AUTOMATIC TELLER MACHINES AND CUSTOMER SATISFACTION …

AUTOMATIC TELLER MACHINES AND CUSTOMER SATISFACTION

CASE STUDY OF STANBIC BANK MAKERERE BRANCH

BY

TUMWESIGYE EDSON

REG. NO. 07/U/15598/EXT

STUDENT NO. 207015474

SPERVISOR: DR.MUYINDA PAUL BIREVE

SCHOOL OF DISTANCE AND LIFELONG LEARNING

DEPARTMENT OF DISTANCE AND OPEN LEARNING

A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF

DISTANCE AND OPEN LEARNIG IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF

COMMERCE OF MAKERERE UNIVERSITY

February 2011

1

CHAPTER ONE

1.0 INTRODUCTION

This research is about Automatic Teller Machines and customer satisfaction in the banking

industry. ATMs have been introduced in Uganda recently among other technological changes

that have occurred. Banks have embraced this technology in order to provide services in a more

suitable and cheaper way to their customers. On the other hand, customers are trying to adopt to

these technological changes and the researcher will find out if the customers are satisfied with

the ATMs compared to the counter desk services they had before. In Uganda people are seen to

be switching from one bank to another even though all these banks have ATMs and one wonders

if these ATMs that have been introduced are performing to the expectations of the customers.

1.1 Background

The first ATM was installed by Barclays bank in Enfield town UK on 27 June 1967 (BBC

London, 2007). From then, ATMs spread all over the world and in Uganda the first ATM was

installed by Standard Chartered bank in 1997 (Walford, 2001).

Most banks including Stanbic bank have installed ATMs and those that have not installed are in

advance stages of incorporating the same. This can be attributed to their convenience, reliability

and in line with today’s business (Ahimbisibwe, 2009).

ATMs can allow a customer to make cash withdrawals, make deposits and can also issue min

statements. ATMs also allow loading of airtime payment of school fees and bills (Griffines

2002)

Initially banks that pioneered with ATM services were offering more of cash dispensing services

but now they have merged with services to the visa family making these ATMs visa enabled and

giving rise to the debit card that operates globally. This means that you can access your Account

in Uganda while in US or any location in the world as long as the point of sale is visa enabled

(Mugerwa, 2002).

2

The objective of these banks is to serve their customers in the most convenient way possible and

that is why they have installed ATMs across the country. Stanbic bank Makerere branch has two

ATM out lets to curb down the alarming situation of queues, but all this in vain. Queues seem to

continue both inside the bank, on counters and outside on ATMs. Customers have also

complained of high transaction charges, breakdown of ATMs and denial of services, unreliability

of ATMs, complexity of the technology as most ATM cards are being frozen and frauds which

have caused insecurity among customers. ATMs have reduced on the rate of staff of banks and

customer contact, leaving a customer who would have wanted to inquire about something more

dissatisfied. Customers are a flexible float whereby once a bank takes them to a certain level,

they would expect sustainability or else they would be more dissatisfied than they were before

changing the system (Kotler, 2001).

These contradicting statements are a reason why this research will be undertaken to find out the

relationship between ATM and customer satisfaction.

1.2 Statement of the Problem

Financial institutions have continued to install ATMs across the country so that their customers

can access the services in a more reliable and efficient way. Despite the efforts by commercial

banks to automate their banking systems, they have not yet fully achieved their intended

objective of offering a high satisfactory service to their customers. Customers continue to

complain; queues have continued to exist and therefore instigating the researcher to find out the

effect of ATM services and customer satisfaction in the banking industry.

1.3 Purpose of the Study

The Purpose of the study is to find out the extent of customer satisfaction due to the installation

of ATMs so that the service can be improved to suit the expectations of the customer.

3

1.4 Objectives

i. To establish the frequency of ATM usage.

ii. To identify various complements raised by customers about ATM.

iii. To identify various complaints raised by customers about ATM.

iv. To establish the relationship between ATMs and customer satisfaction.

1.5 Research Questions

i. How often do customers use ATMs?

ii. What are the various complements of customers about ATM?

iii. What are the various complaints raised by customers about ATMs?

iv. What is the relationship between ATM and customer satisfaction?

