An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda

Nshimiyimana Alexis; Wenpei Chen

doi:doi:10.11648/j.ijber.20190806.24

| Peer-Reviewed

An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda

Nshimiyimana Alexis, Wenpei Chen

Published in International Journal of Business and Economics Research (Volume 8, Issue 6)

Received: 4 November 2019 Accepted: 22 November 2019 Published: 2 December 2019

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

ATM as one type of Electronic banking systems have become a strategic technology in the banking sector by delivering banking products/services and are expected to offer competitive advantages to banks investing in ATM technology over those that do not. In Rwanda, the cash-based system is now gradually being replaced by the card-based system and this requires banks to improve ATM service quality to satisfy customers. The aim of this paper was to conduct empirical evidence from ATM cardholders of five selected commercial banks in Rwanda to analyze the relationship between ATM service quality and customer satisfaction. To achieve this objective, a structured questionnaire was used to collect primary data of 250 ATM users in five commercial banks from Kigali, capital city of Rwanda (Bank of Kigali, Cogebanque, Equity Bank, Banque Populaire du Rwanda Limited and Ecobank). The questionnaire consists mainly of 32 constructs observed under seven ATM service quality dimensions (Reliability, Responsiveness, Assurance, Empathy, Tangibles, ease of use and Convenience) and a five-point rating scale was adopted as the scale for the statements formulated in the questionnaire. Findings showed that 70.8% of respondents were under or equal to 35 years old which presents a range of youths in Rwanda. From the results, 70% of respondents claimed that they have never been educated on utilization of ATMs. Using SPSS, customer satisfaction has shown a strong correlation with all seven ATM service quality. The multiple regression results identified ease of use as the most important dimension on customer satisfaction and it was followed by convenience, empathy and Tangibles. Therefore, it is suggested that banks could improve their customer satisfaction ratings by educating customers to use ATM and not forget other important improvements in automated teller machine banking services.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 6)
DOI	10.11648/j.ijber.20190806.24
Page(s)	439-451
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Automated Teller Machines (ATMs), Service Quality, Customer Satisfaction

