WACHAMO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

ASSESSMENTS ON IMPACTS OF ATM ON CUSTOMER SERVICE DELIVERY (ACASE OF

OROMIA INTERNATIONAL BANK IN HOSSANA BRANCH)

SENIOR ESSAY SUBMITTED FOR PARTIAL FULFILLMENT OF BA DEGREE IN

MARKETING MANAGEMENT

PREPARED BY: BULTU ABARAYA

ADVISOR: MR DEGEFA

APRIL, 2024

WACHAMO, ETHIOPIA
DECLARATION

Letter of Approval

ASSESSMENTS ON IMPACT OF ATM ON CUSTOMER SERVICE DELIVERY IN CASE OF OROMIA

INTERNATIONAL BANK IN HOSSANA BRANCH.

Advisor Name Signature Date

Degefa

____________ ___________

Examiners Name Signature Date

1._______________________ ____________ ___________

2._______________________ ____________ ____________

Department Head’s Name Signature Date

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 ___________ ____________

State of declaration

This research paper was conducted by; Bultu Abaraya for the partial fulfillment of BA
degree in Marketing Management.

Researchers Name signature

1. Bultu Abaraya ________________

Acknowledgement
First of all, I would like to thank my God; he has helped me to pass the most difficult and challenging time of my
education life. Next, I would like to thank, my advisor Mr. DEGEFA, he was with me to providing his contribution

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with guiding, advising and giving critical comments and correction. Also, I would like to extend my grateful thank
to beloved family for their helps.

ABSTRACT

The study was designed to assess the impact of ATM on customer service delivery in case of
Oromia international bank in Hossana branch. The main objective of the study was to assess the

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impact of ATM on customer service delivery. The researcher observe that the organization face
problem of poor infrustructure, lack of maintenance and poor distributions of ATM. The data
was collected by using questionnaires through scientific formulas (yamane taro:1967) and it
used the convenience sampling techniques to address the customer. The customers and manager
of the bank were the primary source of the study. Secondary data also collected from different
books and internet. The methods for data analysis, the researcher used a descriptive method to
analyze the data collected from these 94 respondents. The data would be presented by using
tables, percentage and frequency. It includes summary of findings, conclussions and
recommendations

CHAPTER ONE

1. INTRODUCTION

1.1BACKGROUND OF THE STUDY

Like any other business organization the objective of the bank is to generate profit by
providing service to customers satisfaction is out come felt by buyer’s who are experienced

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accompany performance that had fulfilled expectation. Banks need to understand the
determinant of customer value and customer satisfaction to handle customer
appropriately. Customers are satisfied when their expectation are matches with the
performance of product or service ;therefore the bank must manage their value chins as
researcher would try to assess the whole value delivered system in customer centered way.
The service delivery process usually involves the customer in the production and which
have relatively direct contact so service providers have to be sure that they are providing
the right service at the right time for the right people with a right delivery system, most
banks including Oromia international bank have installed automated Teller machine
(ATM) and those have installed are in advance stage of incorporating the same, this can be
attributed to their conveyance, reliability and in line with today’s business (Zeittiational
and Blither, 1998)

Automated teller machine (ATM) is a computerized machine that permits bank customers
to gain access to their account with magnetically encoded plastic card and number it
enables the customers to perform several banking operation without the help of the teller
(griffin, 2002)
Technology is growing by rapid in to different direction thus the choice of automated teller
machine is dependable to growing with that is entertaining through times. Initially banks
that with automated teller machine (ATM), service were offering more of cash dispensing
service to the visa family making these ATM visa enabled and giving raise to the debit card
that operates, that you access your account in any location in the world as long as the point
of sale is visa enabled (Mugerwa,2002)

Customers have also complained of high transaction charges break down of ATMS and
done of services unreliability ATM , complexity of technology as most ATM have reduce on
the rate of staff , cards are being frozen and frauds which have caused insecurity among
customers , banks and customers who would have want to inquire about something more
dissatisfied, customers are flexible float whereby once aback takes them to ascertain level
they would be more classified than they were before changing the system( Kotler, 2001).

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1.2 BACKGROUND OF THE ORGANIZATION
Oromia International Bank S.C began operation on October 25, 2008 with a starting

Capital of 110 million Birr (Br), surpassing the minimum capital requirement by 35

Million Br. With its headquarters located inside Dembel City Center, on Africa Avenue

(Bole Road).

