change

[included in class handouts selected parts on slides]

MG 550 Services Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

PHYSICAL WORKPLACE IMPACTS DECISIONS TO ACCEPT OR LEAVE JOBS (%AGE MENTIONING TOP-OF-MIND FACTORS)

Results of surveys

10

12

MG 550 Services Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

Results ofWORKPLACE INFLUENCES TAKING A NEW JOB PHYSICAL surveys

MG 550 Services Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

Results ofWORKPLACE INFLUENCES IN STAYING IN JOB PHYSICAL surveys

MG 550 Services Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

PHYSICAL WORKPLACE IMPACTS DECISIONS TO ACCEPT OR LEAVE JOBS (%AGE MENTIONING TOP-OF-MIND FACTORS)

Results of surveys

10

12

MG 550 Services Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

Monster.com Case Study

A technology firm in highly competitive market looking to retain employees

Interior Designer:

As a high-tech, high-growth company, Monster.com faces a lot of competition in attracting talented staff

Our goal was to create the most technologically advanced, interactive and fun workplace in the country to help them attract and retain the best and brightest in the technology and creative fields. While the end result was a space unique to Monster.com, MG 550 Services the project has lessons that can be applied to any Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

Monster.com Case Study

A technology firm in highly competitive market looking to retain employees

Survey Results (employees on new office):

90% - New physical environment improves the companys competitiveness as an employer in the marketplace 55 % (who received outside job offers) - the new physical environment was important in their decision to stay at Monster.com 67% - the new physical environment is a motivating factor for their sales activities

Of this group, 38 percent said it is very or extremely motivating

MG 550 Servicesnew physical environment promotes creativity 62% - the Marketing

Examples: Cases-in-point

Recruiting/Retaining through Interiors

Monster.com Case Study

A technology firm in highly competitive market looking to retain employees

CEO:

I believe in working hard and playing hard, and I wanted office space that allows us to do both The physical environment supports our work style and reflects our culture. It also provides places where people can hang out to strengthen their bonds with each other and the company.

MG 550 Services Marketing

MBA Elective Fall 2011 Muhammad Talha Salam, Asst. Professor FAST School of Business talha.salam@nu.edu.pk

MG 550 Services Marketing

Chap 5: Service Quality

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The Quality Challenge Definitions of Quality Standards Hard and Soft Standards

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Case Study Session 1: Starbucks

Class Presentation | Session 12