ADIGRAT UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

Assessing the effectiveness of ATM service in the banking industry (the case of
commercial bank Adigrat branch)

BY:

MULUNEH MUNEA

JUNE,2016

Adigrat, Ethiopia
 ADIGRAT UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

Assessing the effectiveness of ATM service in the banking industry (in case of commercial
bank of Ethiopia in Adigrat branch)

BY:

MULUNEH MUNEA

ADVISOR

Mr. Tsigab. A (MBA)

A senior Essay Research Submitted Department of marketing management in partial

fulfillment of the requirements for bachelor of art degree (BA) in marketing management.

JUNE, 2016

Adigrat, Ethiopia
Assessing the effectiveness of ATM service in the banking industry (in case of commercial
bank of Ethiopia in Adigrat branch)

BY:

MULUNEH MUNEA

APPROVED BY:

TSIGAB. A (MBA)

Advisor Signature Date

________________ ____________ __________________

JUNE, 2016

Adigrat, Ethiopia
Acknowledgement

First and for most I would like to express my heartfelt gratitude to God and my
families. My great tanks also goes to my advisor Assistance professor Tsigab
Argali (MBA) for his contractive and full comments and suggestion practically
treatment to complete this paper.

My sincere thanks also go to my family especially to my brother Desta Munea

(Love) and friends for their everything support in social and economic.

I
Abstract
The objectives of this study would be assessing the effectiveness of ATM service in the banking
service case of commercial bank Adigrat branch. The student researcher would be use both
primary and secondary data gathering tools uses primary data questionnaires for employees,
interviews for manager also include secondary data sources like magazine, journals, books, and
the annual statement of commercial bank. The target population of the study would use
employees and customers of commercial bank Adigrat branch the study would focus 1200 ATM
users in the bank. The researcher would analyze the data by using descriptive analysis tools,
tables and percenta

ABM = Automated Banking Machine

PIN = Personal Identification Number

ISP = Internet Service Provider

CBE = Commercial Bank of Ethiopia

II
List of tables

Table 4.1. Gender distribution of respondents

Table 4.2. Age dutribution of respondents
Table 4.3. Educational background
Table 4.4 For how long of time has been a customer of commercial bank
Table 4.5 Availability of cash
Table 4.6 Usage of ATM service
Table 4.7. Frequency of ATM usage
Table 4.8. Speed of ATM service
Table 4.9. Loyalty of the bank
Table 4.10. Convenience of machine location
Table 4.11. Safety and security
Table 4.12. Satisfaction level
Table 4.13. Problems usually face while using ATM service of a bank
Table 4.14. ATM card delivery
Table 4.15. Serviced delivery
Table 4.16. Cash withdraw
Table 4.17 Customer complaint
Table 4.18. Feedback from the bank

III
 Chapter one

Introduction

1. Background of the study

The banking service has undergone a major change due to the adoption of e-banking. One of the
latest channels of distribution to be used in banking service is electronic banking (Allen et.21,
2001).

The importance of e-banking business relies on efficient and rapid access to banking service for
cash flow review, auditing and daily financial transaction processing. E-banking offers ease of
access, self-treatment transaction and 24 hours banking service option. E-banking system
provides internet banking, mobile banking, telephone banking, SMS banking, point of sale, debit
card, credit card. Most widely used e-banking instrument is ATM card. Automated Teller
Machine (ATM)was first known machine to provide electronic access to customer. ATM is
designated to perform the important function of bank it is operated by plastic card with its special
features (Ms.Komal, 2013).

ATM has mode hard cash just second away all throughout the day at every corner to use. ATM
allows us to do a number of effective banking services such as withdrawing cash from ones
account, making balance inquires and transferring money from one account to another using a
plastic magnetic stripe card and personal identification number issued by financial institution.
The ATM has become a medium for non-cash transaction such as payment of bill, insurance
payment, printing of statement or even accessing the internet (Roma Krishna and Venkobaro
2006).

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1.1 Background of the organization
 The establishment of commercial bank

Commercial bank of Ethiopia has established as limited public enterprise under the proclamation
number 202/94 of the FDRE, it is the leading bank which established 1942 G.C, pioneer to
introduce modern banking service like ATM, mobile bank, credit card, debit card and other
services to customers (source annual report of 2008/9 CBE and www.combank.et/nov 2010).