Established with the commercial banking business objectives, OIB is undertaking a

universal commercial banking services such as deposit mobilization, lending of money,
Remittance service, and international banking services and interest free banking. The Bank
has now launched Electronic banking outputs such as Card banking known as Oro-Card
(ATM and POS), Mobile banking named as Oro-Cash, Agent Banking-Oro Agent and Internet
banking namely Oro-Click. The number of OIB branches is now Reached 225 throughout
Ethiopia all connected by core banking system. Oromia International Bank owns a 13
storey building Headquarters in Addis Ababa City on Bole road next to Getu Commercial
Center. The Bank is now one of the most influential and popular Private Banks in Ethiopia
and also known for pioneering Interest free banking services.

1.3 STATEMENT OF PROBLEM

In recent decades, investment in IT by commercial banks has served to streamline
operations, improve competitiveness, and increase the variety and quality of services
provided. According to (Yasuharu, 2003), implementation of information technology and
communication networking has brought revolution in the functioning of the banks and the
financial institutions. It is argued that dramatic structural changes are in store for financial
services industry as a result of the Internet revolution; others see a continuation of trends
already under way.

The Ethiopian banking is still underdeveloped compared to the rest of world. Banking in
Ethiopia faces numerous challenges to fully adopt ATM or E-banking applications and seize
the opportunities. key challenges are Long time of waiting ,Low level of internet
penetration and poor development of infrastructure, illiteracy and frequent power

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interruption( sources; journal of internet banking and E-commerce, Gardachew worku,
2012).the researcher observe these problems, lack of maintenance, poor infrastructure and

Poor distributions of ATM's. So researchers motivated to assess the impact of these

problems to ATM on customer service delivery in case of Oromia international bank to
addresses the following questions;

Basic research question:

1. What are the main challenge involved in the use and operation of ATM?
2. What is the level of customer satisfaction regarding to ATM service?
3. What is customer’s perception towards ATM location?
4. What is the factor influencing to use of ATM?

1.4. Objective of the study

1.4.1. General objective of the study

The general objective of the study was assessing impact of ATM on customers service
deliver in case of Oromia international bank in Hossana branch.

1.4.2 SECIFIC OBJECTIVES

Specific objectives of the study would be

 To identify the challenges involved in the use and operation of ATM

 To determine the level of customer satisfaction regarding ATM service.
 To establish customers perception of ATM location and it is effect on usage

 To identify the influencing factor customer to use ATM.

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1.5 SIGNIFICANCE OF THE STUDY
The study may help the management and other stakeholders of Oromia international bank
to understand how best they were ATM services to meet needs of customers. The findings
of the study may help the management of the bank to streamline efforts aimed at ensuring
maximum utilization of newly adopted technologies so as to achieve high level of
operational efficiency , the findings may serve as precursor for the financial institutions
that have not yet automated their banking activities to consider doing so . The study also
helps the researchers to acquire knowledge of carrying out research; other researcher used
the study for reference and policy makers for decision making.

1.6 SCOPE OF THE STUDY

The study was about assessing impact of ATM on customer service delivery in case of
Oromia international bank in Hossana branch. The researchers were used descriptive
research design to describe the impact of ATM on customer service delivery on the bank.

1.7. Limitation of the Study

Initially, the researcher had been hoped that this paper was conducted fully and
successfully. But, it could be difficult to do so. Because of the following limitations:

 Shortage of reference books and other reading materials related to ATM.

 Time and budget constraint.

1.8 ORGANIZATION OF PAPER

The study consists of five chapters. It starts with an introductory part:-background,
statement of the problem, research question, objectives of the study, significance of the
study, scope and limitation of study and organization of the study. The second part of the
paper deals with the review literature. The third chapter deals with research methodology.
The fourth chapter provides study results and discussions and the last part of the paper
present summary of findings, conclusion and recommendation of the study

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 CHAPTER TWO

REVIEW OF RELATED LITRATURE

2.1 INTRODCTION
This section presents a review of a related literature on the research topic.

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2.2. Concepts of definition and description

2.2.1 Definition of ATM

Automated teller machine (ATM) is a product of technological development developed to
enhance quick service delivery as well as diversified financial services such as payment for
utilities, cash deposits, with drawls, fund transfer, transaction and other financial enquires,
all financial institutions are using this method or system aggressively encouraging all their
customers to take advantage of these service on the grounds of ease process but un
announced generation to the bank. Automated teller machine is the first well known
machines to provide electronic access to customers with the advent of ATM banks are able
to serve customers outside the banking hall operations without the help of a teller
(Gametes, 2001).

