Customers’ perception of ATM services

Complete chapter one


This study was embarked upon to examine customers’ perceptions of ATM services in Benin City. The purpose of the study is to ascertain customers’ rating as regards to their level of satisfaction with ATM service quality.
In order to obtain necessary information for this study, both primary and secondary data were used. Primary data were obtained from field survey with the use of questionnaire as an instrument for data collection together with observations.
The data collected from the field work were analyzed using satisfaction index, percentage frequency or rating and descriptive method. Information from the library, internet, newspapers formed the major source of secondary data. The major findings were that customers/users of ATM are to a reasonable extent satisfied with the level of service they received from using the ATM, while in the case of dissatisfaction in the charges and surcharges for using the machine. Based on the findings, it is recommended that banks should pay close attention to their ATM users or customers perception with the service quality they are offered.

Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
List of Tables ix
Background of the Study 1
Statement of Research Problem 4
Objective of the Study 5
Scope of the Study 5
Significance of the Study 6
Meaning of Automated Teller Machine 7
Evolution of ATM and Introduction in Nigeria 8
Impact of ATM Based Services and Problems 11
Who is a Consumer? 13
The Consumer Adoption Process 14
Consumer Perception 15
Customer’s Satisfaction 17
Factors affecting the Satisfaction of Customers 17
Consumer Behaviour 18
Service 19
Characteristics of Services 20
Determinant of Service Quality 22
Customer Complaints 23
Handling Customer Complaints 24
Introduction 26
Research Design 26
Population of the Study 27
Sampling Method 27
Sources of Data 28
Method of Data Collection 28
Description of the Research Instrument 28
Method of Data Analysis 29
Introduction 30
Benefits accruing to Customers from Using the ATM Machine 33

Customers’ Level of Satisfaction from Using the ATM Machine 34
Customer’s Complaints and How they are Treated 53
Summary of Findings 58
Discussion of Findings 59
Recommendations 60
Conclusion 62
References 63
Appendix (Questionnaire) 65
Table 4.1: Distribution of Respondnets according to Sex 30
Table 4.2: Distribution of Respondnets according to Marital Status 31
Table 4.3: Distribution of Respondnets according to Occupation 32
Table 4.4: Analysis of Customers’ Satisfaction with UBA ATM service 35
Table 4.5: Analysis of Customers’ Satisfaction with Oceanic ATM service 38
Table 4.6: Analysis of Customers’ Satisfaction with Intercontinental
ATM service 42
Table 4.7: General Analysis of Customers satisfaction of ATM
service quality 46
Table 4.8 Comparison of Customers’ satisfaction with ATM service 50
Table 4.9 Do you think there is a difference between your bank ATM
Service quality and that of other banks 54
Table 4.10: Are there any problem you have encounterd in the
course of using ATM 55
Table 4.11: Speed of Response of Customer complaints 56

The most significant development in recent time that has substantially influenced business operations and activities in the banking industry is the introduction of Automated Teller Machine simply referred to as (ATM).
ATM allows a bank customer to conduct his banking transaction from both his bank and other banks. In fact, it is a self service highly computerized cash dispensing machine that allows bank customer to conduct certain bank transaction such as withdrawal ,account balance enquires ,account transfer etc.
As a result of this, ATM has been defined as an automatic bank note dispenser that uses electronic device and computer software/hardware to enable payment at either bank premises or sales off site locations .The concept (ATM) as known today was first introduced in 1936 by LUTHER GEORGE SIMJAIN. A working prototype came about in 1969 and DOCUTEL (an American company) with DON WETZEL, was issued patent for it in 1973.
However, the most similar in function to today’s type was introduced in United Kingdom in 1973. Nigeria joined the developed world in it’s introduction and use in 2005 through the effort of Central Bank of Nigeria (CBN).The introduction of ATM has remarkably enhanced the convenience, speed, and volume of business transactions bringing relief to bank’s customers as well as reducing the difficulties of withdrawing cash in banking hall. Today there are Nigerians from all walks of life using ATM for different services, it no longer reserved for the upper class in the society, now you can see students, traders etc, making use of their debit cards and cash cards on the system (ATM) cash withdrawals, pay utility bills etc. MOBAREK (2007) establish speed of operation and waiting time as important predictors of ATM service quality. Among the many changes in the introduction of money counting machine or automated teller machine (ATM) is to reduce workload and meet customer demand. This has simplified the operation of many banks such as the counting of money by bank tellers and manual recording of cash deposit. MOUTINHO (1992) established that (ATM) facility resulted in speed of transactions and save time of customers.
Despite the tremendous impact ATM has made to banking services, it is still presently been characterized with many problems like; case of stock card in the machine, debiting account without payment, network failure. The question one would ask is whether the banks know how their ATM customer/users feel about these problems as they could be a dissatisfying factor from using the ATM. To provide solution to these problems that may arise. Call for the banks to constantly identify and understand the perception of customer wit ATM services quality in order to provide a convenient manner that enables the customer/users maximize better satisfaction. This research seeks to study consumer perception of ATM service in the banking industry.

Banks in Nigeria render various services through the ATM to meet their customers banking need just like other business organization. However there are some problems associated to the research study.
It is not known whether benefit would be derived by the customer from using the machine, and
It is also known whether the customers are satisfied with the ATM base service.
This research study therefore, seeks to provide answers to the following questions.
What are the benefits accruing to customer from using the machine?
Are customers satisfied with ATM-based service?
Do customers lodge complaint about the ATM service quality and how are the complaints treated?
The objectives of the study are as follows.
To find the benefits accruing to customers from using the machine.
To ascertain the level of satisfaction customers derive from using the machine.
To find out customers complaints about ATM service.
To find out how customer complaints are treated.
The basis for delimiting this study is on the population of interest and also on the sample size. As such the scope of this study covers selected banks in Ugbowo, Benin City, Edo State. The banks include Intercontinental Bank, United Bank for Africa and Oceanic Bank.

However, the need for this study arises from it’s academic and practical benefits. The benefits are in terms of it’s significance to the banking industry and also to academic world.
In respect to the academic world in Nigeria, this study will help in creating awareness about customer perception of ATM based services and encourage development of relevant literature in this field of banking in the banking world.
This study will help banks in Nigeria realize that customer’s perception about their ATM services, relevant to banking industry as it would help in their activities and improvement. It will also help banks discover marketing strategies that can enhance their competitive edge in their intense competitive environment.


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