Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi

Charles Mwatsika

doi:doi:10.11648/j.ijber.20160501.11

| Peer-Reviewed

Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi

Charles Mwatsika

Published in International Journal of Business and Economics Research (Volume 5, Issue 1)

Received: 20 January 2016 Accepted: 30 January 2016 Published: 19 February 2016

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Automated teller machine banking has become a significant channel for banking products and services behind branch banking in Malawi and banks continue to invest in new and efficient technologies that can handle more functions that include cash depositing to attract more customers and achieve customer satisfaction with the banks. 353 respondents participated in this study to assess the impact of Automated teller machine banking performance on customer satisfaction with banks. The study adopted a performance only approach to measuring customer satisfaction. A self administered questionnaire containing multi-dimension and multi-attribute Likert measurement scales was used where respondents rated the performance only and their satisfaction with Automated teller machine banking and satisfaction with their respective banks. Using SPSS, regression analysis of satisfaction with Automated teller machine banking performance and satisfaction with the bank was conducted and the results indicate that performance of automated teller machine banking has 40 percent predictive capability of customer satisfaction with the bank. The study further found that despite influencing customer satisfaction with the bank, Automated teller machine banking has no capability to attract customers to switch banks. Therefore banks could improve their customer satisfaction ratings through improvements in Automated teller machine banking services but where the banks wish to attract customers from rivals, alternative marketing strategies should be sought.

Published in	International Journal of Business and Economics Research (Volume 5, Issue 1)
DOI	10.11648/j.ijber.20160501.11
Page(s)	1-9
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), 2016. Published by Science Publishing Group

