Introduction
The concept of "servicescape," introduced by Bitner (1992), refers to the combination of the physical and mental environments in which customer experiences are created It serves as a cue for expected service quality and significantly influences customers' evaluations of various factors that determine perceived service quality (Reimer & Kuehn, 2005) According to Nilsson and Ballantyne (2014), servicescape impacts not only customer perceptions of service functions and quality but also the meanings customers derive from intangible, contextual, and symbolic elements Additionally, servicescape provides evidence that aids consumers in making subjective evaluations of service products (Hoffman & Turley, 2002) Thus, servicescape has both direct and indirect effects on perceived service quality, with a greater overall impact compared to service quality itself.
The concept of servicescape has been extensively researched across various service contexts, including leisure services (Wakefield & Blodgett, 1996), the hotel industry (Countryman & Jang, 2006), retail services (Hooper et al., 2013), and theme park services (Dong & Siu, 2013) Numerous studies have emphasized different elements of servicescape, such as color, lighting, background music, and scents (Reimer & Kuehn, 2005) In Vietnam, some master's theses have explored the impact of servicescape on customer loyalty in restaurants and coffee shops However, the servicescape of apartment leasing services in condominiums has not received sufficient attention.
Leasingserviceisacommonserviceincondominiumsorresidentialbuildingsrequir ingalargeamountofcapitalofinvestors.Itisnotahighriskinvestmentbutitc a n beahighretu rninvestmentiftheinvestorsbuytherightproperties.Intheworld,roundly40%ofpopulationl ivesinrentalhousing(Malpezzi,ascitedinAmenyah&F l e t c h e r , 2013).InHoChiMi nhCity(HCMC),recently,alargenumberofc o n d o m i n i u m s cameintothemarket.In 2015,thetotalsupplywasapproximately4 , 3 7 0 apartmentsfrom83projects,increasing6
%year-on- year(YoY).From2016to2018,morethan67,000unitsareexpectedtoenterthemarketwhic hprovidingaround2 , 2 0 0 apartmentsforleasing(Savills,HoChiMinhCityMarketBrief Q12016).Witha highgrossdomesticproduct(GDP)growthrateandbeingconsideredasthe mostd y n a m i c cityinVietNam,in2015,HoChiMinhCityattractedUS$3billioninforei gndirectinvestment(FDI),up129%
(YoY).IncreasingFDIinflowhasp o s i t i v e l y affectedthedemandforleasingapartmen ts.Theincreasingofsupplyandd e m a n d isaphenomenoncreatingadynamicleasingapart mentmarket.
The increasing supply of leasing apartment services in the coming years is intensifying competition among investors and developers Today's lessees hold a strong bargaining position due to the abundance of leasing options available Their requirements for stable residences are becoming more stringent, as they seek not only well-decorated interiors and high-quality appliances but also desirable views, clean environments, good facilities, and safety Location and surrounding developments significantly influence the demand for condominium properties Lessees typically prefer condominiums over other property types due to factors such as rental convenience and safety Lessors, aiming for long-term leases and premium rentals, must enhance their properties with attractive services to gain a competitive edge The concept of servicescape is emerging as a critical factor in this competitive landscape, and this paper explores its impact on the behavioral intentions of leasing services in Ho Chi Minh City.
Literaturereview
Servicescape
Althoughtheterm“servicescape”isprobablythemostpopulartermtorefertotheinfluenceo ftangibleandintangiblecuesonconsumers,theotherterms
“atmospherics”,“environmentalpsychology”,“storeenvironments”and“physicale n v i r o n m e n t ” alsodescribethesameconcept(Hooperetal,2013).Significanceofs e r v i c e s c a p e dependsonlengthoftimecustomerspendforserviceandthepurposeofs e r v i c e consumption(hedonicorutilitarian)
(Wakefield&Blodgett,1994).Thep h y s i c a l environmentmaybeanimportantdetermi nantofcustomersatisfactionands u b s e q u e n t behaviorwhenservicesareconsumedpri marilyforhedonicpurposes.Ther e l a t i o n s h i p betweentheenvironmentalstimul i(servicescape)andcustomerbehavioralintentionswasfirstestablishedbytheenvironm entalpsychologists(Russell& Mehrabian,1974).Kotler(1973)usedtheterm“atmosphe rics”totestifthephysicalenvironmenthadaneffectonhumanbehavior.Psychologistshav edeterminedthatthephysicalenvironmenthasaneffectonhumanbehaviorandthisb r a n c h ofpsychologyhasbeenknownasenvironmentalpsychology.
