ASSESSMENT OF E-BANKING SERVICE ON CUSTOMER SATISFACTION

(REFERENCE TO COOPERATIVE BANK OF OROMIA, BARISO DUKALE BRANCH,

BULE HORA TOWN)

BULE HORA UNIVERSITY

COLLEGE OF BUSSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT

A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF MARKETING

MANAGEMENT IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR DEGREE OF
BACHILORY OF ART IN MARKETING MANAGEMENT
PREPARD BY: ALEMAYEHU GUTA.............ID NO 2602/13
RAWUDA BEKELE ...............ID NO

ADVISOR: TAFESE N ( PHD scholar)

FEBRUARY 2024
BULE HORA, ETHIOPIA

34
 ACRONYMS AND ABBREVIATION
BHU …………………..Bule Hora University
BHUMC……………..Bule Hora University Main Campus
BA …………………....Bachilor Degree of Art
E ………………….......Sample
N …………………......Target Population
N ………………….....Sample Size
E.C …………………....Ethiopian Calender
Km …………………....Kilometer
EFT.......................electronic fund transfer (e-banking)
COOP bank..........cooperative Bank of Oromia
ATM......................automated teller machine
PDA......................personal digital assistance

35
Abstract

This study is conduct on the level of customer satisfaction in E- Banking service quality with
special reference to ATM card users at COOP bank of oromia in Bariso dukale branch. The
general objective of the study is to assess the level of customer satisfaction in E- Banking service
quality. The research wil review different text book and procedures and other business related
materials. The main source of data will be the primary and secondary data and the questionnaire
as research instrument will used to get the needed for the research. The data will collect though
questionnaire from ATM card users of the bank. Questionnaires will distribute to select 66
respondents based on simple random sampling techniques. After collecting the data, the
researcher will process and analyze by descriptive analysis and use table and percentage for
data presentation. This study will assess different dimension related to ATM service quality like
Accuracy; convenience and security and privacy dimension in all these aspects ATM users are
satisfy as they reply. On the other hand in the responsiveness and reliability dimension there are
some aspects that affect ATM card users. Finally the researcher will forward recommendation
to the organization that will discover factors that customer’s satisfaction on E-Banking service
of ATM service quality.

36
 Catalog
CHAPTER ONE 39

INTRODUCTION.....................................................................................................................................39

1.1 BACKGROUND OF THE STUDY....................................................................................................39

1.2 BACKGROUND OF THE ORGANIZATION....................................................................................41

1.3 STATEMENT OF THE PROBLEM...................................................................................................42

1.4 OBJECTIVE OF THE STUDY...........................................................................................................42

1.5 RESEARCH QUESTION....................................................................................................................43

1.6 SIGNIFICANCE OF THE STUDY.....................................................................................................43

1.7 SCOPE OF THE STUDY....................................................................................................................44

1.8 LIMITATION OF THE STUDY.........................................................................................................44

1.9 ORGANIZATION OF THE STUDY..................................................................................................44

CHAPTER TW........................................................................................................................................45

2. LITERATURE REVIEW...........................................................................................................45

2.1 E-BANKING DEFINITIONS..............................................................................................................45

2.2 E-BANKING CLASSIFICATION.....................................................................................................46

2.3 DEFINITION AND CONCEPT OF SERVICE..................................................................................47

2.4 ATM SERVICE QUALITY.................................................................................................................51

2.6 CUSTOMER SATISFACTION...........................................................................................................52

2.7 CUSTOMER EMOTION....................................................................................................................52

2.8. CONSUMER EXPECTATION.........................................................................................................54

2.9 DIAGRAM OF CONCEPTUAL FRAMEWORK...............................................................................54

CHAPTER THREE...................................................................................................................................55

RESEARCH METHDOLOGY ..................................................................................................55

3.1 DESCRIPTION OF THE STUDY AREA...........................................................................................55

3.2 RESEARCH DESIGN AND STRATEGY.........................................................................................56

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3.4 Types and source of data....................................................................................................................59

3.5 METHODS OF DATA COIIECTION AND INSTRUMENT............................................................59

3.6 DATA GATHERING TOOLS...........................................................................................................59

3.7 METHOD OF DATA ANALAYSIS.................................................................................................59

3.8 TIME SCHEDULING AND COST BUDGETING............................................................................60

Reference ....................................................................................................................................62

38
CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The history of banking refer to the development of bank and banking throughout history, with

Banking defined by contemporary source as an organization which provides facilities for

acceptance of deposits and provisions of loans. The history begins with the first prototype banks
of merchants of the ancient world, which made grain loans to farmer and traders who carried out
goods between cities. This began around 2000 BC in Assyria and Babylonia Rout ledge (2013).

