ASSESSMENT OF THE IMPACT OF PHYSICAL EVIDENCE IN CUSTOMER ATTRACTION IN REGISTERED BANKS

 

Summary

This study aimed to assess the empirical impacts of physical evidence on customer attraction. The study involved assessing banks that are verified and registered with the government. To gather information, the study relied on interviews conducted on randomly selected managers and customers. Twenty banks were used, from which 200 managers and customers were chosen as the respondent. SPRC was used as a statistical tool to stipulate hypotheses. The study took approximately eight weeks to conduct a survey and research to gather accurate and reliable information. The outcome showed that the correlation between referents of physical evidence and customer attraction was statistically positive. According to the study, a bank’s organization size and technology dictate the relationship between customer attraction and Physical Evidence.

The results also indicate how related elements relate to marketing and their main contribution to customer satisfaction within banking sectors. It shows the positive impact created by the prices of products and services on retention and satisfaction. The company’s image plays a vital role because many customers learn from an easier way instead of getting into details about an organization. The study results also indicate the positive influence created by customer satisfaction towards customer loyalty and retention.

 

INTRODUCTION

The banking and hospitality industry is growing rapidly, with vicious competition. Since the early 1900s, there have been remarkable developments. They have brought drastic changes within banking systems due to globalization. However, since the 21^st century, they have faced more challenges considering market and customer satisfaction.  Therefore, for a bank to do well in the industry, it must ensure that they use reliable strategies that are unique from other organizations. These strategies are based on offering customer satisfaction through the bank’s main operations (Khatab, Esmaeel $ Othman, 2019). Such responsibilities are set for bank leaders who ensure progress and quality services are conducted throughout the premises. Customer satisfaction is a crucial aspect among organizations, and it should be maintained. Leaders have to come up with reliable strategies for their organization to remain strategic.

Unluckily, some managers fail to understand the key drivers towards customer satisfaction. It makes it hard for them to be competitive in the modern world. This study explores the basic strategies and practices used by various registered banks in offering and maintaining customer satisfaction (Joudeh & Dandis, 2018). These may include service settings and architectural designs that play a vital role in offering customer expectations, experiences, and organizational goals. Moreover, under such an organization, marketing strategies are important in maintaining profitability and economic progress. Such factors lead to success and are considered as factors that attract customers.

The registered banks are more advantaged as they have a governing body that pushes them to be better in offering services and products. Governments’ take the responsibility of overseeing their operations which results in steady growth, accuracy, expansion, and better corporations. The significant growth has cause stiff competition in the industry. It provides regulation and supervision among these facilities and administers cash exchange control that enables the government to gather revenue and taxes directly.   Registered banks face restrictions that enable them to work without crossing the line for customers’ needs. They restricted from foreign exchange to concentrate and give domestic industries a chance to boost their organizations (Joudeh & Dandis, 2018). It helps in partnering with more domestic organizations than foreigners, which is beneficial for the host.

However, a few foreign banks have introduced some services that offer customers satisfaction. It has resulted in high bargaining power where each organization tries to produce the best services and products like savings, different loans like personal and hire purchase and accounts. However, some financial products are similar because banks receive direct orders and rules from their central banks. It is a great challenge for institutions because they fail to retain their customers, making it hard to cope with the fierce competition in the modern world. Facilities are forced to be more innovative and creative in laying down strategies to sustain customers (Khatab, Esmaeel $ Othman, 2019). They have to change their physical evidence and company mage to attract new customers and retain them. The reputation of a bank plays a big role in terms of customer satisfaction. When the reputation is good, it makes people have a positive image and trust with their customers because they believe such organizations are responsible, fulfilling, strategic, and care about their customers and society. Therefore, they must be keen on the slogan, colours used, services and products offered, and human resource

1. CHAPTER ONE

1.1 Statement of the problem

Due to economic growth, political stability and social growth, banks have flourished in the modern world. It has raised intense competition in the banking industry. To remain competitive, banks have struggled to invest and develop marketing, promotions, and advertising strategies. Good development and marketing strategies are associated with customer satisfaction which is a great impact on an organization. Physical evidence has also contributed dearly to customer satisfaction, loyalty, and retention. Companies have to maintain their physical evidence to maintain competitive nature and sustainability (Bamfo, Dogbe & Osei-Wusu, 2018). Provision of quality services and products, maintaining corporate image and a good reputation can aid a bank to remain competitive and outdo its competitors

Knowing the importance and contribution of customer satisfaction, higher managers at organizations determine the impacts of disturbances on customers and employees at work. It includes monitoring employees’ attitude, quality services, physical evidence, and basic factors that contribute to customer satisfaction. Most studies have restricted the study on customer satisfaction to a few variables. According to Matthews & Mokoena (2020), physical evidence of an organization determines the level of customer attraction towards such areas. It influences and creates a clearer picture of services and products within a company like banks and hospitality facilities. According to Hayati & Novitasari (2017), the physical environment contributes largely to customer satisfaction which depends on leaders’ strategies and workers’ services.

When an organization possesses superior marketing strategies that recognize and respect customers’ needs and satisfaction, it results in ultimate productivity and positive results. Customers are key contributors to the results of an organization. Moreover, the relationship created between employees and clients contributes to customers’ satisfaction due to understanding and good communication. These practices boost sales volume depending on the quality of services offered and the personnel of employees.

Generally, if an organization maintains a quality service environment and introduces products that curb customer needs, it experiences increased customer benefaction rates. Management of any company should be effective and reliable in creating beneficial services to customers and contribute to business growth through improvements in environmental services (Suhartanto et al., 2018). Many citizens are attracted to organizations where they receive suitable services, and there are higher levels of customer patronage. Moreover, an organization’s design can increase its connectivity with the service environment, attracting more customers.

Companies need to improve their communication and interaction skills, mostly in hospitality and banking services. At banks, many operations include physical interactions between customers and workers hence the need for qualified and experienced workers for better services. Considering that customer demands and behaviour can be overwhelming, Bustamante & Rubio (2017) emphasize developing theoretical developments and culture within an organization to ensure that issues that may arise will be handled accordingly and put into control. Reviews from different resources show that the marketing department faces a deficiency in theories that address atmospheric impacts or develop when addressing customers’ issues.

Moreover, there are lesser articles that address issues raised from physical evidence and customer attractions in registered banks. Many leaders have been trying to change the organizational environment by building them into different plans. It has controlled their patrons’ influence and the impact of changes in designs on the banks’ decisive users (Hasni et al., 2018). These details will give an open investigation forum on the gap created by many banking facilities between the impacts of physical evidence in customer attraction.

1.2 Purpose of the study

Regarding or research problem, this study’s main aim is to investigate the basic effects of the physical environment on customer attraction in banks. The main objectives will include

1. How ambient environments affect customer attraction.
2. Impact of physical architecture on customers’ attraction.
3. Confirming the signs that attract customers in banks.
4. The extent to which the size of an organization creates an influence on customer attraction.
5. How modern technology impact physical evidence on customers’ attraction.

1.3 Significance of the research

Considering that banks play a vital role in individuals, society, and a country, this study will help matters related to any nation’s economic growth. Banks provide services like offering loans and financial advisory services to people in society, making it more effective and productive for banks that prioritize offering quality services and products to their customers. It is the role of leaders to maintain basic drives that better customer services and attraction, which also helps maintain good rapport considering the competitiveness of businesses under banking sectors (Boukis et al.,2020). Competition has been increasing rapidly in the modern world due to many registered and verified banks globally. Only the ones with quality services and physical environment are doing better in terms of performances and curbing competition because it helps them retain and attract loyal customers.

Delivering quality services requires strategic plans from bank managers and the organization owner. They should discuss main agendas related to their physical evidence and customer attraction to curb the demands and expectations at workstations. This research’s significance is to help readers gain strategies and methods for improving customer satisfaction in a literary manner (Matthews & Mokoena, 2020). If used accordingly, it can bring significance in the relationship between management strategies and their ways of promoting satisfaction to their clients, which results in increased productivity and economic viability.