2.3 profile of ATM

ATM is an abbreviation of "automated teller machine" it’s a anatine used by the banks all
over the world, this machine allows the account holders to have transactions with their
own account without allowing them to access the entire banks have an account by paying
some changes. Services offered by banks through ATM .The following services are provided
by banks through ATM

 Cash withdrawals and balance equity

 Cash / cheese deposits
 Bill payments
 Money transfer
 Mobile recharges

The concept of ATM has been aid and has been developing throughout the world; the ATM
is an innovative services delivery made that offers diversities financial services like cash
withdrawal. Funds transfer cash deposit, payment and credit eared bills, cheese book
requests and other financial inquires than Rose (1999) described ATM as follows an ATM
combines a computer terminals reword keeping system and cash vault in one unit,
permitting customers to enter the banks record keeping system with a plastic card
containing personal identification number (PIN) or by punching a specific Code in to the
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computer terminal linked to banks computerized reword 24 hours a day. Accustoms can
access on ATM machine by using an ATM card. An ATM cord is a plastic cord that t allows
the bank account holder to do the something at on ATM as he/she would do at bank
(waters, 1994)

2.4 Usage of ATM

The customer of card holder is identified by inserting aplitic mask card with that contains
unique number and security information such as export date keep customer are quartered
with seventy of having perennial identification number that makes them have access to
their account (kateeba,1999) ATM enable accustomed to perform agues range, of bank
Transactions like cash withdraws cash and cheese deposits, but payment, fund Transfer,
loading and balance chess Morgan (1999) Steve (2002) observes that ATM are pawed not
only inside or near the premiers of the bank but out in locations such as shopping
means .Airports , primary store, gas situation or any places where large number of people
may benefit by using ATM.

2.5 Benefits customers derive from ATM s

Before ATM is placed in public place, it typically undergoes extensive testing with both test
money and the back-end computer system that allows it to perform transactions.

Time

ATM s save time since there is no need to come to bank and wait in a queue or fill in some
paper first every time one wants to transact (Marshall, 1993). ATMS are faster than human
tellers in processing transactions due to the automation function

Convenience

The introduction of ATM s had made it easier for customers to withdraw or deposit money
at any particular time location. (Goode 1995) adds that customer needs for convenience
are increasingly catered for by the establishment of ATM s. They can be accessed 24 hours
a day every day of the week. ATM s are also placed in places away from banking halls and
near to people work places and residences thus further increasing the convenience to
transact.
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Accuracy

Thornton et al (2001) argues that nobody likes to do with an organization which cannot
keep an accurate track for what is going on particularly where money is concerned, as it
was also agreed by Lewis (1998) that ATM s have a well-deserved reputation in this aspect
of the organization.

Acceptability

ATM s are another way banks are making their services acceptable to their customer
(pezzullo, 1993). Customers can bank at their own schedule due to wide ATM network.

2.6 Challenges of ATM

Technology in Africa in particular Ethiopia is new and many bank customers are not well
conversant with this technology. Mugeume (2002) observes that the third world nations
are many years behind development He notes that ATMs and credit cards were introduced
in the western world in 1970 but have just been introduced.

Although banks have tried to secure transactions made through ATM s. Mukasa (2003)
observes that one of the biggest concerns about ATM is security; He says that this threat is
both to the customer and the bank itself. Customer need to be sure that their passwords are
secure so that their information and translations are safes development of secure control
is a big challenge for the service provider, ATM s are placed in public places and have COTV
cameras and if somewhere insecure there is always a guard (WWW. Uganda online, com)
this site continues to point out that some a guard have abused this duty and have
participated in robberies of customers.

a. Attributes of service Quality

Quality is the degree to which performance of a product or services meets or exceeds

customer satisfaction.

Tangibles: - the physical appearance of facilities equipment personal and communication

materials

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Convenience - the availability and accessibility of services

Reliability:-ability to perform service dependably, consistently and accurately.

Responsiveness: - the willingness of service providers to help customers in unusual

situations and to deal with problems.

Assurance: -the knowledge exhibited by personnel who come in to contact with customer
and the ability to convey trust and confidence.

Courtesy:-the way customers are treated by employs who come in contact with them.
Source (operations management text book)

2.8 Customer satisfaction

This refers to the evaluation of a product or service in term of weather the product or
service has meet the customer’s needs and expectation Fowler to meet their need and
expectation is assumed to result in dissatisfaction with the product to services
(Zeittiational and Blither, 1998) Kotler (2001) observes that customer satisfaction depends
on a products proved performance in delivering value reactive to bursts expectations. It the
product performance falls short of customer expectations the buyer is dissatisfied
outstanding marketing compacts go out of their way to keep their customer satisfied they
know that satisfied customers make repeat purchase and they fell others about their food
expedience with the product.

