Anticipated ROI Methods for the Quantification of Servicescape Upgrading based on Intangible Values: A Literature Analysis
One of the biggest challenges faced by facilities managers is justifying the need for servicescape upgrades in monetary terms. Servicescape upgrades are often viewed as benefitting intangible aspects of business performance, such as improved levels of comfort, happiness, aesthetics, confidence, and health. This makes it difficult for facilities managers to convince upper management, particularly the finance department, that a proposed servicescape upgrade will benefit the business as there are no existing methods to anticipate a return on investment (ROI) of servicescape upgrades based on the quantification of intangible values in monetary terms. In other words, how can we determine if an improved level of comfort, happiness, pleasure, aesthetics, confidence, and health will result in profit in monetary terms? Currently, a research study is being carried out to construct a methodological framework for anticipating the ROI of servicescape upgrading based on the quantification of intangible values. The first objective of the research is to identify ROI calculation methods that can be used to anticipate the ROI of servicescape upgrade based on the quantification of intangible values. This paper reports the preliminary findings. Fifty-three literary sources, including journals, scholarly articles, website, blog posts, and books, were reviewed. Content analysis was carried out using Nvivo, and the results revealed that willingness to pay (WTP) or willingness to accept (WTA), information economic (IE), capital investment appraisal technique (CIAT), contingent valuation method (CVM), cost-benefit analysis (CBA), hedonic price method, travel cost method, comparative analysis, process of elimination, quantification technique, revealed preference, stated preference, and scenario analysis are the methods for anticipated ROI of servicescape upgrades based on the quantification of intangible values. The findings from this preliminary analysis help to identify possible methods that can be adopted in anticipating ROI based on the quantification of intangible values of servicescape upgrading.
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