• Journal of Distribution Science
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• v.13 no.9
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• pp.71-79
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• 2015

Purpose - The purpose of this paper is to find out the effect of changes in the differentiated "servicescape" on the business performance in the hair salon industry using a case study. For this, we selected hair salon M located in Suwon. The shop is innovatively different from existing shops in terms of spatial layout and functionality. We conducted in-depth research, beginning with the launch of the shop concept through investment and ongoing stable sales. Research design, data, and methodology - The M hair salon is a start up shop providing a differentiated servicescape (physical environment where the service takes place) located in Suwon, Yeongtong-gu. We conducted research to investigate how spatial layout and functionality of the servicescape impact customers' perceived quality. The interview period and case analysis was May 2014 through March 2015, covering 11 months. To conduct the case analysis, we analyzed the spatial layout and functionality of existing shops and interviewed customers and experts about the difference between hair salon M and existing shops. Results - Our results found clues to the positive effect of spatial layout and functionality among servicescape factors on perceived service quality at the salon. The shop showed a fast payback of the principal investment, growth potential in contrast to competitors near the salon, and 45 percent returning customers. The problem with the spatial layout at existing shops was that customers were aware of the way other people were looking at them, since viewing angles overlapped, therefore there was a limitation to the relationship intensity with an exclusive hair designer. In contrast, the layout of the stands at the M salon kept the number of dressing stands limited to maximize the customer's emotional response. Additionally, because of the new layout of dressing stands hiding other customer voices and appearance in the salon, customers perceived their service space as independent. Therefore, they did not have to focus on their personal emotional response, which was one of the advantages of the new layout. Conclusions - This study conducted case study analysis by offering a new perspective focusing on spatial layout, previously not considered as an independent variable of quality evaluations and customer satisfaction in existing literature on hair salon management. Therefore, this study contributes to the field by offering an opportunity to discover the causal relationships between the overlooked physical environment and a customer's perceived quality. However, a process objectifying the results of the study through empirical analysis and hypotheses is needed to overcome the limitations of the case study approach and generalize the results. Moreover, it would be beneficial to conduct further empirical study of the relationship between the spatial layout provided in the case and a customer's emotional response and change in mood. In addition, an analysis is needed regarding how customers feel about the factors using the Kano Model. These suggestions would be considered in further study.

• The Journal of Industrial Distribution & Business
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• v.9 no.3
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• pp.89-98
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• 2018

Purpose - Despite the global economic crisis, the numbers of coffee shops used for providing a place for social and cultural interactions show an upward trend and have become an indispensable part in people's daily life in recent years. Under the circumstance of tremendous efforts of searching new management strategies and projects, the concept of servicescape(which has physical environment characteristics) may provide a better alternative. Therefore, the purpose of this study can be broadly divided into 3 key points. First is to investigate the effects of servicescape on customer satisfaction, service value and customer loyalty about Coffee Shops in Jeonju area. Second is to examine the mediating effect of customer satisfaction and service value between servicescape and customer loyalty. Third, there is evidence that indicates the moderating effect among the interaction of customer and staff, brand image and the composition of servicescape, customer satisfaction, service value and customer loyalty. Research design, data, and methodology - This study begins empirical research about users of coffee shops' services. The data of the study is collected from 285 samples of a questionnaire which has been made from Korea and analysed by IBM SPSS 24.0 and IBM AMOS 24.0. Results - The results are reported below: First of all, the composition of condition, functionality, cleanliness and aesthetic characteristics of the servicescape has a significant impact on customer satisfaction and service value. Furthermore, customer satisfaction is identified as a factor to influence service value. Moreover, customer satisfaction and service value are identified as the causal relationship with customer loyalty. Besides, customer satisfaction and service value illustrated the mediation effect between the composition of servicescape and customer loyalty. Finally, the interaction between customer and staff, brand image illustrates the moderated effect. Conclusions - The composition of servicescape contributes to the formation of customer satisfaction and enhancing the customer's perceived service value in coffee shops. By meeting diverse and complex needs of consumers in coffee shop, the service value will not only attract loyal customers, but also increase customer loyalty and profitability. In a word, managers should rely on servicescape to enhance service experience by making differences with other competitors.

