Pablo is planning on opening a Mexican restaurant in the town where he lives. He is considering how to design the physical environment of the restaurant. Discuss the components of the physical surroundings that can influence consumption behavior and make some recommendations to Pablo regarding each component.

What will be an ideal response?


Four components of the physical environment were discussed in the text:
a. Colors–certain colors and color characteristics create feelings of excitement and arousal which are related to attention. Bright colors are more arousing than dull colors, and warm colors such as reds and yellows are more arousing that cool colors such as blues and greys. The best colors to use depends on the type of store or, in this case, restaurant. Cool colors tend to increase sales and customer satisfaction and appear to reduce wait time perceptions by inducing feelings of relaxation. Warm colors grab attention and can drive impulse purchases (e.g., ordering dessert in a restaurant).
b. Aromas–while there is increasing evidence that odors can affect consumer shopping, it seems reasonable that they also affect consumption behavior in a service environment such as a restaurant.
c. Music–music influences consumers' moods, which influence a variety of consumption behaviors. One study found that slow tempo music resulted in an increased gross margin, but that was true because of a greater amount of bar purchases. If Pablo does not have a bar, he might want to consider faster tempo music so he can have a quicker customer turnover.
d. Crowding–generally produces negative outcomes for both the retail outlet and the consumer. While crowding may have a negative influence on Pablo's non-Hispanic customers, this may not be a significant factor for Pablo's Hispanic consumers.

Business

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