Moreover, this research’s significance was based on the practical applications and theoretical aspects experienced in banking facilities. For this study to pose its importance, it had to provide reliable evidence highlighting the knowledge that analyzes the relationship between physical evidence and customer attraction within registered banks (Boukis et al., 2020). The study will focus on bringing more theories to light that challenge the doubts and curiosity of scholars. Moreover, it will expand their knowledge and limits on the research topic.

Practically, this study will analyze implications and decisions that government and private sectors can rely on in making better decisions for their organizations regarding their customer attraction and satisfaction basing on their physical environments. These implications are meant to be easy to comprehend to help students, other researchers, and the public gets reliable and accurate information on the matter at hand.

1.4 Research questions of the work

Basing on the main objectives of this research, below are the proposed questions for the study.  They were based on the most effective strategies that banking facilities can offer to offer quality services that lead to customer satisfaction. They include:

1. To what extent does organizational, physical evidence influence customer attraction?
2. To what extent do ambient conditions at banks influence customer satisfaction?
3. What strategies can be used to acquire maximum customer satisfaction?
4. What architectural designs and signs can influence customer attraction?
5. What experiences have increased or declined the level of customer satisfaction?
6. How do products and services offered at the bank play a strategic role in offering customer satisfaction?
7. What signs and strategies can help a bank remain competitive and avoid losing their customers?
8. To what extent can technologies moderate the impacts of physical evidence on customer attraction?

1.5 Scope of the work

The scope of this research can be observed from different angles. They include the content and geographical scopes and levels of analysis. The study has dwelled on physical evidence, a basic service marketing aspect (Cox et al., 2020).  This section is an existing sector which bases on people, physical, and processing activities within organizations. The three P’s are among our key parts of our study, considering that it’s analyzing the impacts of the relationship between PE and CA in registered banks.

Moreover, the study seeks to analyze the extent to which an organization’s size and its technological advances can influence the ‘people’ who happen to be the customers. Physical dimensions under such facilities are ambient conditions, architectural designs, and signs. On the other hand, Customer attraction is dictated by measures like retention and attraction of loyal customers, earned profits, and sales within an organization (Bamfo, Dogbe & Osei, 2018). This study also analyses how banks apply creative designs and efforts in creating a reliable and service environment. These measures contribute at large to the outcomes associated with marketing performances.

Regarding geographical scope, the study is based on only the registered and verified banks globally. Some studies base their findings on specific regions or locations. In this case, the research has used information from different banks globally using randomly selected bank managers and customers. It was the used population who were used as the primary source of information. The study has included reliable information from different managers and customers’ levels; top, middle and lower levels from the specific banks.

However, they had different experiences and knowledge about registered banks. It was examined during the interviews, which was the major method of collecting data. Also, the population size was small, and the study did not require sampling them; hence the need for considering all information gathered from the respondents. However, the selected size was enough to globally offer qualitative data about registered banks’ general operations (Bamfo, Dogbe & Osei, 2018). The researcher compared and contrasted the data from both managers and customers and made concrete and reliable results.

1.6 Limitation of the study

According to Boonlertvanich (2019), limitations are the limits that researchers cannot acquire. Also, these limits might affect the validity of the collected data. Researchers should be reliable because knowledge of such obstacles is crucial because of the accuracy required in interpreting findings. Although it took thorough research to develop the findings and interpretations, this study has obvious limitations (Rabbani, Qadri, & Ishfaq, 2017). During such research, some data may be omitted or hard to find because workers tend to protect their organizations’ skeletons and customers tend to protect their personal information, which might ruin their careers or public lives.

These findings were not collected from all registered banks in the world. Therefore, it cannot be said to be a hundred per cent accurate. However, the study used many respondents to gather enough information and chose those that fell under the study’s scope. Additionally, some information is sceptical because they are based on some truth that is officially secret and can ruin some peoples’ career (Alalwan et al.,2018). Such information is secure, and the study failed to have resources to back up such responses and verify them for the general public.

This study examined the practical impacts of physical evidence on customer attraction of registered banks. It did not base on all banks or specific regions, which gave a wide range of information from the selected population. According to Aisyah (2018), detailed resources aid in gaining reliable and equitable study findings. For instance, this study involved managers and customers from different banks because they have different setups, cultures, technology, HRM, and structures. Additionally, the study did not have a chance to explore all influenced by physical evidence because people have different opinions about its relationship and customer attraction—nevertheless, the research-based results and findings on the available information from reliable sources from the selected population.

1.7 List of operational terms

1. Physical evidence- is the environment within an organization where services are offered, and sellers and customers interact face to face while trading on physical products. It makes the exchange and communication easier (Hayati & Novitasari, 2017).
2. Ambient condition- They are background factors that support services offered within banking facilities that enhance their real value. These conditions include noise and music, environmental conditions like temperature and lighting, facilitating effective communication while exchanging services within organizations.
3. Physical Architecture- These are the arrangements of physical tools within an organization like machinery and furnishing tools. They are arranged according to their sizes and shapes and their longitudinal relationship (Otterbring et al., 2018).
4. Signs are items found in the physical environment used as signals of communication on the place to clients. For instance, a well-designed logo or name of a company is a sign. Moreover, the EXIT and ENTRANCE and other symbols within an organization building serve as directions to users.
5. Customer Attraction– It’s a marketing strategy for gaining or attracting customers to an organization that already has an interest in buying products and services from a specific company. It identifies the target audience and offers their needs and wants by offering better strategies to be better than their competitors (Shankar & Jebarajakirthy,2019).
6. Sales Volume– The size of products and services that an organization sells out during their regular operations over a specific period, which may be months, weeks, or years.
7. Profit Margin– The ratio that a company acquires when they divide their revenues with their profit is calculated by subtracting expenses from their overall sales over a certain period. Also, it can be said to be the difference between excess revenue and the cost of production (Hayati & Novitasari, 2017).
8. Customer retention– It’s a strategic marketing procedure for keeping customers and preventing them from moving to other organizations. It is achieved by offering them quality services and products that satisfy their needs.
9. Size of the Firm– It is the general evaluation of an organization that includes technical, human, environmental, and financial resources. They give a company a competitive advantage over others (Suhartanto et al., 2018).
10. Service quality– It refers to a general assessment of a particular service within a firm compared to an organization’s overall performance with customer expectations of how such organizations should perform.
11. Corporate image- Researchers agree that it is a type of brand image where the name is associated with the organization as a whole. It can also be referred to as the product of continuous communication brought about by an organization to create an identity that reflects the brand’s value and reputation.
12. Perceived value- The difference between the prices paid by customers for general produces and services against the utility gotten from perception (Shankar & Jebarajakirthy,2019).
13. Relationship marketing- is the process of creating value for specific customers targeted by an organization that depends on their preferences, tastes, needs, and delivery of products and services tailored by customers.
14. Prices of services- It is defined as the ability to come up with potential traders who are willing to buy as a function of the seller’s particular set. Acceptance of the relative price reflects the ceiling price that a buyer is about to spend on products and services.
15. Customer loyalty- it’s the commitment that customer pledges to buy goods and services repeatedly from a certain organization until in the future. It results in a particular product’s patronage despite the influences to try other products in the market (Rabbani, Qadri & Ishfaq, 2017).

1.8 Theoretical framework

The key determinants of physical evidence on the impacts of customer satisfaction include corporate images, customer loyalty, signs, ambient conditions, physical evidence,  physical architecture, sales volume, and margin, and firm size. These factors determine the significant levels of customer satisfaction at registered banks.

 

Figure 1.1 Proposed Conceptual framework

Independent variables                                                             Dependent Variables Physical architecture Signs Ambient conditions Sales volume Profit margins   Customer satisfaction Customer Royalty

Source: Research Data January-February, 2021

1.9 Hypotheses

According to the framework above, several variables contributed to a rise in customer satisfaction while few gave neutral contributions. For instance, signs, ambient conditions, Physical architecture, and sales volume increase customer satisfaction, loyalty, and attraction to new ones. However, the price of services has not been identified fully on its effect on customer satisfaction (Sathiyavany & Shivany, 2018). Also, a test was run between customer satisfaction and loyalty, and the results show that there might be a positive influence between the two variables.