The banking industry has to experience a major change due to the adoption of e-banking.one of
the latest channel distributions to be used financial service organization is e-banking this is
established in the mid-1990s. There after steadily e-banking business rely on efficient and rapid
access to banking industry for cash flow review auditing and daily financial transaction process.
E-banking offers case of access secure transaction and 24 hours banking option from startup
companies to more established entities small business rely on e-banking give broad service to
provide the customer and other financial institution (Pantouvak, 2010).

Ther are many e-baning instruments but The most widely e-banking instrument is ATM. It is the
first know machine to provide electronic access to customer, it is designed to perform the
important function of bank. It is operated by plastic card with special feature; it allows a bank
customer to conduct their banking transaction from almost every other ATM machine in the
world. Such as payment, printing of statement or even accessing the internet (Al hawari et al;
2006).

39
The most important factor which influence customer to use the ATM service is it convenience in
use and availability of machine. Found that size of respective bank, year of establishment and
performance of bank are the major factors which are responsible the E-Banking Sevice on
customer satisfaction toward ATM service of banks .It observed that other than cost
effectiveness of ATM service perception about all service quality dimensions is approximately
the same in public and private sector banks .Overall results shows that cost effectiveness of ATM
service were core service quality dimension and it were significantly affecting on overall
customer satisfaction in ATM provided by comercial banks. It has identified that customer
satisfaction is one of the major factors measuring the performance of the banks. The examined
the relationship between various ATM facilities, factor affecting choice of ATM and its interplay
with customer satisfaction (Taylor SA 2012).

Cooperative Bank of Oromia (S.C.) was registered Commercially on October 29,2004, in

accordance with article 304 of Commercial Code of Ethiopia. It was established in line with
proclamination no. 84/1994 with authorized capital of Birr 300 million . It started opperation on
8th March 2005 , with paid-up share capital of Birr 112 million.

Nowadays Ethiopia is growing in economically, and the modern banking activity is one of the
stimulation of the economic activity.

Cooperative Bank of Oromia is aprivate Commercial bank in Ethiopia. As per their last
published Annual report (2021-2022), The Cooperative Bank now has atotal asset value ETB
114,61 billion . The Bank has 593 branches , 8.99 million account holders and 6,547
employees . The bank's headquarters is located in Addis Ababa, Ethiopia.

from those branches Cooperative Bank of Oromia found in Oromia Region western Guji zone in
Bule hora town have two branches, the first one, is Cooperative bank of oromia Bule hora branch
which is established in 2016, and the secound, is Cooperative bank of oromia Bariso dukale
branch which is established in 2021, five years back than the former. and this branch is knowing
growing branch , so the society that found in Bule hora town, Bariso dukale branch are now
learns the modern banking system and also use the ATM machine among those technology. It is
obvious that using ATM is very suitable for everyone who wishes to use it. Most banks that
found in Ethiopia provide at ATM service to its customer, this study focus on the E-banking

40
service on ATM of cooperative Bank of Oromia in Bule hora town Bariso dukale branch. then
currently the bank has 6 empoyee among them male constitutes 6 and female constitute
0.

1.2 BACKGROUND OF THE ORGANIZATION

Bule Hora University was officially established in 2011/12 academic year, as one of the
Ethiopian government higher education institutions. The University was established to
with the objective of bringing quality and excellence in teaching, learning, research,
community services, administrative function and good governance, connecting the
development of cultural and natural resources with technology and its applications. Since
the construction of Bule Hora University was delayed beyond its expected completion
time, the university started functioning in the campus of Bule Hora College of Teacher
Education with a total of 243 regular and 116-weekend degree students 4 faculties in
2011/12 academic year and transferred to its own campus in September 2012 (Bule Hora
University, 2021; "Bule Hora (town)", 2023).

The university is being providing various services in collaboration with local and foreign
universities, governmental and non-governmental organizations to improve the quality of
education, research and community services. Recently Bule Hora University has more
than 98 departments, 76 postgraduate programs, 7 colleges, school of law and 2 Institutes;
institute of Gada and culture studies and institute of Health sciences. Bule Hora
University aims to become one of the best public higher learning institutions in Ethiopia
by 2025, with identified centers of excellence in mining, animal production, and
indigenous knowledge (Bule Hora University, 2021).