Especially commercial bank of Adigrat branch has established in May 28/1970 G.C. it played am
essential role in the economic progress and development of the country. Currently, the bank has
49,100 account holder customers exist. The bank has located eastern part of Tigray especially
Adigrat town, it far from 898 KM from Addis Abeba. The bank starts to work with 15
employees including security police, currently, the bank including 56 employees containing 43
male and 13 female employees. (Source the manager of CBE Adigrat branch).

Vision

“To become a world-class commercial by the year 2025”

Mission

We are committed to best realize stake holder’s values through enhanced financial
intermediation globally and supporting-national development priorities, by developing highly
motivated, skilled and disciplined employees as well as state of the art technology. We strongly
believe that winning the public confidence is the basis of our success.

Value

 Value for money

 Committed working system
 Integrity
 Public trust
 Teamwork and collaboration
 Customer satisfaction
 Corporate citizenship

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1.2. Statement of the problem

The majority of the Ethiopian people are not familiarized with effectiveness of
ATM banking service. From those who are using the bank service most of them
do not prefer multi-channel banking (ATM, Mobile banking, and internet
banking). So the researcher would be tries to identify the problems in assessing
the effectiveness of Adigrat branch (CBE Website).

These services have some difficulties that make customers are dissatisfied.
Such as, machine complexity, network failure, unsuitable location of ATM, high
frequency of use, poor visibility of statement, ATM is not working etc. are the
major problems of ATM users. Therefore, providing effectiveness of ATM service
in the banking industries and meet customer expectation that impress their
mind that leads them to loyal customers for the bank (CBE annual report,
2014).

1.2.1 Research question

Therefore, that study would be trying to answer the following questions:

 To what extent the customer of the bank well aware about the service of ATM?
 What are the factors that affect effectiveness of ATM service quality?
 What are the mechanism the commercial bank applying to make the ATM customer
satisfied?
 How the commercial bank working to satisfy its ATM users?

1.3 Objective of the study

1.3.1 General Objective

The general objective of the study would to assess effectiveness of ATM service in the banking
service.

1.3.2 Specific Objective

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The study wouldhave the following specific objective:

 To examine whether the customers of commercial bank aware of using the ATM
machine.
 To identify the bank whether the customers are getting effective ATM service or not.
 To assess the methods of that the bank uses to satisfy its customer.
 To identify the factors that affect effectiveness of ATM service.

1.4 Significance of the study

The finding of the study would help the banking service by showing how quality service can be
offered by automated teller machine service is essential.

This study would also have great important to future students who would conduct research in the
fields related to ATM system of banking and customer satisfaction. It would improve the
researcher’s knowledge and skills related to the application of ATM service concepts in the real
world.

1.5 Scope of the study

Since the study is dominated of the assessing effectiveness of ATM service in the Commercial
Bank Adigrat branch.

1.6 Limitation of the study

The study would limited in Adigrat town, especially in commercial bank Adigrat branch. Due to

1. Lack of researcher experience.

2. Respondents in voluntarism.

So all above problems the researcher would think and to address the basis issue under the study
through gathering all the necessary data from diversified sources in order to limit the study.

1.9 Organization of the paper

The researcher would incorporate (contains) five chapters, the first chapter deals with
introduction, which includes the background of the study, background of the organization,
statement of the problem, objective of the study significance and scope of the study. The second

4
chapter deals with literature reviews which is related to effectiveness of ATM service on the
banking service. The third chapter deals with methodology, the fourth chapter deals with data
analysis and interpretation. The fifth chapter deals with summery, conclusion and
recommendation of the study

Chapter two

3. Review of related literature

This part deals the literature on service quality and effectiveness of service by different authors
and gives explanation or conceptualized ideas attempts have also been made to see definitions
and concepts characters and steps to increase customer’s service capacity and quality

2.1 Definition of service

Many writers define service in different ways: for example Kotler: 2003:128 defined service as
“any activity or benefit that one party can offer to another that is essentially intangible and does
not result on the ownership of anything, its production may or may not be tied to a physical

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product.” Any intangible actions that are performed by person or machine or both to create good
perception within users called service. Although, service are performed by service providers and
consumer together its quality results in perception and values assessment by the customer (Rao;
2007).

2.3 Basic Characteristics of Service

According to Kotler and Keller (2012) four distinctive service characteristics greatly affect the
design of marketing programs: intangibility, inseparability, variability and perishability.