Formulated Hypotheses include:

H1: There is a positive relationship between profit margins and customer Satisfaction in registered banking organizations

H2: There is a positive relationship between sales volume and customer satisfaction in registered banking organizations

H3: There is a positive relationship between organizational signs and customer satisfaction in registered banking organizations

H4: There is a negative relationship between ambient conditions and customer satisfaction in registered banking organizations

H5: There is a positive relationship between organizational architecture and customer satisfaction in registered banking organizations

H6: There is a positive relationship between customer satisfaction and customer loyalty in registered banking organizations

1.10 Structure of the study

This research has been divided into five chapters. However, it starts with an introduction that offers an overview of what the study entails. Chapter one has examined the general essay by analyzing its statement of the problem, its purpose, the study’s significance, research questions, the scope of the research, limitations, and list of operational terms used within the research.

Chapter two has adopted the methodologies used in the study. Any research uses a specific format or method in gaining information. This chapter has analyzed the search design used, samples, sampling techniques and measurements, methods used to gather data from managers and customers, normality of data, reliability, and hypothesis testing. Moreover, chapter three has examined the results and empirical research of the study. It consists of descriptive analysis, reliability of the collected results, the validity of the factors used in analyses, hypothesis testing, regression, and the hypothesis’s general results. Lastly, in chapter five, the researcher has stated the conclusions and recommendations of the study.

2. CHAPTER TWO

RESEARCH METHODOLOGY

2.0 Introduction

This chapter examines the basic methodologies used during the period of carrying the study. This chapter’s key elements are research and sampling designs, data collection methods, and data analysis procedures. This chapter involves activities involved when conducting surveys and processes of gathering information.

2.1 Research design

Research Design specifies the procedures and methods used in the collection and analysis of data. Also, it lays out the plan for the research by aiding a researcher with guidelines on what and how to conduct it ( Bamfo, Dogbe & Osei, 2018).  The plan involves the sample size to be used throughout the study, dependent and independent variables, the correlation between elements, and the basic methods used in collecting data.  Generally, a research design is a strategy laid out initially to help the researcher with the perfect strategy to run a fruitful and reliable study that results in inaccurate results. It is based on answering the set research questions stated earlier during the study.

People involve various plans and analyses to collect information accurately. Researchers have different definitions of research design, but it ends with a closely related definition that any scholar can rely on. According to Aisyah (2018), it is a structure that involves several variables that are related to the research topic and their connection to each other. Moreover, it is a safe guide that scholars, the public, students, and other researchers can follow to identify paths used by the writer in conducting specific research and gather relevant data.  These designs vary because they rely on the study’s primary aim, style of analysis, and research setting, including the units and time used to handle the topic at hand. This research has used the cross-sectional method in conducting the survey.  It was used in earlier years, and it involved a gathering of data one time.

Many researchers appreciate and use this method due to the wide coverage it offers them an allowance of using general details of the results found during the study.  Additionally, this study used basic views nomothetic methodology that emphasizes the advantages of establishing research using a systematic way or order. It involves using natural science methods in creating and developing questionnaires used during the study. Moreover, it involves testing hypotheses basing on Canons from scientific rigour (Alalwan et al., 2018). It also involves many constructions that relate to scientific testing and quantitative methods in analyses of data.

2.2 Population of the study

Boonlertyanich (2019) states that the study population is the group of items or people used to make research conclusions. It happens because it is hard to study and draw information from all populations used during a study if they are numerous. However, if the study involves a small group, researchers can extract information from them using different methods like filling questionnaires and interviews. However, researchers have to use a group of interest regarding the research topic. From the population, a sample is selected and is used in an investigation. The study population is the entire group that a researcher wants to conduct investigations from, but it is hard because it might be a large number of people who are hard to investigate in full (Sathiyavany & Shivany, 2018). This population can be some elements of people.

Most research use people because they are easier to extract information from if they are willing. They are used as either secondary or primary sources of data. In our case study, the population involves all the registered banks, but a sample has to be collected and used for investigation. The target population is the bank managers and customers that were questioned and offered relevant information about the research topic.  According to previous researchers, several managers and customers can be willing to talk about their experiences at the banking facilities (Boukis et al., 2020). Different researchers often use them through investigation to offer reliable information to the study.

The population in this study involved 200 bank managers and customers across the world. Moreover, they were collected from verified and registered banks, making it easier to trust and use the information gathered. Different categories of managers and the study involved acquiring a wide range of data and information on the research topic. Registered banks tend to have head offices where some top ranks managers are found, like the regional managers and chief executive officers. Other managers found in other branches include sales managers, branch managers, operation managers, and customer care managers (Boonlertyanich, 2019). Researchers consider variables and the size of the population to come up with a considerable sample to use. If it is less in number, researchers might opt to use all the elements of a group of population.

2.3 Sample and sampling techniques

This research did not require several determinants because the sample used was less and fewer procedures were used. It involved a small number of registered, considering the overall number worldwide. The government in various nations has varied strategies in verifying financial institutions, making the number small compared to the overall number. To acquire reliable information and results, researchers have to give the population a chance to ensure they give a chance (Sampaio, Ladeira & Santini, 2017). Therefore they are selected randomly but from different categories. It gives a wider coverage of the information.

A reliable sampling method was put in place to yield better results. Managers and customers from each bank but in different categories were selected randomly. The selected people were used as the study population. They were used to draw conclusions and recommendations about the research topic—generally, 40 managers and 60 customers from randomly selected and registered banks were used. The ratio of customers to managers used was higher because their population is higher. They are readily found, unlike the managers who are busy protecting their organizations and are few at different companies (Cox et al., 2020). Banks have lesser employees because they are keen on their trust levels and performance towards the organization. Therefore, there are lesser managers compared to other employees and clients.

2.4 Data collection method

Researchers who have carried out such studies have confirmed two main sources of reliable data during research. They include primary and secondary sources achieved through different platforms. Primary data is from several methods, which include issuing questionnaires. Some forms contained several related questions that extract information from the study population. Their answers offer a sample framework by offering research topic ideas (Bustamante & Rubio, 2017). Questionnaires tend to vary depending on the targeted audience. For instance, the managers may be given different questions compared to the customers.

A researcher may be interested in extracting organizational information and details that involve physical evidence and customer satisfaction. Managers may be the most reliable people to offer this information since they work with the selected banks and have more knowledge than other employees. The randomly selected customers of the study were in different forms of the questionnaire. They carried different questions that could offer an idea used by the researcher to acquire the main information they are looking for from the registered and selected banks (Setiawan & Panduwangi, 2017, August).

Questionnaires require short answers, and mainly the respondents are given a chance to provide yes or no answers. However, they responded on the scale of intensity of the matter at hand. It is from a very low extent (VLE) to a very high extent (VHE). Moreover, the study used interviews as a way of data collection. There is a meeting with a specific study population and answers related to their study (Bustamante & Rubio, 2017). However, in this study, the interview was not the most reliable because it used a questionnaire to extract information.

On the other hand, there are secondary sources of information used by researchers. This data is from ready material like articles, journals, media, and social media platforms. It is secondary sources because they are not first-hand information. Many researchers use data collected and stored by previous researchers and stored in these devices like books and movies. Other secondary sources are from the library. They are also reliable because authors and scholars can compare several thoughts and ideas enlisted before and gain concrete information. Moreover, they are cheap because they require fewer resources to acquire and use (Boukis et al., 2020). Most of these academic works are from the internet and major libraries, which are everywhere globally.

Study problems are solved by retrieving these sources of information. People can read and get easier ways used by previous researchers in obtaining information. Moreover, they can copy the means they used to curb basic problems. Investigators of such information should be well-informed and quick to learn. It helps in easy access to data that can create solutions by using strategic research designs. A successful collection of related data depends on the researcher’s skills and knowledge (Salim et al.,2018). This study used basic data collection methods that involved filling in questionnaires, conducting interviews among the study population, observing the activities carried out within the registered banks, and sources from the academically reliable internet.

