Service Management Report: Servicescape's Influence on Customers

This report examines the concept of servicescape, which refers to the physical environment where services are delivered, and its influence on customer behavior, employee satisfaction, and overall service quality. The report highlights how servicescape elements, including exterior and interior designs such as landscape, signage, lighting, furniture, and music, affect customer perceptions and interactions. It discusses the impact of servicescape on both customers and employees, emphasizing how a well-designed environment can enhance customer satisfaction, foster employee loyalty, and drive positive customer feedback. The report also explores the relationship between servicescape and service quality, emphasizing its role in building customer trust, repeat purchases, and loyalty. The report references key research findings and concludes that a well-managed servicescape is critical for business success.

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SERVICE MANAGEMENT
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Service Management
Servicescape is a model, which explains the effect of the physical environment whereby
service processes are conducted. It emphasizes on exploring behavior of people in the service
environment. The first impression created in the mind of customers in the service environment is
very important as it leads to satisfaction or dissatisfaction. It is whereby service meant for
customers are assembled and where consumer and the service provider interact. A servicescape
is composed of exterior and interior designs. In the exterior design, the elements include,
landscape design, signage, parking and sitting area. The interior environment is comprised of
lighting features, air conditioning, furniture design, music and sound system, wall and floor
coverings. By nature, services are intangible and this means that the customer usually needs to
present and the environment surrounding them have a significant effect on their perceptions on
the service encounter. All these affect customer behavior as well as customer and employee
relations especially in interpersonal services. (Liu, Bogicevic, And Mattila, 2018, p.47)
Impact of servicescape on employee, customers and their encounters:
Customers and employees make up the service encounter. They interact in the same
servicescape environment but their perceptions on things tend to differ in accordance to their
preferences. For an employee, having a large crowd of customers tend to increase their
satisfaction as more customers mean that they will have more tips. On the other hand, for a
customer seeing a large group of other consumers tend to dissatisfy them because they usually
need privacy and space and have close personal interactions with the service provider.
Servicescape affects employee responses that is employee satisfaction in their work
stations as the design of the facility affect how they respond. An enabling working environment

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improves their job satisfaction by reducing employee turnover, improves their commitment to
work as well as employee loyalty and retention. Employee satisfaction is reflected by satisfaction
of consumers in a business to business context. Employees who retain their jobs for a long period
of time develop relationships with consumers such as knowing their taste and preferences for
example an employee who knows which drink the consumer wants even before he or she asks for
it. This lays a foundation for positive interactions. Satisfied customers give more positive
feedback thus creating less complaints and problems to employees and employee empowerment
becomes manifested.
Service quality influences consumer satisfaction by bringing up repeat guest who conduct
repeat purchases. (Kim, 2009).Therefore this drives consumer loyalty due to the trust and
confidence the service provider has gained from the consumer in the delivery of quality services.
(Reimer and Kuehn, 2015, p.785). A disorganized and an improperly arranged environment tend
to push the consumers away as they got out of their way to look for recommendations for a better
service provider in the market who can meet their needs in accordance to their taste and
preferences. (Tombs and McColl-Kennedy, 2007, p.447). Playing music in service space which
is a part of interior design acts as distraction by reducing the negative impact of consumers
waiting at the lobby waiting to be attended at. It is therefore very important to also maintain
cleanliness in the servicescape.

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References.
Kim, W.G and Moon, Y.J., 2009. Customers’ cognitive, emotional and actionable response to
the servicescape: A test of the moderating effect of the restaurant type. International
Liu, S.Q., Bogicevic, V. And Mattila, A.S., 2018.Circular vs. Angular servicescape: `Shaping’
customer response to a fast service encounter space. Journal of Business Research
89’pp.47-56
Reimer, A, and Kuehn, R., 2015.The impact of servicescape on quality perception. European
Journal of Marketing, 39(7/8), pp.785-808.
Tombs A.and McColl-Kennedy, J.r., 2007.Social-servicescape conceptual model. Marketing
theory, 3(4), pp.447-475.