Bcunywa (1992) states that to find out whether you are giving better service ask ,the
customer the early computers were slow compared to those of present this has enabled
banks to handle increased number of customer and chaperoning find in information
technology this has changed the cattier of banking to automation. According to protest
(1995) customer satisfaction is repletion of organizational competency or capability in the
delivery of service to the customer.

2.9 Automated teller machines and customer satisfaction

The marketing literature clears that customer satisfaction is measured via service quality.
Service quality is measured by various measurement tools developed by various

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researchers and marketing consultancy organizations, SERVQUAL, SERVPERF, etc. A
number of studies specifically address the role of satisfaction in service context. The review
of literature suggests that most of the studies has been done on issues related to internet
banking in countries like USA,UK, MALAYSIA, SINGAPOR, FINLAND ,AUSTRALIA (sathye
1999 ) (mukti 2000) ( wanget.al 2003) (Gerard and Cunningham 2006). However, not
sufficient study has been done in Ethiopia with customer satisfaction on ATM issues.

Nkisang (1998) observes that ATM s have reduced variability of banking services in that
they have made the services standard and customer now spend little time to carry out
their Transactions , he also says that the Bigger baneful that ATM s have provided is that
cash can be withdrawn 24 hours a day.

A number of scholars such as humble and Boorish who have researched on this area of
ATM contribution to customer satisfaction have realized that hot all customers will gain
the same satisfaction been use of regardful tests and preferences.

Nyaruma (1999) observes that ATM s have improved speed. Accuracy efficiency and has
increased the capacity of banks of handing large volume of work in the study he says that
even though computers have enhanced efficiency and capacity of handing large volume of
work, at times this has been affected by the breakdown of the systems thus the activities
come to an and as customer postpones their business to the next day making matters of
compaction worse.

Nagumya (2003) notes that ATM s culled fact to provide a service of the card is fallacy been
use these machines are so sensitizer he further says that the customs will than move from
one to a customer being demoralized or dissatisfied.

Service quality and customer satisfaction

Service quality is an important construct in the study of customer Satisfaction. It refers to

the consumers of product or service it is generally understood however that quality implies
the totality of futures and characteristics of product or service that bears its ability to
satisfy implied or satisfied needs of customers .Lewis and booms (1983) defined service
quality as measure of how well a service delivered matches customers’
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expectations .definition that has been used by other that include Lewis and Mitchell
( 1990) and asuboronteg et al ( 1996) robin son( 1999 ) defines service quality as an
attitude of global judgment about superiority of a service where asgronroos (1990 ) define
service quality as an outcome of comparison that customers make between their
expectations about a service and their perceptions of the manner in which the service has
been performed.

Advantages of using ATM cards

An ATM card connects directly with your bank account to give you access to your account
through an automated teller machine. With the card you can make deposits or withdrawals.

 ATM provides 24 hours service ATM provides round the clock the customer can
access withdraw cash up to certain limit during any time of the day or night.
 ATM gives convenience to banks customers, now a day’s ATM are located at
convenience place such as air ports rail way stations etc. And not necessary at the
banks premises.
 ATM s provide services without any error.
The customers can obtain exact amount since there is no human errors far as ATM
are concerned.
ATM reduces the work load of banks staff. ATM reduces the work pressure of banks staff
and avoids in the bank premises’.

 Tams are very beneficial for travelers.

ATM’s great help to travelers they need not carry large amount of money with them.
They can withdraw cash from any city or state across the country and even from
outside the country with the help of an ATM
Disadvantages of using ATM cards

 Spending discipline: with an ATM card you have access to the funds in your accounts
from many convenient locations without an ATM card you have limitations of
planning your expenditures by withdrawing money from your savings.
 Security and safety

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 Using an ATM could place you at risk for robbery after withdrawing money from the
machine.
 Pin relocation
To use your ATM securely you need to memorize pin .if you forget your pin you will never
not be able to use an ATM to make withdrawals or deposits in to your account.

 Fees can break you

Many banks have a fee structure in place for customers who use the convenience of
ATM.

 Fraud

Criminals can fit skimming devices and small cameras to ATMs these machines
record account details and the personnel identification numbers which the crook
uses to withdraw money from those accounts.

2.10 Empirical framework

A. Distinction between Service quality and Customer satisfaction

The literature on services has made a distinction between service quality and customer
satisfaction (Bitner, 1990; Bolton & Drew, 1991; Parasuraman et al., 1988 as cited in Harr,
2008). This differentiation is important for firms to concentrate on enhancing their
capability to satisfy customers through providing high service quality.