1.6 Scope

1.6.1 Geographical Scope

The study was carried out in Kampala specifically at Stanbic bank Makerere branch. This branch

was chosen because of it’s convenience to the researcher.

1.6.2 Content/ Variable Scope

The researcher considered Automatic Teller Machines as an independent variable with the

number of ATM outlets, number of customers with ATM cards and the number of customers

who know how to operate ATMs as sub-variables. The researcher will used customer satisfaction

as a dependent variable with the location of ATM outlets, the costs incurred while transacting

using ATMs and the frequency of usage of ATMs by customers as sub-variables.

1.6.3 Time Scope

The research will covered the period between January to May 2011.

4

1.7 Significance

The study will help the management and other stakeholders of Stanbic bank to understand how

best they can customize the ATM services to meet the needs of customers. The study will also

help the researcher to acquire skills of carrying out research. Also with regard to other

researchers, the study will act as a reference material to other students pursuing studies in the

similar subject.

5

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This section presents a review of the available literature on the research topic and the major

issues on the variables. This literature will be got from various sources including reports,

journals, internet and text books.

2.2 Concepts, Description and Definition

2.2.1 Definition of ATM

An ATM is a data terminal with two inputs and four output devices, like any other data terminal,

an ATM has to connect and communicate through a host processor. The host processor is

analogous to an internal service provider in that it is the gate way through which all the various

ATM networks are availed to the card holder (Fawcett, 2001).

ATM is a computerized communication device that provides services to the customer of a

financial institution in a public place without the help of the human clerk or a bank teller. It is

connected to a computer terminal, record keeping system and cash vault in one unit that permits

a customer to enter personal identification number(PIN) or by punching a special code number

into the computer terminal that is linked to the bank’s computerized records (Rose, 1999).

2.2.2 Customer Satisfaction

This refers to the evaluation of a product or service in terms of whether the product or service

has met the customer’s needs and expectations, failure to meet their needs and expectations is assumed

to result in dissatisfaction with the product or service (Zeittiational and Bither, 1998).

Kotler (2001) observes that customer satisfaction depends on a product’s perceived performance in

delivering value relative to the buyer’s expectations. If the product’s performance falls short of

customer’s expectations, the buyer is dissatisfied. Outstanding marketing companies go out of

6

their way to keep their customers satisfied, they know that satisfied customers make repeat

purchases and they tell others about their good experience with the product.

Balunywa (1992) states that to find out whether your giving better services, ask the customer.

The early computers were slow compared to those of the present. This has enabled banks like

Stanbic to handle the increased number of customers and the changing trend in information

technology. This has changed the culture of banking to automation.

According to Prokesch (1995), customer satisfaction is a reflection of organizational competency

or capability in the delivery of services to the customer.

The study by Chartered Institute of Bankers (2003) showed that a number of banks were

involved heavily in providing ATMs in remote areas. This means that customers can gain access

to banking services with great ease than if they had to travel to the nearest bank branch.

Customers not only access easily these services but they also save time and money they would

have spent in travelling long distances to reach the nearest branch.

Customers select products that match their own personal expectations and evaluate the

performance in terms of the benefits enjoyed. Therefore people do not just buy products or

services, they really buy what product or service can do for them, which are collectively

described as benefits.

2.3 ATM Usage

The customer or a card holder is identified by inserting a plastic mark card with a chip that

contains a unique card number and security information such as an expiry date (Ahimbisibwe,

2009).

Customers are guaranteed with security of having Personal Identification Number(PIN) that

makes them have access to their Account (Kateeba, 1999).

7

ATMs enable a customer to perform a full range of banking transactions like cash withdrawal,

cash and chaque deposits, bill payments, fund transfer, airtime loading and balance checks

Morgan (1999)

Steve (2002) observes that ATMs are placed not only inside or near the premises of the bank, but

also in locations such as shopping malls, airports, grocery stores, gas stations, restaurants or any

place where large number of people may gather.

There are new innovations in AMT services that are been introduced to improve service delivery

by banks to their customers. The ATM switch technology cod named switch was introduced in

2005. This enables any card holder can withdraw, deposit, credit or debit his or her Account

from any ATM service center.

