The servicescape and the effects on interaction -Case Study- Mälardalen University, Västerås School of Sustainable Development of Society and Technology Master Thesis International Marketing EFO705 Thomas Peters (1988-03-12) Vincent Twint (1987-08-11) Tutor: Mikael Holmgren Examiner: Ole Liljefors May 2011 The servicescape and the effects on interaction A case study of Clas Ohlson Master Thesis EFO 705 Tutor: Mikael Holmgren Mälardalen University, Västerås © Authors Thomas Peters & Vincent Twint I Abstract Date: 31th May Level: Master Thesis Authors: Thomas Peters & Vincent Twint Tutor: Mikeal Holmgren Title: Servicescape and the effects on interaction Problem: How does the servicescape affect the interaction between customer and employee? Aim: Achieving a deeper understanding about the elements of the servicescape at Clas Ohlson and how these elements might affect the interaction between customers and employees Method: Qualitative research approach – a single case study Conclusion: Variety of views and interpretations among customers concerning the effect of the servicescape on their interaction with an employee. Keywords: Servicescape, environmental dimensions, atmospheric stimuli, interaction, service encounter, Clas Ohlson II Acknowledgments This thesis could not have been realized without the participation of a few people. First we would like to thank our tutor Mikael Holmgren for his great contribution and critical review that made us not to overcome hills but mountains during the process. Besides that, we would like to thank the tutors Tobias Eltebrandt and Angelina Sundström for their input and suggestions in the field of marketing. Third, we would like to thank the students whose constructively criticized our work and provided necessary suggestions during the process of writing this thesis. Thomas I would like to thank Vince for his great contribution, encouragement and assistance to accomplish our thesis and master International Marketing. Vincent With this master thesis I am ending my studies of International Marketing in Sweden. I want to thank my friends and family who have supported me during my stay in Sweden and especially while writing this thesis. I know Thomas for several years and we have been working together for a few years now. It has been a pleasure to work with Thomas and I want to thank him for his contribution, inspiration and enthusiasm. Västerås, Sweden May 2011 Thomas Peters Vincent Twint Table of Contents Abstract..................................................................................................................................I Acknowledgments............................................................................................................ II List of figures, tables and illustrations.....................................................................III 1 Introduction.....................................................................................................................1 1.1 Background ...........................................................................................................................1 1.2 Problem specification ........................................................................................................2 1.3 Research and strategic question ....................................................................................3 1.4 Outline of study....................................................................................................................3 2 Theoretical framework................................................................................................5 2.1 Understanding service.......................................................................................................5 2.2 Understanding servicescape............................................................................................5 2.3 Understanding interaction...............................................................................................7 2.4 Framework impact of servicescape on customer and employee ........................8 2.4.1 Environmental dimensions and servicescapes............................................................... 9 2.4.2 Types of behavior: internal responses .............................................................................10 2.4.3 Types of behavior: individual & social interactions....................................................11 2.5 Framework for retail atmospherics........................................................................... 11 2.6 Servicescape elements and Conceptual framework............................................. 13 2.6.1 Servicescape elements.............................................................................................................13 2.6.2 Conceptual framework............................................................................................................14 3 Methodology discussion ........................................................................................... 15 3.1 Epistemology...................................................................................................................... 16 3.2 Theoretical perspective ................................................................................................. 16 3.3 Methodology....................................................................................................................... 17 3.3.1 Case study .....................................................................................................................................17 3.4 Methods and data collection......................................................................................... 17 3.4.1 Observations ................................................................................................................................17 3.4.2 Interviews .....................................................................................................................................18 3.5 Sampling methods............................................................................................................ 19 3.6 Method discussion............................................................................................................ 19 3.6.1 Credibility......................................................................................................................................20 3.6.2 Transferability.............................................................................................................................20 3.6.3 Dependability ..............................................................................................................................21 3.6.4 Confirmability..............................................................................................................................21 3.7 Precautions, limitations and ethical consideration.............................................. 21 4 Empirical data .............................................................................................................. 23 4.1 Company profile................................................................................................................ 23 4.2 The servicescape............................................................................................................... 23 4.2.1 Design elements (width of aisles, space design, functionality)..............................25 4.2.2 Ambient elements (lighting, music)...................................................................................27 4.2.3 Placement of elements (merchandise, equipment and cash registers)..............27 4.2.4 Human elements (crowding, waiting cues)....................................................................29 4.2.5 Unclassified elements...............................................................................................................30 5 Interpretation .............................................................................................................. 32 5.1 Clas Ohlson.......................................................................................................................... 32 5.2 The servicescape of Clas Ohlson.................................................................................. 33 5.2.1 Design elements..........................................................................................................................33 5.2.2 Ambient elements......................................................................................................................36 5.2.3 Placement of elements.............................................................................................................37 5.2.4 Human elements.........................................................................................................................38 5.2.5 Unclassified elements...............................................................................................................40 6 Conclusion & discussion ........................................................................................... 42 6.1 Servicescape and interaction ....................................................................................... 42 6.2 Managerial implications ................................................................................................ 44 6.3 Servicescape and interaction in a different perspective..................................... 45 6.4 Implications