The position of scholars characterized by Parasuraman et al., (1988), is that “service

quality involves an attitude and is an evaluation over several service encounters over time”.
It is also “thought to be an overall assessment about a service category or an organization”
(Parasuraman et al., 1988). “In support of this, respondents in Parasuraman et al., (1988)’s
study demonstrated satisfaction with specific service encounters but were not happy with
the service quality of the firm.” Conversely, recent thoughts on customer satisfaction is
summarized in the following definition of satisfaction by Oliver (1981) as “a psychological
state resulting when the emotion surrounding dis-confirmed expectations is coupled with
the consumer’s prior feelings about the consumption experience”. Moreover, Oliver (1981)
distinguished customer satisfaction from service quality in his definition of attitude as “the
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consumer’s relatively enduring effective orientation for a product, store, or process while
satisfaction is the emotional reaction following a dis-confirmation experience which acts on
the base attitude level and is consumption-specific” (Oliver, 1981, p. 42). Therefore, service
quality is “more stable and is situation ally oriented” (Oliver, 1981, p. 42).The two
constructs are related in that service encounters of customer satisfaction over time result
in perceptions of service quality (Oliver, 1981; Parasuraman et al., 1988).

There is also a lot of argument regarding whether customer satisfaction is the antecedent
of service quality or the outcome of service quality. “Initially, scholars take the position that
satisfaction is an antecedent of service quality since to reach an overall attitude (service
quality) implies an accumulation of satisfactory encounters” (Bitner, 1990; Bolton & Drew,
1991). However, other scholars take the opposite view that service quality is the
antecedent of customer satisfaction (Cronin & Taylor, 1992; Ekinci, 2004; Rust & Oliver,
1994; Swan & Bowers, 1998). Empirical research by Cronin & Taylor (1992) “showed that
service quality has a significant effect on customer satisfaction.” Similarly, recent studies by
(González& Brea, 2005; &Ekinci 2004) using recursive structural models provided
empirical support that service quality results in customer satisfaction. According to
Zeithaml et al., (2006), customer satisfaction “is a broader concept than service quality
which focuses specifically on dimensions of service”.

B. Relation between service quality and customer satisfaction

Private Banks dealing in retail ATM Industry is consequently put into lot of pressures due
towards increase in global competition. Different strategies are formulated to satisfy and
retain the customer and the key of it is to increase the service quality level. Typically,
customers perceive very little difference in the banking products offered by private banks
dealing in services as any new offering is quickly matched by competitors. Parasuraman et
al (1985) and Zeithaml et al (1990) noted that the key strategy for the success and survival
of any business institution is the deliverance of quality services to customers. The quality of
services offered will determine customer satisfaction and attitudinal loyalty (Ravichandran
et al. 2010). Parasuraman, A., zeithmai, V.A., &Berry, L.L. (1988) found that the
performance of the service provider on ATM and relational dimensions of services was an

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important driver for customer satisfaction in retail banking. According to S.SIVESAN 2012,
there is positive linear relationship between the service quality and customer satisfaction.

CHAPTER THREE

METHODOLOGY
3.1Research design
The purpose of the study was to identify the impact of ATM on customer service delivery in
case of Oromia international bank In Hossana branch. In this study descriptive method
applied for analysis that impact of ATM on customer service delivery in which leads the
organization to satisfy customer. The researchers used descriptive research design because
it is better to describe the impact of ATM on customer service delivery in case of Oromia
international bank in Hossana branch.

3.2 TYPES AND SOURCE OF DATA

The researchers was used both primary and secondary data type for the completion of the
study. Primary data were collected from customer and manager of Oromia international
bank in Hossana branch. Secondary data were collected from books, report and etc.

3.3 TARGET POPULATION

The target population of the study was customers’ of Oromia international bank who was
ATM card holders and manager.

3.4 SAMPLE SIZE

The respondents that used are customers and manager of Oromia international bank, ln
Hossana branch. In order to undertake the study the researchers need adequate number of
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sampling size to collect relevant information and to undertake the study efficient and
effectively. So as to conduct the researchers select total population of current ATM holders
customer convenience selects 94 out of 1578 current ATM holder customers by using
scientific formula for customers.

n=N /1+ N (e )2 Where=total population

1578
N= +1578 ( 0.1 ) 2=94 n=Sample ¿ ¿
1

e=error terms

Source: Yamane formula (1967)

3.5. SAMPLING TECHNIQUE

In order to select sample technique the researchers is used convenience sampling

technique for customer to select sample members who can meet practical criteria,
such as easy accessibility ,availability at given time or willingness to participate are
the main reason researchers select convenience sampling and purposively select the
manager.