2.4 Challenges of ATM

Technology in Africa and in particular Uganda is new and many bank customer’s are not well

conversant with this technology. Mugume (2002) observes that the third world nations are many

years behind development. He notes that ATMs and credit cards were introduced in the western

world in 1970s but have just been introduced in Uganda in 1997 which is more than two decades

after.

Although banks have tried to secure transactions made through ATMs, Mukasa ( 2003) observes

that one of the biggest concerns about ATMs is security. He says that this threat is both to the

customer and the bank itself, customers need to be sure that their passwords are secure so that

their information and transactions are safe. Development of a secure control is a big challenge

for the service provider. ATMs are placed in public places and have CCTV cameras and if

somewhere unsecure there is always a guard (www.ugandaonline.com), this site continues to

point out that some guards have abused this duty and have participated in robberies of customers.

Dan Wright and Walls (1998) observe that one problem with ATM is that they are now the

greatest source of customer complaints, particularly over “phantom” withdrawals –withdrawals

which customers argue that they were not made by them whilst banks would never claim that

8

their machines are infallible. They point out that banks do argue that these withdrawals are

usually made by friends or family members who have access to their ATM cards or PIN.

Schaechter (2000) says that the lack of face to face customer relations due to ATM banking,

increases money laundering. He agues that banks in mare advanced economies use a

combination of checks such as electoral register number, sighting national identity card, recent

utility bills where possible and certified photocopies must be provided which is not the case in

Uganda. He further says that in Spain, ATM use is restricted to customers already in a traditional

relationship with the bank.

Robert Sempa the corporate liaison officer of Centenary Bank observed that ATMs have left

people who lack financial discipline cash trapped. He says that having an ATM is having cash at

hand and that it is hard for people to starve themselves when they have money on their Account.

Looking at the above challenges of using ATMs, one wonders if customers are satisfied with this

product which prompted the researcher to find out.

2.5 Automatic Teller Machines and Customer Satisfaction

Nkisang (1995) observes that ATMs have reduced variability of banking services in that they

have made the services standard and customers now spend little time to carry out their

transactions. he also says that the biggest benefit that ATMs have provided is that cash can be

withdrawn 24 hours a day.

A number of scholars such as Humble and Borish who have researched on this area of ATM

contribution to customer satisfaction have realized that not all customers will gain the same

satisfaction because of the different tastes and preferences

Nyakauma (1994) observes that ATMs have improved speed, accuracy, efficiency and has

increased the capacity of the banks of handling large volumes of work. In his study he says that

even though computers have enhanced efficiency and capacity of handling large volumes of

work, at times this has been affected by the breakdown of the system thus the activities coma to

9

an end as customers postpone their businesses to the next day making matters of congestion

worse.

Fawcette (1992) observes that although these ATMs are placed in public places and a person put

to assist those who do not know how to operate these machines, customers who like privacy have

not liked this arrangement.

Nagumya (2008) notes that ATMs could fail to provide a service if the card is faulty because

these machines are so sensitive. He further says that the customer will then move from one ATM

to another but still will not get a service which leads to a customer being demoralized or

dissatisfied. Nagumya also states that stealing an ATM card is facilitated by fraud rings, which

first obtain crucial information including cords from cards despite the re- assurance from the card

industry and the tirelessly hard working firms to protect the card holders, ATMs have remained

vulnerable

10

CHPTER THREE

3.0 METHODOLOGY

3.1 Introduction

This chapter deals with how data will be collected, managed and analyzed. It will focus on

research design, area of study, population, sample size and selection method, data collection

tools, data management and the limitations that the researcher will face while doing this study.

3.2 Study Design

The study was based on descriptive and analytical design where by both qualitative and

quantitative research techniques were used. The study was cross sectional in nature.

3.3 Area of Study

The study was focused on the banking industry and how this banking industry is embracing the

technologic changes by introducing ATMs in order to satisfy the needs of their customers.

3.4 Study Population

The study population was the customers of Stanbic bank who use ATMs.

3.5 Sample Size and Selection Method

Random sampling and purposive sampling techniques were used. Random sampling was used to

avoid any bias by the researcher will selecting respondents so that the sample selected is a true

representative of the population. Purposive sampling was used to select respondents with

relevant data that will be needed to conduct the research.