41
1.3 STATEMENT OF THE PROBLEM
E-banking gives broad service to the customer and banks. E-bankig broadnes accessibility,
offering, a seamless and conveniently use banking services through the internet using net
banking or mobile apps. The rapid technological change led the banking industry to give better
service for the customer. It use ATM as one the tools in improving the service rendering
mechanism, therefore the study aim at investigating automated teller machine service quality and
customer satisfaction in COOP bank of oromia. Motive to do this research using E-banking
service of ATM is better to customer because of when the time using the ATM card it can save
much time and it can use at any time means either day time or at night and using emergency time
and it is more matched with technology. As many literature set important to assess e-banking
service and attitudes of customer satisfaction so it is important to know about customer attitude
and their satisfaction for the growth of ATM service quality. But some problems in the
organizations are led to customer to be confuse in using visa card instead of the window based
service, because using ATM service ask understanding. The customer is not satisfied with
various aspect of ATM service quality not only this but also there are factors that affect
customer perception of ATM service delivery in cooperative bank of oromia

1.4 OBJECTIVE OF THE STUDY

1.4.1 GENERAL OBJECTIVE

1. The general objective of the study is to assess the customer satisfaction in using E-
Banking Service at cooperative Bank of Oromia Bariso dukale branch .

1.4.2 SPECIFIC OBJECTIVE

To analyses factor that affect customer perception of E-banking on ATM service
quality of cooperative bank of Oromia in Bariso dukale branch.
To assess whether customers will satisfy by ATM service than window based
service .
To identify the difference between ATM and window based service on customer
satisfaction.

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1.5 RESEARCH QUESTION
1, What are the factors that affect customer perception of E-banking service ?
2, Are customers will satisfy in using E-banking service instruments, than window based
service ?
3, What are the difference between E-Banking service and window based service on cutom
er satisfaction ?
This study will expect to show essential factors that contribute to E-Banking service quality
and customer satisfaction .

1.6 SIGNIFICANCE OF THE STUDY

The resesrch study will be believed to have the following Importance. for Both (CLIENTS, AND
for BANKS) .
The following are main significance of the study.
The bank on which the study will undertaking ,can use the study as stepping stone;
To improve the service quality and ease of use.
To handle potential customer complaints.
To make the machine to be accessible and readily available everywhere.
This study can be useful for other researcher intended to undertake study in the other
organization on the same problem.
It would increase acquaintance of the researcher and reader.
The organization will be benefit from the recommendation and conclusion which draw from the
study in improving customer satisfaction.
for CLIENTS
√ cost Efficiency
√ no Geographic Barriers
√ Convenience and etc..
for BANKS
√ Lower transaction costs (Contributing to financial Efficiency )
√ Error prevention

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 √ paperwork Reduction
√ Customer loyalty

1.7 SCOPE OF THE STUDY

The study will be focus on the customer satisfaction with E-banking service delivery on
cooperative bank of oromia in Bule hora town, Bariso dukale branch which is locate in OROMIA
Rigion Western Guji zone Bule hora woreda. The study will delaminate on customer view,
regarding service delivery. Regarding to data gathering system methodologically the study will be
intended to use convenience sampling method in attempting to achieve its objective. The time
frame that the study will cover is also from December up to february 2015/2016 fiscal year up to
accomplish the study.

1.8 LIMITATION OF THE STUDY

The researcher will conduct this study only in Bariso dukale branch. This study is not represent
other similar branch means that E-banking service is available ;
The information may not free from personal bias of respondent

Some of respondent may not give response sincerely

Scarcity of secondary data because of the concept E-banking service is new for our country.

1.9 ORGANIZATION OF THE STUDY

The paper is contain three chapters. The first chapter deals with the introduction part
which includes background of the study, background of the organization, statement of
the problem, objectives of the study (general & specific) then the significance of the
study and the scope as well as the limitations of the study.The second chapter
deals or examine with literature review that consists of the whole concept of the research
proposal study and its ideologies, last but not least the final chapter, chapter three is
deals about materials and methodologies used in the research proposal and also with
including Time plan and budget breakdown.

44
 CHAPTER TW
2. LITERATURE REVIEW
2.1 E-BANKING DEFINITIONS
Electronic banking, also known as electronic funds transfer (EFT), is simply the use of
electronic

Means to transfer funds directly from one account to another, rather than by check or cash.

Electronic banking, or e-banking, is the term that describes all transactions that takes place
among, in the current digitised financial landscape, banks are increasingly shifting their services
online, providing customers access to various banking services. it encompasses every thing from
loans and Debit/credit cards to personalised digital financial solutions.