It is reliable for a survey to be flexible to adapt reliable means of data collection during a study (Hasni et al., 2018). The main idea of collecting as much information as possible is comparing and contrasting the most reliable and accurate. The study involved a nonmetric approach and cross-sectional methods of data gathering from managers and customers. These approaches use specific procedures that are reliable in the extraction of data from people and other sources. It bases the research on specific techniques and protocols that emphasize the accuracy of data collected and its reliability. Although various research tools and instruments are used during studies, this case used reliable and easy to comprehend questionnaires, considering most bank uses are literate.

2.5 Instrument design

As stated in the above subtopic, the questionnaire was the main instrument for collecting data from selected respondents. This method was reliable because people could use it with ease, and the researcher managed to extract as much information as possible. Since the researcher was looking for a wide range of reliable information for accuracy, they involved other interviewing methods. It helps get instant answers, and the interview can read the facial appearance and know when the respondent is lying. A personal interview may not require any instrument, but some used a recorder to note everything. It could make things easier during comparison because all information was available (Hayati & Noyitasari, 2017). Some people like it because it can be between only two people making it more convenient to air some hidden details and share more information which is the primary goal of any data collection process.

Although the questionnaire was used, the set questions might fail to cover all the relevant areas. It is the role of the researcher to take time when creating these questions. Research questions for a study can be reliable and helpful in setting questionnaire questions because they create a platform for understanding the study and the ultimate goal. According to Otterbring et al. (2018), questionnaires are more reliable and valid in data collection because questions are mostly standardized and suit the topic at hand.  The questions were set in four categories were to generate demographic data; the second generated data related to the physical evidence that affects customers within the registered banks. The third filtered unlawful responses that the managers and customers said and the last section was designed to acquire information about the contextual variables used within the study.

The questionnaire gave respondents ranges of which an element seem to affect their satisfaction among other related issues. They stated the extent to which dependent and independent variables influenced and affected physical evidence on customer attraction. This study used a scale of one to five that was more reliable and convenient. Any data collection method should be short and precise because many people tend to escape being interrogated to gather information. The five scales involved the lowest and highest extent, symbolic to the respondents’ level strongly disagreed or disagreed with the question.

2.6 Methods of data analysis

Research involves this sector because the information collected needs to be prepared and presented before judgment is made. This study involved primary, secondary and tertiary analysis in examining the collected data. The primary analysis involves graphs comparing and contrasting figures, diagrams, tables, and percentages to gather descriptive statistics. Besides, the secondary analysis involved the use of advanced elements to analyze data. It used SROCC, Spear Rank Order Correlation Coefficient, to test hypotheses (Suhartanto, 2018). It goes hand in hand with a different tool called the partial correlation coefficient, which aids in verifying the moderation of various variables related to the study. It involves a comparison between the size of a bank and its technologies.

Moreover, these tools enable researchers to moderate results. Additionally, the study involves multiple regression analysis that aided in examining how physical evidence explains its contribution and changes to an organization’s customer attraction. The tertiary analysis involved analyses of data at a more advanced level. It consisted of the analysis of secondary data to extract conclusions and recommendations of the study. The tertiary analysis helps identify the extent to which physical evidence contributed to customer attraction in registered banks.  Physical evidence is the independent variable, while customer attraction is the dependent variable based on the study’s banks. These analyses played a vital role in linking factors connecting the study’s two variables (Hasni et al., 2018). It used simple linear regression to analyze the relationship between the main variables and others.

These regression analyses established hypotheses.  It was extracted from the relationship between variables called correlation (Boukis et al., 2020). The study included the degree of correlation which identifies the value of both variables. This correlation value can be -1, 0, or +1, which means a negative relationship, neutral or no relationship, and positive relationship, respectively. These correlation coefficients show the relationship of variables being considered, and in our case, the main ones are physical evidence and customer attraction.  Spear Rank Analysis (SRA) can measure any developed association between variables systematically (Aisyah, 2018). However, it is used in situations where there is a larger sample size of more than 10. Ordinal scale can also be used with questionnaires in determining the significant relationship. However, the scale measurement must involve using modern technology tools that dear will statistical analysis like the SPSS (Statistical Package for Social Research).

2.7 Reliability and validity of instrument

According to Boonlertyanich (2019), an instrument’s validity is based on the level at which empirical measures have reflected the actual concept of study.  Therefore, validity can be the ability possessed by a scale of measure. It must be accurate with no errors during measurement. Creating a conclusion of any study can be stressful to researchers, and it requires keenness of the findings extracted from the data collected. Conclusion of any study also creates new suspicions for the writer because readers and other scholars might raise concerns or corrections on the sources of data, tools, instruments used, findings and analysis, and the general outcome of a study.

Aisyah(2018) suggests that every chapter and stage should be closed with a validity and reliability test to ensure the research follows a correct path and is reliable using resources. Variables involve operations and techniques that require accuracy when dealing with and hence the need for a validity and reliability test. Moreover, the content of the study should involve accurate skills and scales in areas that involve measurements. These should provide thorough coverage of investigative questions that the researcher has used as a guide. Effective content shows the level of seriousness when carrying out the study. Measurements in any research analyze the dimensions and indicators of different concepts used in the study to reflect on the main variables at hand.

This study’s validation process involved experts who state their opinions on marketing services and strategies. The questionnaires had specific questions directed to managers who were relied on as expected and viewed to understand much. These factors used in association with academic knowledge that the researcher had gathered to create better and accurate results basing on the research question. For reliability, all materials used in the study are counter-checked (Alalwan et al., 2018). For instance, questionnaires are re-checked to avoid errors resulting from inaccurate or unreliable information from the respondents, which might mislead the study.

The researcher ran more tests on the main topic through specific measures that have been certified. Construct validity exists if it relates to different variables within a system that involves a theoretical relationship (Bustamante & Rubio, 2017). Reliability is a measure and verification of an instrument’s stability and consistency that measures a concept’s goodness. Instruments of measuring like questionnaires are said to be effective if the results it produced are consistently accurate and reliable. Moreover, a questionnaire is seen as valid if it accurately measures what it is to be measured. Throughout this study, it is evident that it is reliable because the questionnaire was re-tested and checked, and it was accurate when respondents used it.

Bamfo, Dogbe  Osei-Wusu (2018) insisted that Cronbach’s Alpha is a reliable coefficient because it indicates the positive correlation between the questionnaire elements.  The study included it to test and confirm the reliability of the instruments used under this study. This coefficient assesses and measures the internal consistency of specific measures. It is evident from the SPSS results collected through windows version 15.0.

Table 2.1 Reliability Coefficients of variables

S/No	Dimensions/Measures of the study variable	Number of items	Number of cases	Cronbach’s Alpha
1	Physical Evidence and Customer Attraction	40	32	0.869
2	Ambient condition	5	32	0.768
3	Physical Architecture	5	32	0.662
4	Signs	5	32	0.778
5	Sales volume	5	32	0.806
6	Profit margin	5	32	0.775
7	Customer Retention	5	32	0.835
8	Bank size	5	32	0.818

Source:  Research Data January- February 2021 SPSS Output (Appendices)

 

3. CHAPTER 3

3.0 Results and empirical research

3.1 Introduction

Chapter three of the project will collect, analyze and interpret the information gathered. It presents data collected from managers and customers selected as the study population and systematically analyses them. Mainly it reports on the study’s results, analysis, and interpretation of data.

3.2 Presentation of data

This research constitutes the overall number of banks that were used as the population study. Moreover, it analyses the customers and managers used as respondents in gathering information which was conducted using a questionnaire. They were chosen randomly from 200 banks that are registered and operate under the nations’ central bank.  The study involved a random sampling technique to get a sizable and manageable number of respondents. It has to involve lesser respondents to minimize costs on resources and time. An equal number of questionnaires to the respondents were distributed among them through their branch and senior managers. They selected their trustees to offer us information by filling the structured questions. Researchers distributed the forms to the randomly selected banks and agreed to participate in the research (Setiawan & Panduwangi, 2017, August). It took some weeks to run these operations and collect full-filled forms, which required further analysis and interpretation of data.