The sample size was 30 respondents, all of which will be customers of Stanbic bank.

11

3.6 Data Collection Tools

Questionnaires were used to collect data during the study.

3.7 Data Management

3.7.1 Data Processing

Data was analyzed by transforming information got into more representative and organized

manner. This was done using Statistical Package for Social Sciences (SPSS). Frequency tables

were used to show the percentage of respondents answering particular questions and Pearson

Correlation was used to show the relationship between ATMs and Customer satisfaction.

3.8 Limitations

Time allocated to finish this study was not enough, I tried to work harder and follow the advice

of my supervisor so that I do not waste any time.

Resources needed to complete this research; to type and print, to travel to places to collect data

and calling expenses was also not enough. I told my sponsor to facilitator and fund the study.

The researcher faced a problem of respondents not responding especially those given

questionnaires. I tried to convince them that this research is going to be of importance to them in

that the findings got will be used to improve the services they are getting now. I will also called

and reminded the respondents and also visited them at their work places.

12

CHAPTER FOUR

4.0 PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS

4.1 Demographic Characteristics of Respondents

4.1.1 Gender of Respondents

In order to establish which gender of customers is the majority, respondents were asked to state

their gender.

Table 1: Showing Gender of Respondents.

Source: Primary data.

From the study findings in Table 1, the majority of the respondents were females and this can be

attributed to the fact that the population of female students is the more since the University

admits mare female than male students, this is because majority of the respondents are students

as shown in Table 3.

4.1.2 Age Bracket of Respondent

The majority of respondents belong to the age group 18 to 30 years because the study was

carried out at Stanbic bank Makerere branch where the majority of the customers are students at

Makerere University. It can further be argued that the age group of above 50 is least represented

because these are mostly senior lecturers and professors who are very few compared to the

University population. These results are shown in Table 2 bellow.

Gender Frequency Percentage

Male 12 60

Female 18 40

Total 30 100

13

Table 2: Showing the age bracket of respondents.

Age bracket Frequency Percentage

18-30 24 80

31-40 5 17

41-50 1 3

Above 51 0 0

Total 30 100

Source: primary data

4.1.3 Level of Education of Respondents.

To establish the level of understandability of the technology of ATMs, customers were asked to

state the level of education they have attained

Table 3: The Level of Education of Respondents.

Level of Education Frequency Percentage

Primary 0 0.0

Secondary 2 6.67

Diploma 2 6.67

Degree 26 86.67

None 0 0.0

Total 30 100

Source: primary Data

14

The results indicate that 86.67% of the respondents are at the degree level and this can be

attributed to the fact that most of the customers at this branch are students at Makerere

University. Primary level is least represented because at that level a person is still young to own

an account and do transactions on their own. The results are shown in Table 3.

4.1.4: Marital Status of Respondents

In order to establish the level of responsibilities the customers have, the respondents were asked

to state their marital status. This is because married people are presumed to be having more

responsibilities than single people and hence use ATMs more.

Table 4: Showing Marital Status of Respondents

Marital status Frequency percentage

Single 23 77

Married 7 23

Total 30 100

Source: Primary Data

The results indicate that the majority of the respondents are single; this is because the majority of

the customers at this branch are students at Makerere University

4.1.5: Experience of Respondents with Stanbic Bank.

In order to establish the experience the customers had with Stanbic bank, the respondents were

asked to indicate how long they have been customers to Stanbic bank

15

Table 5: Showing Experience of Customers with Stanbic Bank

Duration Frequency Percentage

1-2 yrs 5 16.7

3-4 yrs 12 40

4-5 yrs 4 13.3

Above 5 yrs 9 30

Total 30 100


. The results indicate that the majority of the respondents have been customers from 3 to 4 years.

This is because most of the courses at the University take 3 to 4 years and these students are the

majority customers as shown in Table 3. The facts are shown in table 5 bellow.

4.2 Frequency of Automatic Machine Usage.

4.2.1 Possession of an ATM card.

In order establish the number of customers who were aware of the existence of ATMs and how

many were using these ATM cards, respondents were asked to indicate if they owned ATM

cards.

