Physical Evidence in Services-hm

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PHYSICAL EVIDENCE IN SERVICES

At the end of this module the learning outcomes are

• What is the purpose of physical evidence?

• Various types of physical evidence

• Role of physical evidence

• Various types of physical evidence strategies.

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PHYSICAL EVIDENCE IN SERVICES

Suggested readings

• Services Marketing by Zeithmal and Bitner, Chapter 10, 2nd edition

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PHYSICAL EVIDENCE IN SERVICES

What is physical evidence

• Services are intangible

• Customers rely on tangible cues or physical evidence for evaluation of services

• Before purchase

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PHYSICAL EVIDENCE IN SERVICES

Elements of Physical Evidence

Facility exterior

• Exterior design

• Signage

• Parking

• Landscape

• Surrounding environment

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PHYSICAL EVIDENCE IN SERVICES

Facility interior

• Interior design

• Equipment

• Signage

• Layout

• Air quality/temperature

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PHYSICAL EVIDENCE IN SERVICES

Other Tangibles• Business cards • Stationary • Billing Statements • Reports • Employee dress • Uniforms • Brochure • Internet / web pages

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PHYSICAL EVIDENCE IN SERVICES

Services Communication through physical evidence

• Heavy Hospitals

Resorts

Childcare

• Limited Insurance

Courier service

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PHYSICAL EVIDENCE IN SERVICES

Types of physical evidence

• Self–service (customer only)

• Interpersonal services (Both customer and employee )

• Remote service (employee only)

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PHYSICAL EVIDENCE IN SERVICES

Self-Service– Customer performs most of the activities – Very few employees involved

ATMs– Various locations– Mostly self service – How should the facilities be – Physical evidence – Pleasing – Easy to use for customers

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PHYSICAL EVIDENCE IN SERVICES

REMOTE SERVICES• Other extreme • Virtually no customer involvement • Customer rarely visits facilities • It may be another country • How physical evidence is designed • Employee interests and preferences • Motivate employees

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PHYSICAL EVIDENCE IN SERVICES

GE call centre in India • Harrod’s • Customer care• Done by GE in India • Facilities design in India • Indian flavour • Local culture Facilities design according to employee taste

and preferences

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PHYSICAL EVIDENCE IN SERVICES

Interpersonal services – Between two extremes – Both – Customer – Employee are present

Examples Hotels Hospitals Banks

 How should the physical evidence be ?

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PHYSICAL EVIDENCE IN SERVICES

Interpersonal services

Hospital

• Physical evidence design

• Take care of customer interest

• Take care of employee interest

• Affects the quality of interaction

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PHYSICAL EVIDENCE IN SERVICES

ROLES OF THE SERVICESCAPE – Package – Facilitator – Socializer – Differentiator

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PHYSICAL EVIDENCE IN SERVICES

Package • Would you buy an ‘Arrow’ shirt • From a grocery shop • Unlikely to buy• Why ? • Poor packaging and physical surroundings • In services, similar concept conveys an image • ‘Dress for success’• Potray a particular image

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PHYSICAL EVIDENCE IN SERVICES

PVR Multiplex • Movie content is same • Why people prefer PVR multiplex • The way it is packaged • Well designed facilities

Booking counter Lobby Chair Seats

• Huge successPackaging a key success factor

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PHYSICAL EVIDENCE IN SERVICES

Facilitator • How it improves your efficiency• Better facilities • Improves performance

Singapore Airlines • Reclining seats in 60s• Seats become like beds in 90s • Headphones • Video on seats • Facility to work on computers

Improves the customer efficiency

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PHYSICAL EVIDENCE IN SERVICES

Socializer • Employees and customers interact• Most offices • Seating place for employees • Customer meeting place • Closed room also provided • Privacy and confidential matters • Employees seating plan • At lower levels • Open space • No cabins • Conductive for socialization

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PHYSICAL EVIDENCE IN SERVICES

Socializer• Barista• Coffee parlor• Not just to sip coffee• Interaction• Read magazines• Play guitar• People sit for longer hoursAmbience conducive for socialization

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PHYSICAL EVIDENCE IN SERVICES

Differentiator

• Physical design

• Differentiates from competitors

• Unusual/exotic experience

In Hotels

• Different designs

• Unique experiences

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PHYSICAL EVIDENCE IN SERVICES

Differentiator

Shakti restaurant – Hyderabad – Created on tree – Rooms are on different branches of tree – Has three floors– Unique experience

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PHYSICAL EVIDENCE IN SERVICES

Physical evidence strategies

• Recognise the strategic impact of physical evidence • Map the physical evidence of service • Clarify roles of the servicescape• Assess and identify physical evidence opportunities • Be prepared to update and moderate the evidence • Work cross–functionally

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PHYSICAL EVIDENCE IN SERVICES

Recognize the strategic Impact of physical evidence

• Role of physical evidence must be defined • Before designing and executing service

strategy• Clarify the overall role of physical evidence • Decisions on physical evidence are

• Costly • Permanent

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PHYSICAL EVIDENCE IN SERVICES

Changing external design of a hotel • Can you change the external design of a

hotel

• Unlikely as changing the design is difficult

• Why ?

• Need to break and rebuilt is a costly decision

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PHYSICAL EVIDENCE IN SERVICES

Map the physical evidence of service

• Before deciding physical evidence

• Take every employee into confidence

• Show even customers

• Get feedback

• Finalise after consultation

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PHYSICAL EVIDENCE IN SERVICES

Clarify role of the servicescape • Identity roles of

Customers

Employees

McDonald’s • Customers role • Created playing space for children • Keeping children busy • Informal and place to enjoy

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PHYSICAL EVIDENCE IN SERVICES

Assess and identify physical evidence opportunities

• Current Physical evidence • Is it enough • May be outdated• Physical evidence upgradation

AirIndia • 1986 • Interiors design changed • Customers feedback • Airlines lacked modern image

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PHYSICAL EVIDENCE IN SERVICES

Be prepared to update and modernise the evidence.

• Everything has an element called ‘fashion’. • Design, colours and styles change. British Airways. • Earlier government company. • Privatised in 80’s. • Changed

• logo, • colour • aircraft, • dress.

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PHYSICAL EVIDENCE IN SERVICES

. Work cross-functionality.• What dress should employees wear when employees

service customers.• Different views.• Operations dept.• Comfort of employees.• Marketing department.• Appealing to customers.• Conflict.Something which is comfortable may not be appealing

and vice versa.

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PHYSICAL EVIDENCE IN SERVICES

How to ensure success• All have to work together.

• Have a team which has members from all departments.

• Marketing• Operations• Finance

• Teamwork matters.