 3.3 Analysis of Data

From the total number of participants from 200 randomly selected banks, male to female ratio was 1:1. Most managers and customers used as a study population were between 21 and 50 years from the information gathered. The customers were between 21 and 40, while the managers ranged between 35 and 50 years. The number was even from various banks used in the study to estimate the general situation in registered banks worldwide. However, managers were lesser than customers.

Table 3.3.1 Percentage of respondents (Gender)

Gender	Respondents	Percentage
Male	50	50%
Female	50	50%
Total	100	100%

Source: Research Data: January-February, 2021 (SPSS)

From the above table, the research recorded a 100 % response from the selected respondents. These data were based on the questionnaires distributed and the ones that were collected after responding to the questions on the form. The 100 papers were returned without any blank spaces.

Table 3.3.2 Percentage of respondents (Age)

Age	Respondents	Percentage
21-30	30	30%
31-40	40	40%
41-50	30	30%
TOTAL	100	100%

Source: Research Data January-February, 2021

Table 3.2 shows the age of the respondents that quailed to take part in the research. They include managers and customers in different age brackets. The table shows that there are only three age groups found under the randomly selected banks. 30 % of the respondents were ranging between 21 and 30 years. 40% of the respondents were made up of people in the 31 to 40 age brackets. They were mixed genders, and the researcher did not distinguish the exact number of males and females from different age brackets or grouping (Padlee, Thaw & Zulkiffli, 2019). The other age bracket constituted respondents between 41 to 50 years, 30%.

The above figures were collected from the randomly selected banks that are registered globally. This data was gathered while conducting research, and it was accurate to offer reliable results. Few age groups were involved in the research to avoid contradictions. Moreover, the elderly and young adults were avoided because they may fail to deliver the required information. The young generation is slow to understand the banking system, hence avoiding them, like the elderly, who are believed to offer biased or wrong information due to memory loss or ageing. The researcher gathered equal respondents from banks without favouring different age groups or categories of banks. A good study must be reliable and transparent. Therefore, no bank was put on the frontline (Othman et al.,2019).

3.4 Characteristics of the respondents and their banks

Table 3.4.1 Years the banks have been registered

	Frequency	Percentage	Valid percentage	Cumulative percentage
Registered Below 10 years	34	16.7	16.7	16.7
10-19 years	34	16.7	16.7	33.3
20 and above years	136	66.7	66.7	100.0
Totals	204	100.0	100.0

Source: Research Data January-February 2021

The study analyzed the number of years from the above table since the bank was registered to date. The results show 34 banks which make 16.7 per cent of the overall population, have been registered between 0 and 10 years. The other 34 banks were registered and have been in business between 10 and 19 years, and the largest group of banks have operated for 20 years and above, which makes 66.7 percentage of the study population.

3.5 Descriptive Analysis

Results of the study were gathered from the tables and questions in the questionnaire forms. A large percentage of respondents supported the contribution and impacts of independents and dependents variables in customer satisfaction. 80% registered with strongly agreeing to the statement. Seven per cent just agreed, with the rest disagreed. The majority of the respondent is used to make the final results of the research. However, every person’s opinion is respected and used in various parts of the study.

Although it was not recorded in a form, a table or analysis, 90% of participants strongly agreed that the study was at the aggregate of 90 people of the study population. On the other hand, the people were asked to scale the rate at which the registered banks were using modern and up-to-date tools and instruments. It was unbelievable when 50% of the respondents agreed that registered banks were using modern technology tools to conduct their services and offer productive and reliable products in terms of customer satisfaction. They believe that registered banks are well equipped with sophisticated instruments for effectiveness and efficiency in improving physical evidence to boost customer satisfaction. They include possession of tools like ATM (automated teller machine), CRM (cash recycle machine), and biometric money calculating machine, and touch screen ticket other machines (Sampaio, Ladeira & Santini, 2017).

The questionnaires included questions on safety within the working stations. It involves safety during transactions within the bank and other activities. Some respondents listed that not all banks are safe to conduct transactions and financial activities with but for the registered ones, they have strict rules to protect and keep their customers safe (Othaman et al.,2019). In case of errors or insecurity issues, the banks follow up and compensate the victim. They possess several safety features like CCTVs and security guards who offer protection by monitors the activities within the banking premises throughout the day.  60 % strongly agreed with the offering of security from banks adding that security details confidently help and services are transparent.  It was a positive response because less than 10 % of the respondents disagreed with the matter at hand.

Additionally, 50 % agreed that banks offer their customers personal attention. Such results show that not many agree with the results, and many banks are not offering what the researcher was looking forward to knowing. 10 % disagreed, and the rest had no definite answer. The average score for this question was 3.6, which were the lowest recorded results in the study. Most customers gave these responses based on the rush hours and festive seasons. There are many customers seeking banking services and products. It makes the premises to be overpopulated, and the queue tends to move slower. If the number of workers remains the same, but the customer increase, it is logical to agree that the working rates might reduce and lead to delays in the queues. Volumes of customers and transactions increase rapidly during these periods compared to normal days. However, some banks have developed measures to curb such situations, including a standby department, to monitor the rate of moving queues in the bank branches. Once they notice it is slower, they send backup to help in the hectic days at work. They protect main offices first by using employees from branches with more employees compared to clients.

Respondents had different answers when responding to products and services offered by registered banks. Fifty-four per cent strongly agreed, while 23 per cent agreed that they affect a bank’s reputation. The average score was at a mean score of 4, showing a positive response. Customer satisfaction is affected by the products and services offered by the bank. It constantly delivers quality products and improves their performances as expected by the customers, and they create a good reputation. It attracts customers and boosts their loyalty. A company must ensure its name is associated with a positive influence on customers through excellent work and performances. Banks must also create a clear image through performance, services, and products to remain competitive, making them stand out from their competitors.

The modern world is faced with competition due to technological developments. They require to accompany to remain on their toes to avoid losing their values and customers to their competitors. Banks put efforts into reconstructing and helping the community to improve their image. By running projects, youth programs, and general developments, they show their social responsibilities, which help create a better image than their competitors. Respondents strongly agreed with the statement of the good image of a company attracting more people. Some organizations are keen on social responsibility from corporates which involves allocating resources and funds to help the society and the region (Hamzah & Shamsudin, 2020). Banks offer their contributions in terms of scholarship, donations, opening and running charity organizations, protecting the environment by joining other citizens on environmental days, and protecting society by being responsible with their waste materials.

70 % of the respondents strongly agree that banks’ services positively influence customers and other workers. The study shows that employers need to employ trained and well-suited employees to improve their services and ensure that their customers are served to their satisfaction. The level of services dictates the value a company offers its customers. The average median score of the respondents agreed that bank services create a great impact on customer satisfaction. These services are valuable to customers and organizations because they motivate and determine customers’ level of attraction. When more customers use the services and products, they boost their’ productivity hence more income. Provision of quality services is a win-win situation under this topic ((Hamzah & Shamsudin, 2020). These services consume time, energy, and resources hence the need for reliable workers who will use the services to bring income and positive influence on the bank.

Under this study, many respondents were not aware of the information on banking prices. The questionnaire requires them to state the level of their understanding of price information of products and services. Forty-eight per cent stated that the information was clear, but some people found it hard to comprehend. On the other hand, 41% were neutral with their responses to the above statement. Some customers claim that the banks do not inform them clearly about their prices on various goods and services. For instance, when they adjust prices on certain products, they fail to communicate on time to their clients. Registered banks are good at communicating and alerting their customers because they have developed reliable and offer the best services. Their practices attract more customers and help retain old ones because of great customer satisfaction (Wahyuni, 2019). Customers who are informed and aware of banking practices responded that they know that banks don’t hide costs on some products and services. Also, it alerts its clients in price change cases through social media platforms, making it easier to connect with more customers.

These responses clearly showed that the customers had less idea on price information within the banks. Many respondents chose the neutral statement regarding this issue because they were not well-aware of the expected and details of prices. They have less knowledge of price setting and policies used within the banks they engage with. However, some banks are not transparent with the price information on the products and services they offer. These factors created a negative impression on customers because they feel left out and denied their rights about the organizations they trust with their finances (Omoregie et al.,2019). Customers may lack interest in knowing much about banks’ changes until they want to access and use specific products and services.