 Intangibility

Unlike physical products, service cannot be seen, tasted, felt, heard, or smelled before they are
bought. To reduce uncertainty, buyers will look for evidence of quality by drawing inferences
from the place, people, equipment, and communication.Therefore, the service provider’s task is
to manage the evidence, to tangible the intangible the intangible. Service companies can try to
demonstrate their service quality through physical evidence and presentation. (Maudie & Pirrie,
2006)

 Inseparability

Whereas physical goods are manufactured, then inventoried then distributed, and later consumed
simultaneously. The provider is part of the service, because the client is also often present,
provider-client interaction is a special feature of services marketing, Kotler and Keller (2012).
There is a marked distinction between physical goods and service in terms of sequence of
production and consumption: whereas goods are first produced, then stored and finally sold and
consumed services are first sold, then produced and consumed simultaneously for the production
of many service Parried and Mau die (2006).

 Heterogeneity

Kotler and Keller (2008), because the quality services depends on who provides them, then and
where and to whom, services are highly variable, most of the time services are heterogeneous.

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  Perishability

Service cannot be stored, so their perish can be a problem when demand fluctuates. Demand or
yield management is critical the right service must be available to the right customers at the right
places at the right times and right prices to maximize profitability. Service perishability meaning
the service cannot be inventoried or stored this future allow firms to mass produce and store
them in marchioness until consumers are readily to purchase. Perishability can also occurred.
When demand can be greater than supply to reduce the negative impact of perishability, service
must develop strategies to cope with fluctuating demand (Kotler and Keller 2012).

2.4 Service quality

In today’s increasingly competitive business environment, service quality is essential for the
success of any organization. Service quality is important aspect that affects the competitiveness
of business banks should increase the quality of service constantly since there is no assurance
that the current outstanding service is also suitable for future. (Siddiqi, 2011)

Consequently, banks should “develop new strategy” to satisfy their customer and should provide
quality service to distinguish themselves from Rivalries (Siddiqi, 2011)

The challenge in defining quality is that it is a subjective concept, like beauty. Crosby (1979)
defined quality as “conformance to requirements”. This definition implies that organization must
establish the quality goal of the various functions of a service organization. Juan (1982) defined
service quality as “Fitness for use”.

Service quality evaluated by assessing customers’ expectations and perceptions of performance

level for a variety a variety of service+ attributes (Parasuramans et al--1985), if the customers’
expectations are meeting or exceed, then the company is perceived to be offering higher service
quality. But, on the other hand, the expectations of the customers are not meeting; the company
is on its ways not only to face displeased and hostile customers’, which in turn leads to defection
to competitors. Customer’s expectation serves as a foundation for evaluating service quality
because, quality is high when performance exceeds expectation and quality is how when
performance does not meet their expectation. Expectation is viewed in service quality literature
as desires or wants of customer i.e. what they feel a service provider should offer rather than
would offer (Parasuramansteal, 1988:15).

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2.5 Conceptual Framework
The conceptual framework indicates the crucial process, which is useful to show the direction of
the study. The figure shows the relationship between the five service quality dimensions
(reliability, assurance, responsiveness, empathy and tangible dimensions).

Tangibility

Reliability
Customer Satisfaction
Assurance

Responsiveness

Empathy

2.6 CONCEPT OF ATM

An automated teller machine or ATM allows a bank customer to conduct their banking
transactions from almost every other ATM machine in the world. As is often in the case with
inventions many inventors contribute to the history of an invention.(J.J navaratnaseelana and P.
elngkumaranb 2013)

ATM is a computerized telecommunication device that enables the clients of financial institution
to perform financial transaction without the need of cashier, human clerk and bank teller.

The techniques of managing of banking service through the use of Automated Teller Machine
(ATM) towards improving banking service performance is a basketful where every financial
institution is expected to pick that which is applicable to it. ATM are known by various other
names including automatic banking machine (or automated banking machine particularly in the
united states) (ABM) Automated Transaction machine, cash point (particularly in the united
kingdom money machine, bank machine, cash machine, hole-in-the wall, automated teller) after
the bank of Scotland-s Usage- (Source Fannie Mac 2012).

The combined services of both the automated and human tellers imply more productivity for the
banking service. Also as it saves customers time in service delivery as alternative to banking
customers, can invest time saved into other productive activities. Automated teller machine

8
(ATM) machine works on the ATM cards, as when a user inserts an ATM machine, then it
prompt for the authentication through ATM PIN (Personal Identification Number). Each and
every ATM machine is programmed with a unique TID (Terminal ID Number) assigned to
identify the ATM machine in different location. The ATM transactions are done through over the
phone line via internet connection (Lease line). All the ATM machines are globally
interconnected with each other the financial institutions through the global ATM network like
master card, credit card etc. In backside of every ATM card some logos are printed which refers
to the ATM network. So the ATM machine connects to ATM network through processing center
and the card holder’s bank. After the authorization step, if there is sufficient fund in the ATM
card holder’s account, then the transaction is completed successfully. ATM are set up 24 hour
service to bank customers, who cannot expect to be able to transact with banks in the same
period of time.(Www. India research journals com.)

