TOSSA COLLEGE OF ECONOMIC DEVELOPMENT

DEPARTMENT OF BUSINESS ADMINISTRATION

MASTERS OF BUSINESS ADMINISTRATION (MBA)

THE EFFECT OF ELECTRONIC BANKING SERVICE QUALITY ON

CUSTOMER SATISFACTION: THE CASE OF ATM BANKING
PROVIDED BY COMMERCIAL BANK OF ETHIOPIA DESSIE
BRANCHES

A RESEARCH PROPOSAL SUBMITTED TO TOSSA COLLEGE OF

ECONOMIC DEVELOPMENT IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION (MBA).
BY:
ADAMITU SEIFU KEBEDE
ID NO: TCED/ 071/13

ADVISOR
BIZUAYEHU AMBAYE (PHD CANDIDATE)
MARCH 2022
DESSIE, ETHIOPIA
 TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................ II
LIST OF TABLES ........................................................................................................................ IV
LIST OF FIGURES ...................................................................................................................... IV
LIST OF ACRONYMS ................................................................................................................. V
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1. Background of the Study .................................................................................................. 1
1.2. Statement of the Problem ................................................................................................. 3
1.3. Basic Research Questions ................................................................................................ 5
1.4. Research Objectives ............................................................................................................. 5
1.4.1. General objective ........................................................................................................... 5
1.4.2. Specific objectives ......................................................................................................... 5
1.5. Hypothesis of the Study ....................................................................................................... 6
1.6. Significance of the Study ..................................................................................................... 6
1.7. Scope of the Study................................................................................................................ 6
1.8. Definitions of Key Terms ..................................................................................................... 7
1.9. Organization of the Study .................................................................................................... 7
CHAPTER TWO ............................................................................................................................ 8
REVIEW OF RELATED LITERATURE ...................................................................................... 8
2.1. Theoretical Review .............................................................................................................. 8
2.1.2. Service delivery ............................................................................................................. 9
2.1.3. ATM technology evolution ......................................................................................... 12
2.1.4. Benefits of ATMs ........................................................................................................ 14
2.1.5. Problems associated with the use of ATM .................................................................. 16
2.1.6. Customer satisfaction .................................................................................................. 17
2.1.7. Customer satisfaction models ...................................................................................... 20
2.1.8. ATM banking practice in Ethiopia .............................................................................. 20
2.2. Empirical Review ............................................................................................................... 21
2.3. Conceptual Framework of the Study.................................................................................. 25
Figure 1: Conceptual Framework of the Study ......................................................................... 26

II
CHAPTER THREE ...................................................................................................................... 27
RESEARCH METHODOLOGY.................................................................................................. 27
3.1. Description of the Study Area ............................................................................................ 27
3.2. Research Approach ............................................................................................................ 27
3.3. Research Design ................................................................................................................. 28
3.4. Source of Data .................................................................................................................... 28
3.4.1 Primary data source ...................................................................................................... 28
3.4.2. Secondary data source ................................................................................................. 28
3.5. Target Population of the Study .......................................................................................... 28
3.6. Sampling Techniques ......................................................................................................... 29
3.7. Sample Size ........................................................................................................................ 29
3.8. Data Collection Instrument and Measurement ................................................................... 30
3.9 Data Analysis and Model Specification .............................................................................. 31
3.10 Validity .............................................................................................................................. 31
3.11 Reliability .......................................................................................................................... 32
3.12. Ethical Considerations...................................................................................................... 32
WORK PLAN ............................................................................................................................... 33
BUDGET ...................................................................................................................................... 34
REFERENCES ............................................................................................................................. 36

III
 LIST OF TABLES

Table 3.1: CBE Dessie city Branches with proportion of sample size ......................................... 30

LIST OF FIGURES

Figure 1: Conceptual Framework of the Study ............................................................................. 26

IV
 LIST OF ACRONYMS
ACSI…………………………………………. ….American Customer Satisfaction Index
ANOVA………………………………………… Analysis of Variance
ATM…………………………………………….. Automatic Teller Machine
CBE………………………………………………Commercial Bank of Ethiopia
CLRM…………………………………………….Classical Linear Regression Model
E-banking……………………………………….. Electronic Banking
ECX………………………………………………Ethiopian Commodity Exchange
IT………………………………………………….Information Technology
PIN..........................................................................Personal Identification Number
POS………………………………………………. Point of Sale/Purchase
SERVQUAL………………………………………Service Quality
SPSS………………………………………………Statistical Package for Social Sciences

V
 CHAPTER ONE
INTRODUCTION
This chapter will discuss about background of the study, statement of the problem, research
questions and objectives of the study, hypothesis and significance of the study, scope of the
study, operational definitions, and organization of the study.

1.1. Background of the Study

Customers are the life bloods of every company, which without them most companies will fail to
exist. Therefore the need to improve service delivery is a must. Unfortunately pursuing the
highest level of services does not come cheap.

Service quality is of utmost importance in analyzing the performance of banks and their
branches, since their survival depends on their service quality levels they provide (Philipose,
2011). Excellence in service quality is a key to achieve customer loyalty which is the primary
goal of business organizations, due to the advantages of customer retention. Today, the
increasing awareness among bank customers of their rights, changing demands and highly
competition requires constant progress in service quality from the bank for their customers to
stay loyal.

Today customers need any service including banking to be ease, reliable and faster service to
satisfy their demand. Hill and Alexander (2003), has defined customer satisfaction as a measure
of how organizations total products perform in relation to a set of customer requirements, even
though surely the customers view of organizations performance will be a perception. Customer
satisfaction is up to the customers‟ mind and it may or may not conform with the reality of the
situation. A more general definition of customers‟ satisfaction is given by Kotler (2003); that he
explains as a function of perceived performance and expectations. If the performances fall short
of expectation the customer is dissatisfied. If the performance matches the expectation the
customer is satisfied, when the performance exceeds the expectation the customer is highly
delighted. Delivery of services has had a dramatic effect on the nature of the core offering. Fyery
(2015) defines this process the “revolution” that has taken place in technological development in
the past two decades.

1
Therefore, the concept of customer satisfaction is related to the concepts of value, quality,
complaining behavior and loyalty of customers to an organization‟s products/services. It is also a
measure of how products and services supplied by a company meet customer expectation.

ATM (Automated Teller Machine) was initially only available at bank locations, though, by the
early 1980s, shared ATM networks had been established in the USA and ATMs were introduced
at retail locations (e.g. Supermarkets and shopping malls). They appeared to provide a
competitive advantage, but it diminished as more banks adopted the technology and ATM
become a competitive necessity which forced to install them or risk loss of business. However,
the replacement of human labor by automation certainly improved the traditional process. Since
the ATM is one of the major Information Technology (IT) investments in the banking industry
and also it has the highest rate of use among all e-banking services (electronic banking services),
e- service quality factors in ATMs are explored.

ATMs save time and provide convenience to the customer due to the fact that the card holders
don‟t need to go to bank branches to withdraw money, and the card holder is able to make
shopping, travelling etc. ATMs offer a 24 hour banking service to the bank customer like cash
withdrawal, fund transfer, balance inquiry, card to card transfer, and bill payment, accept deposit
etc. (Kumbhar, 2011). As far as customer satisfaction concerned with regard to e-banking
products, ATM plays a paramount contribution as they make banking transactions easy to the
customers. This was done so as to enable customers have a 24 hour access to their money and
hence improve customer satisfaction then the banks eager to ease access for their customers. A
fair distribution of ATMs in areas convenient to the customers does have an effect on satisfaction
of customers due the convenience of bringing banking closer to the customers (Rose, 1999).
However, despite the Bank‟s effort to improve access for its customers by increasing the number
of machines, network failure, due to service breakdown from the country‟s sole
telecommunications service provider, ethio telecom, and internet network problems, is the
challenges faced by commercial banks in successful service delivery and distribution of ATM
throughout the country (Gezahegn,2015). Therefore banks should recognize the need for
strengthening ATM banking system to satisfy their customers and meet the minimum technology
based service quality requirements by their customers. To do so commercial banks should
understand the service quality dimensions which customers‟ value most in e-banking services.
Accordingly, the purpose of this research study is to investigate information about the impact of
2
ATM banking service quality on customers‟ satisfaction delivered by both state owned and
private commercial banks found in Dessie city by using a five dimensional ATM service quality
model that comprise reliability, tangibility, assurance, responsiveness, and empathy.

1.2. Statement of the Problem

When customers evaluate the quality of the service they receive from a banking institution they
use different criteria which are likely to differ in their importance, usually some being more
important than others. While several criteria are important only a few are most important. These
determinant attributes are the ones that will define service quality from the consumer„s
perspective (Loudon and Della, 1988). In the current climate, competition in the banking
industry is intense, with new financial service providers emerging all the time. Quality of service
is seen more than ever as a key differentiator in the market place. The technology is dramatically
changing how financial services are designed and delivered to consumers. The Ethiopian
banking industry still relies on physical branches and commercial retail banking, but forces from
the cost side as well as the customers need for better services have pushed banks toward
implementing techno-based systems to reduce the cost of services and improving response time
to the customer. There is a need, therefore, to uncover what the major technology based and
related factors that heavily influence the satisfaction level of customers.

However, ATM face a number of challenge during the function of giving operation for its
customer like system problem due to power supply cut and telecommunication service in
interruption relation to network, although the potential financial services have remained limited
in the developing world where information asymmetry, inappropriate products, poor
infrastructure, cultural influences, out of cash ATM machines, wrong transactions, mismatch
balance of customers Account shown at ATM ,unsuitable location, and delayed in dispute
handling for error transactions, low awareness about how to familiar with new coming of
technology these service accessible only to the top ties of economic affordable people.
Therefore, many of them is unable to accessed their money as there is limited a number of ATM
because of a number of problem as mentioned above.

