DANDII BORU COLLEGE

DEPARTMENT OF ACCOUNTING AND FINANCE

Assessment of ATM and Customers’ Satisfaction in Case of

Commercial Bank of Ethiopia In Agaro Branch

A Thesis Submitted to the Department of Accounting and Finance In Partial

Fulfillment of the Requirement for Bachelor of Art Degree In Accounting and
Finance

By:
1.Seble Molla
2.Fenan Geremew
3.Bikila Derebesa
4.Miftahi Mohamed
5.Minalush W/meskel
6.Nebiyat Ketema
7.Megertu Bedatu

Under the Guidance of:

Dessalegn Legese Debela

AUGUST, 2020

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 JIMMA , ETHIOPIA

Declaration
We, undersigned, declare that this thesis is our original work and has not been presented for a
degree or diploma in any other University.

This thesis has been submitted for examination with my approval as collage advisor

Advisor: Mr Dessalegn (MBA)

Signature: _____________

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Approval sheet

This is to certify that the thesis entitled ‘’ Assessment of ATM And Customers’ Satisfaction
Case of Commercial Bank of Ethiopia In Agaro Branch ” submitted in partial fulfillment of

the requirements for the degree Bachelor of Science in Accounting of Department of

Accounting And Finance Dandii Boru College and is a record of original research carried out
by the group members under our supervision, and no part of the thesis has been submitted for
any other degree or diploma in any other University.

Approved by

Advisor Signature Date

___________________ ____________________ _____________

Examiner Signature Date

___________________ _____________________ ___________

Head of Program Signature Date
_________________ _____________________ ____________

School Dean Signature Date

__________________ _____________________ _______

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 Abstract
In the 1990s and in the beginning of the twenty-first century, there has been a growing
interest in understanding the main service quality dimensions that customers use in
evaluating the service quality level, which in turn will determines their level of satisfaction. The
level of satisfaction intended to be provided by these machines is reduced by technological and
processing failures, the perception that the service delivery mode is expensive and the insecurity
regarding standalone ATMs. All these create customer dissatisfaction. The general objective of
the study to customer satisfaction on ATM service at commercial bank of Ethiopia in Agaro
Branch. This paper tried to answer what is the level of CBE ATM service customer satisfaction
in Agaro town?, What are the factors contributing to CBE ATM service problem in Agaro and
What can be done to improve the quality of ATM service. This paper was use primary sources
of data which were collected through questioners to selected respondents or from ATM
user of the bank After collecting the data then processed and analyzed by descriptive
analysis using table. Finally, the study was forward and recommendation to the organization
that discovered factors that affect customer satisfaction in ATM service.

Key words: ATM service, customer dissatisfaction, Customer satisfaction,

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 Acknowledgement

Initially, we give thanks to the Almighty God for his provisions and care throughout our
academic journey. we would like to express our sincere gratitude to MrDesalegnour advisor for
his encouragement, guidance and support throughout the research and write-up of the thesis.

We must also thank all our classmates and co-workers for their support and fruitful ideas
Last but not least we, want to thank our family for their continuous support that helped us to
pursue every academic endeavor to the fullest. They have always been the driving force behind
every success we have achieved so far.

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Table of Contents
Declaration..................................................................................................................................................2

Approval sheet............................................................................................................................................1

Abstract.......................................................................................................................................................2

List of acronyms/abbreviation.....................................................................................................................4

CHAPTER ONE..........................................................................................................................................5

1. INTRODUCTION...................................................................................................................................5

1.1 Background of the study.......................................................................................................................5

1.2. Statement of the problem....................................................................................................................7

1.3. Research question...............................................................................................................................7

1.4. Objectives of the study........................................................................................................................8

1.4.1. General objectives........................................................................................................................8

1.4.2. Specific objectives.......................................................................................................................8

1.5. Significance of the study.....................................................................................................................8

1.6. Scope of the study...............................................................................................................................9

1.7. Organization of the paper....................................................................................................................9

1.8. Limitation of the study........................................................................................................................9

CHAPTER TWO.......................................................................................................................................10

2. LITERATURE REVIEW......................................................................................................................10

2.1. Introduction.......................................................................................................................................10

2.2. E-Banking.........................................................................................................................................10

2.3. Automated Teller Machines (ATMs)................................................................................................13

2.4. Customer Satisfaction and Service Quality......................................................................................15

2.4.1 Customer Satisfaction.................................................................................................................15

2.4.2 Service Quality............................................................................................................................16

2.5. Empirical Review..............................................................................................................................17

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CHAPTER THREE...................................................................................................................................19

