Customer Response to Service Environment and Management Decisions

This report explores the significant influence of facilities management decisions on customer behavior and the service environment. It highlights how decisions regarding infrastructure, stock, and services directly impact customer experiences and perceptions. The report emphasizes the importance of providing adequate resources and a positive service environment to avoid negative feedback and maintain a favorable business image. It also discusses the environmental psychology, focusing on the Mehrabian-Russell stimulus-response model, which explains how customers respond to the service environment based on emotional states like pleasure and arousal. The report references key models and research to provide a comprehensive understanding of the customer's response to the service environment and the impact of facilities management decisions.

Running head: MANAGING SERVICES
Managing Services
4/30/2019

MANAGING SERVICES 1
Influence of Facility Management Decision on Customer
The facility management is responsible for managing the facilities like, infrastructure, stock,
services, etc. of the organization. The decision of the facility management has a major
influence on the customers. For instance, if the facility management department does not
acquire proper stock in the business for offering services to the customer, then customer will
have to switch to other retailer to purchase that same product. This will cost business a lot in
terms of losing a customer, negative image in the eyes of the customer, etc. Besides this,
deciding to offer limited facilities to the customer results in receiving negative feedback on
the social media sites and organization website, which can result in negative publicity of the
business in the market (Cotts, Roper and Payant, 2010).
Customer responses to Service Environment
Physical evidence major affects the behaviour and emotions of the customers. Hence, create
utilization of the service environment could influence the behaviour and opinions of the
individuals. The effect is generally called as the environmental psychology.
Environmental psychology research how customer or individual respond to a particular
environment. There are two models that have been established to understand the response of
the customer to service environment:
Mehrabian-Russell stimulus-response model
This model is utilized to comprehend the feelings in the service environment and recommend
that response of the consumer to stimuli is affected by three emotional states i.e. dominance-
submissiveness, arousal-nonarousal, and pleasure-displeasure (Areni, Sparks and Dunne,
2019).

MANAGING SERVICES 2
Russell’s model of effect
According to this model, the emotional response to the environment could be explained with
the two key dimensions i.e. arousal and pleasure.

MANAGING SERVICES 3
References
Areni, C.S., Sparks, J.R., and Dunne, P. (2019) Assessing Consumers' Affective Responses to
Retail Environments: a Tale of Two Simulation Techniques [online]. Available from
http://www.acrwebsite.org/volumes/7722/volumes/v23/NA-23 [accessed 30 April 2019]
Cotts, D.G., Roper, K.O., and Payant, R.P. (2010) The Facility Management Handbook 3rd
ed. U.S: American Management Association.