The Effect of servicescape on customer satisfaction: a study of tier one banks in Nairobi County
Date
2024
Authors
Muiyuro, M. W.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Customer satisfaction is a key driver of success for service-based businesses like banks. While product and service quality are well-known factors influencing satisfaction, the physical environment or "servicescape" in which the service is delivered can also significantly impact customers’ perceptions and experiences. This study focused on Tier One banks in Nairobi County, pivotal due to their substantial market share and compliance with regulatory standards, and explored how improvements in both physical and virtual servicescapes can enhance customer satisfaction. Previously, these banks faced the challenge of integrating digital innovations with traditional banking environments to satisfy a dynamically changing customer base. This study addressed these challenges by examining the effects of three key dimensions of servicescape: self-servicescape, interpersonal servicescape, and remote servicescape. The research was guided by Bitner’s Servicescape Model and the Stimulus-Organism-Response (SOR) theory. It identified significant gaps, such as the lack of integration between physical and digital servicescapes. Adopting a positivist philosophy, the study utilized a descriptive cross-sectional research design. Data was collected from customers of Tier One banks in Kenya. The analysis revealed that these servicescape dimensions profoundly influence customer perceptions and satisfaction levels. Findings from the research study indicated that the effective management of both physical and digital environments in banks substantially influences customer satisfaction. The conclusion drawn underscored that banks displaying a well-integrated servicescape saw greater customer loyalty and satisfaction. This research offers actionable insights for enhancing strategic service management and customer satisfaction within these institutions. This study recommends prioritizing the continuous development of digital platforms that complement the servicescape of physical environments, fostering a seamless customer experience.
Description
Full - text thesis
Keywords
Citation
Muiyuro, M. W. (2024). The Effect of servicescape on customer satisfaction: A study of tier one banks in Nairobi County [Strathmore University]. http://hdl.handle.net/11071/15637