3. RESEARCH METHODOLOGY...........................................................................................................19

3.1 Introduction........................................................................................................................................19

3.2 Research Design.................................................................................................................................19

3.3. Target Population..............................................................................................................................20

3.4. Sampling Method..............................................................................................................................20

3.5. Data collection method and sample size...........................................................................................20

3.6. Data analysis method........................................................................................................................21

CHAPTR FOUR........................................................................................................................................23

4. DATAPRESENTATION, ANALAYSIS ANDINTERPRETATION...................................................23

4.1.Introduction........................................................................................................................................23

4.2. Analysis of demographic information..............................................................................................23

CHAPTER FIVE.......................................................................................................................................32

5. SUMMARY OF MAJOR FINDINGS , CONCLUSION AND RECOMMENDATION.......................................32

5.1. Summary of major findings..............................................................................................................32

5.2. Conclusion........................................................................................................................................33

5.3. Recommendation..............................................................................................................................35

Reference...................................................................................................................................................36

Appendix...................................................................................................................................................38

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List of acronyms/abbreviation

ATMs Automated Teller Machines

CBE Commercial Bank of Ethiopia

CRM Customer Relation Management

E. banking Electronic banking

IT Information Technology

NBE National Bank of Ethiopia

PC personal computer

PIN Personal Identification Number

SMS Short message service

UIB United International Bank S.C

UNCTAD United Nations Conference on Trade and Development

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 CHAPTER ONE
1. INTRODUCTION

1.1 Background of the study

ATM or Automated Teller Machine is an electronic banking outlet that allows customers to
complete basic transaction without the aid of a branch representative or teller. Anyone with
credit card or debit card can access most ATMs. The first ATM is appeared in London in 1967,
and in less than 50 years, ATM s spread around the globe, securing a presence in every major
country and even tiny little island nations such as Kiribati and the Federated States of
Micronesia. ATMs are convenient, allowing consumers to perform quick, self service transaction
from everyday banking like deposits and withdrawals to more complex transaction like bill
payments and transfers. (Julia kagan, updated mar 21, 2019). An ATM which stands for
automated teller machine is a specialized computer that makes it convenient to manage a bank
account holder’s funds. It allows a person to check account balances, withdraw or deposit
money, print a statement of account activities or transactions, and even purchase stamps.
(Bankrate .com, 2019). Service for business, a commercial enterprise that provides work
performed in an expert manner by an individual or team for the benefit of its customers. The
typical service business provides intangible products, such as accounting, banking, consulting,
cleaning, landscaping, education, insurance, treatment, and transportation service.

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Service quality is an assessment of how well a delivered service conforms to the client’s
expectations. Service business operators often asses the service quality provided to their
customers in order to improve their service, to quickly identified problems, and to better assess
client satisfaction.(www.business dictionary.com/web finance inc, 2019). The national
development Strategies of Ethiopia recognize financial institution as one of the critical and key
drivers to bring the required transformation in the county. There is now substantial evidence that
indicates the vital roles that commercial bank of Ethiopia plays in the creation of Jobs and
provisions of quality services to its customers. (Birritu, 2008) .
New a day, as a market is increasingly becoming competitive due to the opening of many private
banks, Competition is so stiff that every organization is striving to attract new customers and
retain the existing ones. This shows that services provided by the bank are found highly in
competitive business environment. In connection with this the study will try to assess the
problems that the bank is exposed to in providing online banking services such as ATM to its
customer. The gap between the customer’s expectation and the service, which were being given
by the bank, has necessitated improvement of the service currently provided. This is because
customers are always looking for reliable, flexible, cost effective and fast delivery of services.
(Birritu, 2008). In the above all definitions and comments, we have to be understood that
technology is the most important thing for our country. By this case the peoples are the most
important role players in the expansion of technological service. Technology is by itself can need
some knowledge and activeness. If the people are use ATM service by some knowledge,
therefore the people are not satisfied. So we have to know that we will increase some knowledge
for the customers. So we first understand that the satisfaction of customers. So we have to need
this study for to know the level of the customer’s satisfaction.

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1.2. Statement of the problem
Commercial bank of Ethiopia is a government owned organization whose product lines are
actual services. The bank is expected to meet the growing needs of its customers by providing
effective and efficient services for its major activities in comprehensive, profitable and
satisfactory manner. The bank is pioneer to introduce modern banking to Ethiopia and credited
for playing a catalytic role in the economic progress and development of country. It also the first
bank in Ethiopia to introducing ATM service for local users. (Electro banking in Ethiopia-
practices, opportunities and challenges, last edited on March 2019).