Keywords

Bank Performance, Auto Teller Machines, Customer Satisfaction

References

[1]	Aldlaigan, A., and Buttle, A. (2002). SYSTRA-SQ: a new measure of banks service quality. International Journal of Service Industry Management. 13(4), pp. 362–381.
[2]	Al-Hawari, M. and Ward, T. (2006). The impact of automated service quality on financial performance and the mediating role of customer retention. Journal of Financial Service Marketing. 10(3), pp. 228-43.
[3]	Andaleeb, S. S. and Basu, A. K. (1994). Technical complexity and consumer knowledge as moderators of service quality evaluations in the automobile service industry. Journal of Retailing Vol. 70(4) pp367–379.
[4]	Anderson, E., & Sullivan, M. (1993). The antecedents and consequences of customer’s satisfaction for firms. Marketing Science, 12(2), 125-143.
[5]	Anderson, E. W. and Fornell, C. (1994). A customer satisfaction research prospectus. Services marketing: new directions in theory and practice. Thousand Oaks, CA: Sage Publications, pp. 241–68.
[6]	Asubonteng, P., McCleary, K. J. and Swan, J. E. (1996). SERVQUAL revisited: a critical review of service quality. Journal of Service Marketing 10(6): 62– 81.
[7]	Athanassopoulos, A. (2000). Customer satisfaction cues to support market segmentation andexplain switching behaviour. Journal of Business Research. 47(3), pp.191-207.
[8]	Babakus, E. and Boller, G. W. (1992), “An empirical assessment of the SERVQUAL scale”, Journal of Business Research, Vol. 26 No. 6, pp. 253-268.
[9]	Banker, R. D. and Kauffman, R. J. (1988). Strategic contributions of information technology: An empirical study of ATM networks, proceedings of the ninth International Conference for Information Systems, Minneapolis, MW.
[10]	Berkley, B. J. and Gupta, A. (1994). Improving service quality with information technology, International Journal of Information Management, Vol. 14, pp. 109-21.
[11]	Bolton, R. N. and Drew, J. H. (1991). A multistage model of customers’ assessment of service quality and value, Journal of Consumer Research, Vol. 17, March, pp. 375-84.
[12]	Boulding, W., Kalra, A., Staelin, R. and Zeithmal, V. A. (1993). A dynamic process model of service quality: from expectations to behavioural intentions. Journal of Marketing Research Vol.30 pp 7–27.
[13]	Brogowicz, A. A., Delene, L. M. and Lyth, D. M. (1990). A synthesized service quality model with managerial implications. International Journal of Service Industry Management. 1(1), pp. 27-46.
[14]	Brown, S. W. and Swarth, T. A. (1989). A gap analysis of professional service quality. Journal of Marketing Vol. 53, pp 92–98.
[15]	Cadotte, E. R., Woodruff, R. B. and Jenkins, R. L. (1987). Expectations and norms in models of consumer satisfaction. Journal of Marketing Research. 24 (August): pp. 305-314.
[16]	Carman, J. M. (1990). Consumer Perception of Service Quality: An Assessment of the SERVQUAL Dimensions. Journal of Retailing. 66, pp. 33-55.
[17]	Churchill, G. A. and Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of Marketing Research, Vol. 19, pp. 491-504.
[18]	Cronin, J. J. and Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 56, July, pp. 55-68.
[19]	Dabholkar, P. A. (1996). Consumer evaluations of new technology-based self-service operations: an investigation of alternative models, International Journal of Research in Marketing, Vol. 13 No. 1, pp. 29-51.
[20]	Dabholkar, P. A., Shepherd, C. D. and Thorpe, D. I. (2000), “A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study”, Journal of Retailing, Vol. 76 No. 2, pp. 131-139.
[21]	Davies, F., Moutinho, L. and Curry, B. (1996). ATM users attitudes: A neural network analysis. Marketing intelligence & Planning, 14(2), 26-32.
[22]	Day, R. L. (1984). Modeling choices among alternative responses to dissatisfaction. In Advances in Consumer Research 11^th Ed. William D. Perreault. Atlanta, GA: Association for Consumer Research, pp. 496-499.
[23]	Dos Santos, B. L. and Peffers, K. (1993). The effects of early adoption of information technology: An empirical study. Journal of Information Technology Management. Vol. 5(1) 1-13.
[24]	Ennew C. T, Reed GV, and Binks M. R. (1993), “Importance — performance analysis and the measurement of service quality”, European Journal of Marketing Vol. 27(2): pp.59–70.
[25]	Fick, G. R. and Ritchie, J. R. B. (1991). Measuring service quality in the travel and tourism Industry. Journal of Travel Research, Vol. 30 No. 2, pp. 2-9.
[26]	Fishbein, M. and Ajzen, I. (1975). Belief, attitude, intention and behavior: An introductionto theory and research. Addison-Wesley, Reading, Massachusetts.
[27]	Frost, F. A. and Kumar, M. (2000). INTSERVQUAL: an internal adaptation of the GAP model in a large service organization, Journal of Services Marketing, Vol. 14 No. 5, pp. 358-77.
[28]	Glaser, P. F. (1988). Using technology for competitive advantage: the ATM experience of Citicorp in managing innovation cases from services industries. Guide, B. R. and Quinn, J. B. (eds) National Academy Press, Washington DC pp 108–114.
[29]	Goode, M. and Moutinho, L. (1995). The effects of free banking on overall satisfaction: the use of automated teller machines. International Journal of Bank Marketing. Vol. 13(4) 168–190.
[30]	Gotlieb, J. B., Grewal, D. and Brown, S. W. (1994). Consumer satisfaction and perceived quality: complementary or divergent constructs? Journal of Applied Psychology, Vol. 79 No. 6, pp. 875-85.