3.6. METHODS OF DATA COLLECTION

To conduct the study primary collection method was used, questionnaires (open ended and
closed ended questionnaires) would distribute for respondents and from interviewing
manager.

3.7. METHODS OF DATA ANALAYSIS

After the data were collected it would be processed on the activity which in value, editing
and classifying data to make it suitable for further analysis, the data collected would be
present by using table, percentage, frequency …etc.

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 CHAPTER FOUR

DATA ANALYSIS, PRESENTATION AND ENTERPRETATION

This part of the study was presents and analysis that the finding concerning assessing
impact of ATM service delivery. The data were collected through questionnaire. A total of
60 questionnaires were distributed to the respondent and returned to researcher for the
study. From those respondents some are not respond open ended questionnaire, because
of carelessness to give attention and lack of enough time of the respondents, the data is
presented in the table below

4.1. Demographic characteristics of the respondents

4.1Gender of respondent

In order to determine which gender of customer’s is majority of ATM uses the respondents
were asked to state their gender.

Table 4.1 shows the gender of respondents

Gender Frequency Percentage

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 Male 53 56.38%
Female 41 43.62%
Total 94 100%
Source: primary data, April,2024

The above table indicates that out of the total respondents, 53(56.38%) of the respondents
were male and the remaining, 41(43.62%) of respondents were female. From the study
findings the majority of respondents were male and this can be attributed to the fact that
the population of males uses ATM more than female.

4.2 Age of respondents

Table4.2.showing the age of respondent

Age Frequency Percentage

20-25 17 18.08%
26-31 57 60.63%
32-40 12 12.76%
Above 41 8 8.53%
Total 94 100%
Source; Primary data, April,2024

The above table shows that, 17(18.08%) of respondents belongs to 20-25 age group,
57(60.63%) belongs to 26-31 age group and 12(12.76%) belongs to 32-40 age group. As
shown in the above table the majority of respondent belongs to age group of 26-31 years.
From these the researcher concludes that Oromia international banks ATM users were
dominated by customers whose age belongs between the ages of 26-31 only few users
were above41. Based on this data between ages 26-31 years take the majority of
population.

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4.3. Level of education of respondent

To determine the level of understand-ability of technology of ATM respondents were asked

to state the level of education they have attained.

Table 4.3.showing the level of education of respondents

Level education Frequency Percentage

Primary - -
Secondary - -
Diploma - -
Degree 86 91.49%
Above 8 8.51%
Total 94 100%
Source: primary data, April,2024

The above table shows that 86(91.49%) of respondents are at the degree and 8(8.51)
above degree level. Based on this the majority of the bank respondents are hold degree in
educational level.

4.4. Marital status of respondents

In order to determine the level of responsibility the customer has the respondents were
asked to state their marital status. This is because married peoples are presumed to be
having more responsibilities that service and hence there use ATM service more than
single.

Table 4.4. Shows marital status of respondents

Marital status Frequency Percentage

Married 30 31.92%
Unmarried 64 68.08%
Total 94 100%
Source: primary data, April,2024
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The above table shows that, 64 (68.08%) of respondents were unmarried and the
remaining 30(31.91%) were married. This table indicates that Oromia international bank
ATM users are highly dominated by unmarried customers.

Basic information that addresses the objective of the study.

4.5 distributions of numbers of years of ATM usage

Table4.5. Distribution of number of years of ATM usage

Years Frequency Percentage

Less than a year 28 29.79%
1-2 39 41.49%
3-4 17 18.08%
Above 4 10 10.63%
Total 94 100%
Source: primary data, April,2024

The above results show that most (41.49) of customers have used ATM for minimum 1 year
and maximum 2 years. (29.79) have used ATM for less than a year. (16.67) have used ATM
at least 3 years and utmost 4 years. However (18.08) have used the ATM 5 years and over.
The survey implies that ATM usage is gradually increased from time to time.

4.6. Influencing factors on customer to use of ATM

This section gives information that what factors influence the respondents to use the ATM
card.

Table 4.6 influencing factor to use the ATM card.

Factors Frequency Percentage

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 Time 47 50%
Holidays 14 14.89%
Weekends 8 8.52%
Emergence 21 22.34%
Other 4 4.25%
Total 94 100%
Source; primary data, April,2024

Majority (50%) of respondents states that they are using a bank card because of time. This
followed by the customers those use ATM because of ATM enable them to make transaction
easily at emergency time (22.34%).4(4.25%) of respondents has bank card due to the
reasons other than stated few. (14.89. %) of respondents using the bank card because it
enables them to use on holiday. (8.52%) of our respondents influenced because ATM
enable them to made transaction at weekends or when service the bank is off. The table 4.6
implies that most of the customer use ATM because of ATM saves their time.