CBE Agaro main branch as a service provider faces different problems and this study attempts to
look in to such issues like the location of ATM stations convenient for customers to use the
services and the amount of money with drawn at a time satisfies customers need. Also no such
prior research conducted to assess the role of ATM service in Ethiopia Agaro twon with
relation to customer satisfaction. So, this study appears to be one of the academic investigations
the ATM service customer satisfaction. As many studies indicate that there are link between
customer satisfaction, service quality and profitability. In order to meet customer demand
many companies need to observe their customer service satisfaction level.

1.3. Research question

 Is the location of ATM stations convenient for customers to use the services?

 ATM service really benefiting to the customers how?

 .What is the level of CBE ATM service customer satisfaction in Agaro town?

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1.4. Objectives of the study

1.4.1. General objectives

The general objectives of this study is to assess, examine and give a clear picture of ATM
services on customer’s satisfaction at commercial bank of Ethiopia Agaro branch.

1.4.2. Specific objectives

To find out the problems that creates dissatisfaction on the parts of customers associate with the
ATM service provided by the bank.

 To identify the proper locations of ATM service to which it is convenient for customers.
 To assess benefits of the ATM service for customers.
 To identify the withdrawal of money at a time satisfies customers.

1.5. Significance of the study

The study finding would be significant for both the researcher and the organization
For the organization (bank) it is important to show its strength and weakness as well as the
satisfaction level of customers. This means the researchers finding as an input to understand the
satisfaction level of customers and take corrective actions for the customers complain or dies-
satisfaction. It is also important to develop the researcher’s knowledge and skill on how to
conduct research and also it is important to develop the researcher’s knowledge with regard to
assessing customer satisfaction on the bank. In addition to this, the study is important to the
students as the pre- request for graduation and to understand the ATM service on customers
satisfaction and used to adapt different challenges when conducting another study for the future.

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1.6. Scope of the study
For the reason that, the research on a large basis needs much funds as well as time and
manpower to survey all outlay branches of commercial bank of Ethiopia but for the sake of the
study precision, constraint on the above mentioned resources, this study was restricted to the
customer of CBE Agaro branch. Commercial bank of Ethiopia Agaro branch is located in south
west of Addis Ababa which is far from 391km. This study also covered the identification of
proper locations of ATM services to which it is convenient for customers. CBE Agaro ATM
stations. This study covered the area of investigating quality of the service, security of the
service and attitude of the customers.

1.7. Organization of the paper

This research paper have five chapters. The first chapter contains the background of the study,
statement of the problem, objective of the study, significance of the study, limitation of the
study, and organization of the study. The second chapter contains literature review of the study.
The third chapter deals with research design and methodology. The fourth chapter with the data
presentation analysis and interpretation of the research study. The fifth chapter have summary,
conclusion and recommendation based on data collected and analyzed.

1.8. Limitation of the study

Due to global pandemic diseases, COVID19 it takes a lot of time and patience to get the enough
ATM card user to the target branches’ to fill and return.

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 CHAPTER TWO
2. LITERATURE REVIEW

2.1. Introduction
The impact of ATMs on customer satisfaction in the context of banking sector is a widely
discussed topic in the literature. This section targets popular journals, magazines and various text
books that contain fruitful information on various general overviews of E-banking, ATM,
Service quality, Service Quality Measurement and Customer Satisfaction.

2.2. E-Banking
The revolution of e-payment as captured by Cheng (2006) in his work ―Evolution of Electronic
Payment‖ started in 1918, when the Federal Reserve Bank first moved currency via telegraph.
However, it was not until the Automated Clearing House was set up by the U.S Federal Reserve
in 1972 that electronic currency became widespread. This provided the U.S treasury and
commercial banks with an alternative to processing cheque. He defines electronic banking as the
delivery of banks' information and services by banks to customers via different delivery
platforms that can be used with different terminal devices such as a personal computer and a
mobile phone with browser or desktop software, telephone or digital television.

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Electronic banking can also defined as the application of computer technology to banking
especially the payment (deposit transfer) aspects of banking with the help of tele-communication
network which permits online processing of the same day credit and debit transfers of funds
between member institutions of a clearing system. According to the United Nations Conference
on Trade and Development (UNCTAD), E- banking refers to the deployment over the Internet of
retail and wholesale banking services. It involves individual and corporate clients, and includes
bank transfers, payments and settlements, documentary collections and credits, corporate and
household lending, card business and some others (UNCTAD, 2002). The Electronic banking
has been around for some time but in form of Automatic Teller Machines (ATMs) and telephone
transactions. More recently, it has been transformed by the Internet and mobile technologies, the
new delivery channels for banking services with benefits to both customers and banks. Access is
fast, convenient, and available around the clock, whatever the customer's location. Additionally
through Electronic banking, the banks are able to provide services more efficiently and at
substantially lower costs. For example, a typical customer transaction costing-about $1 in a-
traditional- "brick and mortar" bank branch or $0.60 through a phone call costs only about $0.02
online (Crane, 1996) Electronic banking is an umbrella term for the process by which a
customer may perform banking transactions electronically without visiting a brickand-mortar
institution. Electronic banking is usually done in following forms: ATMs, personal computer
(PC) banking, Internet banking, virtual banking, online banking, home banking, remote
electronic banking, and phone bank.