ATM technology allows customers carry out the above-mentioned transactions using an ATM
card which could be a debit or credit card. An ATM machine authenticates the card by reading
and verifying the magnetic strip, card number, expiration date, and an already provided or pre-
selected PIN number. Automated Teller Machine (ATM) are located in the banks and customers
convenience areas. This allows customers complete financial transaction without ever leaving the
safety of their belongings (UGWU 2012).

2.7 How ATM works

There are mainly two types of ATM which differ according to the way they operate. They can be

- Leased line ATM

- Dial up ATM machine

Any automated teller machine needs a data terminal with two inputs and four output devices. Of
course for this to happen there should also the availability of a host processor. The host processor
is necessary so that the automated teller machine can connect and also communicate with the
person requesting the cash. The internet service provider (ISP) also plays an important role in
this action.

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A leased line ATM machine has a four wire, point to point dedicated telephone line which helps
in connecting it with the host processor. They prefer in place where the user volume is high, they
are considered high end and operating cost if this type of machine is very high.

The dial up ATM machine only has a normal phone line with a modern and a toll free number.
As there is normal connection their initial installation cost is very less and their operating cost is
less. The host is mainly owned by the Bank. It can be owned by an ISP, if the host is owned by
the bank only machine that work for that particular bank will be supported.

2.9 Uses of ATM

Since ATM machine are found almost everywhere, you need not have to carry amount of
money on your hand or pocket.
- The integrity and security of ATM maker its own ideal use to conduct financial
transaction anywhere in the world.
- An independent ATM service also support a large number of merchants thought out the
world
- Printing of statements
- Transfer of funds
- Payment of bills
- Cash advances
- Display of promotional message (Adroit)

Chapter three

3 RESEARCH METHODOLOGY
The researcher would use a descriptive researcher method. A descriptive research method
woulduse to analyze that data going to be gathered related to assessing effectiveness of the ATM
service on the banking service. Each variable were analyzed using computation of percentage
and tables.

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 3.1 RESEARCH DESIGN
The sampling technique for the research would be being non-probabilistic (non-random)
sampling. In this technique, the chance of including any unit of the population in the sample
cannot be determined. From non-probability sampling technique, this case study uses convenient
sampling. In using this sampling no of the target population are readily available or convenient
for the investigate. According to the manager of the bank the user of ATM service on average is
1200 due to this the target population of the research would be 1200. To determine the sample
size of this study the researcher used Yemen’s formula.

n=N/1+N (e) 2N = number of target population

1+1200(0.1)2n = the required sample size
1200/13=92e = precise (error)
1200/1 + 1200(0.1)2 = 1200/13 = 92

Therefore, the researcher would take a sample size of 92 of ATM users.

3.2 Data source and type

The data for the study would collected from both primary and secondary source. The primary
data would obtain using of questioner and interview (direct personal interview method) whereas
the secondary source of data would be collected from any literature, banks annuals, and reports
of commercial bank, website and other published and unpublished documents.

3.3Target population

- In commercial bank Adigrat branch there are96 employees, 3 managers and 1200 ATM
users. The study considered the customers of ATM users in the bank.

3.4 Method of data collection instruments

- A primary data source would be collected from employees of the bank by administrating
questionnaires. In addition to this interview would be held with bank managers and
employees of the bank in order to collect primary data. The questionnaire was open
ended and close ended, on the other hand secondary data sources would be retrieved from
different published and unpublished materials.

3.5 Method of Data Analysis

11
- To analyze the data that were gathered, primarily descriptive technique would be used
with simple statistical analysis, such as percentages and some other analytical methods.

12
Chapter four
4. Data Analysis, Presentation and Interpretation
This chapter deals with the analysis, presentation, and interpretation of data
gained from customers of commercial bank Ethiopia Adigrat branch. The data
gained through questionnaires distributed the customers of the bank and from
the manager of the bank through interview.

