ABSTRACT
Service environments, and their resulting impact on consumer perceptions and behaviors, have long been of interest to scholars. Early work in the field concentrates on firm-controlled features of a physical environment: ambient conditions (e.g., lighting and music), spatial configurations, and aesthetic choices (e.g., décor and signage). This chapter provides a brief overview of the seminal work and then details new developments in each area. Next, the chapter explores expanded frameworks that go beyond firm-controlled features to consider how social, cultural, and even natural elements contribute to the service environment. New research that applies service environment research to online contexts or to more expansive networks of stakeholders is also discussed. Despite the volume of research concerning service environments, more work is still needed. The chapter concludes by highlighting three particularly fruitful areas for continued study: the influx of digital technology into physical environments, the influence of the environment on service employees, and the shift in emphasis from the service environment as a contributing factor to service provision in a more prominent role wherein access to the service environment essentially is the service.
