Introduction
The concept of "servicescape," introduced by Bitner (1992), refers to the physical and mental environment where customer experiences are created, combining elements of service and landscape 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 not only affects customer perceptions of service functions and quality but also impacts the meanings customers derive from intangible, contextual, and symbolic elements of a service Additionally, atmospheric elements within the servicescape provide 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, distinguishing it from service quality itself, with a notably high overall impact.
The concept of servicescape has been extensively researched across various service contexts, including leisure settings (Wakefield & Blodgett, 1996), the hotel industry (Countryman & Jang, 2006), retail services (Hooper et al., 2013), and theme parks (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 is intensifying competition among investors and developers Today's lessees hold a strong bargaining position due to a wide array of leasing options, leading to more stringent requirements for stable residences They seek not only aesthetically pleasing interiors and high-quality appliances but also desirable views, clean environments, good facilities, and safety Location and surrounding development are crucial determinants of demand for condominium properties Lessees typically prefer condominiums over other property types due to factors such as rental convenience, safety, and location Lessors, aiming for long-term lease contracts and premium rentals, must enhance their properties with attractive servicescapes to gain a competitive edge Servicescape is recognized as a vital aspect of competition within the service environment This paper aims to explore the impact of servicescape 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 across different industries has highlighted the importance of both tangible elements, such as buildings and decor, and intangible elements, like colors and scents, in shaping service experiences For instance, Hoffman and Turley (2002) emphasized the role of these elements in creating effective service environments Additionally, Countryman and Jang (2006) found a significant relationship between the servicescape and customer impressions in the hotel industry More recently, Dong and Siu (2013) confirmed that visitors' satisfaction with the staging of a servicescape positively impacts their evaluation of the service experience in theme parks Similarly, the servicescape in apartment leasing services affects customer experiences in a manner akin to that of hotels and theme parks Therefore, it is proposed that effective management of the servicescape is crucial for enhancing customer 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 condominium staff, including receptionists and security personnel, plays a crucial role in shaping service perceptions Lessees assess service quality based on employee behavior, such as being customer-oriented and credible, as well as their physical attractiveness and competence Research indicates that the physical appeal of service personnel significantly enhances the overall service experience (Baker, as cited in Harris & Ezeh, 2008) Furthermore, Harris and Ezeh (2008) found that higher evaluations of staff behavior, image, and attractiveness correlate with increased customer loyalty intentions Additionally, a study by Dong and Siu (2013) demonstrated that visitor satisfaction with the communicative staging of a servicescape positively influences their overall service experience evaluation.
Serviceexperienceevaluation
Service experience draws from various fields, including economics, psychology, management, and marketing (Klaus & Maklan, 2012) According to Tus, 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, incorporating factors such as expectations, disconfirmation, perceived service quality, and emotions experienced both during and after consumption In line with the service-dominant logic, Berry, Wall, and Carbone (2006) emphasize that customers evaluate a service based on both rational and emotional cues embedded in their 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 of 5 observations per variable, resulting in the formula 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), communicative staging of servicescape (8 items), service experience evaluation (6 items), and behavioral intentions (5 items) This totals 29 items, indicating that the necessary sample size will be 29 multiplied by 5, yielding a required sample size of 145 participants.
In this research, we adhered to the sample size recommendations of Comrey and Lee (2013), aiming for at least 200 participants to ensure adequate representation Ultimately, we collected data from 304 respondents, which is sufficient 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 Most respondents were married (58.9%), while 80 (26.3%) were single, 21 (6.9%) were separated, and 24 (7.9%) were divorced The highest proportion of respondents were Korean (14.8%), followed by Americans (11.5%) Additionally, the majority of respondents were businessmen (38.5%), with teachers ranking second at 23.7% Notably, 122 respondents (40.1%) had resided in their current apartments 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, incorporating all four constructs, was evaluated through Confirmatory Factor Analysis (CFA) using AMOS 22 software to ensure instrument validation before analyzing the structural model for hypothesized associations (Lin, 2007) High loadings of indicators on predicted factors confirmed convergent validity During the initial testing, item SEREXP24 was removed, resulting in an improved Goodness of Fit Index (GFI) from 0.882 to 0.965 and a decrease in the Chi-Square Minimum/df ratio from 2.008 to 1.614 The threshold for convergent validity was set at 0.6, with a recommended value of at least 0.5 (Bagozzi & Yi, 1988; Hair et al., 2010) The standardized lambda parameters were assessed for significance, confirming that they exceeded the 0.5 benchmark (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