The analysis of the data is based on the respondent’s respective response to

summarize the finding. To assess the effectiveness of ATM service in the
commercial bank of Ethiopia Adigrat branch. The researcher distributes
questionnaires to the customers and interview with bank mangers.

To collect data from the customers 92 questionnaires distributed to the bank

customers and 4 interview questionnaire were distributed to the bank
managers. All distributed questionnaires are not collected successfully,
because 20 respondents are not give responses to the distributed
questionnaires.

The data on personal information of respondents where gathered to have to

understand the demographic characteristics of the customers. The following
information deals with this issue.

4.1. Demographic profile of the respondents

Table 4.1. Gender distribution of respondents

Sex Frequency Percentage %
Male 46 50%
Female 46 50%
Total 92 100%
Source: survey questionnaire, 2016

As it shown in table 4.1 from the total respondents 46, (50%) have found to be
male and 46, (50%) female respondents. The collected data shows that the
numbers of male and female respondent customers are equal for this study.

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Table 4.2. Age dutribution of respondents
Age. Category Frequency Percentage%
18-25 26 30%
26-35 36 40%
36-45 20 20%
46-55 10 10%
Total 92 100%
Source: survey questionnaire, 2016

From the sample customers in table 4.2, 26(30%) of respondents were in the
age internal of 18-25, 36(40%) of the respondents were between 26-35, 20(20%)
were between 36-45 were between 46-55(10%) were so there is no respondent
whose age is below 18years.

Table 4.3. Educational background

Educational level Frequency Percentage %
High school 10 10%
Preparatory 8 8%
Certificate 16 20%
Diploma 16 16%
Degree 42 46%
Masters 1 1%
PHD - -
Total 92 100%
Source: survey questionnaire, 2016

From the sample customer in table 4.3 shows there is no respondents whose
educational level is PHD, 10(10%) of ATM users were high school, 8(8% were
preparatory, were certificate holders, 16(20%) were, diploma holders 16(16%)
were degree holders 42(46%)were masters were 1(1%).

14
From the above table we can easily understand the majority of the ATM users
are degree holders

Table 4.4 For how long of time has been a customer of commercial bank
No. Items Frequency Percentage %
1 For how long has been a
customer of commercial bank?
1-2 years 43 46%
3-4years 26 30%
4-5years 17 10%
Above 5years 6 6%
Total 92 100%
Source: Survey questionnaire, 2016

Table 4.4 Shows 43(46%) of commercial bank customers were using for ATM 1-
2 years, 26(30%) of customers were using for 3-4 years, 17(10%) of customers
were staying for 4-5 years6 (6%) and above for 5years. This implies that most of
the customers are new for the bank.

4.2. Customer Satisfaction

Table 4.5 Availability of cash

No. Items Frequency Percentage
2 Do you agree that cash is
always available in ATM?
Strongly agree 20 30%
Agree 14 14%
Disagree 50 50%
Strongly disagree 8 6%
Total 92 100%
Source: survey questionnaire 2016.

As clearly stated in the above table 4.5, 20(30%) of respondents strongly agree
that there is availability of cash in ATM machine, 14(14%) of respondents agree

15
that the availability of cash in ATM machine. 50(50%) of respondents were
disagree and 8(6%) of respondents were strongly disagree.

Table 4.6 Usage of ATM service

No. Items Frequency Percentage
3 How long you have been using
ATM service
From 1-12 month 40 47%
From 1-2 year 30 35%
More than 2years 22 18%
Total 92 100%
Source: survey questionnaire 2016

As it can be seen table 4.6, 40(47%) of ATM users were staying from 1-12
month, 30(35%) of ATM users were staying from 1-2 years and 22(18%) of ATM
users were staying more than two years. It implies that most of ATM users of
commercial bank were new customers.

Table 4.7. Frequency of ATM usage

No. Items Frequency Percentage
4 How many times do you use
ATM card in a month?
Once 18 20%
Twice 40 38%
Above twice 34 42%
Total 92 100%
Source: questionnaire, 2016

As it can be seen from table 4.7, 18(20%) were using their ATM card once in a
month, 40(38%) were using their ATM card twice in a month, 34(42%) were
using their ATM more than twice in a month. From the table we can easily
understand majority of the ATM users the above twice in a month.