• The Journal of Industrial Distribution & Business
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• v.9 no.6
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• pp.65-76
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• 2018

Purpose - The study aims to provide the relationships between the social servicescape and customer's emotion and voluntary behaviors were investigated in this study. The social servicescape was largely divided into service employee's image and other customers (in customer's similarity, physical appearance and suitable behavior). Firstly, the relationship between service employee's image and customer's positive emotion was investigated as a specific purpose of study. Secondly, this study attempted to understand the relationship between other customers (in customer's similarity, physical appearance and suitable behavior) and customer's positive emotion. Lastly, the relationship between customer's positive emotion and customer's voluntary behavior dimension (intention to cooperate, intention to participate in and loyalty) was examined. Research design, data, & methodology - In order to prove the hypotheses in this study, the customers who have experienced family restaurants during the last two months were targeted for a survey. A total number of 300 survey papers were distributed and as a result, 248 papers could be used for analysis, except the papers with insincere answers. After the analysis of the reliability and validity of each major variable, the hypothesis was verified through the structure method by using Amos 20.0. Results - First, the results of hypothesis testing on the relationship between social servicescape and customer's positive emotion showed service employee image gives a positively meaningful impact on customer's positive emotion. Secondly, the results on the relationship between other customers and customer's positive emotion indicated that the customer's similarity and physical appearance has a positively significant impact on customer's emotion while customer's suitable behavior has not a significantly positive impact on customer's positive emotion Lastly, customer's positive emotion was shown to have a significantly positive influence on customer's voluntary behavior dimension, that is, intention to cooperate, intention to participate in and loyalty. Conclusions - This study aims to focus on and emphasize the social servicescape and its importance, which is different from the previous studies that have been focused largely on physical servicescape. Such results in this study indicated the social servicescape (service employee's image and other customers) as an important factor that affects customer's positive emotion and voluntary behavior.

• The Korean Journal of Franchise Management
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• v.9 no.3
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• pp.19-29
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• 2018

Purpose - Due to the increase in coffee consumption and competition, domestic coffee franchise companies are currently entering the overseas market. Therefore, coffee franchise companies are pursuing a variety of marketing strategies to meet customer needs and gain competitive advantage in overseas markets. From this perspective, overseas franchise companies need to ensure that their servicescapes meet the needs of their overseas customers. For these purposes, the study is to identify the impact servicescapes on customer satisfaction and customer loyalty focused on Global Coffee Franchise Company "C", which extended its business worldwide in Mongolia. Research design, data, and methodology - The data were collected from customers who had visited the stores of 'C' company in Ulaanbaatar, Mongolia. 435 valid questionnaires collected through online survey coded and analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 24 and SmartPLS 3.0. Result - Firstly, seating comfort, facility aesthetics, and cleanliness, ambient conditions among servicescapes influenced customer satisfaction. Secondly, servicescapes didn't affect the loyalty directly. Third, customer satisfaction had positive effect on loyalty. Fourthly, cleanliness which was ranked lower in Korea had a great effect on customer satisfaction in Mongolia. Fifthly, IPMA(Importance-performance map analysis) shows that the importance of servicescapes is higher for women than for men, and facility aesthetics for female and cleanliness is the most important for male. Conclusions - The results of this study show that there is a positive (+) effect on customer satisfaction in order of cleanliness, ambient conditions, aesthetics, and seating comfort. Therefore, franchise companies considering or advancing into Mongolia should consider importance in order of cleanliness, ambient conditions and aesthetics when entering Mongolia market. For example, franchise managers should select Monday as a "clean day," and all merchants should spend all of their open hours and keep their stores clean in accordance with the head office manual. In addition, franchise managers need to hire a VMD (visual merchandising) experts to build up a physical environment that will effectively highlight the space-specific display of the store so that Mongolian local customers can have a satisfactory climate and aesthetics. And, the IMPA analysis between servicescapes and customer satisfaction shows that women are more susceptible to servicescapes than men. Especially, in the case of women, the importance of esthetics is high, but the performance is low. Thus, if the aesthetics are actively improved, customer satisfaction can be effectively increased.