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PC banking and Internet or online banking is the most frequently used designations. It should be
noted, however, that the terms used to describe the various types of electronic banking are often
used interchangeably. PC banking is a form of online banking that enables customers to execute
bank transactions from a PC via a modem. In most PC banking ventures, the bank offers the
customer a proprietary financial software program that allows the customer to perform financial
transactions from his or her home computer. The customer then dials into the bank with his or
her modem, downloads data, and runs the programs that are resident on the customer's computer.
Currently, many banks offer PC banking systems that allow customers to obtain account
balances and credit card statements, pay bills, and transfer funds between accounts ( Kaleem,
Ahmad, 2008)

E-banking especially Internet banking is not limited to a physical site; some Internet banks exist
without physical branches. According to industry analysts, electronic banking provides a variety
of attractive possibilities for remote account access, including: Availability of inquiry and
transaction services around the clock; worldwide connectivity; Easy access to transaction data,
both recent and historical; and direct customer control of international movement of funds
without intermediation of financial institutions in customer's jurisdiction . E-banking is a generic
term for delivery of banking services and products through electronic channels, such as the
telephone, the internet, the cell phone, etc. The concept and scope of ebanking is still evolving. It
facilitates an effective payment and accounting system thereby enhancing the speed of delivery
of banking services considerably (R.K. Uppal & R. Jatana, 2007) .

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2.3. Automated Teller Machines (ATMs)
ATM is a machine where cash withdrawal can be made over the machine without going in to the
banking hall. It also sells recharge cards and transfer funds; it can be accessed 24 hours/7 days
with account balance enquiry. Globalization has brought major changes to banking with respect
to resources, markets, processes, and business strategies. This situation has led to a paradigm
shift in operations. ICT (information communication technology) application has become
strategic for supporting investment and operational decisions (Banker, Bardhan, Lin, & Chang,
2006) Over the years ICT has grown its support role to banking activities. At first, banking
activities performed using computers were the very few simple ones, but presently, ICT supports
almost all activities through the financial service cycle, including product design, development
and marketing chain. E-Payment is a specific area of banking where ICT has found wide
application. One area where ICT application has helped the operational environment of banking
is the use of Automated Teller Machine. ATM systems which integrates all licensed banks into a
network, thereby reducing or eliminating the limitations of traditional branchbased nature of
banking and making the promised real time- on-line concept of globalised banking a reality.
According to Howells (2008), ATMs were first introduced in 1967 in UK and the first machine
was installed at Barclays bank in London. However, at the beginning they faced resistance from
users as they did not trust them. The resistance faded as young people especially college students
accepted the services with open hands. The use of this device has now become the way of life
worldwide. It has been observed by the Congressional Budget Office that technological advances
have made the ATM machines more functional, cheaper and easier to accommodate. Hence all
ATM users worldwide enjoy the ATM services. Automated Teller Machine (ATM) has been
considered as the prominent amongst the most critical segments of e-managing an account
framework.

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The use of this device has now become the way of life worldwide. It has been observed by the
Congressional Budget Office that technological advances have made the ATM machines more
functional, cheaper and easier to accommodate. Hence all ATM users worldwide enjoy the ATM
services. Automated Teller Machine (ATM) has been considered as the prominent amongst the
most critical segments of e-managing an account framework. ATM is a terminal conveyed by a
bank or any money related establishment which empowers the clients to withdraw money, make
offset enquiries, request bank statements, exchange stores furthermore store money. The ATMs
are essentially self-overhauled saving money terminals and are gone for giving quick and
advantageous administrations to the bank's clients (Rasiah, 2010). Basically, it is an electronic
terminal which gives clients the chance to acquire managing an account administration at
whatever time. To withdraw money, make stores or exchange trusts between records, a purchaser
needs an ATM card and an Individual Personal Identification Number (PIN). ATM combines a
computer terminal, database system and cash vault in one unit, permitting customers to enter the
bank‘s book keeping system with a plastic card containing a PIN or by punching a special code
number into the computer terminal linked to the bank‘s computerized records 24 hours a day. It
offers a great deal of banking services to clients. They are mostly situated outside the banks.
They were introduced initially to serve as cash dispensing machines. However, as a result of the
rapid increase in technology, ATMs go to the extent of given accounts balances and bill
payments. Banks use this electronic banking device, to gain competitive advantage ( Governoris,
kotitos, 2008).