16
Table 4.8. Speed of ATM service
No. Items Frequency Percentage %
5 Commercial bank ATM service
is faster as compared to
counter service and it is
satisfactory
Strongly agree 26 28%
Agree 46 50%
Disagree 18 16%
Strongly disagree 2 6%
Total 92 100%
Source: survey questionnaire, 2016

As indicated in the above table 4.8, respondents were asked to put their
satisfaction with regard to speed compared to counter service, the result shows
were most of the respondents, 46(50%) were agree, 26(28%) strongly agree,
18(16%) of them were disagree, 2(6%) respondents strongly disagree.

This results reveals that the bank was satisfying most of its customers through
its ATM service but there is also some customer, who did not satisfied.

Table 4.9. Loyalty of the bank

No. Items Frequency Percentage %
6 Commercial bank ATM service
are reliable and dependable
Strongly agree 28 30%
Agree 44 48%
Disagree 16 12%
Strongly disagree 4 10%
Total 92 100%
Source: survey questionnaire, 2016

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Table 4.9, shows as the majority of the respondents were agree i.e. 44(48%) of
the respondents, 28(30%) were strongly agree about the reliability and
dependable of the machine, 16(12%) of respondents were disagree and 4(10%)
were strongly disagree. So that the most respondents believes that the bank
service is reliable and dependable.

Table 4.10. Convenience of machine location

No. Item Frequency Percentage %
7 Commercial bank ATMs are
conveniently located
Strongly agree 36 40%
Disagree 20 18%
Strongly disagree 6 40%
Total 92 100%
Source: survey questionnaire, 2016

Table 4.10, Portray that 36(40%) of respondent’s action strongly agree about
the convenience location of the machine, 30(40%) were disagree, 6(2%)were
strongly disagree, 20(18%) of the respondents were agree. From this
explanation majority of respondents does not agree on the convenience of the
ATM machine.

Table 4.11. Safety and security

No. Items Frequency Percentage (%)
7 Customers feel safe in their
transaction
Strongly agree 28 30%
Agree 30 40%
Disagree 20 20%
Strongly disagree 14 10%
Total 92 100%
Source: survey questionnaire, 2016

18
Table 4.11, shows that 28(30%) of respondents were strongly agree, 30(40%)
were agree, 20(20%) were disagree and 14(10%) of respondents were strongly
disagree about the safety and security for their transaction. This implies that
some customer feels safe in their transaction. From this the researcher
understand that since half of the customer responds that they are safe and
secured.

Table 4.12. Satisfaction level

No. Items Frequency Percentage (%)
8 What is your level of
satisfaction towards ATM
service of commercial bank
Very satisfied 38 40%
Satisfied 28 50%
Somewhat satisfied 20 8%
Dissatisfied 6 2%
Total 92 100%
Source: survey questionnaire, 2016

Table 4.12, implies that 38(40%) of respondents were very satisfied by the
commercial ATM machine service, 28(50%) were satisfied, 20(8%) somewhat
satisfied and 6(2%) dissatisfied by the ATM commercial ATM service. This
implies that the majority of customer are satisfied by the ATM service.

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Table 4.13. Problems usually face while using ATM service of a bank
No. Items Frequency Percentage (%)
9 Which of the following
problems influence your
satisfaction level using ATM
service of the bank
ATM is not working 30 38%
Machine out of cash 18 18%
Service connection faille 38 40%
Unsuitable location of ATM 6 4%
Total 92 100%
Source: survey questionnaire, 2016

Table 4.13, states that, 30(38%) of the respondents said, ATM is not working
were 18(18%) of respondents said Machine out of cash were 38(40%) of
respondents said, the service connection faille and 6(4%) unsuitable location of
ATM machine. This reflect that majority of respondents are said machine (ATM
is not work appropriately which has the significant effect on users satisfaction.

Table 4.14. ATM card delivery

No. Item Frequency Percentage (%)
10 Do you agree with the idea of
their quick delivery of ATM
card in the time?
Strongly agree 10 16%
Agree 40 40%
Disagree 30 30%
Strongly disagree 12 14%
Total 92 100%
Source: survey questionnaire, 2016

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As, clearly stated in the above table 4.14, 10(16%) of respondents are strongly
agree, 40(40%) of respondents are agree on the quick delivery of ATM card on
time, 30(30%) of respondents are disagree, 12(14%) of respondents are strongly
disagree, 12(14%) of respondents are strongly disagree. This reflect that
majority of respondents are agree on the ATM service delivery.