Electronic banking, commonly known as e-banking is at the forefront of this transformation.

using telecommunication and electronic networks, e-banking delivers a broad spectrum of
financial products and services.

Companies, organizations, and individuals and their banking institutions. First conceptualized in
the mid-1970, some banks offered customers electronic banking in 1985. However, the lack of
internet users, and costs associated with using online banking, stunted growth.

45
The internet explosion in the late -1990s made people more comfortable with making
transactions over the web. Despite the dot-com crash, e-banking grew alongside the internet. The
e-banking started in 1980s, since then e-banking concept is flourishing with popular model,
theory and practices concept like innovation technology, acceptance, and, affluence in the
internet business. So before going to discuss any core content of E-banking, it is good to
memorize the fundamental concept of e-banking which helps to realize basic concepts of e-
banking. Electronic banking is an umbrella term for the process by which a customer may
perform banking transaction electronically without visiting a brick and perform mortal
institution, therefore transaction related to bank activities via electronic mean and medium have
called electro banking (Wouldiam W.Lang, and e.Nolle,2002).

2.2 E-BANKING CLASSIFICATION

E-banking is classified into Eight (8), and those are listed and defined briefly:
1. ATM Banking (Automated teller machine) : ATM banking extends the reach of e-ba

nking. customers can access accounts,view activities, make payments and transfe

r money conveniently, through automated teller machines (ATMs)

2. Electronic Funds Transfer(EFT) : It is helpful for electronic payments and money tra

nsfers, providing afast and secure means for customers to manage their finances

3.Telephone banking: is a service provide by financial institution that enables custom

ers of the financial institution to perform financial transaction over the telephone,

without the need to visit abank branch or ATM.

4. online banking(Internet banking) : allow customers of financial institutions to cond

uct financial transaction on aserved web site operated by the institution which can

be areal or virtual bank ,credit union or society. it may include of any transaction,

related online usage.

5. Mobile banking (M banking) : Designed for on_the_go convenience mobile banking

46
 brings banking to customers' fingertips. is the term used for performing balance
checks, account Transactions, payments, credit applications and other banking
transactions through mobile devices, such as smart phones or other personal
digital assistant (PDA) Nabi, G.M et al(2012)
6. Direct deposit : Direct deposit simplifies income management. users can have
salaries ,goveronment subsudes, other income directly deposited in to their bank
accounts, streamlining financial transactions.
7. Electronic Bill payment : this e-banking branch enables customers to settle bills
electronically , offering aconvenient and efficient way to to manage financial obli
gations.
8. Online Investing : for those venturing into financial markets, online investing with
in e-banking allows customers to conveniently , purchase stocks ,bonds and mutu
al funds through online platforms.

2.3 DEFINITION AND CONCEPT OF SERVICE

A service is any activity or benefit that one party can offer to another that is essentially
intangible and does not result in ownership of anything. Service might be any activity of benefits
performed by individuals and or organization where the object of marketing is an intangible
aimed at satisfying the needs and wants of customer and individual users without any acquisition
of physical good arising from the exchange transaction (lovelock 2004).

We define service as fallows, A service is any act or performance that one party can offer to
another party that is essentially intangible and does not result in the owner ship of anything .Its
production May or may not tie to a physical product .manufactures, distributes and retailers can
provide value added service or simply excellent customer service to differentiate themselves.
The government sectors with its courts, employment services, hospitals, loan agency, military
services and fire departments, postal services, regulatory agency and schools are the service
business. The private nonprofit sectors with its museums, charities, churches, colleges,
foundation and hospitals are service business. (Philip Kotler, 2006).

47
 The broad definition of service is one that defines service to include all economic
activities ,whose output is not physical product or constructions ,is generally consumed at the
time it produced and provides added value informs(such as convenience, museums ,timeliness,
comfort, or healthy) that are essentially intangible concern of its first purchaser. Service are
deeds, processes and performance. (Zeithmal and Bitner, service marketing 3rd edition)

2.3.1 NATURE AND CLASSIFICATION OF SERVICE

Service has four distinctive characteristics that greatly affect the design of marketing program.
This includes intangibility, inseparability, and variability and perishes ability

A. INTANGABILITY:
This is the most basic and often quoted difference between goods and services like tangible
goods service cannot generally be seen ,tasted, felt, heard and smelled before being consumed
potential customer is often unable perceive the service before(and sometimes during and after)
the service delivery. For many customers of a car repair ,for example the service is totally
intangible-they frequently cannot see what is being done and many are unable to evaluate what
has been done .Rush ton and arson asked a number of service organization weather they
concisely perceived a difference between the marketing of goods and services. Several
respondents pointed to the intangibility of their products with comment such as; we haven’t got
anything to show customers like a can of baked beans. (Kotler, 2006)

Resulting Marketing Implication

To help a customer picture a service prior to usage a service organization need to provide
something tangible .e.g. computerized presentation of hair styles.