Automated service quality research has been limited to relationship management rather than the
metrics of service quality (Beckett, et al., 2000). Most of this research has been viewed from the
service provider„s perspective rather than the customer„s perception of service quality. Thus,

3
management needs to understand how the customer evaluates e-service quality as a foundation
for improving that service (Zeithaml, 2002). Overall, literature calls for more research on the
impact of information technology-driven services on the customer„s perceptions of the service
quality received.

As shown in the empirical literature review part of this study, research works done by Tale
(2021), Beshir & Zelalem (2020), Mesfin (2018) have studied about the effect of Electronic
banking on customers‟ satisfaction in Commercial Bank of Ethiopia (CBE). Since electronic
banking is a broad service that includes ATM and Point of Sell(POS) machine banking, mobile
and internet banking services, this study argue that the studies that considering all forms of e-
banking cannot be accurate and reliable in measuring customers satisfaction. The reason for this
is that in a situation where all modes of e-banking are not fully used by each customer and asking
a customer who does not use some of the e-banking methods is inaccurate in measuring the
satisfaction to the e-banking services package. So this study believes that to accurately measure
customers satisfaction towards e-banking based on highly reliable data, there needs to specify the
e-banking and to focus on the one that is used by larger number of customers. According to the
report of the commercial banks found in Dessie city, ATM banking service has larger number of
users as compared to mobile and internet banking. Moreover, it is easy to access ATM banking
users than others. Because of these reasons, this study has specified the study about e-banking to
the ATM banking service.

To identify empirical gaps that possibly permit further study about the impact of ATM service on
customers‟ satisfaction, an empirical review was done on research works done for the past five
years. As shown in the empirical literature review part of chapter two this study, the reviewed
research works like study on ATM banking service and customers satisfaction include the study
by Yoseph (2020), Abera (2019), Amsalu and Dehenent (2018), Lemma and Birku (2017).

From the empirical reviews, this study understands that, though a number of research studies
were done in the context of Ethiopia with respect to ATM banking services and customer
satisfaction, only few studies empirically studied about the impact of ATM banking service on
customer satisfaction. Even those done were used limited sample size, most of them focusing on
the case of CBE branches in Addis Ababa, and lacking broader generalizability. In addition,
despite a strong empirical support for investigating the effect of ATM banking service quality on
customers‟ satisfaction in commercial banks (sources), researches on this area in Ethiopian
4
context are scanty. Apart from the above gaps in empirical research, to the best of the researcher
knowledge, no previous researches have been directly addressed the relationship between ATM
banking service quality Dimensions and customers‟ satisfaction in the Commercial Bank of
Ethiopia(CBE) in general and Dessie city Branches in particular. Therefore, this study will
attempt to partially feel this empirical research gap in Ethiopian context by examining the
relationship between ATM banking service quality Dimensions and customers‟ satisfaction in
the Commercial Bank of Ethiopia Dessie city Branches.

1.3. Basic Research Questions

The present researcher will conduct this study with the aim of providing answers to the following
basic research questions
What is the effect of ATM-banking service customer satisfaction in CBE Dessie city
branches
What is the effect of ATM-banking service efficiency on customer satisfaction in CBE
Dessie city branches?
What is the effect of ATM-banking service convenience on customer satisfaction in CBE
Dessie city branches?
What is the effect of ATM-banking service reliability on customer satisfaction in CBE
Dessie city branches?
What is the effect of ATM-banking service security and privacy on customer satisfaction in
CBE Dessie city branches?

1.4. Research Objectives

1.4.1. General objective
The general objective of the study is to investigate about the effect of ATM banking service
quality on customers‟ satisfaction in CBE Dessie city branches.

1.4.2. Specific objectives

The specific objectives of the study will be:-
To assess customers‟ satisfaction level with respect to the ATM banking service provided by
CBE branches in Dessie city

5
 To evaluate the status of ATM banking service quality provided by CBE branches in Dessie
city

To investigate the effect of ATM banking service quality dimensions on customers‟

satisfaction in CBE branches in Dessie city

1.5. Hypothesis of the Study

Based on the research objectives and questions of the study, the following hypotheses are
developed and will be tested in the study:
Reliability of ATM banking service has a significant impact on customer satisfaction

Tangibility of ATM banking service has a significant impact on customer satisfaction

Assurance of ATM banking service has a significant positive impact on customer satisfaction

Responsiveness of ATM banking service has a significant positive impact on customer

satisfaction

Empathy of ATM banking service has a significant positive impact on customer satisfaction

1.6. Significance of the Study

The findings of this study will have the following significance. Proper understanding of the
impact of E-banking on customer satisfaction is unthinkable and this study will assess the status
of ATM banking service quality and its impact of on customers‟ satisfaction. So the findings and
recommendations of the research are significantly important to CBE Dessie city branches in
order to improve ATM service quality and this will help the banks for enhancing the customer
satisfaction by adopting strategies. This study is adding value to the existing knowledge
regarding ATM banking and satisfaction of customers in the context of Dessie city. It helps in
understanding what attitude customers‟ have towards ATM service quality factors.

1.7. Scope of the Study

The scope of the study concentrates on two major areas. This comprises of the contextual and
geographical scope of the study. Contextually, the research emphasize on electronic banking
focusing on the impact of ATM banking services on customers‟ satisfaction in commercial bank
of Dessie branch. Though there are 17 both state owned and private banks (1 state owned and 16
private owned) found in Dessie city, this study is delimited to CBE branches. Among many

6
independent variables that can affect customers‟ satisfaction, this study is delimited to five
independent variable; namely reliability, tangibility, assurance, responsiveness, and empathy.
Concerning participants of the study, among many school stakeholders whose inputs could make
the study more substantial, this study will be delimited to customers. Finally, regarding the time
of the study, this research is taking place from December, 2021 up to March,2022.

1.8. Definitions of Key Terms

 Customer: refers to those customers of CBE that are registered in holding the ATM card and
currently use the ATM banking service in CBE branches of Dessie city.
 Customer Satisfaction: is a measure of how products and services supplied by a company
meet or surpass customer expectation. It is seen as a key performance indicator within
business.
 ATM: is an attended acceptance terminal that has electronic capacity, accepts PIN (Personal
Identification Number), disburses money, and may provide balance confirmation, fund
transfers between accounts and other services.
 Commercial Banks: refers to those CBE branches in Dessie city that currently install the
ATM and provide the service in Dessie city.

1.9. Organization of the Study

This research proposal is organized into four main components, The first part is the introduction
chapter that explains about the background of the study, statement of the problem, research
questions and hypotheses, objectives of the study, significance of the study, scope of the study,
operational definitions, and organization of the study. The second part is the literature review
chapter that provides the relevant theoretical and empirical information obtained from the
reviewed literatures pertaining to the topic under the study and the conceptual framework that
this study is under-pined. The third part is the research design and methodology chapter that
comprises the type and design of the research, the population and sample of the study, sampling
methods and procedures to be employed, data sources and data collection instruments to be used,
the data collection procedures to be followed; and the data analysis methods to be used. Finally,
the fourth part dealt with the working plan of the study.

7
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
This chapter is organized in to three major sections. The first part dealt with the theoretical
review; the second part presents the empirical review of previous researches and the third part
demonstrates the conceptual framework of the study.

2.1. Theoretical Review

It is determining for one country to have well organized financial service sector to increase
customer and modern service sector to have multi-client in market development of economy. The
existence of bank makes life of everyone much easier to move their money and keep it as place
of store of money. But today banks as well as the overall development of the financial service
sector would mean a lot to life of modern economy. The changing environment offers challenges
and opportunities to the organizations. The ATM is an innovative service delivery mode that
offers diversified financial services like cash withdrawal, funds transfer, cash deposits, payment
of utility and credit card bills, cheque book requests, and other financial enquiries (Khan, 2010).

Premalatha &Sundaram (2012) stated that ATM is the abbreviation of automated teller machine
which acts as a teller in a bank who takes and gives money over the counter and it was the first
well known machines to provide electronic access to customers. With the appearance of
automated teller machine, banks are able to serve customers outside the banking hall because
ATMs are placed inside or near the banks and also outside the banks such as shopping malls,
restaurant, airports or any places that people may gather. In another article Mick, et al. (1995)
talked about the various utilities of ATMs which has given worldwide popularity. The utilities
include withdrawal of cash as per convenience of the customers than during the banking hours at
branches. Besides providing off time and off shore services, there is reduction of cost of
servicing. Weiner (1999) pointed out that the total number of ATM transaction has more than
doubled over the last ten years and is estimated to reach near 11 billion and total number of ATM
terminals in United States has tripled over last ten years. This shows that ATM cards have
become most popular non cash instruments in USA and its popularity has been explosively
increasing throughout the world. Investment opportunities, reduction in costs, satisfaction of
customers and competitiveness are motives to install and add new ATM to the existing network.
8
With appearance of ATMs, some limitation of time and geographic location has been resolved.
And it also resulted in speed of transactions and saved time for customers.

