The Effect of Automated Teller Machine (ATM) Service Quality on Customer Satisfaction:- The Case of Wegagen Bank S.C

Abstract

Regardless of the growth of ATM adoption worldwide, the banks in Ethiopia are still accustomed using the old fashioned way. Recently Wegagen bank operating in the country has recognized automated teller machines (ATM) with a view of enhancing the service quality of the ATM on customer satisfaction. In light of this, the main objective of the study was to measure the effect of service quality on the ATM customer satisfaction by concentrating on some selected branches of Wegagen bank in Addis Ababa. Based on the general objective, the study also conveyed three specific objectives and studied each in depth .In conducting the study; the descriptive research designs were used. Both primary and secondary data were collected for the study purpose from customers of Wegagen bank in the five selected branches. To attain this objective a questionnaire was designed categorized under five dimensions of the SERVEQUAL model and customer satisfaction, the data collected was analyzed by frequency distribution and percentages presented in tables while the qualitative data is collected through interviews analyzed using content analysis and logical interpretation of an idea. From a total of 392 distributed questionnaires, 339 were returned from the customer of five selected branches whereas from five distributed interview questions for managers five of them were returned. The collected data was analyzed with help of SPSS version 25.Correlation and multiple regressions were used to examine the association between variables. The results of the correlation point out that there is a positive correlation between the dimensions of service quality and customer satisfaction. Whereas the result of regression test implies that giving quality services all have a positive influence on customer satisfaction except empathy. The highest correlation is between responsiveness and customer satisfaction and the lowest is between customer satisfaction and empathy as well as tangblity. The finding of the analysis indicates that the performance of Wegagen bank’s ATM in providing quality service is not in a position to meet even what they nearly expected. Since there is a direct relationship between service quality and customer satisfaction low service quality means low customer satisfaction. Therefore, in order to enhance the satisfaction of the customers. The researcher suggests that; the bank should understand the feeling of the customers and to do that the bank should prepare training for the employees, focus on in improving the five service quality dimensions, preparing a backup plan when a failure of system and electric power occurs .The bank should also improve the ATM services problems that are encountered when using the ATM by minimizing the dissatisfaction and by creating enough confidence for the use of the ATM in the customers mind