4.7. Customer’s attitude toward ATM location

Table 4.7 respondent’s attitude toward ATM location.

Strongl No Disagre No Neutra No Agree No Strongl No Tota

y e l y agree l
disagre
e
ATM is - - - - 24.48 23 60.63 57 14.89% 14 100
located in % % %
secured
area.
ATM is 31.93% 30 36.17% 34 21.27 20 10.65 10 - - 100
existed in % % %
accessible

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 area
Source; primary data, April,2024

The above table asked respondents about either ATM, item no1, ATM is located in secured
area. 0(0%) respondents are strongly disagree, 0(0%) respondents are disagree,
23(24.48%) respondents are no idea about the issues, 57(60.63%) respondents are agree,
14(14.89%) respondents are strongly agree. The table 4.7 implies that ATM machine is
located in secured location (area). Itemno2, from the above table ask respondents whether
the ATM is located in easily accessible place 30(31.93%) respondents are strongly
disagree, 34(36.17%) respondents are disagree, 20(21.24%) respondents are neutral or
they have no idea, 10(10.63%) respondents are agree, 0(0%) respondents are strongly
agree. The table 4.7 indicates that the ATM machine were not located at accessible area.

4.8. Challenges faced by ATM users

Table 4.8 challenges faced by ATM users

Challenges Frequency Percentage

Account being debited 81 86.17%
without dispensing
ATM being sited on
obscured area
ATM not dispensing the 9 9.57%
denomination you require
Being unable to use the ATM 4 4.25%
effectively
Total 94 100%
Source: Survey Data, April,2024

Observations from Table indicates that, the main challenges faced by users of ATM are;
accounts being debited without dispensing and ATM not dispensing the denomination they
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require.(86.17) of respondents stated that ‘Accounts being debited without dispensing’ is a
challenge. This is because it takes between 24 hours to 72 hours to reimburse customers
with their money when this incidence occurs on their local ATM’ and up to about 15
working days to reimburse funds not dispensed on other banks ATM platforms.

The money denomination required by customers at the ATM is another factor that banks
must deal with expeditiously. Whilst some customers would want to with draw cash from
their accounts to the last Birr and as such may wish to have the ATM stocked with cash of
the lower denomination, others who may fall within the high net worth category of the
bank will also wish the banks to stock their ATM with cash of highest denomination so that
they do not bear the risk of carrying large sums of money around.

4.9. ANALYSIS OF CUSTOMER SATISFACTION REGARDING THE USAGE OF ATM

This part analyses the satisfaction levels of customers regarding the use of the ATM service
taking into considering service quality. The various quality dimensions were employed in
order to understand customers’ levels of satisfaction and how it affects their choice of
usage of the ATM service. The quality dimension that were used include tangibility,
reliability, responsiveness, and convenience were analyzed. Customer also answered
questions on the contribution of the ATM to the success of the banks.

The levels of customer satisfaction regards to ATM

Table 4.9 respondent’s satisfaction regarding the ATM usage

Strongl N Disagre N Neutr N Agree N Strong N Tota

y o e o al o o ly o l
Disagre agree
e
Tangibility
ATM of the 25.59% 25 58.51% 55 14.89 14 - - - - 100
bank enable % %
to speed up
service
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delivery
The number 21.27% 20 50% 47 28.72 27 - - - - 100
of ATM is % %
sufficient to
provide
service
Convenience
ATM of the - - - - - - 62.76 59 37.23 35 100
bank has an % % %
appropriate
language for
non English
user
Reliability
ATM of the 42.55% 40 57.44% 54 - - - - - - 100
bank simplify %
the service
usage
ATM of the 26.59% 25 46.80% 44 7.44 7 19.14 18 - - 100
enable the % % %
customer to
have accurate
transaction
Responsivene
ss
Employees of - - - - - - 78.72 74 21.27 20 100
the bank have % % %
the
willingness to
help you
when ATM is
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 out of
services
The bank is - - 21.27% 20 - - 54.44 54 21.25 20 100
properly % % %
handle your
requests
Source; primary data, April,2024

Item in table 4.10 are forwarded to assess contribution of ATM of the bank on service
quality

Item no1 ATM of the bank enable to speed up service delivery 14(14.89%) of respondent
no idea about the issue. 55(58.51%) of respondents disagree and 25(26.59%) of
respondents are strongly disagree. this indicates that the ATM of the bank cannot to speed
up service delivery and customers of the bank also not satisfied.