B. INSEPAREBILITY (or simultaneous production and Consumption)

There is a marked distinction between physical goods and services in terms of the sequence of
production and consumption:

48
Physical goods Services
Production
Sold
↓ ↓
Storage

Produced and consumed at the same time

↓

Sold

↓
Consumed

Whereas goods are first produced, then stored and finally sold and consumed, services are first
sold, then produced and consumed simultaneously. For The production of many services, (e.g.
Counseling, museums, hairdressing, rail travel, hotels), the customer must be physically present.
Some services may be produced and delivered in circumstances where the customer’s presence is
optional, e.g. carpet cleaning, plumbing. Other services may rely more on written
communication, e.g. distance learning course, or on technology, e.g. home banking. Whatever
the nature and extent of contact, the potential for inseparability of production and consumption
remains. ( Kotler, 2006)

Implications
The involvement of the customer in the production and delivery of the service means that the
service provider must exercise care in what is being produced and how it is produced. The latter
task will be of particular significance. How teachers, doctors, bank tellers, lawyers, car
mechanics, hairdressers conduct themselves in the presence of the customer may determine the
likelihood of repeat business. Therefore, proper selection and training of customer contact
personnel is necessary to ensure the delivery of quality

C. VARIABILITY (HETROGENITY)

49
An avoidable consequence of simultaneous production and consumption is variability in
performance of service .the quality of service may vary depend on who provide it ,as well as
when and how it is provided .one hotel provide fast efficient service and on other ,a short
distance service away ,delivers a slow ,in efficient service .within a particular hotel one employ
is courteous and help full while another is arrogant and obstructive .even with one employee
there can be variations in performance over the course of the day.
Implications
Reducing variability involves determining the causes. It may be due to unsuitable personality
traits in an employee which are very difficult to detect at the selection stage. There is nothing
much that can be done about this except hope that the employee decides to terminate his/her
employment! However, there may be good sound reasons for variations in performance. For
example, it could be due to poor training and supervision, lack of communication and
information, and generally a lack of regular support. Some have argued for a replacement of
labor with automation and a production line approach to service operations. This would mean a
reduction in employee discretion and an increase in standardization of procedures.

D. PERISHABILITY
Service cannot be stored for later sales or use .Hotel rooms not occupied, airline seats not
purchased and college places not filled cannot be reclaimed. As a service are performances they
cannot be stored .If demand far exceed supply ,it cannot be meet as in manufacturing ,by taking
good from ware house .Equally ,if capacity far exceed demands the revenue and value of the
service is(Kotler ,2006)
Implications
Fluctuation in demand characterizes service organization and may pose problems where this
fluctuation is unpredictable

2.3.2 AUTOMATED TELLER MACHIN

Automated teller machine (ATM) has as major channel for routing banking services to customer.

50
The firms will be reap benefits such as cost saving, efficiency, greater customer involvement,
customer satisfaction and loyalty and improved financial performance. The ATM is an
innovative delivery mode that offers diversified financial service like cash withdrawal funds
transfer, cash deposit, payment of utility and credit cards bills checkbook request and other
financial enquires (Parasarum et al. 2005).

According to Khank, and Kucuckemiroglu (2010), define customer satisfaction as “Satisfaction

is the customer fulfillment response”, it is a judgment that a producer or service itself provides a
pleasurable level for of consumption related fulfillment.

According to khah(2011), ATM is the abbreviation of automated teller machine. Which act as a
teller in a bank who takes and give money the country, and it is the first well-known machine to
provide electronic access to customer. With the appearance of automated teller machine banks
are able to serve customer outside the banking hall because ATM are placed inside or nearer the
banks and also outside the banks such as shopping malls, restaurant air ports or any places that
people may gat

2.4 ATM SERVICE QUALITY

Organizations are aware that service quality provides strategic competitiveness and dynamic
business environment literature provide significant relationship between service quality and
firm’s performance based on improved productivity increased market share, enhanced customer
profitability. Research has found that services quality in banks is critical for satisfaction and
organizations sustainability the banks are pursuing multidimensional approaches to improvement
in services quality to attract and retain new man (2011) and lasser et al (2000).

