THE EFFECT OF AUTOMATIC TELLER MACHINE BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION AT SELECTED ABYSSINIA BANK BRANCHES IN ADDIS ABABA

Abstract

This research paper focuses on studying the effect of ATM banking service quality on customer satisfaction at selected Abyssinia bank branches in Addis Ababa Ethiopia. The main objective of this study is to examine the effect of ATM service quality on customer satisfaction. A sample of 381 customers was selected using Convenience sampling technique, and among those 290 was considered. Explanatory research design and quantitative and qualitative research methods used to analyze the data collected from customers. For the purpose of the study, primary data were collected using likert scale based questionnaire. In addition, the data was analyzed using descriptive statistics and inferential statistics. The result of this study shows that, there was significant relationship between all service quality dimension with customer satisfaction and SQ attributes with customer satisfaction in bank of Abyssinia. At the same time, all service quality dimensions and attributes significantly correlate to customer satisfaction and have significant influences on customer satisfaction. Among the dimensions, tangibles found to be the highest contributor for customer satisfaction. In conclusion, ATM banking service of the bank satisfies customers and has a positive and significant effect on customer satisfaction. Recommendations includes, improving the quality of human resources, increasing the number of ATM machines, working on the assurance and empathy dimensions are the major ones.