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The combination of automation and human tellers gives more productivity for the bank during
banking hours. It additionally spares time in customer service delivery as customers do not queue
in banking halls, and along these lines can invest such time spared into other productive
activities. ATMs are efficient method for yielding higher profitability as they accomplish higher
efficiency per duration of time than human tellers (a normal of around 6,400 exchanges for every
month for ATMs contrasted with 4,300 for human tellers( Governoris and kotitos, 2008).

2.4. Customer Satisfaction and Service Quality

2.4.1 Customer Satisfaction

Customer satisfaction is one of the frequently researched concepts in marketing. Customer
satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. Satisfaction
is a person‘s feeling of pleasure or displeasure appointment resulting from comparing a product
perceived performance in relation to his or her expectation. It can also be said that, Customer
satisfaction is the measure of how well products, service, support and engagement are able to
meet the customer expectations. Satisfaction could be the pleasure derived by someone from the
consumption of goods or services offered by another person, group of people, or an organization;
or it can be the state of being happy with a situation. Customer satisfaction is defined as the
extent to which products perceived performance matches a buyer‘s expectation (Kotler and
Armstrong, 2005).

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It can also be said that, Customer satisfaction is the measure of how well products, service,
support and engagement are able to meet the customer expectations. Satisfaction will also
depend on product and service quality. And customer satisfaction is defined as the consumer‘s
response to the evaluation of the perceived discrepancy between prior expectations and the actual
performance of the product or service as perceived after its consumption. Alternatively,define
customer satisfaction as a mental state which results from customers‘ comparison of expectations
prior to a purchase with performance after a purchase.

2.4.2 Service Quality

Quality has been defined differently by different authors. Some prominent definitions include
conformance to requirements‘or ‗one that satisfies the customer‘ (Eiglier and Langeard, 1987)
and Service is defined as ―any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its production may or
may not be tied to a physical product. Quality has come to be recognized as a strategic tool for
attaining operational efficiency and improved business Several authors have discussed the
unique importance of quality to service firms and have demonstrated its positive relationship
with profits, increased market share, return on investment, customer satisfaction, and future
purchase intentions Quality customer service and satisfaction are recognized as the most
important factors for bank customer acquisition and retention. Service quality is considered as
one of the critical success factors that influence the competitiveness of an organization. A bank
can differentiate itself from competitors by providing high quality service. Service quality is one
of the most attractive areas for researchers over the last decade in the retail banking sector.

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Despite the recognized importance of service quality, there have been methodological issues and
application problems with regard to its functioning. Quality in the context of service industries
has been conceptualized differently and based on different conceptualizations, alternative scales
have been proposed for service quality measurement

2.5. Empirical Review

Few studies have been conducted on the impact of ATM services on customers‘ satisfaction in
Ethiopia and other parts of the world, with a number of such studies specifically focusing on
ATM usage and the level of satisfaction of banks‘ customers. According to Lemma Belay
(2016) while studied the effect of ATM service quality on customer satisfaction in Ethiopian
commercial Banks in Debremarkos town using proportional stratified and simple random
sampling technique and cross-sectional data collected from 190 customers of Ethiopian
commercial banks, in Debremarkos town. The study used Statistical tools such as mean, standard
deviation, correlation, and multiple regression models. The study indicated that except assurance,
tangibility, reliability, responsiveness and empathy have positive and significant effect on
customer satisfaction and the customers were mostly satisfied with the responsiveness
dimensions of ATM service quality. Gezahegn Bacha (2015), made an attempt to ―assessment
of customer satisfaction with ATM banking; empirical evidence from selected commercial banks
in Ethiopia‖. The study used descriptive statistics, correlation analysis and multiple regressions.
The finding revealed that, out of 379 ATM card users where over half are fairly satisfied with
ATM services from their respective bank

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.

All ATM service quality attributes associated with technology have been perceived good
performers, while all attributes associated with employee performance and management
functionality have been perceived not so good in performance. The results have further found
that all service quality significantly correlate with customer satisfaction except three items under
responsiveness. Followed by responsiveness, empathy, assurance and tangibles are the least
important dimension.