2.5 DIMENSION OF ATM SERVICE QUALITY

According to Diligonas et al. (2009), the essential aspects of ATM service quality in Balletic
States. They identified essential resource (adequate member of ATM, convenient and secure
location and use friendly system, important dimension of operation of ATM maximum speed,

51
minimum , errors, high uptime ,cash buck up and valve based aspects (quality service at
reasonable cost and maximum offering to cover maximum needs of customers) as vital facts).

According to Al hawari et al(2006),compiled a list of five major items ATM service quality that
include convert and secured location functions of ATM adequate number of machine and user
friendliness of the system and procedures an empirical study found that the items constitute
important aspects of ATM service. The study found significant relationship of E-Banking service
quality with customer satisfaction the study identified that location, personal response, quality of
currency notes, promptness of card delivery and performance of Telephone banking,
online(internet) banking, mobile banking(M banking) and ATM are positively related to
customer satisfaction. but The security frequent breakdown of machine and insufficient number
of ATM is major contributors of customers’ dissatisfaction.

2.6 CUSTOMER SATISFACTION

Satisfactions are generally recognized as pleasurable out comes a desirable and state of
consumption or patronization. Price definition of satisfaction vary but common themes
emphasize that it is a customer judgment of the consumption experience formed through some
kind of psychological process that involves some form of what is expected with what received
similar customer may form satisfaction judgments about specific attributes of services eg,
responsiveness. The amount of information provided branch opening hours about the service
overall, different authors define customer satisfaction differently kottler define customer
satisfaction as follows. Satisfaction is personal feeling of pleasure or disappointment resulting
from comparing a product perceived performance or outcome of the product or service feature.

In conducting satisfaction studies, most firms would determine through some means (often focus
group) what the important features as well as overall service satisfaction (kottlerphiliph, 2005).

Customer satisfaction is defined as “the individual perception of the performance of the product
of service in relation to his or her expectations”(schiffman and karun, 2004).

2.7 CUSTOMER EMOTION

52
Customer emotions can also affect their perception of satisfaction with product and service.

This emotion can be stable, preexisting emotion for example mode state or life satisfaction.

2.7.1 ATTRIBUTION FOR SERVICE SUCCESSES OR FAILURE

Attribution is perceiving cause of events instance perception of satisfaction as well. when they
have been surprised, by an outcome , the service is either much better or worse than expected,
customer tend to look for the reason or their assessment of the reason can influence their
satisfaction.

2.7.2 PERCEPTION OF EQUITY OR FAIRNESS

Customers ask themselves have been treated compared with other customer. Did other customer
get better prices or better quality service? Did I play a fair for the service? Nations of fairness are
central to Customers perception of fairness are central to customer perception of satisfaction
with products or service(IBED).

2.7.3OTHERCUSTOMER, FAMILY MEMBERS AND COWORKERS

In addition to products and service features one’s own individual feelings and belief, customer
satisfaction often influenced by other people. Customer satisfaction has been a central concept in
marketing literature and is an important goal of all business activities. Today companies face the
toughest, which gives a company a better chance of outperforming competition.

Customer satisfaction translates to more profits for companies and many researchers and
academicians have highlighted markets share increase, the importance of customer. The principal
concern of marketing is to connect with customer by building a strong customer relationship in
order to meet their expectation. What is evident I most discussion of satisfaction or even delight
is that customer judgment have made by comparing the service that are experienced against some
pre-existing standard. One of the comments base for comparison is that of perception against
expectation, this is commonly referred to as the disconfirmation of expectations or a positive

53
disconfirmation (where performance exceeds expectations) would result in positive evaluation
usually satisfaction but perhaps also delight Christine T, Ennew and Nigel waite (2003).

2.7.4 WHAT DETERMINES CUSTOMER SATISFACTION

Product and service feature: - customer satisfaction with product or service is influence
significantly by the customer’s evaluation of a product of service feature, disappointment
resulting from comparing a product performance or outcome I relation to his or her expectation
josey and stone (2003).

According to Helens mark and albiinsson (2004), satisfaction is an overall customer attitude
towards a service provides, or an emotional reaction to the difference between what customer
anticipate and what they receive , regarding the fulfillment of some need, goal or desire, further
more researcher perceived service quality whereas, satisfaction is related to a specification
section.