Table 6: Showing Number of Respondents with ATM cards

Have an ATM card Frequency Percentage

Yes 29 96.7

No 1 3.3

Total 30 100


Results that majority of the respondents possess ATM cards and this is because every customer

who opens an account is given an ATM card. The results are in the Table 6 above.

16

4.2.2 Number of Times Customers Use an ATM in a Month.

To establish how often the customers uses the ATM, respondents were asked to indicate the

number of times they use ATM to do their transactions in a month.

Table 7: Showing Number of Times Respondents use their ATMs in a Month.

Number of times Frequency Percentage

1-2 13 44.8

3-4 11 37.9

5 and above 5 17.2

Total 29 100


Results indicate the majority of the respondents use their ATM cards between 1- 2 times in a

month, this is because the respondents use ATM mostly to withdraw money and they don’t do

this frequently. Those that use their cards more than 5 times are least represented because the

majority of the customers are students and they maintain savings accounts other than current

accounts that are maintained by business people who do withdraw regularly. The results are

shown in table 7.

4.2.3 Transactions Done using an ATM.

To establish the level of ATM usage and to know if the respondents are aware of all the services

that are offered through ATM, respondents were asked to indicate if they do all their transactions

using ATMs

Table 8: Showing the Percentage of Customers who do all their transactions using ATMs

Do all their transactions using ATM Frequency Percentage

Yes 24 80

No 6 20

Total 30 100

Source: Primary Data.

17

Results show that majority of the respondents don’t use ATMs for all the transactions and this is

because they are not aware that other transactions like depositing can be done using an ATM. It

can also be argued that although some of the customers are aware of these services, they don’t

know how to operate these ATMs. The results are shown in table 8.

4.3 Customer Satisfaction.

4.3.1 Comparison of ATM and Counter Services in Terms of Speed.

To establish the effectiveness of ATMs, respondents were asked to compare ATMs and counter

services in terms of speed.

Table 9: ATMs are Faster Compared to Counter Services.

Response Frequency Percentage

Strongly agree 13 43.3

Agree 13 43.3

Not sure 2 6.7

Disagree 2 6.7

Strongly disagree 0 0.0

Total 30 100


Results indicate that the majority of the respondents agreed that ATMs are faster. This is because

the technology used by ATMs is faster and it quickly up dates an account of a customer once the

transaction is made. The results are shown in Table 9.

4.3.2 Dependability and Reliability of ATMs.

To establish the efficiency of ATM, respondents were asked to tell whether ATMs are reliable

and dependable at all times.

18

Table 10: ATMs are dependable and reliable.



Agree 16 53.3

Not sure 0 0.0

Disagree 9 30


Total 30 100

Source: Primary Data.

. Results show that the majority of the respondents agreed and this is because ATMs operate

24hrs and so customers can access their accounts at any time. However 30% disagreed and this is

mainly due to ATM breakdowns which results into denial of services. The results are shown in

table 10.

4.3.3 Complaints about ATMs

To find out if customers have had any problems with ATMs, respondents were asked to show if

they have ever complained to Stanbic bank about ATMs

Table 11: I have ever complained about ATMs.


Yes 21 70

No 9 30

Total 30 100


Results show that the majority have ever complained about ATM. Most of the complaints were

about breakdowns of ATMs, ATM card expiring and ATM cards being frozen. These are the

reasons why 30% of the respondents said that ATMs are not dependable and reliable in Table 10.

The results are shown in Table 11.

19

4.3.4 Response to Customer Complaints.

To establish how customer complaints are handled, respondents were asked to indicate the time

it took the bank staff to give them feedback or handle their grievances

Table 12: Showing Response to Customer Complaints.

How long it took to get feedback Frequency Percentage

Less than a week 6 28.6

Two weeks 2 9.5

A month 0 0.0

More than a month 9 42.9

Never got feedback 4 19.0

Total 21 100


Results indicate that the majority got the feedback after a month. This is due to inefficiencies in

technology as it is new and so people are trying to learn it including the bank staff. This has

resulted into technical problems like when an ATM card expires; a customer has to wait for like

a month before a new one is given. This also explains why 30% of the respondents said that

ATMs are not reliable and dependable (Table 10). The results are shown in Table 12.