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 CHAPTER THREE

3. RESEARCH METHODOLOGY
3.1 Introduction
This chapter describes how was this has be conducted. It explains how information was gathered
and analyzed. Furthermore, this chapter provides more information on the sampling methods
which used in this study, characteristics of the sample, the overall research design and
procedures used for the gathering of the data. What‘s more, the procedure was followed and the
measuring instruments used to gather the data that discussed.

3.2 Research Design

A research design can be understood us the plan of what data to gather, from whom, how and
when to collect the data, and how to analyze the data obtained. It is a systematic plan or
structured framework of how one intends to conduct the research process in order to solve the
research problem. Research design usually constitutes the formation of a strategy to resolve a
particular question, the collection and the recording of evidence, the processing and analysis of
the data and their interpretation, and the publication of results. This study was conducted to
assess the level of CBE ATM service customer‘s satisfaction in Agaro town. For this purpose,
data where acquired from primary sources. Hence, the main objective is asses consumer
satisfaction on ATM in commercial bank of Ethiopia .Consequently, a quantitative research
design was used in this study. A quantitative research, a descriptive cross-sectional survey to be
more specific, involves identifying characteristics of an observed phenomenon or exploring
possible correlations among two or more phenomena

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3.3. Target Population
A study population refers to the group one want to generalize to and the group from which a
sample is taken for in a study. In this study, the population was drown CBE ATM service
customers in Agaro irrespective of their gender, age, job grade or qualification.

3.4. Sampling Method

Sampling can be understood as the process by which some members of a population are selected
for observation or to collect data. Generally, there are two competing sampling procedures,
random sampling and non-random sampling. Random sampling is the ideal sampling method if
the research aims to generalize the result of the study on the population, which demands the
sample to be a representative of the population as closely as possible. Alternatiy, non-probability
sampling procedures are used either when probability sampling procedures are found to be
difficult or when generalization is not sought as the ultimate goal of a research. In this research
random sampling method has been used.

3.5. Data collection method and sample size

In these study questionnaires, the primary data collection tool was used. A questionnaire is a set
carefully formulated written questions to which respondents record the answers, usually within
rather closely defined alternatives. For this study, questionnaires were used to collect data from
CBE ATM service customers in Agaro branches of the banks. And total 50 questionnaire were
distributed to CBE ATM service customers to 50 customer.

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3.6. Data analysis method
After all the necessary data was obtained then edited, classified, organized and analyzed in
groups on the basis of common characteristics. It this study descriptive analysis techniques was
used by Putting data in percentage, and table. Finally reasonable explanation of data and
interpretation were accomplished.

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 CHAPTR FOUR
4. DATA PRESENTATION, ANALAYSIS AND
INTERPRETATION
4.1.Introduction
This section deals with the analysis, presentation and interpretation of data. For the sake of
clarifying the basic findings of the study tables are used to present the collected data and using
percentage these data are analyzed accordingly. In order to get a representative data 50
questionnaires were prepared and distributed to customer of the bank. Out of these 36 were filled
or collected and returned but 14 questionnaires were not collected because of unknown reason
failed. From these accounts 72% response rate are returned.

4.2. Analysis of demographic information

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Table :1 Demographic profile characteristics of the respondents

No Item No of respondent Percentages

1 Sex

Male 27 75%

9 25%

Female

2 Age

Less 25 10 27.77..%

26-35 9 25%

36-45 9 25%

46-54 5 13.88..%

Above 54 3 8.33..%

3 Educational level

High school 12 33.3..%

Certificate 6 16.66..%

Diploma 10 27.77..%

1stdegree 8 22.22..%

2nddegree 0 0%

4 job

Students 6 16.66%

Business man 7 19.44%

Civil servant 10 27.77%

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 Employee in the private sector 6 16.66%

Other specify 7 19.44%

The above table shows that the number of male respondent is 27(75%) and is greater
than female respondent 9(25%). This shows that the majority of respondent is male. When we
come to the second item that is the age group of the respondent the majority are from less
twenty five years. The educational status of respondent is high school level. While the other
respondents include in certificate, diploma and 1st degree but no 2nddegree respondent. The job
of the respondents cleanly stated in the above table. 7(19.44%) are business man and
10(27.77%) are civil servant. On other hand, the minority of the respondents are students. This
implies that they are dissatisfied with ATM service quality and the majority of respondents are
business man they are satisfied with ATM service.

Table:2 Convenient method item analysis

Which methods are convenient to No of respondent Percentages

drawing moneys

Using passbook 16 44.4%

Using ATM machine 20 55.55%

Using change 0 0

Other please specify 0 0

Regarding the first item of table 2 which using passbook respondent are 16 (44.4%). The
majority of respondent are using ATM card and shows the ATM card prefer than other method.

