Question

Below is a table which shows combinations of servicescape levels and core service delivery levels. Which cell do you think is the worst combination? Please provide theoretical background(s) and discuss managerial implication(s) of your answer.

	Core service GOOD	Core service POOR
Servicescape GOOD	1	2
Servicescape POOR	3	4

Answer 1

I believe the cell with number 4 on it is the worst combination.

In management, core services refer to the primary purpose of a business transaction. For instance, you visit the nearby Starbucks. The core service here is providing coffee. This is the service for which you pay the money and complete the transaction.

On the other hand, a servicescape is a model proposed to analyze the influence of physical environment where the service takes place. This model explores the behavior of the people within the physical environment where the service is present. Basically the whole ambience of the physical environment in which the service is present and in which the seller and customer interact, combined with tangible entities that facilitate performance or the service communication. In our example of Starbucks, the servicescape includes exterior design, interior design, air conditioning, lighting, parking space, etc which speak for the brand.

So, it's quite reasonable for businesses to give equal importance to both of them. A good core service ensures that the consumer is satisfied. A good servicescape means that Starbucks has left a good impression, and urges the consumer to visit again because of the favorable environment.

The managerial implications for a poor core service and a poor servicescape are many. Reduced sales, ittle to no loyal customers, negative market perception, etc cause serious issues. For an average customer in a market with a myriad of alternatives, it's about how well a service can be delivered coupled with a great servicescape. In a scenario when both of them are not at par, there is no reason for the customer to visit the shop. To react to this, the shop must hire skilled personnel to deliver the services and revamp their physical environment to the optimal level thus instilling the same with the customer, providing little to no opportunity cost in choosing Starbucks over other alternatives. In a firm's perspective, this is what that leads to long term profits and ingrains loyalty in them as well.

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