2.1.2. Service delivery

The service delivery in the world has been changed significantly by technology. This is
supported by Humphrey and Hancook (1997) which they viewed that the role of technology in
today‟s international financial community has changed significantly. ATMs have made banking
services easy for bank customers; Cox (1992) wrote that the ATM can handle normal cash
routine enquiries such as cash withdrawal, funds transfer from one account to the other, account
statement request, account activity enquiry and others. In some developing countries and
developed countries customers can use their VISA and Master Card branded ATM cards to
transact banking services with other compliant VISA or Master Card branded ATMs. Lovelock
(2000) stated that the ATM technology customizes service offerings, reduces waiting time for
customers, serves as an alternative channel for service delivery and provides vital information
needed by customers in the shortest possible time. The ATM consists of three very important
parts, namely the hardware, software (the running program) and the communication modules for
the transaction processing to be completed.

In order for a bank to have an uninterrupted ATM service operation, it must have a very
efficient internet service provider, reliable electric power supply from both the national grid and
stand by generators and modern ATM hardware and software. The ATMs are normally installed
both within and outside the bank premises such as fuel filling stations, shopping malls,
restaurants, airports, school campuses etc. The ATM provides uninterrupted 24 hour service to
the bank customers. Some modern ATM s have incorporated features such as biometric
technology which involves obtaining ATM services by the use of finger prints of the account
holder other than the use of ATM cards. This technology provides extra security to the customer
as without the customer biometric data, transactions on his/her accounts via the ATM would not
be possible. Most modern ATMs are also now incorporated with cash deposit features as well as
utility payment features such as cellular talk time top up, water and electricity payment for
prepaid customers. The ATM screen can also serve as an advertising space for banks to advertise
their products.

9
Some modern ATMs have incorporated features such as biometric technology which involves
obtaining ATM services by the use of finger prints of the account holder other than the use of
ATM cards. This technology provides extra security to the customer as without the customer
biometric data, transactions on his/her accounts via the ATM would not be possible. Most
modern ATMs are also now incorporated with cash deposit features as well as utility payment
features such as cellular talk time top up, water and electricity payment for prepaid customers.
The ATM screen can also serve as an advertising space for banks to advertise their products.

The service delivery in the world has been changed significantly by technology. This is
supported by Humphrey and Hancook (1997), views that the role of technology in today‟s
international financial community has changed significantly. ATMs have made banking services
easy for bank customers. According to Gefen (2002), customer satisfaction is the most important
driver of commercial banks, since higher customer satisfaction leads to a lower customer
intention to switch banks. Thus, technology is one of the powerful instruments in providing
faster, reliable and more efficient services to customers. Shifting the service from the traditional
way of banking to the modern banking, Furthermore, it is also known that many of the banks
have started to adopt a sort of e-banking services including ATM, either to cope with the
competition or serve the customers in an efficient and effective given that many of the banks
have started to adopt the ATM banking service. Cox (1992) noted that the ATM can handle
normal cash routine enquiries such as cash withdrawal, funds transfer from one account to the
other, account statement request, account activity enquiry and others. In some developing
countries and developed countries customers can use their VISA and Master Card branded ATM
cards to transact banking services with other compliant VISA or MasterCard branded ATMs.

According to Komal (2009), the study establishes that ATM services enhance operations and
customer satisfaction in terms of flexibility of time, add value in terms of speedy handling of
voluminous transactions which traditional services were unable to handle efficiently and
expediently. The machine can enable customers to deposit and withdraw cash at more convenient
time and places than during banking hours at branch (Muhammad, 2010). Lovelock (1996) stated
that the ATM technology customizes service offerings, reduces waiting time for customers,
serves as an alternative channel for service delivery and provides vital information needed by
customers in the shortest possible time. The ATM consists of three very important parts, namely
the hardware, software (the running program) and the communication modules for the
10
transaction processing to be completed. In order for a bank to have an uninterrupted ATM
service operation, it must have a very efficient internet service provider, reliable electric power
supply from both the national grid and stand by generators and modern ATM hardware and
software. Yaval (2003) argued that customers focused ATM delivery system that fulfills their
needs and maximize operational performance are essential dimensions for bank to achieve and
sustain competitive advantage (Khan, 2010).

Good service quality leads to satisfying relationship with customers, and higher customer
satisfaction results in better profits and word-of-mouth recommendation (Lassar et al, 2000;
Beerli et al, 2004 cited in Fornell, 1992) defines customer satisfaction as the overall post
purchase or usage evaluation. Halstead et al (1994) states that customer satisfaction is a
transaction specific effective response from customers‟ comparison of product performance to
some pre-purchase standard. ATM banking customers have expectations of their banks‟ ATM
banking services against which each service encounter enhances comparison of ATM banking
performance to the expectations. The comparison is conducted after the immediate usage of
ATM banking services or over time of ATM banking usage. Customer satisfaction with ATM
banking is therefore the feeling developed from an evaluation of the ATM banking use
experience whether the ATM banking performed relatively well or poorly against expectations
(Mwastika, 2016).
The evaluative judgment about satisfaction with ATM banking is therefore conceived to fall
somewhere on a bipolar continuum where at the lower end it signifies low levels of satisfaction
(expectations exceed performance perceptions) and at the higher end it signifies a higher level of
satisfaction (performance perceptions exceed expectations). This evaluative judgment occurs at a
particular time based on usage experience of ATM banking which occurred at a particular time
or on accumulated experience of ATM banking. Moutinho (1992) recommended that some
consumers have positive attitudes towards Automated Teller Machines based on dominant
perceptions of convenience/accessibility/ease of use. Moutinho (1992) has recognized the
benefits that customer satisfaction delivers to a bank. For instance, the longer a customer stays
with a bank the more utility the customer generates. This is a result of a number of factors
relating to the time the customer spends with a bank. Moutinho (1992) noted that effective
service delivery is a new or significantly improved service concept that is taken into practice.
Banks without usage of technology in the banking sector cannot provide customers with a

11
satisfactory service. Kumbhar (2011) stated that effectiveness of service provision have a
significant relationship with overall customer satisfaction. Effective service delivery is positively
related to customer satisfaction in that, when a customer perceives that the delivery mode of the
transactions that the bank is supposed to offer is quite good, the more the customers will be
satisfied with the bank services.

2.1.3. ATM technology evolution

Tween these processes, these makes it difficult to maintain consistent service quality. Human
resource management is very important in service delivery; the human factor is often the key
success factor in service economies. Demand can vary by season, time of day, business cycle,
etc. There is also consumer involvement as most service provision requires a high degree of
interaction between the service consumer and the service provider. The combined services of
both the Automated and human tellers imply more productivity for the bank during banking
hours. Also, it saves customers time in service delivery as alternative to queuing in bank halls,
customers can invest such time saved into other productive activities. ATMs are a cost-efficient
way of yielding higher productivity as they achieve higher productivity per period of time than
human tellers. Furthermore, ATMs continue working when human tellers stop and thus there is
continual productivity for the banks even after banking hours.

Most inventions have happened due to sheer necessity and ATM is one of them. The history of
ATM is full of interesting facts of which some are known and others unknown. According to the
website www.engineersgarage.com/invention-stories/atm-history, it is believed that the history
of ATM started when an Armenian named Luther George Simjian was forced to move to USA in
the year 1920, under the account of Armenian Genocide. He owned to his credit the invention of
a portrait camera and then he later rolled out the formulated idea of ATM. Confident of his
invention, he persuaded Citibank to run his product on a six month trial basis. Soon enough, he
was disappointed with the performance and the lack of users and concluded that ATM was a
wasteful addition to personal banking. The lack of demand for the ATM finally forced him to
take a back seat. During this period it was very clear that the time was not right for this concept
to have been accepted generously. Simjian clearly lost out on the success and fame and the same
was passed on to two other gentlemen, John Shepherd-Barron and Don Wetzel. John Shepherd
Barron was a Scottish national born in India. Later he relocated to Britain and pursued his
education from the University of Edinburgh, and at Trinity College, Cambridge. After returning
12
empty handed from a bank, Shepherd-Barron was disappointed to have had no option than to
wait till the bank opened the next working day. And thus in a similar fashion like Archimedes,
Shepherd-Barron claims to have hit his interesting moment while taking a bath. A self-sufficient
cash dispensing machine was what he was thinking about. And soon the ATM was invented in
the 20 early 1960s. The invention of a self-sufficient cash dispensing machine was his second
and successful attempt at inventions. Prior to this invention he had invented an instrument to
scare away seals (fish eating mammals) at his Scottish Salmon farms. Unfortunately, this device
instead of deterring the seals attracted them, and was thus a failure. The same website also shows
that the ATM machine gained Shepherd-Barron an ever-lasting recognition in the banking world
and paved the way for hi-tech banking techniques, online bank accounts, PIN and chip security
technology. The four-digit internationally accepted standard PIN was also invented by him.
Earlier, he had a six-digit Army serial number in his mind but later his wife suggested for a
shorter PIN as it would be easy to remember.

Finally in 1967, the first ATM that dispensed paper currency round the clock (24 hour basis) was
unveiled. The ATM was installed outside a Barclay‟s bank in North London. The ATM machine
accepted and generated money through cheques impregnated with certain chemicals. A mild
radioactive substance, Carbon 14 was used for detection by the machine. Once the PIN was
given, the machine gave out the cash. This radioactive substance had no ill effects on the health
of users and Shepherd-Barron claimed that a user would have to eat about 136,000 cheques to
suffer any kind of ill-effects. Reg Varney, a famous television sitcom popular became the first
person to use the ATM in the year 1967 and withdrew about 10 dollars. The amount seems too
less for us, but this money was enough for a complete night out spent on the tiles in London,
inclusive of dinner, drinks, a show and a taxi-ride back to home. While this prototype device
originated by Shepherd Barron had started functioning, various parallel developments were
happening in different parts of the world. The same website further showed that an American
engineer Donald Wetzel of Docutel engineered the Docuteller ATM which was declared as the
first modern 21 magnetic stripe machine. It recognized magnetically encoded plastic (credit
cards) and not the usual paper cheques. The development of ATM has gone through many
stages, it started from its baby stage in the late 1930s and then geared up for longer runs in the
1960s, and finally a matured and stable stage that we see today. Undoubtedly, most of the ideas

13
and patents contributed for makeover of the ATM from time to time form the backbone of what
was initiated as “holes in the wall”.