[31]	Gronroos, C. (1984). A service quality model and its marketing implications. European Journal of Marketing. 18(4), pp. 36-44.
[32]	Halstead, D., David H., and Sandra L. S. (1994). Multisource effects on the satisfaction formation process. Journal of the Academy of Marketing Science, 22 (Spring): 114-129.
[33]	Haywood-Farmer, J. (1988). A conceptual model of service quality. International Journal of Operations & Production Management. 8(6), pp. 19-29.
[34]	Howcroft, J. B. (1991). Customer satisfaction in retail banking. Service Industry Journal, January, pp. 11-17.
[35]	Johnston, R. (1995). The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service. International Journal of Service Industry Management, 6(2), pp. 46-61.
[36]	Joseph, M. and Stone, G. (2003). An empirical evaluation of US bank customer perceptions of the impact of technology on service delivery in the banking sector. International Journal of Retail & Distribution Management, 31(4), pp. 190-202.
[37]	Kantrow, Y. D. (1989). ATMs called ‘only hope’ to minimize costs, cope with shrinking labour force. American Banker.
[38]	Khan, A. M. (2010) An empirical study of ATM service quality and customer satisfaction in Pakistani banks. European Journal of Social Sciences. Vol.13 (3) 333–344.
[39]	Kheng, L. L., Mahamad, O., Ramayah, T. (2010) The impact of service quality on customer loyalty: A study of banks in Penang, Malaysia. International Journal of Marketing Studies. Vol.2 (2) 57–66.
[40]	Komal, S. S. (2009) Impact of ATM on customer satisfaction (A comparative study of SBI, ICICI and HDFC banks). Business Intelligence Journal Vol. 2(2) 276–287.
[41]	Laderman, F. S. (1990). The public policy implications of state laws pertaining to Automated Teller Machines. Economic Review (Federal Reserve Bank of San Francisco pp. 43–58.
[42]	Levesque, T. J., and McDougall, G. H. G. (1996). Determinants of customer satisfaction in retail banking. International Journal of Bank Marketing. 14(7), pp. 12-20.
[43]	Lewis, R. C. and Booms, B. H. (1983). The marketing aspects of service quality. Emerging perspectives in service marketing, In Berry, L. L., Shostack, G. and Upah, G. (eds.) American Marketing Association. Chicago, IL pp. 99-107.
[44]	Magi, A. and Julander, C. R. (1996). Perceived service quality and customer satisfaction in a store performance framework: An empirical study of Swedish Grocery Retailers. Journal of Retailing and Consumer Services, Vol. 3(1) pp 33–41.
[45]	Mattson, J. (1992). A service quality model based on ideal value standard, International Journal of Service Industry Management, Vol. 3 No. 3, pp. 18-33.
[46]	Moutinho, L. and Brownlie, D. T. (1989). Customer satisfaction with bank services: a multidimensional space analysis. International Journal of Bank Marketing, 7(5), pp. 23-27.
[47]	Mwatsika, C. (2014). Customers’ satisfaction with ATM banking in Malawi. African Journal of Business Management. Vol. 8 (7) 218-227
[48]	Newman, K. (2001). Interrogating SERVQUAL: A critical assessment of service quality measurement in a high street retail bank. International Journal of Bank Marketing, 19(3), pp. 126-139.
[49]	Nunnally, J. C. and Bernstein, I. H. (1994). Psychometric Theory, 3rd ed., McGraw-Hill, New York, NY.
[50]	Oh, H. (1999). Service quality, customer satisfaction and customer value: a holistic perspective”, International Journal of Hospitality Management, Vol. 18, pp. 67-82.
[51]	Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1985). A conceptual model of service quality and implications for future research. Journal of Marketing.49, Fall, pp. 41-50.
[52]	Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, Spring, pp. 12-40.
[53]	Patrı´cio, L., Fisk, R. P. and Cunha, J. F. (2003). Improving satisfaction with bank service offerings. Managing Service Quality, 13 (6), 471-482.
[54]	Philip, G. and Hazlett, S. A. (1997), “The measurement of service quality: a new P-C-P attributes model”, International Journal of Quality & Reliability Management, Vol. 14 No. 3, pp. 260-286.
[55]	Rust, R. T. and Oliver, R. L. (1994). Service quality insights and managerial implications from the frontier in Roland T. Rust and Richard L. Oliver (eds), Service Quality: New Dimensions in Theory and Practice, Thousand Oaks, CA: Sage Publications pp 1 – 9.
[56]	Sachdev, S. B. and Verma, H. V. (2004). Relative importance of service quality dimensions: A multi-sectoral study. Journal of Services Research, Vol. 4(1).
[57]	Seth, N. S., Deshmukh, S. G., and Vrat, P. (2005). Service quality models: a review. International Journal of Quality & Reliability Management. 22(9), pp. 913-949.
[58]	Spreng, R. A. and Mackoy, R. D. (1996). An empirical examination of a model of perceived service quality and satisfaction, Journal of retailing, Vol. 722, pp. 201-14.
[59]	Sweeney, J. C., Soutar, G. N. and Johnson, L. W. (1997). Retail service quality and perceived value, Journal of Consumer Services, Vol. 4 No. 1, pp. 39-48.
[60]	Teas RK (1993). Expectation, performance evaluation and consumer’s perceptions of quality. Journal of Marketing, Vol. 57 (4), pp. 18-34.
[61]	Westbrook, R. A., and Oliver, R. L. (1981). Developing better measures of consumer satisfaction: some preliminary results. pp. 94-99 In Advances in Consumer Research, Vol. 8. Ed. Kent Monroe.
[62]	Yavas, U., Benkenstein, M. and Stuhldreier, U. (2004). Relationship between service quality and behavioural outcomes: A study of private bank customers in Germany. The International Journal of Bank Marketing, 22(2/3), 144-157.