References

[1]	H. Iberahim, N. K. Mohd Taufik, A. S. Mohd Adzmir, and H. Saharuddin, “Customer Satisfaction on Reliability and Responsiveness of Self Service Technology for Retail Banking Services,” Procedia Econ. Financ., vol. 37, no. 16, pp. 13–20, 2016.
[2]	M. Charles, “Customers satisfaction with ATM banking in Malawi,” African J. Bus. Manag., vol. 8, no. 7, pp. 218–227, 2014.
[3]	M. P. Framework, “TOWARDS A P R I C E BASE D MONETARY POLICY FRAMEWORK,” 2018.
[4]	S. Akpan, “The Influence of ATM Service Quality on Customer Satisfaction in The Banking Sector of Nigeria,” Glob. J. Hum. Resour. Manag., vol. 4, no. 5, pp. 65–79, 2016.
[5]	C. Mwatsika, “Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi,” Int. J. Bus. Econ. Res., vol. 5, no. 1, p. 1, 2016.
[6]	J. B. Harelimana, “The Automated Teller Machines and Profitability of Commercial Banks in Rwanda,” vol. 18, no. 1, 2018.
[7]	B. Narteh, “Service quality in automated teller machines: An empirical investigation,” Manag. Serv. Qual., vol. 23, no. 1, pp. 62–89, 2013.
[8]	R. Prasad, “Service Quality of Automated Teller Machine and Customer Satisfaction: A Case Study of State Bank of India, Patna (Bihar),” Int. J. Manag. Stud., vol. V, no. 4 (5), p. 26, 2018.
[9]	C. A. Phan and P. T. Nham, “Impact of service quality on customer satisfaction of automated teller machine service: Case study of a private commercial joint stock bank in vietnam,” Bus. Theory Pract., vol. 16, no. 3, pp. 280–289, 2015.
[10]	V. M. Kumbhar, “Customers’ Satisfaction in Atm Service: an Empirical Evidences From Public and Private Sector Banks in India,” Manag. Res. Pract., vol. 3, no. 2, pp. 24–35, 2011.
[11]	J. J. Cronin and S. a Taylor, “Measuring Quality: A Reexamination and,” J. Mark., vol. 56, no. 3, pp. 55–68, 1992.
[12]	A. Mohammad and S. Alhamadani, “Service quality perspectives and customer satisfaction in commercial banks working in Jordan,” Middle East. Financ. Econ., vol. 14, no. 14, pp. 60–69, 2011.
[13]	C. Ugwuegbu, “TANGIBLES AND EMPATHY DIMENSIONS (OF SERVPERF MODEL) AND CUSTOMER SATISFACTION IN THE USE OF ATMs,” no. April, 2019.
[14]	K. F. Yuen and V. V. Thai, “Service quality and customer satisfaction in liner shipping,” Int. J. Qual. Serv. Sci., vol. 7, no. 2–3, pp. 170–183, 2015.
[15]	I. Abasimi, A. A. Evans, and A. Y. A. Martin, “Automated Teller Machine (ATM) Service and Customer Satisfaction in the Upper East Region of Ghana,” vol. 8, no. 2, pp. 69–75, 2018.
[16]	L. Belay and B. Kindie, “The Effect of ATM Service Quality on Customer Satisfaction: Evidences from Customers of Ethiopian Commercial Banks in,” vol. 9, no. 7, pp. 109–116, 2017.
[17]	L. Zhou, “A dimension-specific analysis of performance-only measurement of service quality and satisfaction in China’s retail banking,” J. Serv. Mark., vol. 18, no. 7, pp. 534–546, 2004.
[18]	H. C. Hamaker, On multiple regression analysis, vol. 16, no. 1. 1962.
[19]	B. Narteh, “Perceived service quality and satisfaction of self-service technology: The case of automated teller machines,” Int. J. Qual. Reliab. Manag., vol. 32, no. 4, pp. 361–380, 2015.
[20]	B. Narteh, “Service quality and customer satisfaction in Ghanaian retail banks: the moderating role of price,” Int. J. Bank Mark., vol. 36, no. 1, pp. 68–88, 2018.
[21]	V. Yilmaz, E. Ari, and H. Gürbüz, “Investigating the relationship between service quality dimensions, customer satisfaction and loyalty in Turkish banking sector: An application of structural equation model,” Int. J. Bank Mark., vol. 36, no. 3, pp. 423–440, 2018.
[22]	W. M. Lassar, C. Manolis, and R. D. Winsor, Service quality perspectives and satisfaction in private banking, vol. 18, no. 4. 2000.
[23]	M. Sivakumar, V. Rengarajan, V. V. Anand, S. Srinivasan, M. Kalayanasundaram, and G. R. Saravanakumar, “A study on services quality in ATM services in public sector banks in kanchipuram town,” Int. J. Econ. Res., vol. 14, no. 3, pp. 401–412, 2017.

Cite This Article

Plain Text BibTeX RIS

APA Style

Nshimiyimana Alexis, Wenpei Chen. (2019). An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. International Journal of Business and Economics Research, 8(6), 439-451. https://doi.org/10.11648/j.ijber.20190806.24

Copy | Download

ACS Style

Nshimiyimana Alexis; Wenpei Chen. An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. Int. J. Bus. Econ. Res. 2019, 8(6), 439-451. doi: 10.11648/j.ijber.20190806.24

Copy | Download

AMA Style

Nshimiyimana Alexis, Wenpei Chen. An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. Int J Bus Econ Res. 2019;8(6):439-451. doi: 10.11648/j.ijber.20190806.24