Today, ATMs hold a strong foothold in the world, offering everyone a better access to their
money, be it in any corner of the world. There are about 1.8 million ATMs in use around the
world with ATMs on cruise and navy ships, airports, newsagents and petrol stations. ATMs too
have been categorized as on and off premise ATMs. On Premise ATMs are capable to connect
the users to the bank with multi-function capabilities. Off premise, ATM machines on the other
hand are the "white label ATMs" and are limited to cash dispense. The developments have not
stopped; the contactless technology is on its rise. The same website concludes that Shepherd-
Barron continued to take inimitable and lively interest in technology well even in his old age and
had foreseen a future where plastic cards too would be numbered. For his excellent and
unforgettable contributions to financial technologies, Shepherd-Barron was offered the OBE
award in the year 2005. In the year 2010, he took his last breath and left behind his legacy of
technological advancements.

2.1.4. Benefits of ATMs

2.1.4.1 Acceptability

With regard to Acceptability, Mols (2000) argued that customer acceptance of the new
automated channels of service delivery in banks may bring a dramatic change in the way that
retail banks build and maintain a close relationship with their customers. Godwin (2001) argues
that ATMs are the other way that banks are going to make their services accepted by their
customers. ATMs allow customers to bank at their own schedule and convenience anywhere due
to a wide ATM networks that the banks avail to their customers. Many innovative ideas in the
banking sector such as internet banking, automated teller machine (ATM) among others has been
in place in order to motivate customer‟s patronages to banks and reduce cost in the services. But
the impacts of such innovative technologies are lost when-ever the systems are rejected by the
users. (Jun & Cai, 2001).The user acceptance is therefore considered as a determining factor that
measure the degree of success or failure of any new innovation or technology.

14
2.1.4. 2. Safety

Safety is one the benefit of ATM, Thanks to the ATM technology, now a day there is no need of
carrying large sum of money. Once the customers has the ATM card, he or she can access his or
her account whenever need arises. One can keep funds at a bank and receive an interest mean
while enjoying a quick and easy access to them (Godwin, 2001).

2.1.4.3 ATM as convenient to customers

The Automated Teller Machine has changed people‟s lifestyles and how the banking industry
and ATM machines enable depositors to withdraw cash at more convenient times and also places
than during banking hours at branches. In addition, by automating services that were previously
completed manually, ATMs reduce the costs of servicing some depositor demands. ATM allows
a bank‟s customers to conduct their banking transactions. This could be performed transactions
at any time during 24 hours. Before an ATM is placed in a public place, it typically undergoes
extensive testing with both test money and the backend computer system that allows it to
perform transactions. (Marshall and Heslop, 1988) Bank customers also have come to expect
high reliability of ATM machines, which dictates that ATM service providers should take a step
to minimize machine and network failure. If ATMs go out of services, customer could be left
without the ability to make transactions until the beginning of their bank‟s next time of opening
hours. Indeed, ATM machine and network failure do have financial implications for the service
providers, so that they should minimize cases of malfunction.

2.1.4.4 ATM for speed transaction

With regard to speed of the ATMs, Marshall and Heslop (1988) noted that one of the benefits to
be reaped by customers while using ATMs is saving time, this is because there is no need to
come to the bank and wait in a queue or filling some information in paper format every time
when one wants to transact. ATMs are automated machines which are faster than human tellers
in processing transactions. According to Komal (2009) explain in his study that ATM services
enhance operations and customer satisfaction in terms of flexibility of time, add value in terms of
speedy handling of voluminous transactions which traditional services were unable to handle
efficiently and appropriately. The machine can enable customers to deposit and withdraw cash at
more convenient time and places than during banking hours at branch. Deutsche Bank AG

15
Research (2006) identifies „speed‟ as one of the main driving forces behind the success of
Embanking. Transactions, transaction processing, data transfer, information requests etc. happen
almost instantly in online banking. Similarly, Hoffman et al, (1999) also identified speed as a
major factor influencing customer satisfaction.

2.1.4.5 Reliability

Reliability refers to the promptness of delivering e-banking service such as ATM banking in an
accurate way and in line with advertised attributes (Jun, and CAI, 2001; Min, 2003). Many
studies argue that the success of electronic banking depends on e-banking service and reliability
(Fornell, 1992). Reliability is established in some studies as a key factor that most customers
consider before and even during usage of e-banking service Fornell (1992). Prior researches have
revealed that reliable/prompt responses, attentiveness, and error-free embanking platforms have a
considerable impact on customer satisfaction ( Fornell, 1992).

2.1.4.6 ATMs save cost

Mols (1999) has identified that for customers, internet banking, ATM, and other electronic banks
can be of a low cost alternative to traditional banking. The term cost refers to all types of costs
from financial costs, time costs, energy costs etc. In all things considered, E-banking can provide
a banking activity at the lowest cost possible. According to Rose (1999) noted in Ephrem (2016),
ATM transaction is an average of about 6,400 per month compared to 4,300 for human tellers.
Furthermore, it saves customers time in service delivery as alternative to queuing in bank halls,
customers can invest such time saved into other productive activities.

2.1.5. Problems associated with the use of ATM

Although ATMs provide an extremely useful service to bank customers, at times they can be
very frustrating to use and therefore there is a lot of room for improvement in the interface
design. The interface enables communication between the user and the machine. Therefore good
user interface design is imperative for high usability levels. Often there are problems or
inconveniences experienced when using an ATM. Some of these problems include: a. Network
problems- The ATM relies on the bank communication network hence when the bank
communication network goes off line the ATM services become unavailable for customers use.
Inability to see the ATM screen well: This depends on the location of the ATM in relation to the
position of the sun. At times it can be difficult to view the contents of the ATM menu. Wrongly
16
inserting the ATM card: This problem is more common with new ATM users who are not
familiar with their new card and the ATM. getting the required amount of money:

Some ATMs may not offer the user the required amount of money they want on the initial cash
withdrawal screen. The user will then have to use a few more key strokes to select the required
amount (e.g. to withdraw GHC55.00 the user might have to select the „other amounts‟ option
then type in “55” using the keypad and then press “enter‟). The daily limit on the ATM also
becomes problematic for customers needing monies which exceed the set limit, Understanding
how to perform operations: Some ATM users find the instructions on how to perform operations
quite difficult to understand. Often the ATM card is returned to the user while further operations
are required and thus the user would have to re-insert his/her ATM card and these further
increases the time spent at the ATM.; Waiting in the queue to use the ATM: If users ahead of
you in the queue experience difficulties in using the machine, this will increase the time waiting
in the queue. g. ATM charges: Some banks also charge their customers whenever they use the
ATM to make cash withdrawal.

2.1.6. Customer satisfaction

Customer satisfaction has been defined by many authors. Fornell (1992) defines customer
satisfaction as the overall post purchase or usage evaluation. Halstead et al (1994) states that
customer satisfaction is a transaction specific effective response from customers‟ comparison of
product performance to some pre-purchase standard. ATM banking customers have expectations
of their banks‟ ATM banking services against which each service encounter enhances
comparison of ATM banking performance to the expectations. The comparison is conducted
after the immediate usage of ATM banking services or over time of ATM banking usage.
Customer satisfaction with ATM banking is therefore the feeling developed from an evaluation
of the ATM banking use experience whether the ATM banking performed relatively well or
poorly against expectations (Mwastika, 2016). Churchill and Surprenant (1982) cited in Cox
(1992) looked at customer satisfaction as a summation of satisfaction with various attributes of a
product which alludes to the fact that satisfaction with ATM banking will come from the
satisfaction with the performance of its attributes. The evaluative judgment about satisfaction
with ATM banking is therefore conceived to fall somewhere on a bipolar continuum where at the
lower end it signifies low levels of satisfaction (expectations exceed performance perceptions)
and at the higher end it signifies a higher level of satisfaction (performance perceptions exceed
17
expectations). This evaluative judgment occurs at a particular time based on usage experience of
ATM banking which occurred at a particular time or on accumulated experience of ATM
banking.

Oliver (1980) defined customer satisfaction as the product of the accumulated experience of a
customer‟s purchase and consumption. Porter and Miller, (1985) defined customer satisfaction as
a post consumption evaluation that meets or exceeds expectations. Customer satisfaction ratings
can have powerful effects in organizations. They focus employees on the importance of fulfilling
customers‟ expectations. When a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective. Therefore, it is essential for businesses to
effectively manage customer satisfaction. To be able to do this, firms need reliable and
representative measures of satisfaction. The same website shows that in researching satisfaction,
firms generally ask customers whether their product or service has met or exceeded expectations.
Thus, expectations are a key factor behind satisfaction. When customers have high expectations
and the reality falls short, they will be disappointed and will likely rate their experience as less
than satisfying. For an organization to be profitable and over take its competitors and have
enhanced customer loyalty, it must focus on improving its customer satisfaction. In order to
achieve this, customer feedback must be taken very seriously. Customer satisfaction can be
received by feedback using suggestion boxes, toll free telephone lines, electronic mails,
observations etc. Organizations can surprise customers by calling to congratulate them on
birthdays, wedding days etc. Organizations can take advantage of the satisfaction of their
products by their consumers to increase the price of their products.