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Table:3 Purpose of using ATMs cared item analysis

For what purpose you are using the No of respondent Percentage

ATMs

Business purpose 7 19.4%

Emergency purpose 15 41.6%

Personal use 14 38.%

Total 36 100

According to this table(table 3) large number of customers using the ATMs machine, for
emergency purpose those are 15(41.5%). Less number of respondent use ATM card for business
purpose which are 7(19.4%), the rest use for Personal use.

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Table:4 The convenience location ATMs machine item analysis

The convenience of the location Number of Percentages

respondent

Very good 6 16.66%

Good 8 22.22%

Fair 10 27.77%

Poor 12 33.33%

When we came to table 4the convenience of the location ATM machine in general the majority
12(33.33%) of the respondent show that they are poor accessibility of ATM machine anywhere
in the city at a reasonable distance. While only 6(16.66%) of respondent okay with convenience
of the location or say Very good. On the other hand 10(27.77%) of respondent agreed with
location of ATM machine is Fair the rest 8(22.22%) Good the convenient of the location.

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Table:6 The standard of ATM serves item analysis

the standard of ATM serves in Number of Personages

CBE? respondent

Very good 3 8.33%

Good 4 11.11%

Fair 13 36.11%

Poor 16 44.44%

With respect to table 5 in general we can observe that the majority of the respondent say the
standard of ATM serves in CBE is Poor16(44.44%).only 3(8.33%) customer say the standard of
the service is very good. According to the data shows the response of 13 respondent the service
is fair, while the rest agree with good.

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Table:6 The sophistication level of the machine analysis

The sophistication level of the Number of Percentages

machine respondent

Very good 2 5.55%

Good 5 13.88%

Fair 12 33.3%

Poor 17 47.22%

Regarding this table the sophistication level of the machine only 2(5.55%%) respondent answer
is Very good. As we can see from the analysis the majority of the respondent 17(47.22%) are say
the sophistication level is poor then 12 respondent are say fair, while the rest customer agree
with good.

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Table:7 The overall level of satisfaction analysis

the overall level of Number of Percentages

satisfaction you get respondent
from ATMs

Highly satisfied 4 11.11%

Satisfied 8 22.22%

Neutral 10 27.77%

Dissatisfied 14 38.8.%

According this table shown indicates these respondents 14(38.8.%)are dissatisfied on ATM
machine and 4(11.11%) are strongly satisfied. Besides the other respondent are Satisfied and
neutral disagree and strongly disagree respectively.

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34
 CHAPTER FIVE
5. SUMMARY OF MAJOR FINDINGS , CONCLUSION AND
RECOMMENDATION
5.1. Summary of major findings
The research objective of the study is customer satisfaction in ATM service at commercial bank
of Ethiopia in Agaro branch.

After proper analysis of the data the following major findings were obtained.

 Out of the total respondent the percentage of male using ATM service is 27(75%) and the
percentage of female using ATM service is 9(25%)

 From the cumulative percentage. It is clear that who are found in the age group of
33(96.77%) below 54 Only 3(8.33%) who fall under the category of above 55 years use
ATM very less.

 The data regarding educational level of respondents indicate that maximum users are
below first degree 87.7% are high school certificate and diploma, while first degree
respondent is 22.2% but no second degree.

 By collecting data of respondent are per profession occupation it has been observed that
maximum users are civil servant10(27.77) , business man other specify comprising
7(19.44%) and students comprised 6(16.66%) .

35
  Regarding the methods are convenient to drawing is Using ATM machine for
20(55.55%) of the respondent. the rest are using pass book.

 From the cumulative percentage (41.16%) of the respondent are using the ATMs for
emergency purpose Only (19.4%) business purpose then the remain used for personal
use .

 The data regarding the convenience of the location indicate that maximum of ATM
accounts for 33.33% are say poor and 27.77% say fair.

 Regarding the standard of ATM serves in CBE minimum or lest respondent 8.33% agree
with Very good the maximum number of respondent fall in to poor and fair.

 Out of total respondents (47.22%) the sophistication level of the machine is poor,
33.3% of customer agree with the fairness the sophistication level of the machine. The
rest respondent answered good and very good

 From the cumulative percentages only11.11% is highly satisfied overall level of

satisfaction get from ATMs. The majority of respondent38.8% dissatisfied, the rest
customers who fall in satisfied and neutral

5.2. Conclusion
From the preceding findings the following conclusions as drawn

Based up on the above demographical profiles of the respondent response of the total percentage
of males are greater than females.

