The effect of automated teller machine service on customer satisfaction in commercial bank of ethiopia: (a case of hossaena branch)

Abstract

This research project focuses on identifying the effect of ATM service on customer satisfaction in commercial bank of Ethiopia Hossaena branch. The main objective of this project is to assess the effect of ATM services quality on customer satisfaction in commercial bank of Ethiopia. Quantitative research method was used to conduct this study. A sample of 390 customers was selected using convenient sampling technique from ATM users of CBE Hossaena branch in Hossaena town for distributing and collecting questioners. For the purpose of the study primary data were collected using likert scale based questionnaire. Data were analyzed using SPSS 20 (statistical package for social sciences) version and binary logistic regression model were employed in addition to descriptive statistics tools such as: percentages, frequency and tables to analyses and draw conclusions. The result of this study shows that, there was significant relationship between all service quality dimension and customer satisfaction in commercial bank of Ethiopia. The seven service quality dimension (accessibility, convenience, responsiveness, performance, transaction efficiency, security & privacy and reliability) have positive and significant effect on customer satisfaction at the bank. Finally from the findings it can be inferred that network problem were the big issues. The network problem was the major obstacle in the check clearing operations, restriction on withdrawal of cash by the provider, accessibility, power fluctuation and etc. In addition, the temporary failures in ATM services were not fixed immediately. Based on these, it is recommended that the bank should work more on the two service quality dimension (accessibility and performance) to enhance customer satisfaction.