Kotler(1973)pointedoutthatthephysicalenvironmentinwhichaproductisp u r c h a s e d isanimportantpartofthetotalconsumptionpackage.In1974,Mehrabiana n d Rus selldescribedenvironmentalpsychologyas“thedirectimpactofphysicalstimulionhuman emotionsandtheeffectofphysicalstimulionavarietyofb e h a v i o r s , suchasworkperfo rmanceorsocialinteraction”.In1992,Bitnerdevelopedatmosphericsfurtherbycreatingaco nceptualframeworkforservicesettingsandb e g a n usingthetermservicescapetodescr ibethephysicalenvironmentinwhichs e r v i c e s occur.Bitner’sconceptualframeworkw hichisusedinnumerousresearchesiscomprisedofthethreeenvironmentaldimensions:
1 ambientconditions(i.e.weather,temperature,airquality,noise,music,odor s);
2 spatiallayoutandfunctionality(i.e.thewayinwhichequipmentandfurnis hingsarearranged,andtheabilityofthoseitemstofacilitatec o n s u m e r s ' enjoyment);and
3 Signs,symbolsandartefacts(i.e.signageanddecorusedtocommunicatea n d enhanceacertainimageormood,ortodirectcustomerstodesiredd e s t i n a t i o n s )
Arnould,PriceandTierney(1998)statesamorecomprehensivedefinitionofs e r v i c e s c a p e AccordingtoArnouldetal.,servicescapeislikenestedproductofmanageri alstrategiesandcustomerinputs.Itwasproducedthroughsubstantiveandc o m m u n i c a t i v e staging,andcanhavehighorlowlevelofsubstantivestagingc o m b i n e d witheithe rhighorlowlevelsofcommunicativestaging.Thesubstantives t a g i n g ofservicescaper eferstothephysicalcreationofcontrivedenvironmentwhichwasstressedinmostofpreviou srelatedresearches.Thecommunicativestagingofs e r v i c e s c a p e referstothewaysin whichenvironmentispresentedorinterpreted.Thisp a p e r adoptsthedefinitionofArnoul detal.(1998)whichdescribesfairywellthes e r v i c e s c a p e atcondominiums.
Substantivestagingrefersto“thephysicalcreationofcontrivedenvironments”(Arnoulde tal.,1998).Someservicesrequireasimpleservicescapewithafewe l e m e n t s andspaces suchasself- service(onlycustomer)orremoteservice(onlyemployee),someothersrequirecomplexserv icescapeandalotspaceswhichinteractbothcustomersandemployeessuchasinterpersonal services(Bitner,1992).
Apartmentleasingserviceisoneofinterpersonalservicesbecauseittakesplaceinc o n d o m i n i u m s withmanyfloors,apartments,gardens,facilitiesandequipment,etc.T h e su bstantivestagingofservicescapeishighlightedbyBitnerintheresearchofs e r v i c e marke tingbecomesapopulartheoryofservicescape.
Organizations must be acutely aware of how they manage various internal design issues, as these factors significantly influence the perceptions, emotional states, and behavioral intentions of both employees and customers Research conducted across different industries highlights the importance of both tangible elements, such as buildings and décor, and intangible elements, like colors and scents, in shaping service experiences For instance, Hoffman and Turley (2002) emphasize that these design components are crucial for creating positive service environments Additionally, Countryman and Jang (2006) found that the servicescape significantly impacts customers' impressions of hotel lobbies Recent studies, such as Dong and Siu (2013), confirm that the effective staging of servicescapes in theme parks enhances visitor satisfaction and positively relates to their overall service experience evaluation This influence extends to apartment leasing services, where the servicescape similarly affects customer experiences, paralleling findings in hotel and theme park services Therefore, it is proposed that the design of service environments plays a critical role in customer satisfaction and overall experience.