The level of satisfaction can vary depending on other options the customer may have and other
products against which the customer can compare the organization's product. Work done by
Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provided the basis for the
measurement of customer satisfaction with a service by using the gap between the customer‟s
expectation of performance and their perceived experience of performance. This provides the
measurer with a satisfaction „gap‟ which is objective and quantitative in nature. The usual
measures of customer satisfaction involve a survey with a set of statements using a Likert
Technique or scale. The customer is asked to evaluate each statement and in term of their
perception and expectation of performance of the organization being measured.

18
Angelova and Zekiri, (2011:233) explain customer satisfaction as the outcome felt by those that
have experienced a company‟s performance in fulfilling their expectations. Pine & Gilmore
(1998) as cited in Mwastika (2016) indicated that customer satisfaction has a positive effect on
organization‟s profitability, loyalty and customer retention. Furthermore, they asserted that
leading edge companies will find that the next competitive background lies in producing
experiences. It is no longer the service alone that creates customer satisfaction it is rather the
experience connected with the service. The idea here is to engage customers in a way that creates
a memorable event. While prior economic offerings such as products and services are external to
buyers, experiences are inherently personal, embedded in the customer‟s emotional, physical,
intellectual, or even spiritual levels. Therefore, the concept of customer satisfaction is related to
the concepts of value, quality, complaining behavior and loyalty of customers to an
organization‟s products/services

There are different factors that affect the perception of customers towards an organization. These
factors are mainly attributed to either organization philosophy, characteristics of employee or
products and services offered by a firm. The following section attempts to associate some of the
factors that have a direct or indirect impact on customer satisfaction. Marketing Philosophy: The
marketing philosophy that a company adopts has important implication on customer satisfaction.
The marketing philosophy has evolved overtime from product orientation through product and
sales orientation to marketing era, signifying a shift from product and sales led to customer led
(Adelowo, 2010). The difference lies on the way that a company sees customer satisfaction; as a
goal or a means for profit. Those companies which emphasize customer satisfaction as a means
for profit adopt traditional organizational structure. This structure suggests that activities of a
company are designed and flow from top to bottom. On the other hand, organizations that see
customer satisfaction as a goal and a marketing tool invert the above structure and adopt a more
customer oriented organizational structure. Under this scenario, activities of a company are
tailored to meet the needs and wants of customers. In this case, the structure of the organization
gives more emphasis to the forefront employees as they have direct contact to customer and
consequently determine the fate of a company.

Service quality and service encounters: The success of service providers depends on the quality
of relationship maintained with its customers, which brings customer satisfaction and loyalty,
which in turn positively influence organizational outcomes such as performance superiority
19
(Portel & Thanassoulis, 2005), increasing sales profit improving customer relations, enhance
corporate image and promote customer loyalty In a competitive environment, where banks are
operating, there are nearly homogenous products delivered to customers. This fact usually forces
banks to compete through the provision of quality services (Portel & Thanassoulis, 2005).

2.1.7. Customer satisfaction models

Customer satisfaction has been widely studied in multiple areas of marketing (Durvasula S.,
Lysonski S., & Mehta S., 2005) as it is a driver of success and a reason for companies‟
existence. As a result, service giving organizations often tries to maintain their trustworthiness
with their customers via enhancing product and service quality. Several customer satisfaction
models have been developed to study customer satisfaction. The essences of two of these models
are discussed below. The American Customer Satisfaction Index (ACSI) is a model used as the
national indicator of customer evaluations of the quality of goods and services available to the
USA.(Angelova & Zekiri, 2011:241). The index shows that overall customer satisfaction has
three antecedents: Perceived quality, perceived value, and customer expectations. Perceived
Quality refers to customers‟ evaluation of recent consumption experience, and is expected to
have direct and positive effect on overall customer satisfaction. Perceived Value is the perceived
level of product quality relative to the price paid. Although price is often very important to
customer‟s first purchase, it usually has somewhat smaller impact on the satisfaction of repeat
purchases. Customer Expectation measures customer‟s anticipation of quality of company‟s
products or services. Expectations represent both prior consumption experience, which includes
some experiential information like advertising and word-of-mouth, and a forecast of the
company‟s ability to deliver quality in the future.

2.1.8. ATM banking practice in Ethiopia

Surely the banking industry in Ethiopia is underdeveloped and therefore there is an all immediate
need to embark (start) on capacity building arrangements and modernize the banking system by
employing the state of the art technology being used anywhere in the world. With a growing
number of import-export businesses, and increased international trades and international
relations, the current banking system is short of providing efficient and dependable services and
therefore all banks operating in Ethiopia should recognize the need for introducing electronic
banking system to satisfy their customers and meet the requirements of rapidly expanding

20
domestic and international trades, and increasing international banking services. Undeniably the
largest state-owned bank, Commercial Bank of Ethiopia, introduced ATM service for local users
in 2001 with its fleet of eight ATMs located in Addis Ababa. Moreover, CBE has had Visa
membership since November 14, 2005. However, due to lack of appropriate infrastructure it
failed to reap the fruit of its membership. Despite, being the pioneer in introducing ATM based
payment system and acquired Visa membership. Available services on CBE ATMs are: Cash
withdrawal, Balance Inquiry, Mini statement, Fund transfer between accounts attached to a
single card and PIN change. Currently, the bank gives debit service only for Visa cards. CBE
clients can withdraw up to 10,000 birr in cash and can buy goods and services of up to 100,000
birr per day.

Expanding its leadership, CBE has begun accepting Master Card in addition to Visa credit cards
it began serving over four years ago the first ever electronic banking gateway was signed
between Ethiopian Commodity Exchange (ECX) and CBE. The electronic banking system being
developed with CBE is designed to give a secure electronic data sharing gateway between
clients, banks and ECX, facilitating a smooth transaction (Abiy Demilew, 2008) ATM
technology evolution most inventions have happened due to sheer necessity and ATM is one of
them. The history of ATM is full of interesting facts of which some are known and others
unknown.

2.2. Empirical Review

Tale (2021) has studied about the effect of Electronic banking on customers‟ satisfaction in
Commercial Bank of Ethiopia branches found in North Addis Ababa district. The objective of
the study is to assess and examine the impact of electronic banking service on customer
satisfaction and the major opportunities and challenges of e-banking activities to satisfy
customers of commercial bank of Ethiopia in north Addis Ababa district. The study has
used a mixed approach of using both quantitative data by using a questionnaire and qualitative
data by using an interview. A total of 360 questionnaires were properly filled and returned and
purposive and simple random sampling was employed. The findings show that service quality
dimensions (reliability, assurance, responsiveness, empathy and tangibility) have positive and
significant relationship with customer satisfaction in E-banking. The three service quality
dimensions (reliability, assurance, & empathy) have positive and significant impact on customer
satisfaction in e-banking of Commercial Bank of Ethiopia. However tangibility and
21
responsiveness have a positive but insignificant impact on customer satisfaction. The
study is limited due to the fact that it is limited to small number of branches and it is difficult to
generalize to the finding obtained from just 11 branches to represent all the branches of
commercial bank of Ethiopia. Moreover, it lacks to include the situation in private banks. The
study is also delimited to the SERVQUAL model of Parasuraman et al. (1988) proposed a five
dimensional construct of perceived service quality tangibles, reliability, responsiveness,
assurance and empathy as the instruments for measuring service quality on independent
variable reliability, assurance, responsiveness, empathy and tangibility and limited to include
many independent variables that determine dependent variable customer satisfaction on E-
banking.

Beshir & Zelalem (2020) have studied about the effect of e-banking service quality on
customers‟ satisfaction and loyalty, the case of Bahir Dar. The objective of this study was to
examine the direct effect of e-banking service quality dimensions on both customer
satisfaction and customer loyalty of CBE in Bahir Dar. Quantitative research approach with
explanatory research design was employed. Using convenience sampling technique, the data was
gathered through already tested questionnaire from 380 E-banking service users of Commercial
Banks of Ethiopia as respondents in Bahir Dar Town. Quantitative approach and a questionnaire
were used to collect a data from e-banking using respondents who were selected by convenience
sampling. The presented model in this study was derived from the models proposed by
Zeithaml et al (2000, 2002) and Parasuraman et al (1985, 1988, and 2005) as a
combination of the two models. There are 9 constructs in this model, which includes 7
constructs of service quality dimensions: (Efficiency, responsiveness, Reliability, product
portfolio, Easy to use, Privacy and Commission) as independent variables, customer
satisfaction as intervening variable and Loyalty as the dependent variable were selected as
forecasters of customer satisfaction and loyalty in E-banking. Structural Equation Model
(SEM) and Confirmatory Factor Analysis (CFA) were used to analyze data. Research
findings indicated significant impact of efficiency, responsiveness, easiness, privacy and
commission on satisfaction and the significant impact of satisfaction on loyalty.

Mesfin (2018) has studied on the effect of e-banking service quality on customer satisfaction: the
case of commercial bank of Ethiopia Arba Minch branches. The main purpose of this study is
to examine the effect of E-banking service quality on customer satisfaction in case of CBE
22
Arba Minch Branches. The study was an explanatory research design and used the quantitative
research approach. The structured Likert scale based questionnaires were distributed and
collected from 204 conveniently selected E-banking service users of CBE Arba Minch,
Secha, Sikela and Nechsar branches. The data was analyzed by undertaking the descriptive
statistics, Pearson correlation and multiple regression analysis. Results of the study
revealed that among the five service quality dimensions (reliability, responsiveness,
assurance, empathy and tangibility), assurance has the highest positive effect on customer
satisfaction followed by reliability and responsiveness whereas empathy and tangibility have
relatively less positive effect on customer satisfaction. Furthermore, the results generated by
E-banking service quality dimensions explain significant variation in customer satisfaction.
As a result, the researcher concludes that e-banking service quality has positive and significant
effect on customer satisfaction.