4.3.5 Location of Automatic Teller Machines.

To find out if the customers were accessing easily the ATMs, respondents were asked to indicate

if the ATMs were conveniently located.

20

Table 13: Showing if ATMs are conveniently Located



Agree 12 40

Not sure 4 13.3

Disagree 6 20


Total 30 100


The studies indicate that the majority agree that the ATMs are conveniently located. However

33.3% disagree and this is because ATMs are only located in areas that have access to electricity.

Even in areas where there is electricity, ATMs there are not enough, for example in Makerere

region there are only 2 ATM out lets and there are always queues on these ATMs. The results are

shown in the Table 13.

4.3.6 Consistency of ATMs

To find out if the needs of the customers are always met by the ATMs, customers were asked to

indicate whether ATMs consistently meet their expectations.

Table 14: Showing Consistency in Meeting Customers’ Expectations



Agree 19 63.3

Not sure 0 0.0

Disagree 6 20


Total 30 100


21

The findings indicate that the majority respondents agreed that their needs are usually met. This

is because ATMs operate 24 hours. However 13.3% disagreed and this can be attributed to

breakdowns of ATMs and no wider coverage of ATMs as seen in Table 13 where 13.3% of the

respondents said that ATMs are not conveniently located. The results are shown in Table 14.

4.4 Relationship Between ATM and Customer Satisfaction

To establish the relationship between ATM and customer satisfaction, Statistical Package for

Social Sciences was used.

Table 15: Correlations Showing Relationship Between ATM and Customer Satisfaction

ATM CS

ATM Pearson Correlation 1.000 .736**

Sig. (2-tailed) . .000

N 30 30

CS Pearson Correlation .736** 1.000

Sig. (2-tailed) .000 .

N 30 30

** Correlation is significant at the 0.01 level (2-tailed).

Source: Statistical Package for Social Sciences

From the findings, correlation is significant at the 0.01 level, Pearson correlation r =0.736, which

means that there is a positive relationship between ATM and customer satisfaction. This means

that the services rendered through ATMs by Stanbic bank are very significant to customer’s

satisfaction. Therefore Stanbic bank has to improve in areas were the ATMs have not been

efficient in order to satisfy their customers. The results are shown in Table 15.

22

CAPTER FIVE

5.0 SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.1 SUMMARY

5.1.1 Findings on Frequency of ATM Usage

From the study, it was found out that majority of the respondents transacted using ATMs.

However, majority of them just deposit using the ATMs and are not aware of the other services

ATMs offer.

5.1.2 Findings on Customer Complements and Complaints.

The study findings indicated that ATM services were more effective in terms of speed and

accuracy compared to counter services. However, the study findings showed that ATM services

were not dependable and reliable because of frequent ATM break downs.

5.1.3 Findings on the Relationship Between ATM and Customer Satisfaction

From the study, it is indicated that the relationship between ATM and Customer Satisfaction

exists. However, there are other factors that determine customer satisfaction, according to

Pearson correlation is 73% which shows a strong relationship while other factors are represented

by 27%. These other factors include branch network, customer care, transactional costs charged

on customers and loan facilities.

5.2 Conclusion

Basing on the findings of the study, it is imperative to conclude that ATM services affect

customer satisfaction. However full customer satisfaction can be achieved through considering

also other factors like wide branch network coverage, customer care services and charging fair

prices.

5.3 Recommendations

The researcher recommends Stanbic bank to teach all it’s customers about all the services that

are offered through ATMs because majority of the customers are not aware of these services.

Stanbic bank should train and employ a specialized and technical team to maintain and operate

ATMs so as to reduce the ATM break downs.

Stanbic bank should also increase on the branch network by installing more ATMs across the

country so that customers can access services easily.

23

5.4 Areas of Further Research

A study should be done to examine the relationship between customer care services and

customer satisfaction in banking institutions.

There is a need to carry out a study on the effect of computerized banking system on the service

delivery in commercial banks.

24

REFERENCES

1. Ahimbisibwe, E. (2009). Automatic Teller Machines and Customer care, Makerere

University Publishers.

2. Balunywa, W. (1992). A hand book in management. The business publishing group-

Kampala.

3. BBC London, (2007). Enfield cash gift of the world. Retrieved Feb 27, 2011, from

http:/www.bbc.co.uk/London/content/article/7007/06/26.

