Business Journal

European Journal of Social Sciences – Volume 13, Number 3 (2010)

An Empirical Study of Automated Teller Machine Service Quality and Customer Satisfaction in Pakistani Banks

Muhammad Asif Khan Assistant Professor, Department of Business Administration Fatima Jinnah Women University, Rawalpindi, Pakistan E-mail: aghaasifkhan@hotmail.com Tel: +92-3005106218 Abstract The study investigates significant dimensions of ATM (automated teller machine) service quality and its effect on customer satisfaction. Questionnaire was used to collect the data from a convenience sample of 500 customers of multinational and national banks. Regression results indicate that convenience, efficient operation, security and privacy, reliability and responsiveness are significant dimensions of ATM service quality and that ATM service quality positively and significantly contributes toward customer satisfaction. The study makes a significant contribution to the quality management literature because few empirical studies are available dealing with this aspect of the banking sector in Pakistan.

Keywords: Automated teller machine; service quality; customer satisfaction; Pakistan; banking.

1. Introduction

The changing business environment offers challenges and opportunities to the organizations. The changing customers’ perception of quality poses unique challenge. Excellence in quality has become an imperative for organizational sustainability (Lewis et al., 1994). The developments of technologies have enabled organizations to provide superior services for customers’ satisfaction (Surjadjaja et al., 2003). The number of bank customers preferring to use self- service delivery systems is on the increase. This preference is attributed to increased autonomy in executing the transactions. Banks are increasing their technology-based service options to remain competitive. The ATM is an innovative service delivery mode that offers diversified financial services like cash withdrawal, funds...