Cite This Article

Plain Text BibTeX RIS

APA Style

Charles Mwatsika. (2016). Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi. International Journal of Business and Economics Research, 5(1), 1-9. https://doi.org/10.11648/j.ijber.20160501.11

Copy | Download

ACS Style

Charles Mwatsika. Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi. Int. J. Bus. Econ. Res. 2016, 5(1), 1-9. doi: 10.11648/j.ijber.20160501.11

Copy | Download

AMA Style

Charles Mwatsika. Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi. Int J Bus Econ Res. 2016;5(1):1-9. doi: 10.11648/j.ijber.20160501.11

Copy | Download

@article{10.11648/j.ijber.20160501.11,
  author = {Charles Mwatsika},
  title = {Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi},
  journal = {International Journal of Business and Economics Research},
  volume = {5},
  number = {1},
  pages = {1-9},
  doi = {10.11648/j.ijber.20160501.11},
  url = {https://doi.org/10.11648/j.ijber.20160501.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160501.11},
  abstract = {Automated teller machine banking has become a significant channel for banking products and services behind branch banking in Malawi and banks continue to invest in new and efficient technologies that can handle more functions that include cash depositing to attract more customers and achieve customer satisfaction with the banks. 353 respondents participated in this study to assess the impact of Automated teller machine banking performance on customer satisfaction with banks. The study adopted a performance only approach to measuring customer satisfaction. A self administered questionnaire containing multi-dimension and multi-attribute Likert measurement scales was used where respondents rated the performance only and their satisfaction with Automated teller machine banking and satisfaction with their respective banks. Using SPSS, regression analysis of satisfaction with Automated teller machine banking performance and satisfaction with the bank was conducted and the results indicate that performance of automated teller machine banking has 40 percent predictive capability of customer satisfaction with the bank. The study further found that despite influencing customer satisfaction with the bank, Automated teller machine banking has no capability to attract customers to switch banks. Therefore banks could improve their customer satisfaction ratings through improvements in Automated teller machine banking services but where the banks wish to attract customers from rivals, alternative marketing strategies should be sought.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi
AU  - Charles Mwatsika
Y1  - 2016/02/19
PY  - 2016
N1  - https://doi.org/10.11648/j.ijber.20160501.11
DO  - 10.11648/j.ijber.20160501.11
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  - 1
EP  - 9
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20160501.11
AB  - Automated teller machine banking has become a significant channel for banking products and services behind branch banking in Malawi and banks continue to invest in new and efficient technologies that can handle more functions that include cash depositing to attract more customers and achieve customer satisfaction with the banks. 353 respondents participated in this study to assess the impact of Automated teller machine banking performance on customer satisfaction with banks. The study adopted a performance only approach to measuring customer satisfaction. A self administered questionnaire containing multi-dimension and multi-attribute Likert measurement scales was used where respondents rated the performance only and their satisfaction with Automated teller machine banking and satisfaction with their respective banks. Using SPSS, regression analysis of satisfaction with Automated teller machine banking performance and satisfaction with the bank was conducted and the results indicate that performance of automated teller machine banking has 40 percent predictive capability of customer satisfaction with the bank. The study further found that despite influencing customer satisfaction with the bank, Automated teller machine banking has no capability to attract customers to switch banks. Therefore banks could improve their customer satisfaction ratings through improvements in Automated teller machine banking services but where the banks wish to attract customers from rivals, alternative marketing strategies should be sought.
VL  - 5
IS  - 1
ER  -