Table 4.15. Serviced delivery

No. Item Frequency Percentage (%)
11 Do you agree that the ATM
machine of commercial bank
can be access everywhere in
Adigrat town?
Strongly disagree 30 30%
Agree 40 50%
Disagree 20 10%
Strongly disagree 2 10%
Total 92 100%
Source: Survey questionnaire, 2016

Table 4.15, implies that 30(30%) of respondents were agree that the bank can
access everywhere in Adigrat town, 40(50%) were strongly agree, 20(10%) of
respondents were disagree and 2(10%) of respondents were strongly disagree.
This implies that majority of customers were agree about the accessibility of
ATM in Adigrat town.

Table 4.16. Cash withdraw

No. Items Frequency Percentage (%)
12 Do you agree that cash is
withdrawal correctly, as it
orders for the ATM?
Strongly agree 40 46%
Agree 30 30%

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 Disagree 12 14%
Strongly disagree 10 10%
Total 92 100%
Source: survey questionnaire, 2016

Table 4.16, implies that 40(46%) of respondents were strongly agree that there
is correct withdrawal, 30(30%) of respondents were agree, 12(14%) were
disagree and 10(10%) were strongly disagree.

This implies that majority of customers are strongly agree about the correct
withdrawal order

4.3. Customer complaint

Table 4.17 Customer complaint

No. Item No of Percent of
respondents respondents
13 Have you ever present your
complain to commercial bank
about ATMs service delivery
Yes 60 68%
No 32 32%
Total 92 100%
Source: survey questionnaire, 2016

Table 4.17, revels that 60(68%) of respondents were complain about the ATM
service machine and 32(32%) of respondents not complain (it can be positive or
negative compliance) about commercial bank ATMs. This implies that the
majority of respondents are not satisfied by the service of machine.

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Table 4.18. Feedback from the bank
No. Items Frequency Percentage (%)
14 Do you get a satisfied
feedback?
Yes 46 44%
No 46 56%
Total 92 100%
Source: survey questionnaire, 2016

From the above table 4.18, 46(44%) of respondents said they get a satisfied
feedback from the concerned body of the bank. This implies that above half of
respondents were not get a satisfied feedback and the remaining get the
feedback on time. From this the bank is not give immediate feedback to its
customers so the bank work on it because it affects the customer satisfaction.

4.4. Interview for financial managers of the bank

1. Mangers comment about the location of ATM machine the mangers said
as we are a public sector bank we incurred different cost both to open a
branch as well as to make the machine available where every customer
can access it this time we cannot say we are convenient but as a public
sector bank, we face some difficulties. So the bank mainly concentrates,
on making the machine available were majority customers are found
such as, more transportation areas, market areas, University, Hotels and
like.
2. Managers perception about level of customers satisfaction, managers of
the bank said that “all customers do not satisfied by a service because
large number of customers that the bank have. Some technical problems
decrease the customers’ satisfaction but in this time 92% of ATM users
are satisfied. Some detailed satisfied examples are below.

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  The ATM machine can help to withdraw money at any time with
maximum amount in a day 6,000 birr.
 The ATM machine helps enables to transfer funds from one account
to other with maximum amount birr 100,000 in a day.
 The ATM shows your balance at any time without the help of
banker, etc.
3. Customer’s knowledge about the using of ATM machine “ the managers
of the bank said that” the bank assign personals who give training to
customers how they can use the machine in the case of customer face
difficulties on ways of operating the machine due to lack of know the
assigned compliance will gave them on training to them.
4. Ways of measuring the customer’s satisfaction as the managers replies
“to measure the customer satisfaction is very difficult, but simply by see
the service which given by ATM to our customer and we can take the
feelings of our customers” how they get the service and when they are
forward their feedback about it to our branch.

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 Chapter five
5. Summery, conclusion and recommendation
This chapter presents the conclusion and recommendation based on data
analysis.

5.1 Summary of major finding

From the study, it was found out that majority of the customer were using the
ATM above twice. The researcher finding indicates that ATM service were
effective in terms of seep and accuracy compared to counter service however,
the finding shows that ATM service were not dependable and reliable because
of ATM frequent ATM card breakdown, Loss, and technical problems that the
machine face. From the study, it is indicated that the relationship between
ATM and customer satisfaction exists. However, there is other factor that
determines customer satisfaction such as breakdown of ATM machine, and
customers care these shows that there is strong relationship between customer
satisfaction and ATM.Majority of the respondents were complainingabout
ATMservice ofthebank.eveniftheyhaveacomplain ,the bank gave fast
response .most respondents replied for convenience of ATM machine by
disagreement on such manner the researcher can summarize that the bank
has been delay to solve such complain of customers. Most ofcustomers who
participate onthis study respond on the breakdown of ATM that a bank has a
good customer care togive response for customers. From thesethe researcher
can summarize that the bank has enough customer care staff.