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The majority of the ATM users are found between the ages of less 54 years. In contrast to
this ATM users aged above 55 years are less. Concerning the educational level of the
maximum number of ATM users are high school , diploma, certificate first degree
no second degree ATM card holders. Regarding the profession the majority of the ATM
users are civil servant the rest business man and also the others are students. Using ATM
card is most convenient method to drawing pass book. Most customer use ATM for
emergency purpose. The result shows location of the ATM machine not appropriate .
According to this study the sophistication level of the machine is poor and this study
also show there is less overall level of satisfaction get from ATMs.

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5.3. Recommendation

 In order to solve customer complain regarding with the location of ATM machine the
bank should taking immediate actions, to make it convenient for all customer.
 The bank showed less sophistication level so to improve the existing condition in quality
of ATM services.

 In order to solve customer complain regarding level of satisfaction get from ATMsof the
bank in taking immediate actions, it should work on delivering ATM service with quality
so that customers and easily with drawn money and it should also take care of problems
which occur in the process of withdrawing money from the ATM machine.

38
 Reference

1. Banker, R., Bardhan, S., Lin, H., & Chang.(2006). Plant Information Systems,
Manufacturing Capabilities and Plant Performance. MIS Quarterly.

2. Cheng, T. (2006). Adoption of internet banking: An empirical study in Hong Kong.

Decision Support Systems

3. Crane, D.B and Bodie, Z. 1996, From Follows Function: The Transformation of Banking,
Harvard Business Review, Vol. 74 (2): 109-117

4. Eiglier, P and Langeard, E (1987).Servuction, Le Marketing des Services,

Paris:McGraHill

5. Gardachew, W. (2010). Electronic banking in Ethiopia- practices, opportunities and

challenges. Journal of internet banking and commerce.

6. Gezahegn Bacha (2015). Assessment of customer satisfaction with ATM banking:

Empirical evidence from Selected Commercial Banks in Ethiopia

7. Governoris and kotitos, (2008), Ease of use is positive related to ATM customer
satisfaction

8. Howells, P. (2008). The Economics of Money, Banking and Finance. Pearson Education
Limited

9. Kotler, Ph.; Wong, V.; Saunders, J.; Armstrong, G. 2005.Principles of marketing. 4th ed.
Prentice Hal

39
 10. Kaleem& Ahmad,(2008) Information technology is a key aspect which may be
considered as a force for such change

11. Lemma Belay (2017) The Effect of ATM Service Quality on Customer Satisfaction:
Evidences from Customers of Ethiopian Commercial Banks in Debremarkos Town

12. Moutinho, L., Davies, F., Deng, S., Miguel, P.S., and Alcaniz, J.E. (1997). The future role
of bank branches and their managers: comparing managerial perceptions in Canada and
Spain. International Journal of Bank Marketing, 15(3): 99- 105.

40
Appendix.

DANDII BORU COLLEGE OF BUSINESS AND

ECONOMICS JIMMA CAMPUS
DEPARTMENT OF ACCOUNTING AND FINANCE

We are students in Dandii Boru College of business and economics department of Accounting
and finance. This questionnaire designed to carry out research title the assessment of the ATM
services offered by for the fulfillment of bachelor degree. You can give more than one answer
for each question whenever necessary using tick mark () and give your suggestion on the spaces
provided.

characteristics of the respondent

I. question background ( mark)

1. Sex Male  Female 

2. To which age group do you belong

Less than 25 
26-35 
36-45 
46 – 55 
Over 56 

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3. Customer status

Civil servant 
Business man 
Employee in the private sector/ NGO 
Self employed 
Other specify
4. Educational status

Attend elementary/ primary school 

Graduated 12 grade 
Technical or vocational training 
College diploma 
UN graduated (1st degree and above
Other specify

ATM service quality questions

Which methods are convenient to drawing moneys?

Using passbook 
Using ATM machine 
Using change 
Other please specify

For what purpose you are using the ATMs

Business purpose 
Emergency purpose 
Personal use 
Other specify

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How do you measure the convenience of the location?

Description Very good Good Fair Poor Very poor

Distance for residence

Time taken to reach the ATM

station

Accessibility of infrastructure the

facility

Confidence in using the machine

.How do you measure the standard of ATM serves in CBE?

Responded Very good Good Fair Poor Very poor

What benefit you get from ATMs, the overall level of satisfaction they obtain?

Responded Highly Satisfied Neutral Dissatisfied Highly

satisfied dissatisfied

Physical facility of the

machine

Knowledge and ability of

employees

Willingness & courts of the

staff to assist

43