Copy | Download

@article{10.11648/j.ijber.20190806.24,
  author = {Nshimiyimana Alexis and Wenpei Chen},
  title = {An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {6},
  pages = {439-451},
  doi = {10.11648/j.ijber.20190806.24},
  url = {https://doi.org/10.11648/j.ijber.20190806.24},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190806.24},
  abstract = {ATM as one type of Electronic banking systems have become a strategic technology in the banking sector by delivering banking products/services and are expected to offer competitive advantages to banks investing in ATM technology over those that do not. In Rwanda, the cash-based system is now gradually being replaced by the card-based system and this requires banks to improve ATM service quality to satisfy customers. The aim of this paper was to conduct empirical evidence from ATM cardholders of five selected commercial banks in Rwanda to analyze the relationship between ATM service quality and customer satisfaction. To achieve this objective, a structured questionnaire was used to collect primary data of 250 ATM users in five commercial banks from Kigali, capital city of Rwanda (Bank of Kigali, Cogebanque, Equity Bank, Banque Populaire du Rwanda Limited and Ecobank). The questionnaire consists mainly of 32 constructs observed under seven ATM service quality dimensions (Reliability, Responsiveness, Assurance, Empathy, Tangibles, ease of use and Convenience) and a five-point rating scale was adopted as the scale for the statements formulated in the questionnaire. Findings showed that 70.8% of respondents were under or equal to 35 years old which presents a range of youths in Rwanda. From the results, 70% of respondents claimed that they have never been educated on utilization of ATMs. Using SPSS, customer satisfaction has shown a strong correlation with all seven ATM service quality. The multiple regression results identified ease of use as the most important dimension on customer satisfaction and it was followed by convenience, empathy and Tangibles. Therefore, it is suggested that banks could improve their customer satisfaction ratings by educating customers to use ATM and not forget other important improvements in automated teller machine banking services.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda
AU  - Nshimiyimana Alexis
AU  - Wenpei Chen
Y1  - 2019/12/02
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190806.24
DO  - 10.11648/j.ijber.20190806.24
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 439
EP  - 451
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190806.24
AB  - ATM as one type of Electronic banking systems have become a strategic technology in the banking sector by delivering banking products/services and are expected to offer competitive advantages to banks investing in ATM technology over those that do not. In Rwanda, the cash-based system is now gradually being replaced by the card-based system and this requires banks to improve ATM service quality to satisfy customers. The aim of this paper was to conduct empirical evidence from ATM cardholders of five selected commercial banks in Rwanda to analyze the relationship between ATM service quality and customer satisfaction. To achieve this objective, a structured questionnaire was used to collect primary data of 250 ATM users in five commercial banks from Kigali, capital city of Rwanda (Bank of Kigali, Cogebanque, Equity Bank, Banque Populaire du Rwanda Limited and Ecobank). The questionnaire consists mainly of 32 constructs observed under seven ATM service quality dimensions (Reliability, Responsiveness, Assurance, Empathy, Tangibles, ease of use and Convenience) and a five-point rating scale was adopted as the scale for the statements formulated in the questionnaire. Findings showed that 70.8% of respondents were under or equal to 35 years old which presents a range of youths in Rwanda. From the results, 70% of respondents claimed that they have never been educated on utilization of ATMs. Using SPSS, customer satisfaction has shown a strong correlation with all seven ATM service quality. The multiple regression results identified ease of use as the most important dimension on customer satisfaction and it was followed by convenience, empathy and Tangibles. Therefore, it is suggested that banks could improve their customer satisfaction ratings by educating customers to use ATM and not forget other important improvements in automated teller machine banking services.
VL  - 8
IS  - 6
ER  -

Copy | Download

Author Information

Nshimiyimana Alexis

Department of Economics and Management, Faculty of Management Science and Engineering, Chongqing University of Posts and Telecommunications, Chongqing, China
Wenpei Chen

Department of Economics and Management, Faculty of Management Science and Engineering, Chongqing University of Posts and Telecommunications, Chongqing, China

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Nshimiyimana Alexis, Wenpei Chen. (2019). An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. International Journal of Business and Economics Research, 8(6), 439-451. https://doi.org/10.11648/j.ijber.20190806.24

Copy | Download

ACS Style

Nshimiyimana Alexis; Wenpei Chen. An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. Int. J. Bus. Econ. Res. 2019, 8(6), 439-451. doi: 10.11648/j.ijber.20190806.24