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 5.2 Conclusions
The major objectives of the study is to find our and assess customer
satisfaction on automated teller machine (ATM) availability. The study used
questionnaire and interview to collect relevant data. Majority of the
respondents agree that commercial bank ATM is faster compared to counter
service.

5.3 Recommendation
Based on the analysis and conclusion part of study the researcher forward
the following suggestion.

 The bank should have given some additional training for its
customers about other uses of ATM other than withdrawal.
 In order to know the customer satisfaction there is need of getting
feedback from customers by asking questions about service quality
and by using suggestion box.
 The bank has to make the service convenience to customers in terms
of place.
 The researcher recommends to commercial bank of Ethiopia to train
its customer about all service that is offered through ATM even if
majority of respondents are aware of these service.

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 Reference
 ATM is designated operated plastic card (me.kamal 2013)
 The ATM has become a medium for non-cash transaction (Roma Krishna and venkobaro
2006)
 CBE especially in Adigrat branch established in May 28/1970 G.C (source the manager
of CBE Adigrat branch(www.comertial Bank.Com
 To reduce the negative impact of perish ability (Kotler and Keller )
 banks should develop new strategy to satisfy their customers and should provide quality
service (Siddiqi 2011)
 ATM are known by various other name such as ABM Scotland (source Fannie mac 2012)
 Www. India research journals. com.
 ATM are located in the banks and customer convenience area (UGWU 2012)
 J.J navaratnaseelana and (P. elngkumaranb 2013)
 Electronic banking has latest of distribution used to banking service (Allen et. 21, 2001)

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 Appendix
ADIGRAT UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

QUESTIONNAIRE

Dear respondents

This questionnaire is developed by 3rd year marketing management graduating

students at Adigrat University and caring out research on customer
satisfaction towards ATM service delivery on commercial bank. I request you to
give your valuable time and answer the question, the researcher conduct this
research for academic aim. The reliability of the answers will have importance
of the outcome of the research.

General instruction

Writing your name is not necessary.

Put the right () mark in the given rectangle appropriately

Thank you in advance for your cooperation

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Part I Demographic profile of the respondents

1. Sex Male Female

2. Level of education
Certificate Diploma
High school Degree
Preparatory Masters
PHD and Above

Part II Customer satisfaction and complain

1. For how long have been a customer of commercial bank?

1-2 Years 4-5years
3-4years Above 5 years
2. How long you have been using ATM service?
From 1-12 month From 1-2 years More than 2years
3. How many times do you use your ATM card in a month?
Once Twice Above twice
4. Commercial bank ATM service is faster as compared to counter service
and it is satisfactory?
Strongly Agree Dis Agree
Agree Strongly Dis Agree
5. Commercial bank ATM service are reliable and dependable
Strongly agree Strongly Dis agree
Agree Dis agree
6. Commercial bank ATM machine are conveniently located?
Strongly agree Agree Strongly dis agree Dis agree
e
7. What is your level of satisfaction towards ATM service of commercial
bank?
29
 Very satisfied Satisfied
Somewhat satisfied Dissatisfied
8. What are the factors that affect effectiveness of ATM service in the
banking industry?
ATM is not working Service connection faille
Machine out of cash Unsuitable Location of ATM
If other please specify
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------------------------------------------------------
9. Do you agree with the idea of there is a quick delivery of ATM card in the
time?
Strongly agree Agree Disagree Strongly disagree
10. The bank care for problems related to the ATM system promptly?
Strongly agree Agree Disagree strongly disagree
11. The cash is always available in ATM?
Strongly agree Agree Disagree Strongly disagree
12. The cash withdrawal correctly as it or der for the ATM?
Strongly agree Agree Disagree Strongly disagree
13. The ATM machine of commercial bank can be accessed every branch in
Adigrat town?
Strongly agree Agree Disagree Strongly disagree
14. Have you have every complained to commercial bank about ATM service
delivery?
Yes No
15. If yes what was the compliant about? Specify
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-------------------------
16. What are the benefit you get when you are using the ATM service?
------------------------------------------------------------------------------------------
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17. If you have any suggestion that commercial bank should improve or
strongly continue in order to satisfy its customer please mention it
clearly?
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18. The information of ATM service is well organized?
Yes No
If yes what it was clearly specify
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---------------------------------------

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