Ephrem (2016) conducted his masters‟ thesis on “assessment of ATM Banking service and
satisfaction of customers in Ethiopian private Banks case of PSS member banks”. The study used
descriptive research design and the target population of the study was six PSS member private
banks. The study used descriptive design and the target population of the study was confined on
ATM users of commercial bank of Ethiopia in Mekelle city, Mekelle branch. 130 samples of
ATM users were selected and structured questionnaire collected from respondents they were
selected conveniently. Collected data was analyzed using descriptive analysis such as frequency,
percentage, and mean. The result has shown that ATM adopters in the bank use only limited
types of services predominantly cash withdrawals. Finally, the study recommends the bank to
increase its promotion by focusing on improving customers‟ awareness towards the technology
and the different types of services ATM provides.

Akpan (2016) investigated about the influence of ATM service quality on customer satisfaction
in the banking sector of Nigeria. The study adopts survey research in which questionnaires are
accidentally administered on customers of four banks randomly selected for the study (First
Bank of Nigeria Plc., United Bank for Africa Plc., Guarantee Trust Bank Plc. and Skye Bank Plc.
at the ATMs terminals of the Banks during transactions. Multiple Regression Analysis,
Descriptive Statistics of the Mean, Standard Deviation, Tables and Charts are the main tools of
data analysis. Findings reveal that the higher the ATM service quality, the higher the level of

23
satisfaction it provides. The study then concludes that ATM service quality determines customer
satisfaction. Some recommendations are offered on the way forward.

Yoseph (2020) has studied about ATM service quality and its impact on customer satisfaction in
the case of commercial bank of Ethiopia west Addis Ababa branches. Thus, the study adopted
descriptive research methods by utilizing survey approach form that the data obtained from
primary and secondary source through structured questionnaire from the concerned respondents
and the data was analyzed using SPSS software. Accordingly, the finding confirms that, most
respondents agree on the existing of good ATM service quality despite ATM locations are not
secured and the challenges on telecom network and internet access and awareness creation
among the society.

Abera (2019) has assessed of customers‟ satisfaction on ATM service in CBE in Sheromeda
branch. This paper plans to answer research question which concerns on practice, challenge,
benefit, and customers‟ satisfaction. This study employed a descriptive research design, the
researcher use non probability sampling which are convenience and purposeful 271 customers
and employees in identification of 271 respondents from target population which encompasses
11652 customers of the bank and employees. Structured questionnaire used to gather data from
the respondents of the bank customer and employees. Data collected from questionnaires are
code and analyzed and also data presentation is by use of tables form. The finding revealed that
the ATM Service is benefit to commercial bank of Ethiopia in Sheromeda branch users. The
number of problem faces the ATM users and the most respondent reply increase satisfaction
level of customer. The study conclude and recommendation the following point there are the
bank should solve the problem which the case of errors during transaction give immediately
response, provide receipt from the ATM service on the financial transaction and the bank show
more and more improve the existing service in secured ATM service, safe place to with draw
money to satisfy customers.

Amsalu and Dehenent (2018) have studied about Customer Satisfaction in ATM Service at
Commercial Bank of Ethiopia in Wolaita Sodo Branch. The use of convenience sampling
technique .Every data pertaining to this study was been collected from primary and secondary
sources. Primary sources of data collected through structured personal interview and questioners
to selected respondents and secondary sources of data were collected from books, office
manuals, Websites and different documents that provide relevant information to achieve the
24
objective of the study. The data were collected though questionnaires from ATM users of the
bank. Questionnaires were distributed to 92 respondents are selected based on convenient
sampling techniques. After collecting the data were processed and analyzed by descriptive
analysis using table. Based on the responsiveness dimension the majority of the respondents
response implied that disagree with the listed items. That is the company deliver ATM service
quickly, the cash are withdrawn from the machine promptly and the bank take care of problems
promptly. According to the efficiency of operation dimension the majority of the customers are
disagree with different items such as cash always available in the ATM machine. Cash is
withdrawal correctly it ordered note on good quality are available in ATM and ATM machine
can be accessed anywhere in the city at a reasonable distance. Based on the reliability dimension
of ATM service quality the majority as the customers are disagreed to the listed an item that is
ATM machine are available for business and generator is available. According to the security
and privacy dimension the majority of the customer are agreed with listed item like feeling
secured in using ATM card, location of the ATM machine are safe to withdrawn money and
satisfied with ATM service quality.

Lemma and Birku (2017) have studied about studied the effect of ATM service quality on
customer satisfaction in Ethiopian commercial Banks, using proportional stratified and simple
random sampling technique and cross-sectional data collected from 190 customers of Ethiopian
commercial banks, in Debre Markos town. The data collected were analyzed using statistical
tools such as mean, standard deviation, correlation, and multiple regression model. The results
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. Furthermore, the tangibility, reliability,
responsiveness and empathy significantly explained 79.2% of the variations on customer‟s
satisfaction level.

2.3. Conceptual Framework of the Study

Service quality is a vital antecedent of customer's satisfaction (Cronin and Taylor, 1992). In turn
customer satisfaction is believed to affect post-purchase and perception and future decisions.
Following from the literature review done above, the relationship between service quality
variables and customer satisfaction can be shown as following. In this conceptual model the five
Service quality dimensions have been selected from the study conducted by Parasuraman et al.,
25
 (1985). Parasuraman et al., (1985) conducted research on different service organization (Bank,
Hotel, Electrical Corporation, Hospital, Transportation) by using ten service quality dimensions
(tangibility, reliability, responsiveness, communication, access, competence, courtesy,
credibility, security, and knowledge). Later Parasuraman et al., (1985) conducted research and
then the ten dimensions were further purified and developed into five dimensions (reliability,
tangibility, assurance, responsivness, and empathy). The reason behind purifying the ten
dimensions into five dimensions was the appropriateness of each service quality dimensions to
different service organizations for example security dimension is appropriate for transportation,
In addition to this, the variables selected for investigation are reflected and defined in alternative
hypotheses as shown in the figure below.

ATM Service Quality

Responsivenes
Dimensions (Independent
s
Variable)
Reliability
Empathy

Tangibility Assurance Responsiveness

Customer Satisfaction (Dependent

Variable)

Figure 1: Conceptual Framework of the Study

Source: Own literature review

26
 CHAPTER THREE

RESEARCH METHODOLOGY
This chapter will explain the methodology that the researcher adopted in carrying out the study.
According to Sharma (cited in Prince, 2015), methodology refers to as system of principles and
methods of organizing and constructing theoretical and practical activity. Therefore, this section
framework the description of study area, the research approach, research design, target
population, sampling techniques, sample size, data collection and measurement, validity and
reliability test and ethical consideration.

3.1. Description of the Study Area

The research is focus on ATM Banking service users of commercial bank of Ethiopia Dessie
Branches. Dessie is the capital of the South Wollo Zone at ANRS which is located at 401 km
North East of Addis Ababa. Based on CSA (2013) report, the population of Dessie city in 2013
E.C is 152,568 with the proportion of male 72,675 and female 79,893. Currently, the city has ----
---------- public commercial bank and ------ privet commercial banks. The banks are CBE, Awash
International Bank, Dashen Bank, Birhan International Bank, Abay Bank, Wegagen Bank,
Abyssinia Bank, Buna International Bank, Nib International Bank, Oromia International Bank,
Ambessa International Bank, Oromia Cooperative Bank, Debub Global Bank and United Bank.
The current total ATM banking users or customers of Dessie city are 22,218 of which 12,864
are ATM banking users of CBE Dessie city branches on the month December 2022(Own survey
from CBE Branches).

3.2. Research Approach

The study will use a quantitative research approach. The quantitative research approach makes
use of statistics and numbers which are mostly presented in figures. Quantitative research
involves large samples and planned questionnaire that is then numerically and statistically
analyzed (Areeba et al., 2016). The quantitative data enables the researcher to analyze
objectively by using descriptive and inferential statistics.

27
3.3. Research Design

This study will use an explanatory research design that helps the researcher to identify the nature
of the relationship between the ATM banking service quality (independent variables that is,
Tangibility, Reliability, Responsiveness Assurance, and Empathy ) and customer satisfaction
(the dependent variables that is, Customer Satisfaction ) at Dessie city branches of CBE. An
explanatory research design aids the researcher to determine and explain the characteristics of
dependent as well as independent variables (Saunders, et al., 2009).

3.4. Source of Data

The choice of particular method of collecting data depend on the purpose of collecting data, the
information being collecting, the resource available for the research and the skill of the
researcher (Kothari, 2004). In order to achieve the objectives, the data for this study will be
obtained from both primary and secondary sources.

3.4.1 Primary data source

Primary data are helpful to get original information from the respondents to know their feelings,
opinions, attributes and perceptions towards the impact of ATM service on customer satisfaction.
The primary data source for this study ATM service user customers. They are considered as the
only primary data source as the problem of the study is planned to be investigated based on the
perception of the customers. This decision is due to the logic that no other party is better than the
customers themselves to judge their satisfaction about the ATM service.

