An Assessment of ATM service quality and customer satisfaction, In Case of Lion International Bank S.C (In Addis Ababa Branches)

Abstract

The purpose of this study is to ass ATM service quality of Lion International Bank. ATM service quality dimensions namely Tangibility, Reliability, Responsiveness, Empathy and Assurance based on SERVPERF model developed by Cronin and Taylor’s (1992) from literature is used to identify the relationship. Quantitative means of data collection method is employed to collect the data through questionnaire. Convenient (non – probability sampling) technique is used to select the sample, sample size determined using formula by Tayro Yemane. And for the study primary data was collected from sample of 337 ATM customers of LIB located in Addis Ababa using structured questionnaire. The data collected from the questionnaire were analyzed using statistical tools such as mean, correlation and regression analysis using SPSS version 20. The results of this study indicate that, all the ATM service quality dimensions (tangibility, reliability, responsiveness, empathy and assurance) have positive and significant relationship with customer satisfaction. Accordingly from regression result it is observed that all ATM service quality dimensions have positive and significant impact on customer satisfaction. From the result, 65.4% of the variations in customer satisfaction is explained by ATM service quality dimensions in Lion International Bank S.C. based on the findings of the study, the researcher forwarded some recommendation to the bank’s management.