Communicativestagingoftheservicescapereferstohowtheserviceenvironmentisprese nted andinterpreted.Itinvolvesthetransmissionbothofmeaningdirectlyrelatedtoservice deliveryandofmeaningtranscendingtheinstrumentalcontext(Arnouldeta l , 1998).Co mmunicativestagingofservicescapeinvolvesthetransmissionofs e r v i c e s c a p e m eaningandmovesservicescapemeaningfromserviceprovidertocustomer,betweencusto mersandpotentiallyatleastfromcustomerstoproviders.
(1998),“Communicativestagingispatternedthroughthew h o , what,howandwhenofcom munication”.Serviceprovidersandcustomerinteractionsareoneofimportantingrediento fCommunicativeStaginganditisthep r i m a r y sourceofcompetitivedifferentiation.Bi tner(1992)acknowledgedthoughherf o c u s wastoconceptualizethemanufacturedandp hysicalstimulithatconstitutes e r v i c e s c a p e , bothcustomersandemployeesareals oaffectedbysocialandnaturalstimuli,whicharealsohousedwithinservicescape(Rosenba um&Massiah,2011).
Communicativestagingincludesthepersonnelandculturalelementsofas e r v i c e s etting.Whenthecustomersenteraservice,theysometimesreadthesigns,thea n n o u n c e m e n t orasktheemployeesforhelporexplanations…
Thepersonnelaspects,a s serviceemployeesserveasthemajorchannelforcommunicatio nwithcustomers,theyplayanimportantroleincustomers’evaluationsofserviceperformanc e( G w i n n e r , Gremler,&Bitner,1998).Culturalelementsareanothermajoraspectofas e r v i c e s c a p e ’ s communicativestaging.Indeed,theycanbeofcriticalimportancein m a n y typesofservicesettings,especiallyforexperientialserviceswherecustomersare e x p e c t e d tointeractcomprehensivelywiththesetting.Culturalatmosphericsare thendesignedtoinfluencecustomers’psychologicalfeelingstowardtheservicee n c o u n t e r andthusshapetheirserviceexperienceevaluation(Dong&Siu,2013).
In apartment leasing services, the interaction between lessees and staff, such as receptionists and security personnel, plays a crucial role in shaping service perceptions Lessees evaluate service quality based on employee behavior, including customer orientation and credibility, as well as the staff's image, which encompasses competence and physical attractiveness The physical appeal of service personnel significantly enhances the overall service experience (Baker, as cited in Harris & Ezeh, 2008) Research indicates that higher evaluations of staff behavior, image, and attractiveness lead to increased customer loyalty intentions (Harris & Ezeh, 2008) Additionally, a study by Dong and Siu (2013) demonstrates that visitors' satisfaction with the communicative staging of a servicescape positively influences their evaluation of the service experience Thus, the hypothesis is proposed.
Serviceexperienceevaluation
Service experience is rooted in various disciplines, including economics, psychology, social psychology, management, and marketing (Phil Klaus & Maklan, 2012) According to Tus (2014), customer experience plays a crucial role in enhancing customer satisfaction and fostering long-term loyalty Total service experience is defined as a unique perception formed by the individual during a service encounter, integrating factors such as expectations, disconfirmation, perceived service quality, and emotions experienced both during and after consumption Aligning with the experiential focus of service-dominant logic, Berry, Wall, and Carbone (2006) emphasize that customers evaluate a service based on both rational and emotional cues inherent in the overall experience.
Ferguson,PaulinandBergeron(2010)emphasizeemotionalcluesaredescribeda s e ithermechaniccomingfrominanimateobjectsandthephysicalaspectsoftheintangibleservi ce,orhumanic,comingfromthebehaviorandappearanceofserviceproviders.Mechanicclu escouldbedescribedasoriginatingintheservicescapeandh u m a n i c cluesfromtheintera ctionsorrelationswiththeservicepersonnel.