3.4.2. Secondary data source

The researcher has tried a lot to find contemporary and much related secondary information to
use them as a stepping board for the research. Official reports, journals; and research papers on
similar topics shall be used as secondary sources of data to analyze the issue with the existing
literatures.

3.5. Target Population of the Study

The study target population includes ATM banking users of commercial bank of Ethiopia at four
branches such as Dessie Main branch, Tossa branch, Lakomenza branch ,Seno Gebya branch and
Buanbuha branch. The reason why the researcher chooses these branches iss that these branches
consists a large number of customers than other commercial banks‟ branches in Dessie city. The

28
total ATM banking users or customers of Dessie city are 22,218 out of them 12,864 are ATM
banking users of the five-branches commercial Bank of Ethiopia on the month December
2022(Own survey from CBE Branches).

3.6. Sampling Techniques

To select participants to the study convenience sampling technique will be used because it is not
possible to get access to the list of ATM-banking customers to conduct probability sampling
procedure. As a procedure, each respondent asked that whether he/she is the customers and the
banking user of the selected Branch before the questionnaire distribution.

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher (Black et al, cited in
Fikerselassie, 2017). Saunders et al. (2009) described about convenience sampling that it
involves selecting haphazardly those cases that are easiest to obtain for your sample and the
sample selection process is continued until your required sample size has been reached. It is a
sampling technique where samples are obtained from convenient elements. This refers to
happening of the element at the right place at the right time, that is, where and when the
information for the study is being collected. The selection of the respondents is left to the
discretion of the interviewer.

3.7. Sample Size

Israel (1992) reviewed criteria for specifying a sample size and present several strategies for
determining the sample size. The approaches to determining the sample size include using a
census for small populations, imitating a sample size of similar studies, using published tables,
and applying formulas to calculate a sample size (Israel, 1992). Israel (1992) published sample
size determination formula will be used to determine samples for the study. Based on the
published table, the sample size of the total target population 12,864 of this study is 388 ATM
banking customers. The proportion of each branch‟s sample size will be determined based on the
number of ATM-banking customers (see Table 3.1).

29
 Table 3.1: CBE Dessie city Branches with proportion of sample size

S. No Name of CBE Branches Total No of Total Sample Size

ATM-baking proportion
customers
1 Dessie main branch 5041 39.19 152
2 Tossa branch 1386 10.77 42
3 Lakomenza branch 1824 14.18 55
4 Seno Gebya branch 2024 15.73 61
5 Buanbuha branch 2589 20.13 78
Total 12,864 100 388
Source: Own Survey, 2022

3.8. Data Collection Instrument and Measurement

The primary data for this study will be collect through structured close-ended questionnaire. The
structured questionnaire will be anchored on 5-point Likert type scale with the following degree
of response: Strongly disagree, Disagree, Moderately Agree, Agree and Strongly Agree. The use
of Likert scale is to make it easier for respondents to answer question in a simple way.

The questionnaire is classified in to three parts. The first part of the questionnaire is about the
demographic characteristics of respondents. The second part is intended to measure the ATM-
banking service quality and the third section will measure customers‟ satisfaction on ATM-
banking service delivery. The ATM-banking service quality instrument had five sub scales,
SERVQUAL dimensions, such as: Reliability, Responsiveness, Tangibility, Assurance and
Empathy. The SERVQUAL model was developed by Parasuraman, Zeithaml and Berry (1998).
The researcher adopts survey instrument used by Areeba et al. (2016), Hitesh (2015), and Sang-
Lin and Seung (2004) with some modification to fit the study under investigation.

The collection process will be started with asking permission of manager of the respective banks
which selected for the study. Following the permission, the volunteering ATM-banking
customers will be selected using the convenience sampling techniques. Based on convenience
sampling techniques the researcher will be checked whether the respondent is the selected CBE,
branch‟s ATM-banking service user or not.

30
3.9 Data Analysis and Model Specification

The collected data will be coded and entered into Statistical Package for Social Science (SPSS)
software version 23. Both descriptive and inferential statistical will be used for data analysis. The
descriptive statistics analysis results are shown by frequency distribution, percentages, mean and
standard deviation whereas correlation and multiple regression analysis are used to show
inferential statistical analysis.

Descriptive analysis will be used to describe the data that is collected from questionnaires in the
form of frequency, percentage and tabulation form. Additionally, correlation and multiple
regression analysis will be conducted to explain the relationship and effect of the independent on
customer satisfaction in ATM-banking service. The researcher will be used multiple regression
models to determine significance level of the variables towards ATM-banking induced customer
satisfaction.

Customer satisfaction = f (ATM-banking five service quality dimensions i.e Tangibility,

Reliability, Responsiveness Assurance, and Empathy)

CUSS = + TAN + REL + RES + ASS + EMP +

Where:
CUS_SAT= Customer satisfaction
REL= Reliability
RES= Responsiveness
ASS= Assurance
EMP= Empathy
TAN= Tangibility
Thus α (alpha) is constant, is a constant, represents the customer satisfaction when every
independent variable are zero
β (beta) is coefficient of estimate,
ε is the error term,
CUSS is dependent variable and REL, RES, ASS, EMP and TAN are independent variables

3.10 Validity

It refers to the extent to which an empirical measure adequately reflects the real meaning of the
concept under consideration. Validity refers to the degree to which a statistical instrument
31
measures what it is intended to measure. It emphasizes the accuracy of a measurement
instrument (Saunders, et al., 2009). Therefore, this study ensured the validity through extensive
literature review and adopted the five SERVQUAL model instruments which originally
developed by Parasuraman et al. (1988) and used in previous researchers (Areeba et al., 2016;
Surafel, 2016; Simon, 2016 and Gezahegn, 2015).

3.11 Reliability

Reliability means that the process (such as data collection procedures) of the study can be
repeated to obtain the same results (Yin, 2014). For this research, reliability will be achieved by
selecting and following an appropriate research methodology model to ensure that the aim and
objectives will be fulfilled. In addition, to further ensure reliability, all participants will be
provided with an overview of the research background to ensure all questions will be understood
in the same way.

In order to measure the consistency of the questionnaire and the overall reliability of constructs
that it is measuring, the reliability test will be carried out based on Cronbach„s Alpha coefficient.
Cronbach„s Alpha can be interpreted like a correlation coefficient. Its coefficient range lay on the
value from 0 to 1. A reliability coefficient (alpha) higher than or equal to 0.7 is considered as
acceptable. That means the targeted questions raised in the questionnaires are capable to meet the
objective of the study.

3.12. Ethical Considerations

The researcher will attempt to address the ethical issues and practices that directly and indirectly
affect the development and evaluation of the overall research processes. The researcher has taken
the following ethical values such as privacy, anonymity of respondents, confidentiality and
voluntarism in to consideration. Accordingly, the researcher will start the data collection process
after the official permission of the banks and after the ensured voluntarism of respondents.
During the collection of data via questionnaires, each respondent will first informed about the
objective of the study. While analyzing and reporting the results, this study will disclose
respondents‟ names and personal information. In addition, all the reference materials used in this
study will be fully acknowledged.

32
 WORK PLAN

The research activities that will be carried out from February up to May in Dessie branchs of
CBE, Northeast Ethiopia, 2022 is presented in the following table.
Table 4.1. Work plan of the study

Activities February March April May

Personnel
Phases

Weeks Weeks Weeks Weeks

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1 Proposal writing p. I
2 Proposal finalization p. I
4 Ethical clearance p. I
5 Securing fund p. I
6 Personnel training & pre-test p. I
7 Data collection & super D.C
vision
8 Data coding, entry, checking,
and analysis p. I
9 Editing and production of p. I
result
10 Final research report p. I
11 Public defense p. I
Keys: P.I =principal investigators, D.C = data collect

33
 BUDGET

The budgets break down to undergo the study in Dessie branch of CBE, Northeast Ethiopia,
2022 is presented in the following table.
Table 4.2. Budget breakdown and budget summary
Personal costs and transportation
Activities Individual involved No Work days Quantity Per diem Total (Birr)
Data collection DC 3 30 - 50 birr/ind. 4500
& supervision Supervisor 1 10 - 100 birr/ind 1000
Transportation Principal inv. 1 30 10 times 160birr/1 time 1600
TOTAL 7100
Costs of stationary
Ser. No Item Unit Quantity Unit price Total price Remark
1 Note book 3 15 45
2 Pen, Pencil & Eraser 22 7 70
3 Ruler 1 15 15
4 Paper & Marker Pack + set 1 220 200
5 Stapler with staples 1+1pack 50 55
6 Binder 1 40 40
7 Flash 1 200 200
8 TOTAL 645
Costs of printing and copying
Activities Quantity Unit price Total price Remark
Secretary 80 pages 4 birr/page 400
Printing questionnaire 2 8 birr/4 page 16
Copying questionnaire 281 2.5 birr/5 page 702.5
Printing proposal 40 page/3 copy 2 birr/page 240
Binding proposal 3 copy 10birr/copy 30
Printing of research report 80 page/3 copy 2 birr/page 480
Binding of research report 3 copy 10 birr/copy 30
TOTAL 1898.5
34
Budget summary
Activity Sub total
Personal costs 7100
Costs of stationary 645
Costs of printing and copying 1898.5
Total 9643.5
Contingency (5%) 482.2
GRAND TOTAL 10115.6

35
 REFERENCES

Abera Habte (2019). Assessment of Customers‟ Satisfaction on ATM Service of CBE in

