The document defines physical evidence as tangible components that facilitate or communicate the delivery of a service. It discusses the types of physical evidence, including essential evidence needed for service delivery and peripheral evidence possessed by customers. The document also covers the servicescape, defined as the environment where service encounters occur. A key model describes how environmental elements impact customer experiences. Research evidence demonstrates how physical surroundings like music, color, and signage influence customer perceptions and behaviors. Physical evidence can serve roles as a package, differentiator, facilitator, and socializer for organizations.