UNDERSTANDING THE PHYSICAL ENVIRONMENT IMPACT ON THE PROSPECTIVE CUSTOMERS

Physical environment related to the industrial technology and architecture. The physical environment is a visible and tangible aspect compliment the innovative technology, design and service innovation design. This research aimed to study the views of prospective customers to two coffee shops in Seomyeon, Busan, South Korea, in relation to their expectation according to the physical environment. The methodology used included interviews, surveys and analysis through Semantic Differences and AMOS 22. The components of the physical environment comprised the facility aesthetic, lighting, ambience, layout, service product and social factors. The findings showed the influence of cultural context on the preferences to select and revisit the coffee shops. The components of the physical environment influenced the decision making of the prospective customers in selecting the preferred coffee shops according to the experience and expectation about the potential good tangible and intangible services. This study contributes to understand about the marketing strategy applied the emphasizing of the physical environment of the service business respected to the potential technology.