The study results gave respondents different information about banks’ willingness and reliability to fulfil their promises. It has affected the bank’s relationship with its customers due to a lack of trust and reliability. Some banks tend to give promises beyond their capabilities to attract customers to join their organizations which they fail to deliver in the future. These problems make customers move to competitive organizations that keep their words. It was evident from the respondents that registered banks are different and reliable. 62 % gave positive answers concerning them, including the customers and managers (Raza et al., 2020). They fulfil their responsibilities and promise by building their relationship with their clients because they focus on creating a better public image.

Moreover, they work towards creating customer satisfaction to prevent them from moving to their competitors. Only 5% disagreed with the act of registered banks offering and fulfilling their promises. Customers under these banks have developed trust and confidence to trust their services and products without going into details. Their corporate image, architecture design, signs, and ambient conditions help develop confidence, unlike other banks (Setiawan, & Sayuti, 2017). They also work under rules and regulations set by central banks of their nations, requiring them to act accordingly to prevent the termination of their license and registration.

Due to many activities like transactions and personal details, banks need to provide updated information to enable their customers to study and comprehend changes. It improves their communication skills with their customers. They organize conferences and programs at their halls where they educate their customers and new workers. It acts as a convenient way of passing information due to the large volume of information and many clients. Other banks post their websites’ changes, which is unreliable, considering that not all people use online services due to their internet access and locations. However, these methods seem more convenient because changes are experienced more often, and they are many customers, which makes it hard to send information individually (Eklof, Podkorytova & Malova, 2020). Technology has made it easier to share details and information in wide ranges. Effective communication skills make customers trust the organization. Poor communication leads people to lose trust in the organization and judging their poor performances due to the failure of poor timing and delayed information on price changes.

From the questions, the respondents have revealed their worries about decisions made by banking management. 60 % strongly agreed that they are decisions to favour customer services. Registered banks make decisions that cause a win-win situation between the customers and the organization. A win for the customers results in positive results and performances within institutions. When they are more satisfied clients, they consume more which leads to a rise in income. The study showed an average mean score from the respondents to suggest that some people like organizational decisions while others hate or are neutral. The majority of the customers are happy with the decisions that fulfil their needs and wants and are neutral on others that do not affect them directly. Decision-making in banks creates a great impact on customer satisfaction. It can lead to negative on positive impacts, which will affect both the company and clients differently. The study shows many respondents from the registered banks are satisfied with the products and services offered (Eklof, Podkorytova & Malova, 2020).

71% of the respondents were positive about the services and products provided by registered banks. From the study, customers recommend others when they experience satisfaction in a certain organization. 62% have recommended friends and have also referred others to corporations depending on their services and products. Such banks are beneficial to society and individuals who make them remain competitive in the current industry. Customers and managers who had been selected ranked the banking services in good ratings that show banks offer positive things to them, which creates a strong bond and improves customer satisfaction. Respondents strongly agreed that in the future, banks would have improved their transactions. Generally, most of the respondents receive their expected services and products from the banks hence their loyalty and retention.

3.6 Correlation Analysis

The above research represents the correlation matrix’s output for the variables involved in assessing the impacts of physical evidence on customer satisfaction. Independent and dependent variables showed a moderate and high correlation between 0.6 and 0.8. The strongest correlation was experienced between the customers’ satisfaction and loyalty. These variables have a strong correlation. However, certain variables have shown relatively weak correlations. For instance, the price of services and other variables like signs, corporate image, and customer loyalty possessed r=0.595, r=0.595, r=0.515, respectively.

Generally, both the dependent and independent variables had a positive correlation. P-value is used to indicate the significance level of the relationship between variables. 0.000 is a neutral significance level and is associated with the p-value of all variables. Moreover, it is smaller than 0.05 significant level.

 

4. CHAPTER 4

4.0 Conclusion and Recommendations

 4.1 Introduction

This chapter covers the final activities, summarizes the researchers’ main goal, and makes overall conclusions. It involves comparing and contrasting the chapters above to give concrete conclusions. Lastly, it analyzes the study’s limitations, and the researcher provides general recommendations regarding the study basing on the key determinants of customer satisfaction.

4.2 Discussion

This study’s primary goal was to assess the impacts of physical evidence on selected banks’ customer satisfaction. The study found the key determinants, and it was its role to analyze the main element in boosting customer supervision and how physical evidence influences customer services and satisfaction. These elements involve quality of services and products offered at registered banks, relationship marketing, and generally supposed value. The study examines how customer satisfaction influences retention and loyalty in registered banks (Husaeni, 2017). Research models are verified to offer quality information.

The research conducts a comparison process between the hypothesis developed across the study and the general outcome. It can be concluded that the quality of products and services is significantly positive to customer satisfaction, loyalty, and retention.  This study was conducted earlier by researchers, and similar results were achieved (Nahida, 2019). The relationship between variables was developed, collected, and analyzed through the SERQUAL dimensions of solidity, approachability, assurance, dependability, and empathy. They were used in the study’s main instrument of collecting information. From the findings, it was approved that the model is reliable because previous researchers proposed it.

According to Nahida (2019), customer services dictate several activities and elements of customer satisfaction. Customers are the main assets of organizations. Therefore, they should be treated with care and perfection to offer quality work and services, resulting in their retention and loyalty. Many people agreed with this statement from the study, which rendered it correct and reliable to be used in the research. Managers and customers gave similar answers, which can be confirmed, to be honest from the researcher who collected it. From most selected banks, it was clear that many customers queued to receive services and products during the break, which made it hard for the workers. Also, the researcher had a hard time getting customers and employees to respond to their questions because they had fixed schedules, and they were working hard to complete their tasks before heading home to wait for the next workday.

Banking facilities are usually overcrowded during the festive seasons because customers want to access their services and products. Some banks offer gifts that attract more clients, which improves their customer satisfaction. Therefore, the researcher had to ask fewer queries than expected to conserve time and avoid negative answers from the selected respondents. Like the customers had to wait in their lines, the researcher had to be patient to acquire some answers (Bamfo, Dogbe & Osei, 2018). Several banks have many customers, which makes it hard for them to offer customers individual attention. Still, they try other mean s to become better in delivering their services and products.

The corporate image was tested, and the results had a significant positive relationship towards customer satisfaction. According to Joudeh & Dandis (2018), corporate image is a primary idea for customer satisfaction. Other researchers supported these facts by comparing direct and indirect impacts that corporate image has created on customer satisfaction. Most results were similar, and it is easy to conclude that corporate image plays a great role in customer satisfaction. It is a strong independent variable that can be relied on and offered detailed information regarding the research topic. The company’s image should be attractive and possess positive reviews because it gets customers’ attention and attraction depending on its reliability level. Many customers judge the corporate image depending on their first impression. Therefore, the management and leaders should be keen on creating strategies and organizational culture appealing and can attract new customers. New customers are the most influenced by the organization’s image because they keep and analyze one from their first look and impression.

Banking facilities should create a good impression because it sticks in people’s minds every time they visit a new organization. When they get a positive impression, they stick to the company and believe in receiving quality services and products to settle their expectations. They create conclusions from the first impression of a facility, and many customers used as respondents attested these results. Moreover, some managers had different opinions, but the side supporting this statement was many, and the researcher used the details to make general conclusions (Khatab, Esmaeel & Othman, 2019). Customers are attracted to companies that possess a better and relevant corporate image. They believe the quality level of the corporates image translates to their service level and products. A good image is associated with the perceived value of the quality services and products produced within an organization.

In the next hypothesis, the services’ and products’ prices lacked a significant relationship with customer satisfaction. Although many people might disagree with the finding, some researchers were keen on analyzing the physical evidence and their impact on customer satisfaction. The results were the same from different researchers that had worked on this issue in earlier days. Service quality can attract or lose customers within an organization. People like good services because they feel they are worth their time and other resources (Matthews & Mokoena, 2020). For instance, the banking facilities should offer quality services from their workers and equipment’s failure to which they will fail their customers, and it will lead to negative effects. They include losing their loyalty, spreading a poor name for the company depending on the services offered.