2.8. CONSUMER EXPECTATION

Expectation play an important role in the satisfaction formation the extent to which a product
service fulfils a customer’s need and desire may play an important role in forming feeling of
satisfaction because of the impact of confirmation or disconfirmation that have on satisfaction.

Consumer expects to be delivery of quality products and service, there for companies try to offer
quality products and service. The term expectation really matters to companies because they
want to know what customer expectations are the term “expectations” has different uses in the
satisfaction literature, it is viewed as a production made by a consumer about what is likely to
happen during an exchange or transaction Dabholkar et al (2003).

2.9 DIAGRAM OF CONCEPTUAL FRAMEWORK

A conceptual framework is a set of concepts, ideas, and assumptions that form the basis
for understanding a particular phenomenon or problem. It provides a structure for
organizing and analyzing data, as well as a way to guide research and decision-making.
Conceptual model: A visual representation of how the key concepts and theories are
related to each other and how they contribute to understanding the research question.
The conceptual framework of the study is illustrated in the figure below based on
literature review with the visual representation of dependent and independent variables.
54
 Independent variable
Dependent variable
- Convenience
-Reliability
-Accuracy
-Responsive
-Security and Figure 2.1 conceptual framework
privacy
-privacy

CHAPTER THREE
RESEARCH METHDOLOGY

This part of the paper will presents the methodological considerations that will taking by
researchers, research design will be used by the study target population, sampling technique,
sampling size, source of data, data gathering tools and data analysis.

3.1 DESCRIPTION OF THE STUDY AREA

Bule Hora is a town in west-central Ethiopia. Located in the West Guji Zone of Oromia
Region, South of Addis Ababa located 475km, It has a latitude and longitude of 5°35′N
38°15′E and an altitude of 1716 meters above sea level. Bule Hora is known for its precious
mineral, good Coffe Arabic, Gold ore. Nearby attractions include (Gara Qanya, Gara
Basur, Bada Magada-dense natural forest; West Guji is known for its quality coffee,
livestock and minerals. There are 9 woreda and two towns under West Guji zone namely
Bule Hora and Kercha town and the following woredas:
1 Bule Hora woreda (surrounding woreda of Bule Hora town)
2 Dugda Dawa woreda, south of the zonal capital, 30 km from Bule Hora.
3 Malka Soda woreda- in east direction bordering East Guji zone and Arero woreda
E-Banking service on
of Borana zone Customer satisfaction
4 Kercha woreda

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 5 Hambala Wamana woreda
6 Birbirsa Kojowa woreda
7 Abaya woreda – in the north and west bordering SNNPR and Sidama Region
8 Galana woreda and Surro Barguda woreda - in the west bordering SNNPR
Initiated in 1916, this station hosts research in protecting major crops in Ethiopia. The
town's market day is Wednesday locally known as “Roobii Haadha nama” literally
translated as Wednesday the mother of man.

Figure 3.2. Map of study area (Bule Hora)

3.2 RESEARCH DESIGN AND STRATEGY

Research design is a plan of action adopt by research in carrying out the research. The researcher
would be use descriptive research design which involves gathering data that describe events and
the organize, tabulate and describe the data collection and presentation in the form of tabulation
and percentage .In addition to this research will cross (one time) research which is limit to a
single time periods.

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3.2.1 RESEARCH DESIGN
The researcher will tries to assess customer satisfaction in the case of cooperative bank of
Oromia bariso dukale branch. The study will conduct through descriptive research type. Because
of the descriptive research is description of the state of the nature of affairs as it exists present.

3.2.2 RESEARCH APPROACH

The researchers will use both quantitative and qualitative approaches in order to assess the
study. The researchers will use an inferential approach of quantitative approach to form a data
base from which inferred that the population has the same characteristics. Qualitative approach
will be used to assess the attitudes, opinions and behavior.

3.2.2 TARGET POPULATION OF THE STUDY

The target population of Cooperative bank of Oromia, Bariso dukale branch will be customers
and one branch manager. The researcher will be used the target respondents, customer and
manger of the organization.

The target population of the study will focus on the E-Banking service of customer satisfaction on ATM
users at cooperative bank of oromia in bariso dukale branch. The total target population are two thousand
five hundred twenty two customers.

3.2.3 SAMPLING TECHNIQUE

In order to select sampling technique the researcher will use convenience sampling technique for
customers to select sample members who can provide required information and who are more
available to participate in the study, census will use for employees; the reason of using census is
convenient to use and less time consuming and purposive sampling techniques use for manager

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because the researchers use his /her own judgment about respondent to choose and pick only
those who best meet the purposive of the study.