Sheromeda Branch (Unpublished Master‟s Thesis). Addis Ababa University, Addis
Ababa, Ethiopia.
Adelowo, S. (2010). Challenges of ATM usage and fraud occurrences in Nigeria: A case study of
selected banks in Mina Metropolis. Journal of Internet Banking and Commerce, 15(2).
Akpan, S. J. (2016). The influence of ATM service quality on customer satisfaction in the
banking sector of Nigeria. Global Journal of Human Resource Management, 4(5), 65-79.
Angelova, B. and Zekiri, J. ( 2011). Measuring customer satisfaction with service quality using
American Customer Satisfaction Index (ACSI) model. International Journal of
Academic Research in Business and Social Sciences,1(3).
Amsalu Keno and Dehinenet Meku (2018). The Assessment of Customer Satisfaction in ATM
Service at Commercial Bank of Ethiopia in Wolaita Sodo Branch. European Journal of
Business and Management, 10(22), ISSN 2222-1905.
Anderloni L. (2014). Non-life insurance economic performance: An empirical investigation.
Journal of Economics & Management, University of Economics in Katowice.
Areeba, T., Mudassir, H., Talha, H., Shoaib, A. & Adnan, S. (2016). The impact of e-banking on
customer satisfaction: Evidence from banking sector of Pakistan. In Mudassir Husnain,
P. S.( Ed.). Journal of Business Administration Research, 5(2), 27-40.
Beckett, A., Hewer, P., & Howcroft, B. (2000). An exposition of consumer behaviour in the
financial services industry. The International Journal of Bank Marketing, 18(1).
Beshir, E. S., & Zelalem, B. A. (2020). The effect of e-banking service quality on customer‟s
satisfaction and loyalty. The Strategic Journal of Business & Change Management,
7(3), 818 – 832.
Best, J.W., & Kahn, J.V. (2003). Research in education. New Delhi: Prentice-Hall.
Brooks, C. (2008). Introductory econometrics for finance(2nd ed.).
Cohen, L., Manion, L., & Morrison, K. (2005). Research methods in education (5th ed.),
p.93- 95. London, England: Taylor & Francis Group.
Cox D, (1992). Success is process of basin (6th ed.). London.

36
Deutsche Bank AG Research. (2006). Retail banking via internet-banking online boosts and
curbs customer loyalty. ISSN Internet
Ephream Omer (2016). Assessments of ATM Banking and Customer‟s Satisfaction in Ethiopian
Banks: The case of PSS member banks (unpublished MA thesis). St. Mary‟s University,
Addis Ababa, Ethiopia.
Fyery, A.A. (2015). ATM adoption of customers in CBE Mekelle branches. Journal of Business
Management & Social Sciences Research, 4(5), ISSN No: 2319-5614.
Fikerselassie, A. (2017). The Effect of E-Banking Service Quality on Customer Satisfaction in
The Banking Sector of Ethiopia: A Case Study of Five Selected Grade Four Branch
Customers of CBE (MBA Thesis). ST. Mary`s University, Addis Ababa, Ethiopia.
Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. Journal
of Marketing, 56 (January): 6-21.
Gefen, D. (2002). Customer loyalty in e-commerce. Journal of the Association for Information
Systems, 3, 27-51.
Gezahegn, B. (2015). Assessment of Customer Satisfaction with ATM Banking: Empirical
Evidence from Selected Commercial Banks in Ethiopia (Unpublished MA Thesis). Addis
Ababa University, Addis Ababa, Ethiopia.
Godwin J., (2001). Service quality in internet banking: The importance of customer role.
Gujarati, D.N. (2004). Basic econometrics. New York: Mcgraw-Hill,.
Hoffman, D.L., Novak, T.P., & Peralta, M. (1999). Building consumer trust online.
Communications of the ACM, 42, (4), 80-85.
Humphrey, D and Hancook, D. (1997). Payment transactions, instruments and systems. A Survey
Journal of Banking and Finance, 21, 1573-1624.
Israel, G. D. (1992). Determining sample size. University of Florida, IFAS Extension, PEOD6,
https://www.tarleton.edu/academicassessment/documents/Samplesize.pdf
Jun, M., & Cai, S. (2001). The key determinants of internet banking service quality: A content
analysis. International Journal of Bank Marketing, 19(7), 276-291.
Khan,M.A.(2010). An empirical study of ATM service quality and customer satisfaction in
Pakistani banks. European Journal of Social Sciences, 13(3), 333-343.
Komal, S.S. (2009). Impact of ATM on customer satisfaction: A comparative study of SBI,
ICICI & HDFC bank. Business Intelligence Journal, 2 (2), 276-87.

37
Kothari, L., & Morrison, K. (2005). Research methodology: Methods and techniques (2nd ed.).
New Delhi, India: New age international (p) Ltd.
Kotler (2003). Expectation of customer marketing management (12th ed.), 412-413
Kumbhar, V.M, (2011). Customer satisfaction in ATM banking service: Empirical evidence
from public and private banks in India. Management Research and Practice, 24-35
Lemma Belay and Biruk Kindie (2017). The Effect of ATM Service Quality on Customer
Satisfaction: Evidences from Customers of Ethiopian Commercial Banks in Debremarkos Town
(MA Thesis). Debremarkos University, Debremarkos, Ethiopia.
Loudon, D.L. and Della Bitta, A.J. (1988). Consumer behavior: Concepts and applications.
Singapore: McGraw-Hill.
Lovelock, C., and Wirtz, J. (2000). Services marketing, people, technology and strategy. Upper
Saddle River: Pearson Prentice Hall.
Marshall, J. and Heslop, L. (1988). Technology acceptance in Canadian retail banking.
International Journal of Bank Marketing, 6(4), 31-41.
Mesfin Menamo (2018). The Effect of E-Banking Service Quality on Customer Satisfaction: The
Case of CBE Arba Minch Branches (Unpublished MA Thesis). Arba Minch University,
Arba Minch, Ethiopia.
Mick, D., G., and Susan, F. (1995). Technological Consumer Products in Everyday Life:
Ownership, Meaning, and Satisfaction (working paper, report No. 95-104, 1-59).
Cambridge, MA: Marketing Science Institute.
Mols, N.P. (1999). The internet and banks‟ strategic distribution channel decision. International
Journal of Bank marketing, 17(6).
Mols, N. (2000). The internet and service marketing: The case of Danish retail banking.
Electronic Networking Applications and Policy, 10(1), 7-18.
Moutinho (1992). Customer satisfaction measurements. International Journal of Business
Management, 30-37.
Muhammad, A.K. (2010). An empirical study of automated teller machine service quality and
customer satisfaction in Pakistani banks. European Journal of Social Sciences, 13(8).
Mwatsika, C., (2016). Factors influencing customer satisfaction with ATM banking: The case of
Malawi banks. International Journal of Academic Research in Business and Social
Sciences, 6 (2); ISSN: 2222-6990.

38
Oliver, R.L. (1980). Response determinants in satisfaction judgement. Journal of Consumer
Research, 14 (March), 495-507.
Parasuraman, Z. and Berry, L. (1985). Available at
http://en.wikipedia.org/wiki/Customer_satisfaction .[Accessed: 18th March 2021].
Patrick, B. (2003). Social research theory, methods and techniques. Great Britain: SAGE
Publications Ltd.
Philipose L. (2011). Profitability of a sample of Portuguese bank branches and its decomposition
into technical and allocative components. European Journal of Operational Research,
162(3), 850-866.
Porter, M.E., and Miller, V.E. (1985). How information gives you competitive advantage, 149-
160
Premalatha, J.R. & Sundaram, N. (2012). Analysis of customer satisfaction with reference to
ATM Services in Vellore District. IJEMR, 2(2) : ISSN 2249 – 2585.
Rose, P. (1999). Commercial bank management (4th ed.). USA, Boston: Irwin/McGraw-Hill.
Saunders, M., Lewis, P. & Thornhill, A. (2009). Research methods for business students (5th
ed.). UK: Financial Time.
Simon, V. T. & Thomas, A. S. R. (2016). Effect of e-banking on customer satisfaction in
selected commercial banks, Kenya. International Academic Journal of Human Resource
and Business Administration, 2 (2), 41-63.
Shariq, M., (2012). A study of ATM usage in banks in luck now. International Journal of
Engineering & Management Sciences, 3(2): 156-161.
Surafel Ellias (2016). Impact of Electronic Banking Service on Customers‟ Satisfaction in Addis
Ababa (The Case of selected Commercial Banks). ST. Mary`s University, Addis Ababa,
Ethiopia.
Tale Birhanu (2021). The Impact of Electronic Banking on Customer Satisfaction: The case of
CBE, North Addis Ababa District(Unpublished MA Thesis). Addis Ababa University,
Addis Ababa, Ethiopia.
William H. G. and Dan, S. (2006). Profitability and efficiency in the U.S life insurance
industry. Journal of Productivity Analysis. Kluwer Academic Publisher, Netherlands.
Yamane, T. (1967). Statistics: An introductory analysis (2nd ed.). New York: Harper & R
Yaval, U. (2003). The effects of information system investment in banking industry. Research

39
 Center of Socio network strategies, the institute of economic and political studies.
Journal of Economic Literature, Kansai University, 12, 30.
Yoseph Addisu (2020). An Assessment of ATM Service Quality and its Impact on Customer
Satisfaction: The Case of CBE, West Addis Ababa branches (Unpublished MA Thesis).
St. Mary's University College, Addis Ababa, Ethiopia.
Zeithaml, V.A. and Bitner, M.J. (2003). Services marketing: Integrating customer focus across
the Firm. Boston, MA: McGraw-Hill/Irwin..

40