Organizationscanmanagethecluesinacustomerexperiencethatevokeattitudesofc o m m i t m e n t thatbuildsloyalty(Berry&Carbone,2007).Customers’perceptionsoftheservice experienceisimpactedbyatmosphericsofservice.Servicesettingdesignc a n stronglyinf luenceindividualandsocialbehaviorwithinthatsettinginwaysthatconstrainorsupportthes erviceexperienceofcustomersandstaffatafunctionallevela n d insymbolicways.Whati sinterestingisthatcustomersandindeedstaffmaynota l w a y s beattentivetohowtheservi cescapedesignimpactstheirsenseofwell- being( N i l s s o n &Ballantyne,2014).Sandstrom,Edvardsson,KristenssonandMagnus son(2008)haspointedoutaserviceexperienceisthesumtotalofthefunctionalandemotional outcomedimensionsofanykindsofservice.
Inthecurrentstudy,acustomer’sserviceexperienceevaluationwastheindividual’su niquecognitiveandaffectiveimpressionsaboutanexperiencebasedontheirinteractionsw ithsubstantiveaswellascommunicativeelementsofthes e r v i c e s c a p e Theevaluati onwasassumedtoencompasstheirevaluationoftheentires e r v i c e process,theoutcome( enjoymentorotherwise),andtheirpositiveornegativememoriesofaspectsoftheserviceex perience.IntheresearchofSchembri(2006)s t a t e s thatserviceexperienceisakeydetermi nantofconsumers'servicequalityevaluation.Customer- perceivedvalueintheserviceexperienceinvolvesbothcognitiveandemotionalresponses(B erryetal.,2006;Edvardsson,2005;Fergusoneta l , 2010).Customerswillbemostlikelytoc herishafavorableserviceexperiencefora n extendedperiodoftimeiftheyfeelthattheexperie ncehasbeenexclusive,andpleasing.Inthehealthservicecontext,thefindingofFergusonetal
(2010)showsthatalldimensionsofthetotalserviceexperienceareassociatedwithpositive word-of-m o u t h intentions.InthecontextofaUKuniversitygraduationceremony,Koenig-
L e w i s andPalmer(2014)findtheresultspost- experiencepositiveemotionshadagreatereffectonbehavioralintentionthansatisfaction.Fro mtheabovediscussion,hypothesis3isproposed:
Behavioralintentionsaresignalsfortheactualpurchase,andhence,itisimportantthatitismon itored(Zeithaml,Berry,&Parasuraman,1996).Behavioralintentions
Behavioralintentions
H1 Service Experience Evaluation Behavioral Intentions H3
Communicative Staging of Servicescape H2 includepurchaseintentionandwillingnesstopayforpremiumprice,andthishasc r i t i c a l effectsonbrandandorganizationalperformance.Particularly,Zeithamletal.
(1996)suggestedthatfavorablebehavioralintentionsareassociatedwithaserviceprovide r’sabilitytogetcustomerstosaypositivethingsaboutserviceandrecommendittoothercons umers,remainloyaltothem,spendmorewiththecompany,andpaypricepremiums.Therefo re,MalhotraandMcCort(2001)arguethatgeneratingagreaterunderstandingofconsumerbe havioralresponsescontinuestobeaprimaryc o n c e r n formarketingresearchers.
Method
Procedureandsampling
ThisresearchwasconductedinHoChiMinhCity(HCMC),theeconomiccenterofV i e t n a m Therearetwophasesofstudyinthisresearch,apilotstudytomodifythequestionnairean damainsurveytocollectdatafortestingthescalesandthemodel.Respondentswereforeign erswhohasexperiencedinleasingapartmentsinHCMC.F o r e i g n e r s werechosent oinvestigatebecausemostofforeignerslivinginVietnamh a v e usedapartmentleasingser viceandexperiencedthisservice.Therespondents wereinterviewedaboutapartmentleasingserviceattheirlatestapartmentwhichtheyh a v e leased.