Corporations ensure to have updated technology and devices to avoid slow working rates of breaking down at the customers’ time of need. They can also introduce backup plans if the main operators are dead or not functioning as expected. If they experience frequent malfunctioning, customers may view them as non-operational or reliable hence giving up on their services. Within the banking systems, the process should be improved because they help ease the tasks and be more effective to lead companies in the industry (Sathiyavany & Shivany, 2018). It reduces slow working and breakages of basic instruments used by workers to offer services within the facilities.

For instance, most banks and their branches have few cash deposit machines. Yet, some customers experience slow performances when they put their cash or banking notes to conduct their operations normally. They might be rejected at times which makes customers angry and lose trust in an organization. They use manual operations to withdraw their cash which makes it slow and unreliable because they waste time. Respondents who have faced such scenarios might give bitter responses that may be accurate, but researchers find it hard to make conclusions about such information’s viability.

Additionally, the hypotheses from prices of services face significant negative relationships with customers within the registered banks globally. Although some researchers had given different notes and ideas, it is hard to compare their contractions from the study results. They agree that customer attraction can be affected by products and services prices, contrary to some researcher’s analyses (Sampaio, Ladeira & Santini, 2017). Lockyer, a specialist in banking facilities, has written several materials that stated that prices directly influence customers’ urge to buy and sell products to the banking systems.

Some Bank’s human resource lacks knowledge and skills about banking services like policies, loans, and basic information. For instance, policy on pricing remained neutral because they influenced prices of neither services nor customer attraction. They possess less knowledge and awareness about prices which makes them fail in offering customer satisfaction. The price of services contributes less to customer attraction, retention, and loyalty. Some registered banks remain different because of their strategies and management instead of prices. Physical evidence creates more impacts on customer satisfaction than other elements (Eklof, Podkorytova & Malova, 2020). Most registered banks work under the nations’ central bank by following their standardized rules, which increases competition as banks try to stand out. However, some banks are more educated in dealing with product prices and customers.

The results showed positive signs in testing the significance value of relationship marketing’s contribution towards customer satisfaction. Relationship marketing influences customer satisfaction positively. This study’s results are supported by other researcher’s work whose information is closely related because they have included information showing the positive effect of relationship marketing in improving customer loyalty, retention, and attraction. These impacts reduce the difference between the organization and its customers, bringing them closer and improving productivity, a primary objective of organizations. Most respondents from the study agreed with the results, and some customers explained the direct impact they experience from relationship marketing.

Banks offer personalized services that motivate and attract people from outside. Although others fail to understand their customer preferences and taste, they implement managing systems and strategies to offer customer satisfaction from their organizations. In the competitive world, companies have to learn to become better and outstand from others. For instance, some organizations are familiar with their customers’ preferences, and they offer them, which boosts their loyalty and aid in recommendations to new clients by the existing ones. They need specialist and qualified personnel to understand and analyze customers’ will and choices (Joudeh & Dandis, 2018).

Some companies hire specific workers to analyze their customer behaviours to introduce and modify their products and services to fit customer needs. To acquire their main goal of increased productivity and performance, banking facilities have to accommodate their customer needs and honour their rights and freedom. It involves bringing their desired services and products to the market to curb and fulfil their expectations.

For instance, they can offer loans with favourable terms like low-interest rates and reduce processing time. Customers value reliable services that they can acquire at the comfort of their homes without the physical connection. Some registered banks have taken a step to offer mobile loans where applicants apply and receive their loans online. Banks increase the services and products produced in different departments. For instance, some have introduced credit cards that help people access products and services conveniently.  Although people had not expressed their needs, the study shows that they appreciate and benefit from the cards. It has pushed other banks to create some cards and other better services to retain and attract customers.

According to the study, customer satisfaction has a significant positive relationship with customer loyalty. Nahida (2019) confirms these results by stating that customer satisfaction at banking facilities positively influences building customer loyalty and attracting new customers. Customer satisfaction has been analyzed and recorded in various documents, articles, and journals. It is influenced involves creating positive productivity for the customers and the organization. Both customers and managers used in the study population strongly agreed that customer satisfaction improves their loyalty. Banks focus on increasing and improving customer satisfaction to improve performance. They offer these services by improving their strategies and management.

However, customers use different banking systems by trying different banks that favour their preferences and interests. They create many accounts from different banks and apply for credit cards. Customers consider various things while choosing a bank that includes: convenience depending on location, customer services, products, image, and physical environment. If a bank favours customer’s expectations, they end up becoming loyal because of the satisfaction they experience (Husaeni, 2017). It leads existing customers to shift to other organizations, which causes losses to the initial banks. Customers have the power over the company they plan to offer first and last priority.

4.3 Limitations of the study.

Although the study was conducted thoroughly, it had a few limitations. For instance, the researcher was limited In terms of convenient sampling and sampling techniques. The study used a questionnaire as the main source of information from the respondents, managers, and customers from 400 randomly selected banks globally. The formal questions were distributed equally among them without adding extra people that were not involved from the beginning of the study. The researcher had involved banks from different regions and nations to ensure sufficient and reliable information was gathered for the study.

Many scholars and readers rely on facts and references with accurate answers. The results were based on specific banks that represented the entire financial sector globally. However, the researcher had to incur a lot of cash and time because the study population was from different parts of the world. It used 200 banks that was enough considering the overall number of registered banks globally. Setiawan & Sayuti (2017) believe that a larger sample is more accurate and reliable when conducting a study because they increase the sample size, giving a wider range of data collection and reducing sampling error.

Additionally, the study had a limitation on the restriction on the population to use during the research. It had to be people from only the registered banks that had been selected. It was a smaller population considering the total number of banking sectors and facilities in the world. Other types of banking facilities that are not registered with the nations’ government were not considered during the study.  It was ineffective because the topic at hand, assessment of impacts of physical evidence on customer satisfaction, is an issue that faces all the banks despite their category, region, or nation that they have been set up.

Some facilities that were not used have occupied a large market share resulting in larger customer satisfaction contributions. Moreover, customer satisfaction from physical evidence is an element that faces all institutions, even those from different industrial sectors (Wahyuni, 2019). However, it is worth understanding that it could be hard for the researcher to conduct a study on all banks because of time and resources. Some banks with extensive branches were lucky to be involved in the study because the head bank gave details that represented all its branches. Bank managers perform the same roles under the head office manager, and therefore, his words represented them all. The research is hard to be general or categorized as an overall study of all banking industries globally.

Lastly, there was another limitation that faced the study. Considering its use for one main instrument of collection data, it limited data collected from the respondents. The study has relied on questionnaires that had the same structured questions. It limited the information gathered because they acquired the questionnaire questions only (Omoregie et al.,2019). Broad research can involve several instruments that help to gather as much information as possible. The close-ended questions were used, making it a bit hard for the selected customers and managers to adhere to during the data collection period.  Many researchers use the open-headed because they make it easier for respondents from any age group of educational level to read, comprehend and respond.

Moreover, they allow them to explain their experiences and add any reliable and burning issue to help the researchers. For instance, when a researcher asks for a general question about customer satisfaction, the respondent can gather the courage to write down their experiences and give detailed information. The researcher uses such information to conduct accurate data analysis because they have a pool of information to compare and contrast the most reliable information. Moreover, the study limited its sources because some are hard to state on questions and give accurate answers. For instance, when using interviews, they can get immediate feedback and gauge their respondents’ honesty from their facial explanation and body language (Padlee, Thaw & Zulkiffli, 2019). Moreover, a friendly interviewer can lead respondents to be at ease, leading them to offer personal experiences as primary sources. They are more accurate compared to secondary and tertiary sources of information.

4.4 Recommendations

As stated in the research, customer satisfaction is influenced by different factors. Moreover, physical evidence is among the primary elements that dictate customer satisfaction in banks and other financial institutions. Factors that influence customer satisfaction positively or negatively include the corporate image, perceived value, relationship marketing, and service quality. They are the main determinants with the selected registered banks globally. Most of them have a positive significance level that shows they lead to customer satisfaction within the facilities. More than 90 % of the respondents agreed to the statement that claimed these elements led to positive customer influence from the respondents’ data.

