THE IMPACT OF ATM SERVICES QUALITY ON CUSTOMER SATISFACTION; ON PERSPECTIVE OF AT COMMERCIAL BANK OF ETHIOPIA SOUTH ADDIS ABABA DISTRICT

Abstract

The aim of this research focuses on investigating the impact of ATM (automated teller machine) service quality on customer satisfaction on Convenience, Efficient operation, Security and Privacy, Reliability and Responsiveness in Commercial Bank of Ethiopia south Addis Ababa district. The study is based on quantitative research approach using explanatory research design. The study included a non probability (judgmental sampling), convenience-sampling technique for the reason that the inability to access current users of Visa card databases. The study uses primary data collected through questionnaires which were distributed to the ATM card users. The population of this research was employees of commercial bank of Ethiopia south Addis Ababa district in 67 branches. Out of this population 15 branches were selected that have high number of card users. Convenience sampling technique was used to collect primary data from 250 customers of the bank. Because of the inability to access current users of Visa card databases to perform a probability sampling, a convenience sampling technique were used. The modified E-S-QUAL and SERVQUAL model considers the impact of ATM service quality dimensions (convenience, efficient operation, security and privacy, reliability and responsiveness) on customer satisfaction. These five independent variables are regressed with the dependent variable, i.e. customer satisfaction. The results indicate that these dimensions are positively and significantly affect the satisfactions of ATM card users of the bank. While ranking the five dimensions respondents rated Convenience as the most important service quality indicator at the bank. Multiple regression analysis was employed to test the impact of service quality on customer satisfaction. This indicated that overall model was statistically significant relationship between service quality and customer satisfaction. The results of this study indicated that service quality is an important antecedent of customer satisfaction. The study also indicates that the banks need to become more responsive and assuring to their customers as well as increase their accessibility. It is apparent from the present study that managers and decision makers in commercial bank of Ethiopia to seek and improve the elements of service quality that make the most significant contributions on customer satisfaction.