Afterthataquantitativestudybyconductingasurveywithasampleoffivelesseesbyfacetofa ceinterviewstopreliminarilytestthemeasuresbeforelaunchingamains u r v e y Thepil otstudywasusedtomodifyandrefinethescaleitemsbyusingofCronbach’salphareliabilitya ndexploratoryfactoranalysis(EFA).
Inthemainsurveystudy,respondentswereapproachedtoanswerthesurveyquestion s.Inordertotesttheabove- proposedmodel,anationalonlinesurveywasu s e d tocollectdataforempiricaltestingbyus ingconvenientsampling.Wedistributedthelinkthroughthesurveywebsitehttps:// docs.google.com.Theonlinelesseeswereinvitedbyreceivingtheinvitationletterviae- mailtofollowthislinktothesurvey,w h i c h tookapproximately10-
15minutestofinish.Thecollecteddatafromthemains u r v e y wasusedtovalidatethemeas uresbyconfirmatoryfactoranalysis(CFA)andtotestthestructuralmodelbystructuralequa tionmodel(SEM).Conveniences a m p l i n g wasusedforthemainsurvey.
According to Hair, Black, Babin, and Anderson (2010), a general guideline for sample size is that it should be at least 100, with a minimum requirement of 5 observations per variable, resulting in n > 100 and n ≥ 5k (where k represents the number of variables) In this study, we examine four constructs: substantive staging of servicescape (10 items), communicate staging of servicescape (8 items), service experience evaluation (6 items), and behavioral intentions (5 items) In total, there are 29 items, leading to a necessary sample size of 29 x 5 = 145 samples (Hair et al., 2010).
In this study, we adhered to the sample size recommendations by Comrey and Lee (2013), which suggest a minimum of 200 participants for adequate analysis Our research included a total of 304 respondents, ensuring sufficient data for both Confirmatory Factor Analysis (CFA) and Exploratory Factor Analysis (EFA) The sample consisted of 160 males (52.6%) and 144 females (47.4%) Among the respondents, 87 (28.6%) lived alone, 175 (57.2%) lived with family, 37 (12.2%) lived with friends, and 6 (2%) had other living arrangements Marital status revealed that 58.9% of respondents were married, while 26.3% were single, 6.9% were separated, and 7.9% were divorced The majority of respondents were Korean (14.8%), followed by Americans (11.5%) Professionally, most respondents were businessmen (38.5%), with teachers representing the second largest group at 23.7% Additionally, 40.1% of respondents had lived in their current apartment for six months or less.
12months,62(20.4%)lesseesstayedforlessthan6 months,47(15.5%)lesseesstayedfor12months–18months,43(14.1%)lessees stayedfor18months–24monthsand30(9.9%)lesseesstayedformorethan24m o n t h s
Item Frequency Percent Item Frequency Percent
ThesatisfieddatawerecodedandinputintoSPSSversion20.Cronbach’sA l p h a a ndExploratoryFactorAnalysis(EFA)wasusedtoevaluatethereliabilityandvalidityofmea surementscales.Then,confirmatoryfactoranalysis(CFA)wasperformedtoidentifywheth erthemeasurementvariablesreliablyreflectedthehypothesizedlatentvariables.Structu ralEquationModeling(SEM)wasusedwithlatentvariablesviaAMOS22wastestedtodete rminetheadequacyoftheconstructso f themodelandtestthehypotheses.
