Impact of Physical Evidence on Perception of Service Quality in the Banking Industry: A case of Transnational Bank,Nakuru

This research project sought to analyse the impact of physical evidence on the service quality perceptions in Transnational Bank. Physical evidence was explored in two dimensions both interior and exterior environment in a facility. Service quality on the other hand was explored in terms of: reliability, responsiveness, assurance and empathy. The study was conducted at Transnational bank, Nakuru by collecting views from its customers. Out of the customer polulation of 2073 a sample of 95 was selected using simple random sampling technique, and questionnaire administered seeking their perception on physical evidence and service quality. Data was then analysed using mean, mode frequencies percentages and spearman correlation. The study established that there was a significant relationship between ambient conditions in the banking hall and customers perceptions on service quality offered by the bank. The relationship between special layout and customers perceptions on service quality was significant and the relationship between customers rating on the signage, symbols and artifacts and their perceptions on service quality was also significant. Therefore physical evidence influence customer’s perceptions on service quality. However further studies should be done to establish the factors considered by customers in the choice of banks for provision of banking services and also to determine the factors to consider when designing the layout of banking facilities considerate for optimum customer satisfaction.