Servicescape: The Impact of Physical Environment on Customer Behaviour

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Introduction (Academic context to support your investigation) The importance of physical environment on customers is widely recognised by managers and mentioned in many service industry. It is true that customers will make use of a service enterprise if they perceive that the service provided will be of high quality (Brady & Cronin, 2001). According to Abdullah Rosario (2009), quality of services delivered plays considerably a major role in shaping and manipulating customer satisfaction. With customer satisfaction comes positive customer behaviour. It is highly visible in the service sectors such as restaurants, hotels, retails, hospitals and bank. One important aspect regarding perception of servicescape includes the study of the physical environment in which the services are delivered. The servicescape model helps management develop a strategy to impress their first-time or regular customers. However, managers often restructure these elements but are often not fully utilising it. It is important for service managers to understand that the quality of the service environment is positively linked with customer satisfaction. On the other hand, it is also negatively linked with customer complaints. Physical environment in a service business such as ambience, aesthetics, signages etc. plays an important role in creating a positive customer behaviour and experience. Bitner (1992) studied in the area of service marketing specifically in physical environment. According to him, in a service setting, physical environment is the main factor which will be impacting customer’s perception during their first experience and their consumption of the service carries out within the physical environment. The importance of understanding serv... ... middle of paper ... ...Rationale / Research hypothesis According to Abdullah and Rozario (2009), satisfaction regarding services are derive - Physical environment has a significant positive impact on customer satisfaction - Customer satisfaction has a significant positive impact on customer affiliation/loyalty - Customer affiliation loyalty leads to positive customer behaviour - Behavioural: stay longer, spend money - Emotion: Pleasure, Arousal, Dominance => Approach or avoidance Methodology (case study, secondary or survey-based research) - Sample and procedure - Results References Hoffman, K. D. and Turley L.W., (2002), Atmospherics, Service Encounters and Consumer Decision Making: An Integrative Perspective, Journal of Marketing Theory and Practice, Issue. Summer, pp 33-46. P. Kotler and G. Armstrong, (1996), Principles of Marketing, PrenticeHall, New Jersey.

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