4. Chartered Institute of Bankers (2003), information technology, London; BPP Publishing

ltd.s

5. Fawcett, D. (2001). Defining Automatic Teller Machines. New York: World Bank

Publications.

6. Griffins, M. (2002, March 16). Adding more services to ATMs to suit customers. The

New Vision, 27 (12), 4.

7. Kotler, P. (2001). Principals of Marketing. Prentice. New Hall Publishers.

8. Kotler, p. and Garry, A. (1993). Marketing and Introduction. Prentice. New Hall

Publishers.

9. Morgan, J. P. (1999). Accessing your bank Account. Retrieved March 18, 2011, from

www.chase.com.

10. Mugerwa, D. (2000). Automatic Teller Machine check. Retrieved March 26, 2011, from

www.ugandaonline.net/atms.

11. Nkisang, M. (1995). Strategies for banking institutes in a competitive bank. Makerere

University Publishers.

25

12. Prokesch, S. (1995). Focus on risk and globalization. Havard : Harvard Business

Publishing

13. Schaechter, J. (2000). Financial sector assessment. Retrieved Feb 28, 2011, from

www.books.google.co.ug.

14. Steve, W. (2002), Automatic teller Machines. Retrieved March 14, 2002 from

www.wikipedia.com/artical.

15. The Uganda Banker (1999), Understanding Automatic Teller Machines. World Bank

Publications.

16. Zeithiantional, W. and Bither, K. (1998), customer satisfaction. London: Prince Hall

Publishers.

26

APPENDIX 1

MAKERERE UNIVERSITY

QUESTIONNAIRES TO CUSTOMERS

Dear Respondent,

I am an undergraduate student at Makerere University, Kampala carrying out research on

Automatic Teller Machines and customer satisfaction in commercial banks. I request you to

spare your valuable time and answer the questions asked bellow. This research is purely

academic and your response will be treated with utmost confidentiality.

SECTION A

Demographic characteristics of respondents

1. Sex

Male Female s

2. Age bracket

18 – 30 41 – 50

31 – 40 Above 50

3. Level of education

Primary Diploma

Secondary Degree

None

Others specify ………………………………………………………………………….

27

4. Marital status

Married Single

Others specify ……………………………………………………………………

5. For how long have you been a customer of Stanbic bank.

1 – 2 years 4 – 5 years

3 -4 years above 5years

SECTION B

Automatic Teller Machine Usage

6. Do you have an ATM card?

Yes No

7. Do you know how to operate an ATM?

Yes No

8. How many times do you use your ATM card in a month?

…………………………………………………………………………………………..

9. I do all my transactions using an ATM.

Yes No

Others specify…………………………………………………………………………..

28

SECTION C ; CUSTOMER SATISFACTION

10. Stanbic bank’s ATMs are faster as compared to counter services.

Strongly agree Agree Not sure Disagree Strongly disagree

11. Stanbic bank’s ATMs are reliable and dependable.


10. Stanbic bank ATMs are conveniently located.


12. Have you ever complained to Stanbic bank about ATMs?

Yes No

12. If yes, what was the complaint about?

………………………………………………………………………………..

29

14. Did you get the feed back?

Yes No

15. How long did it take you to get the feed back?

Less than a week A month

Two weeks More than a month

Others specify……………………………………………………………………

16. When there is an ATM break down, how does Stanbic bank handle your grievances

Very good Good Fair Poor Very poor

17. The ATM consistently meets my expectations.


18. Stanbic bank has customer care staff to assist in case of a shortfall in service.


30

19. What other complaints do you have about ATMs?

………………………………………………………………………………………..

…………………………………………………………………………………………

20. How would you want this ATM service improved?

……………………………………………………………………………………….. ..

…………………………………………………………………………………………..

Thank you.

God bless you.

31

APPSSENDEX 111

Budget for the study

Travelling to places 20000

Typing and printing 40000

Phone calls 10000

Binding 40000

Others 20000

Total 130000

Time schedule

Phase one Feb-March

Phase two March-May

32

33

Documents

AUTOMATIC TELLER MACHINES AND CUSTOMER SATISFACTION …