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. | Understanding the physical environment impact on the prospective customers International Journal of Mechanical Engineering and Technology IJMET Volume 10 Issue 04 April 2019 pp. 31-38. Article ID IJMET_10_04_005 Available online at http ijmet JType IJMET amp VType 10 amp IType 4 ISSN Print 0976-6340 and ISSN Online 0976-6359 IAEME Publication Scopus Indexed UNDERSTANDING THE PHYSICAL ENVIRONMENT IMPACT ON THE PROSPECTIVE CUSTOMERS Siti Aisyah Muhammad Faculty of Architecture and Ekistics Universiti Malaysia Kelantan 16300 Bachok Kelantan Malaysia Sung Pil Lee School of Design DongSeo University 47 Jurye-ro Jurye 2 i -dong Sasang-gu Busan South Korea ABSTRACT 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. Key words service technology architecture physical environment Cite this Article Siti Aisyah Muhammad and Sung Pil Lee .