Copy | Download

AMA Style

Nshimiyimana Alexis, Wenpei Chen. An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. Int J Bus Econ Res. 2019;8(6):439-451. doi: 10.11648/j.ijber.20190806.24

Copy | Download

@article{10.11648/j.ijber.20190806.24,
  author = {Nshimiyimana Alexis and Wenpei Chen},
  title = {An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {6},
  pages = {439-451},
  doi = {10.11648/j.ijber.20190806.24},
  url = {https://doi.org/10.11648/j.ijber.20190806.24},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190806.24},
  abstract = {ATM as one type of Electronic banking systems have become a strategic technology in the banking sector by delivering banking products/services and are expected to offer competitive advantages to banks investing in ATM technology over those that do not. In Rwanda, the cash-based system is now gradually being replaced by the card-based system and this requires banks to improve ATM service quality to satisfy customers. The aim of this paper was to conduct empirical evidence from ATM cardholders of five selected commercial banks in Rwanda to analyze the relationship between ATM service quality and customer satisfaction. To achieve this objective, a structured questionnaire was used to collect primary data of 250 ATM users in five commercial banks from Kigali, capital city of Rwanda (Bank of Kigali, Cogebanque, Equity Bank, Banque Populaire du Rwanda Limited and Ecobank). The questionnaire consists mainly of 32 constructs observed under seven ATM service quality dimensions (Reliability, Responsiveness, Assurance, Empathy, Tangibles, ease of use and Convenience) and a five-point rating scale was adopted as the scale for the statements formulated in the questionnaire. Findings showed that 70.8% of respondents were under or equal to 35 years old which presents a range of youths in Rwanda. From the results, 70% of respondents claimed that they have never been educated on utilization of ATMs. Using SPSS, customer satisfaction has shown a strong correlation with all seven ATM service quality. The multiple regression results identified ease of use as the most important dimension on customer satisfaction and it was followed by convenience, empathy and Tangibles. Therefore, it is suggested that banks could improve their customer satisfaction ratings by educating customers to use ATM and not forget other important improvements in automated teller machine banking services.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda
AU  - Nshimiyimana Alexis
AU  - Wenpei Chen
Y1  - 2019/12/02
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190806.24
DO  - 10.11648/j.ijber.20190806.24
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 439
EP  - 451
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190806.24
AB  - ATM as one type of Electronic banking systems have become a strategic technology in the banking sector by delivering banking products/services and are expected to offer competitive advantages to banks investing in ATM technology over those that do not. In Rwanda, the cash-based system is now gradually being replaced by the card-based system and this requires banks to improve ATM service quality to satisfy customers. The aim of this paper was to conduct empirical evidence from ATM cardholders of five selected commercial banks in Rwanda to analyze the relationship between ATM service quality and customer satisfaction. To achieve this objective, a structured questionnaire was used to collect primary data of 250 ATM users in five commercial banks from Kigali, capital city of Rwanda (Bank of Kigali, Cogebanque, Equity Bank, Banque Populaire du Rwanda Limited and Ecobank). The questionnaire consists mainly of 32 constructs observed under seven ATM service quality dimensions (Reliability, Responsiveness, Assurance, Empathy, Tangibles, ease of use and Convenience) and a five-point rating scale was adopted as the scale for the statements formulated in the questionnaire. Findings showed that 70.8% of respondents were under or equal to 35 years old which presents a range of youths in Rwanda. From the results, 70% of respondents claimed that they have never been educated on utilization of ATMs. Using SPSS, customer satisfaction has shown a strong correlation with all seven ATM service quality. The multiple regression results identified ease of use as the most important dimension on customer satisfaction and it was followed by convenience, empathy and Tangibles. Therefore, it is suggested that banks could improve their customer satisfaction ratings by educating customers to use ATM and not forget other important improvements in automated teller machine banking services.
VL  - 8
IS  - 6
ER  -

Copy | Download