3.2.4 SAMPLE SIZE

The respondents that will use are customers, employees and manager of cooperative bank of
Oromia Bariso dukale branch. In order to undertake the study, the researchers will need adequate
number of sampling size to collect relevant information and to undertake the study efficient and
effectively .

3.3 SAMPLING TECHNIQUES AND SAMPLE SIZE

Gathering information from large population is very difficult because different constraints are
including time and cost. To save time and cost the researcher will be use sampling technique that
means taking a portion of the population which represent the total population as whole. For this
investigation specifically the researcher will use simple randam sampling technique because it is
impossible to contact ever one who may be sample. The total population of study in this research
has two thousand five hundred twenty two(2522) customer of cooperative bank of oromia in Bue
hora town, Bariso dukale branch on e-banking service specific to visa card users. Due to the fact
that, the number of population is large the researcher took 66 customers as a sample size to
conduct this study. the researcher Calculate by using Kothari (2004) formula
Z 2( p × q × N )
n= Where, n=sample size
e 2 ( N − 1 )+ Z 2× p × q

Z=level of confidence

P=success

(1 . 65)2(0 . 5 ×0 . 5× 2522)
n= ¿ ≈ 66q=failure
(0 . 1)2 ( 2522− 1 ) +(1.65)2× 0 .5 × 0 .5 ¿

e= merge of error

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 N= Total population

e=0.1
N=2522
p=0.5

q=0.5

n=66

3.4 TYPES AND SOURCE OF DATA

The study will use both primary and secondary data source, primer source of data obtain from
questionnaire from E-Banking service on ATM card user of the company. Secondary source of
data will obtained from different written material, book and internet. The questionnaires are
close ended and likert scale will use to show level of agreement, disagreement, satsfaction and
dissatisfaction.

3.5 METHODS OF DATA COIIECTION AND INSTRUMENT

The necessary data required for the study will be collected through close ended questionnair ;
inaddition to question company and other reference material and books.

3.6 DATA GATHERING TOOLS

The major tools used for data collection will be structure interview for the manager and
questioners for employees and customer, in order to obtain the required information from
primary source while secondary data obtained by referring internal documents reference
books.naire the researcher used interview .

3.7 METHOD OF DATA ANALAYSIS

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After the data will collect from the target groups (people) by using questionnaire and structured
interview methods. The researcher will analyze the data by using descriptive analysis including
editing and coding as necessary based on the descriptive analysis . Data that will obtain from
primary and secondary sources will be analyze. In relation to research questions and interviews
tables; percentage; are prepared, used to present and interpret data effectively and efficiently.
Data analysis will be analyze in detail by descriptive method of data analysis.

3.8 TIME SCHEDULING AND COST BUDGETING

3.8.1 TIME PLAN

1.The time allocation for each activity during the study period showed here.
No Activity December January February March April May
1 Title √
Selection
2 Literature √
searching

3 Finalizing √
proposal

4 Actual data √
collection
5 Data analysis √

7 Report writing √
8 Advisor √
contact
9 Final research √

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 Submission

3.8.2 BUDGET BREAKDOWN

2.Cost allocation for each activity and items

Stationary measurement Quantity Unit Total price

No Material unit price (birr)
(birr)
1 Paper page 10 15 150
2 Transportation round 2km 100 200
3 Printing page page 20 25 500
4 Pen birr 3 15 45
5 Internet Megabyte 360 20 20
6 Tea birr 30 10 300
7 Stapler birr 2 20 40

8 Mobile card birr 3 50 150

Total 1405

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 REFERENCE
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service of ATMs, specifcally, international journal of bank marketing, vol.107.

2. Diligonas et al (2009) ‘’Technology-based service deliver; A classification scheme for developing

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3. Routledge (2013), “what attract customer to online and what keeps them coming back”? Journal
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4. Dabholkar et al, (2003), understanding consumer motivation and behavior related to self scanning
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5. AI –Hawari et al,(2006). The effect of automated service quality on Australian banker’s service
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6. Khan A.M (2010), an empirical study of Automated Teller machine service quality and customer
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7. Gursay and swagger (2007), “ customer loyalty in e- commerce,” journal of the association for

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information system, vol.3NO2,pp27-57.

8. Governaris and Kotitos (2008), “ investigation the drivers of internet bankigadoption decision: a
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9. Taylor SA (2012), “an assessment of the relationship between E-banking service and customer
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