However, they are physical evidence that leads to negative impacts on banking sectors and customer dissatisfaction. Recommendation on this study has been set aside to increase banks’ service quality Below are basic recommendations that the researchers developed to help in physical evidence and their impacts on customers’ satisfaction within banking facilities. When the recommended factors are put into practice correctly, they increase customer satisfaction, retention, and loyalty. On the other hand, the company increases its productivity which results in more profits (Setiawan & Panduwangi, 2017, August). Its’ influence creates interest for both parties.

From the data collected, respondents confirmed that most workers play their role in giving customers enough time to explain their problems and offer help on issues that they can. They know their responsibility and adhere to it, although they are few workers that are hard to control or supervise. They are harsh and disrespectful to the customers. Such workers should be well-trained or fired because they reduce customer satisfaction, which results in a deteriorating company’s outcome (Setiawan & Panduwangi, 2017, August). Because existing customers will shift to companies where they are treated better, resulting in lower purchases of the banks’ services and products. To handle such issues, banks and other organizations have to create platforms for training and educating staff on handling customers and their workmates. Moreover, they can be keen when offering job opportunities for applicants. Some traits are essential and are required by every organization to improve its performance by offering the best customer care services.

Banks should ensure their workers are active and swift during peak hours and festive seasons. They need to handle their work perfectly and open all counters to avoid overcrowding and slow operations to their customers. Locked counters can be used on these occasions to improve customer satisfaction. Moreover, employees have not let on leaves because they are too much to handle at their workstations (Otterbring et al.,2018). Therefore, when they seek off or fail to appear at work, their positions are temporarily replaced by other staff who have related knowledge.  Moreover, they are gotten from departments with lesser duties to handle during such periods or where employees are many compared to the work.

When the main organization experience a shortage, they hire assistance from their branches with less hectic schedules. The headquarters are responsible for such situations by providing backup to keep the bank activities running. They develop unique tools to monitor every branch’s situation and find a solution if a problem arises. Moreover, they have the Queue Management System (QMS) to approximate customers’ time on the line. If it exceeds the average, they call in and send the backup to the respective branch. They have suggestion boxes, among other ways where customers can air their problems to the organization. For instance, there provides a hotline that is well-equipped with trained and reliable workers to listen and help customers in case of any concerns.

Some customers chosen as study population complained that the banking systems fail to offer individual customer services. It is recommendable to banks facing this issue to higher specialized ambassadors and workers who can handle such problems (Hasni et al.,2018). They can create strategies and programs specifically for helping customers who need aid from the organization. They can also introduce a department that will offer customers individual attention and offer other related services to boost customer satisfaction. For instance, they can play roles like welcoming new and existing clients when they get to the working stations to seek help or use the banks’ services and products.

Moreover, they can direct the elderly to the resting benches before they are served. They can help customers around the bank facilities understand their policies and other services offered by offering advice and analyzing vague ideas related to the banks (Hayati & Novitasari, 2017). Service ambassadors are used by organizations to offer customer services and prevent them from facing difficulties filling forms and pressing ticket services. They make it easier for a bank to know some customer’s services, which increases trust in them by creating close connections. This strategy can aid in improving customer satisfaction because the ambassadors create a closer relationship with the customers.

During the research, respondents are known for giving different opinions and answers to the researcher. For instance, some customers complied with the ineffective services offered by banking organizations. For instance, when they queue for long, they forget about overcrowding during festive seasons and expect operations to run like normal days (Cox et al.,2020). It is clear that the more customers, the longer it takes to serve them when other elements are held constant. Any transaction conducted at the bank takes time because they have to be accurate to avoid mistakes. For example, they have to fill the forms keenly during transactions and avoid updating the wrong recording, depositing saving books.

From the above issue, the research can recommend banks open a specific counter for such transactions. By accommodating single or related operations, it saves time hence the quick offering of services—people like fast-moving queues despite the size or number of customers within the working stations. Moreover, workers and banks can cooperate in training customers on using automotive machines when handling transactions. There is rapid competition among banks and other organizations, and they are looking forward to adopting new technology to improve their effectiveness and reliability. An organization must keep up with the most current technology to remain competitive and productive (Bustamante & Rubio, 2017). Therefore organizations can organize training programs for their customers on using machines in possible areas. This practice can benefit the customers and organization due to effectiveness and time conservation. For machines’ effectiveness, an organization is recommended to place them strategically and encourage them to use the tools more often to get used and improve their maintenance.

Customers hate a company that takes time to replace or repair their machines. For instance, when an ATM has broken down, they should fix it within a short period because some customers depend entirely on the transactions. Therefore the banks and other financial institutions can invest invaluable and long-lasting tools that offer several services without breaking down (Boonlertvanich, 2019). Some machines that can help boost an organization’s performance include ATM and customer care line, which improves value and allows various services like depositing, withdrawing, and transferring money, paying for utilities and basic products. There should be standby maintenance operators to fix these machines when they breakdown to prevent inconveniencing the customers.

Lastly, some respondents raised concerns about banks that fail to offer personalized services to their customers. The study recommends that any organization with a physical meeting with their clients should involve some practices to gather their customer’s basic information. For instance, they can gather their location and preference to understand what they need and attract them more to the organizations (Boukis et al.,2020). Managers are aware that customer satisfaction is a primary role of any organization because they are the main assets that can boost or reduce a company’s productivity. These data can be collected through various instruments like questionnaires and suggestion boxes. There should be well-established IT specialists that help gather and analyze information about banks’ operations trends. Therefore, banks should invest in these machines for efficiency and accuracy. Customers’ transaction patterns should be monitored keenly and recorded for future use, which requires good machines and soft wares.

Data should be stored in order and in reliable tools to hold them for the longest period. Organizations require referring to such documents in the future to avoid repeating mistakes and doing better each day. They aid in understanding customers’ needs and basic interests. It boosts customer satisfaction, resulting in more customers’ attraction, retaining the existing, and improving their loyalty. Customers are attracted to an organization where they can get all they need under one roof (Aisyah, 2018). Also, customers in business-like bank offer products and services that favour their businesses, like personal loans and detailed son current accounts. Additionally, purchasing mortgages may be interested in organizations that help them get their desired house even at loans with flexible and suitable interest rates. It enables customers to purchase with ease and can easily recommend their friends to try the system due to their products and services’ quality and efficiency.

Organizations should be aware of services and operations that their customers are not impressed with. It helps them to avoid losing customers because they cause dissatisfaction. For instance, some loan officers call defaulters every time to request payment, making it uneasy for the client. Telemarketing strategies should be used with care to avoid annoying customers instead of serving the desired purpose. For instance, they should not fill customers’ accounts and social media platforms with their adverts.

Moreover, they should not keep consistently and often reminding them of new products and services in the market. These recommendations may be applicable and effective in many organizations (Alalwan et al.,2018). They can boost productivity and customer satisfaction with organizations. Besides, these recommendations are a win-win to the organization, workers, and their customers.

4.5 Conclusion

In conclusion, the results found from assessing the impacts of physical evidence on customer satisfaction within registered banks can positively influence the organization and customers. IT had shown the extent to which physical evidence of an organization can impact customer satisfaction. Also, it has outlined the basic conditions that improve or deteriorate customer satisfaction, retention and loyalty when they are performed in their presence. Banks can refer the study to various strategies that can boost their relationship with their customers, influencing their productivity and performances. Besides, the result of the study involves experiences from different companies and their impact on their customers. Through the study, management can identify strategies that help banks to remain on top of others considering the fierce competition within the industry.

Lastly, the study has analyzed some technological instruments and knowledge that can moderate the influence caused by physical evidence towards customer satisfaction. Among the dependent and independent variables analyzed in the study, it is clear that a company’s image plays a primary role in boosting customers’ satisfaction. The image can attract or scare customers basic on its details and structure. Therefore managers from different banks conserve and protect a company’s image from attracting many customers and business partners.  However, the study has not given reliable evidence on the significant neutral relationships between the price of services and products and customer satisfaction. Instead, it has explained the positive significance of other variables and their positive relationship towards customer loyalty.