EFFECT OF ATM SERVICE QUALITY ON CUSTOMER SATISFACTION THE CASE OF UNITED BANK S.C. ADDIS ABABA BRANCHES

Abstract

The research paper focuses on studying the effect of ATM service quality on customer satisfaction in United Bank Addis Ababa branches. The research objective was to examine the effect of service quality dimensions i.e. courtesy, communication, credibility, completeness, security and reliability, responsiveness and convenience on customers satisfaction. Sample of 398 were taken using purposive sampling techniques, from which 374 samples were considered valid. Explanatory and descriptive research designs and mixed research approach were used to analyze the data collected from customers. The researcher used primary data through questionnaire and interview and secondary data from Untied Bank IT and card payment department published and unpublished materials. Those collected data were analyzed using descriptive and inferential statistics. Descriptive result shows overall customer satisfaction is lower to ATM customers. In addition inferential result of this study shows all service quality dimensions have positive significant relationship except courtesy which has positive but insignificant relationship with the dependent variable customer satisfaction. Regarding the effect of service quality on customer satisfaction all dimensions have positive effect towards it, especially convenience has high effect followed by security and reliability and completeness. The researcher recommends that further improvements has to be done on ATM service quality by providing efficient and sustainable network system, maximizing number of ATMs in convenient areas for service and considering high progress on service quality dimensions included in this study.