Measurementscales
Fourconstructswereexaminedformeasurement:substantivestagingofservicescape,c o m m u n i c a t i v e stagingofservicescape,serviceexperienceevaluationandbehaviora l intentions.Themultiple- itemmethodwasusedandeachitemwillbemeasuredbasedo n afive- pointLikerttypescale(rangingfrom1=stronglydisagreeto5=stronglya g r e e ) Moresp ecifically,thisstudywasadaptedthemeasuresusedtooperationalizetheconstructsembeddi nginproposedtheoreticalmodelfromrelevantpreviouss t u d i e s Substantivestagingofs ervicescapewasmeasuredbytenitemsborrowedfromBitner(ascitedinDongandSiu,2013) andmodifiedbasedontheresultsofthequalitativepilotstudy.Communicativestagingofser vicescapewasmeasuredbyeighti t e m s borrowedfromArnounldetal.,
(1998).ServiceexperienceevaluationwasmeasuredbysixitemsborrowedfromTu(2004).T helastisBehavioralintentionswasmeasuredbyfiveitemsborrowedfromZeithamletal. (1996).Totallythereare4constructswith29items.Theresultfromqualitativestudyindicat esthatservicescapeaffectsthelessee’sexperiencealot.Forexample,anintervieweeshared hisopinionaboutservicescape:“Icannotsleepwellifintheareahavingnoise.Ipreferlivingint hehighfloorapartmentsothatIwillnothearthenoisefortrafficandothers”.
Anotherrespondentssaid:“Iwouldliketostayintheapartmentwhereswimmingpoolandgy mhas.Itisnecessaryinmydailyactivities”.OnedoctorfromSouthAfricasharedhisopinion:
Basedontheresultofpilotstudy,themeasurementscalesforfourconstructs:s u b s t a n t i v e stagingofservicescape,communicativestagingofservicescape,serviceexpe rienceevaluationandbehavioralintentionsweremodifiedtobeappropriatewithV i e t n a m e s e context.ThequestionnairewascomposedinEnglishwiththreeparts:g e n e r a l information,mainquestions,anddemographicinformation.
Zeithaml,Be rry&Parasu raman (1996 )
Dataanalysisandresults
ConfirmatoryFactorAnalysis(CFA)
The measurement model encompassing all four constructs was evaluated through Confirmatory Factor Analysis (CFA) using AMOS 22 software to validate the instruments before analyzing the structural model for the hypothesized associations (Lin, 2007) In CFA, high loadings of indicators on the predicted factors indicate convergent validity During the initial testing, the item SEREXP24 was removed, which improved the Goodness of Fit Index (GFI) from 0.882 to 0.965 and reduced the CMIN/df ratio from 2.008 to 1.614 The threshold for GFI is typically set at 0.6, while a minimum value of 0.5 is recommended for CMIN/df (Bagozzi & Yi, 1988; Hair et al., 2010) Convergent validity was confirmed by ensuring that the standardized lambda parameters were significant and exceeded 0.5 (Gerbing & Anderson, 1988).
Steenkamp&vanTrijp,1991).Thescales'discriminantvaliditywasestablishedbyd e t e r m i n i n g whetherthesquarerootmeasureoftheAVEexceededcorrelationsb e t w e e n t helatentvariables.Inordertocreateamodelfitforthestudy,thetable3s h o w s thecomparis ontheCFAresultwiththethresholdvalueasbellows:
Theresultshowinginthetable3,wehavep=0.000,CFI=0.965,CMIN/ df=1.614a n d RMSEA=0.058indicatesthatagoodlevelfitofmeasurementmodelwithth ecollecteddata.
Themeasurementmodelwasfurtherevaluateforitsreliability,convergentanddiscri minantvalidityfollowingtheguidelinesfromthepreviousliterature(Hairetal.,2010).Forte stingconvergentreliability,wecomparedaveragevarianceextracted( A V E ) ofallfactors withstandardvalues.Allvalueswereeithercloseorabovethebenchmark.Fordiscriminantv alidity,wecomparedsquarerootofAVEwiththeir respectiveinter- factorcorrelations(asshownintable3).Allthediagonalvaluesaregreaterthanthecorrelatio nswhichdemonstratedsufficientdiscriminationvalidity.T h e compositereliabilityfor allfactorswasabovetheminimumthresholdof0.7.
0,855 0,545 0,047 0,039 0,215 0,217 0,152 0,738 Note:CR:Compositereliability,AVE:Averagevarianceextracted,MSVmaximumsharedsquaredvarianc e,ASV:AverageSharedSquaredVariance.
TheresultshowsthatCR>0.7,AVE>0.5,MSV