Effect of Physical and Social Servicescape on Employee Loyalty and Customer Satisfaction in Public Sector Banks in Karnataka

Abstract

Services are intangible and inseparable in nature. In interpersonal services, the newlinephysical surrounding (servicescape), is experienced by both the service provider newline(employees) and customers. Bitner (1992) coined the term servicescape as the newlineman-made physical surroundings as opposed to natural and social environment newline(Bitner, 1992, p. 58). Three components of servicescape namely functionality and newlinelayout, artifacts, symbols and signs and ambient conditions are recognized by newlineemployees and customers simultaneously. The customers as well as employees newlinegive their reaction to these cues in the form emotional, physical or intellectual newlinereactions. These internal responses to the environment influence the behavior of newlineindividual customers and employees in the servicescape and affect social newlineinteraction between and among customers and employees known as social newlineservicescape (Tombs and McColl-Kennedy, 2003, p.3). Andres et al (2016), newlineidentified four dimensions of Social Servicescape, namely employee newlinecharacteristics, customer characteristics, employee and customer interactions and newlinecustomer interactions. Oliver (1997) and Schneider et.al., (2005) have suggested newlinethat employees experience in their offices is translated into their dealings with newlinetheir customers. Thus, satisfying service providers precedes satisfying customers. newlineHowever, management of physical setting is a resource that many organizations newlinebarely tap, and it is often considered less important than other motivational newlinevariables, such as pay and supervisor support (Locke, 1965; Baker, 1987; Bitner, newline1992). Andres e. al., (2016) studied the effect of Social servicescape on perceived newlinevalue of satisfaction and loyalty of customers on opera going customers. Line and newlineHanks (2019), studied impact of Social Servicescape elements on full-service newlinerestaurants. However, the impact of servicescape cues on employee behavior has newlinebeen studied by only a very limited number of researchers in different service newlinecontext like hospitals (Parish et al.,2008; Janakiraman.