Copy | Download

Author Information

Charles Mwatsika

Management Studies Department, University of Malawi, Blantyre, Malawi

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Charles Mwatsika. (2016). Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi. International Journal of Business and Economics Research, 5(1), 1-9. https://doi.org/10.11648/j.ijber.20160501.11

Copy | Download

ACS Style

Charles Mwatsika. Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi. Int. J. Bus. Econ. Res. 2016, 5(1), 1-9. doi: 10.11648/j.ijber.20160501.11

Copy | Download

AMA Style

Charles Mwatsika. Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi. Int J Bus Econ Res. 2016;5(1):1-9. doi: 10.11648/j.ijber.20160501.11

Copy | Download

@article{10.11648/j.ijber.20160501.11,
  author = {Charles Mwatsika},
  title = {Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi},
  journal = {International Journal of Business and Economics Research},
  volume = {5},
  number = {1},
  pages = {1-9},
  doi = {10.11648/j.ijber.20160501.11},
  url = {https://doi.org/10.11648/j.ijber.20160501.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160501.11},
  abstract = {Automated teller machine banking has become a significant channel for banking products and services behind branch banking in Malawi and banks continue to invest in new and efficient technologies that can handle more functions that include cash depositing to attract more customers and achieve customer satisfaction with the banks. 353 respondents participated in this study to assess the impact of Automated teller machine banking performance on customer satisfaction with banks. The study adopted a performance only approach to measuring customer satisfaction. A self administered questionnaire containing multi-dimension and multi-attribute Likert measurement scales was used where respondents rated the performance only and their satisfaction with Automated teller machine banking and satisfaction with their respective banks. Using SPSS, regression analysis of satisfaction with Automated teller machine banking performance and satisfaction with the bank was conducted and the results indicate that performance of automated teller machine banking has 40 percent predictive capability of customer satisfaction with the bank. The study further found that despite influencing customer satisfaction with the bank, Automated teller machine banking has no capability to attract customers to switch banks. Therefore banks could improve their customer satisfaction ratings through improvements in Automated teller machine banking services but where the banks wish to attract customers from rivals, alternative marketing strategies should be sought.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Impact of ATM Banking Performance on Customer Satisfaction with the Bank in Malawi
AU  - Charles Mwatsika
Y1  - 2016/02/19
PY  - 2016
N1  - https://doi.org/10.11648/j.ijber.20160501.11
DO  - 10.11648/j.ijber.20160501.11
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  - 1
EP  - 9
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20160501.11
AB  - Automated teller machine banking has become a significant channel for banking products and services behind branch banking in Malawi and banks continue to invest in new and efficient technologies that can handle more functions that include cash depositing to attract more customers and achieve customer satisfaction with the banks. 353 respondents participated in this study to assess the impact of Automated teller machine banking performance on customer satisfaction with banks. The study adopted a performance only approach to measuring customer satisfaction. A self administered questionnaire containing multi-dimension and multi-attribute Likert measurement scales was used where respondents rated the performance only and their satisfaction with Automated teller machine banking and satisfaction with their respective banks. Using SPSS, regression analysis of satisfaction with Automated teller machine banking performance and satisfaction with the bank was conducted and the results indicate that performance of automated teller machine banking has 40 percent predictive capability of customer satisfaction with the bank. The study further found that despite influencing customer satisfaction with the bank, Automated teller machine banking has no capability to attract customers to switch banks. Therefore banks could improve their customer satisfaction ratings through improvements in Automated teller machine banking services but where the banks wish to attract customers from rivals, alternative marketing strategies should be sought.
VL  - 5
IS  - 1
ER  -

Copy | Download