Chapter 7

Managing the organisations physical

evidence

Module objectives
At the completion of the module, you should be able to:
discuss the importance of the service organisations
physical evidence
discuss the strategic role that the physical evidence or
servicescape plays in service delivery
explain the stimulus-organism-response (SOR) model
identify and explain the major components of the service
organisations servicescape
discuss the use of sensory cues for designing
servicescapes
compare the designs of low versus high contact service
organisations.

7.0 Introduction

Physical evidence is particularly

important for services that are high in
credence qualities which are difficult to
evaluate
Physical evidence is important for
services, such as hotels and theme
parks that are dominated by
experience attributes.

In this module, we use the stimulusorganism-response (SOR) model to

explain the impact of the servicescape
on customers & employees.
We also focus on specific design issues,
and the uses of sensory and the design
of low versus high contact services.

7.1 The strategic role of

physical evidence

The strategic role of physical

evidence

Physical evidence can

fall into three broad
categories:
facility exterior
facility interior
other tangibles.

The strategic role of physical evidence

Facility exterior
Includes:
the exterior design
signage
parking
landscaping
surrounding environment.

The strategic role of physical evidence

Facility interior
Includes:
the interior design
equipment used to serve customers
signage
layout
air quality and temperature.

The strategic role of physical evidence

Other tangibles
Includes:
business cards
stationery
billing statements
reports
employee appearance
uniforms
brochures.

7.1.1 The SOR Model

Stimulus organism response model

Used to explain the effects of the service environment

on consumer behaviour. The physical evidence can be
used to gain attention, convey a message, and
increase desire.

Three components:
1.
2.
3.

a set of stimuli;
an organism component; and
a set of responses or outcomes.

The physical environment presents three

types of environmental stimuli:
1. the ambience;
2. space; and
3. signs and symbols.

These stimuli influence the cognitive,

emotional and physiological thoughts
and feelings of customers and
employees.

Three components of the SOR

model

Discussion
Explain the stimulus-organism-response (SOR) model for
explaining the impact of the physical evidence of the service
organisation on both customers and employees.

7.2 The development of

servicescapes

The development of
servicescapes

this section looks at:

the design of the servicescape.
the amount of attention that must be given to planning,

designing and managing it,

The extent to which the customer is likely to be involved in
the place of service provision or delivery.

three categories of services: remote, self-service,

and interpersonal.

when designing the servicescape, organisations

need to consider it from three perspectives: that of
customers, employees and management.

The development of
servicescapes

The physical environment is comprised

of:
ambient conditions,
space/function, and
signs, symbols and artefacts.

The development of
servicescapes

These elements need to be carefully

designed to meet the needs of different
customers:
1.
2.
3.
4.

economic customers;
personalised customers;
apathetic customers; and
ethical customers

The development of
servicescapes

Internal responses to the servicescape

include:
cognitive responses including beliefs,

categorisation and symbolic meaning

emotional responses including mood and
attitude
physiological responses, for example pain,
comfort and physical fit.

The development of
servicescapes

So Servicescapes use physical evidence to design

service environments.

Several services / environments to consider:

remote, self service and interpersonal services

physical environmental dimensions
holistic environment
internal response moderators
internal responses to the environment
behavioural responses to the environment.

The servicescapes model

The development of
servicescapes
Physical environmental dimensions

Ambient conditions:
temperature, air quality, noise, music, odour.
Space/function:
layout, equipment, furnishings.
Signs, symbols, and artifacts:
signage, personal artifacts, style of dcor.

The development of
servicescapes
Holistic environment
Overall perceptions of the servicescape formed by

employees and customers based on the physical

environmental dimensions:

economic customers
personalised customers
apathetic customers
ethical customers.

The development of
servicescapes
Internal response moderators

pleasure or displeasure
arousal or non-arousal
dominance or submissiveness.

2006 Thomason Learning, Inc. South-Western

The development of
servicescapes
Internal responses to the environment

Cognitive responses
beliefs, categorisation, symbolic meaning.
Emotional response
mood, attitudes.
Physiological response
pain, comfort, movement.

The development of
servicescapes
Behavioural responses to the environment

Individual behaviours:
characterised as approach and avoidance.

Social interactions:
encourage interactions between and among customers and
employees.

Discussion
Using examples, differentiate self-service, interpersonal
services and remote services. Briefly explain the impact on
physical evidence for the three different types of service.

7.3 Creating service atmospheres

Creating service atmospheres

Service atmospherics (physical and

psychological) impact on customers,
employees and organisational
operations.

Designing service atmospherics

requires an intimate knowledge of
customers and employees and the
impact of sensory cues.

Discussion
How can an understanding of sensory cues assist the
service organisation in the design of an effective
servicescape? Use examples to illustrate your response.

7.4 High versus low

contact servicescapes

High versus low contact

servicescapes

facility location
facility layout
product design
tangible and intangible components
molecular models
process design
evaluations based on outcomes only vs. outcomes
and process.

Discussion
Discuss how the design of the physical evidence differs
across high and low contact service organisations on four
different dimensions.