EFFECT OF AUTOMATED TELLER MACHINE USE ON CUSTOMER SATISFACTION IN BANKING (A Case Study of Centenary Rural Development Bank, Mbale Bank Branch)

TABLE OF CONTENTS     pages

DECLARATION .......................................................... .......... ........................... i

APPROVAL .............................................. ......................... ............................ .ii

DEDICATION .................... ................................................................... ......... .iii

ACKNOWLEDGEMENT ............... .. ...................... ..... ..................................... .iv

TABLE OF CONTENT ·················· .......................................................................... V

LIST OF TABLES ................. .......................................................................... vii

LIST OF FIGURES ............................................................................................... .ix

ACRONYMS ........ ... ........................... ... ............................ ........ ...................... x

ABSTRACT ............................ ... ................................................................... xi

CHAPTER ONE ................................................................................................... 1

1.0 introduction ........ ...................................................................................... l

1.1 background ............... ................................................................................. 1

1.2 statement of the problem ......... ..... .................................................................. .4

1.3 purpose of the study ....... .......................... .... .................. ............................ 5

1.4 specific objectives of the study .............................. ... ........................................ 5

1.5 research question ................. ...... .... ... ............................. .......... ... ........... 5

1.6 scope of the study ......................................... ............................................... 5

1.6.1 content scope .................................................................. ....................... . 5

1.6.2 geographical scope ..................................................... ................................. 5

1.6.3 ti1ne scope .............................................................................................. 5

1.7 significance of the study .. .. .. ................ ......................................... ..... ........ 6

1.8 operi1tional definitions of key terms ................................ ......................................6

1.9 conceptual frame work ........................... ..... ................................................... 6

CHAPTER TWO

2.0 Introduction ................................................................................................. 8

2.1 Theoretical frame work ................................................................................... 8

2.2 Review of related literatures .............................................................................. 9

2.2.1 Effects of ATM on service delivery ................................................................ 9

2.2.2 Effects of ATM on convenience .................................................................. 11

2.2.3 Relationship between ATM aad customer satisfa::tion .............................................. 12

CHAPTER THREE

3.0 introduction ............................................................................................... 15

3.1 Research Design ......................................................................................... 15

3.2 Nature and Sources of Data ........................................................................... I 5

3.3 Area of the study ........................................................................................ 15

3.4 Study population ......................................................................................... 15

3.4.1 Sampling size ........................................................................................... I 6

3.4.3 Sampling Techniques .................................................................................. 17

3.5 Research instruments .................................................................................... 17

3.6 Validity and Reliability of Instruments ............................................................... 17

3.7 Data Gathering Procedure .............................................................................. 18

3.8 Techniques of Data Analysis ........................................................................... 19

3.9 Limitations ................................................................................................ 19

CHAPTER FOUR. .................................................................................... ..... 21

4.0 Introduction .............................................................................................. 21

4.1 Background characteristics of the respondents ...................................................... 21

4.2 Services offered by A TM ............................................................................... 22

4.3 effectiveness of ATM services ......................................................................... 23

4.4 relationship between ATM use and customer satisfaction ......................................... 27

CHAPTER FIVE

5.0 introduction ............................................................................................... 29

5.1 summary offindings .................................................................................... 29

5.2 Recommendation ........................................................................................ 30

5.3 Conclusion ................................................................................................ 30

References ................................................................................................. .... 31

Appendix .................................................................................................... .. 34

ABSTRACT 

The research investigates the effect of automated teller machine use on customer satisfaction in banking. This study adopts both desc1iptive statistics and empirical analysis of automated teller machine impact on customer satisfaction in banking over the period of two months using the Kano's model. The model suggests that there are three basic attributes, and these are; the dimensional or performance needs, and the attractive or excitement needs, which could influence and satisfy customers' needs. The results find that, in order to increase the effectiveness of the ATM, CERUDEB must sensitize its customer's about the availability of the ATM and the different services it offers. The ATMs should be located in so many places especially busy places for proximity purposes and for reducing the amount of time spent in the queue before accessing the ATM services. CERUDEB should make sure that the cost of using the ATM is kept as minimum as possible and this will encourage more people to use these services and this helps to reduce congestion in the banks. The researcher therefore, concludes that poor use and low effectiveness of ATM services leads to problems like congestion inside the banks, spending much time in the queues before accessing the A TM services by the users and it also discourages people to open accounts with CERUDEB due to such problems as machine breakdown that manifests into poor services offered. From the study it can be realized that in order to improve the effectiveness of the ATM services, all potential barriers to its effectiveness must be considered.