Item no 2 of the above table asked the number of ATM is sufficient to provided service
20(21.27%) of respondents strongly disagree 47(50%) of respondents was disagree and
the remaining 27(28.72) of respondents was neutral. this table implies that the customers
of the bank was not satisfied with the number of ATM but interview from the manager of
the bank show that there is no lack of ATM to provide service.

Item no 3 ATM of the bank has inappropriate language for non English users (0%) of
respondents are disagree (0%) of respondents natural 59(62.76) of respondents was agree
and 35(37.23) of our respondents was strongly agree this show that customers of the bank
are happy for example ATM of Oromia international bank use different languages in
addition to English language like Afaan Oromo.

Item no 4 of the above table asked is it ATM of the bank simplify service usage no one of
our respondents say agree or neutral all of them response negative towards this question
54(57.44%) of respondents disagree and the remaining 40(42.55%) of respondents are
strongly disagree this show us customers of the bank are not satisfied.

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Item no 5 ATM of the bank enable the customer to have accurate transaction 18(19.14%) of
respondents are agree 7(7.44) of respondents are no idea about the issue 44(46.80%) of
respondents are disagree and the remaining 25(26.59%) of respondents are strongly
disagree from this the researchers are understand that the ATM of the bank unable the
customers to have accurate transaction and customers of the bank also not satisfied.

Item no 6 of the above table asked that employees of the bank have willingness to help you
during ATM is out of service 74(78.72) of respondents are agree and the remaining
20(21.27) of respondents are strongly agree no one of respondents say strongly disagree,
disagree or neutral from this the researchers understand that the customers of the bank
are satisfied.

Item no 7 the bank is properly handle your request 20(21.27) of respondents are disagree
54(57.44) of respondents agree and the remaining 20 (21.27) of respondents are strongly
agree from this the researchers understand the customers of the bank was happy by the
way their bank handle their request.

CHAPTER FIVE

SUMMARY OF FINDING, CONCLUSSION & RECOMMENDATION

5.1. Summary of finding

Findings on convenience of ATM service, the levels of customer’s satisfaction,

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This research has been conducted to analyze the impact of the ATM on customer service
delivering in case of Oromia international bank in Hossana branch. Survey method was
employed to collect data from 94 respondents using questionnaires.

 The response of respondents’ demographic depicts that majority of customers are

male amounting 53(56.38%), the respondent mainly living in arrange of age
between 26-31 years indicating 57(60.63%) and academically 86(91.49%) of the
respondents are degree holders and majority of 64 (68.08%) respondents are
unmarried.
 As customers replied majority of them showing 39(41.49%) of customers using
ATM for 1-2 years.
 As Customer replied majority of respondents 71(74%) said that the ATM is
located in secured location
 As respondents shows majority of (85%) says the ATM of doesn't enable
to speed up the service delivery
 majority of 70(71.27%)respondents said that number of the ATM are not
sufficient to provide the services
 respondents shows the bank’s ATM provide another language in
addition to English
 All respondents say that the ATM of the bank doesn't simplify the
service usage and
 The majority of them 69(73.39%) the ATM doesn't provide accurate transaction
and majority of respondents responded that the willingness of employees to help
customer was good and majority of respondents 74 (78.71%) said that the
banks request handling was good.
 The large percentage or majority of respondent says that the location of an ATM is
not at accessible area to use.

 factors influencing customers to use ATM also identified by this study half of
Respondents(50%) stated that they use ATM because of the speed of ATM or ATM
enable them to make transaction with in short period of time.

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 The challenges customers are faced with ATM on usage, accounts being debited
without dispensing” being ranked first with an 86.67% of total respondents.

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5.2 Conclusion
 As respondents revealed male are dominant user and the females
participate fewer and the users are mainly young between 26 - 31 age and
they are largely degree holder as well as unmarried (single).

 The finding reveals majority respondents using the ATM for minimum
one year and maximum two and this shows that ATM usage is gradually
increased from time to time.
 There is no sufficient number of ATM to provide service from the bank and
ATM doesn't enable the service usage and simplify the service
 The ATM is not accessibly located for customers; it located only
around the stations of banks branch office.
 The respondents used the ATM because it saves time and it helps
them to use at emergency time quickly.
 The ATM of the bank is located in secured area.
 The employees of the help the customer when ATM is out of the
service
 The ATM of the bank are not providing accurate transaction customer,
faced with error of balance
 The ATM machine provides additional languages to serve customer
 The management of the banks request / complain handling was good.

 The customers of the bank’s ATM faced with challenges such as

account being debited without dispensing and the bank to solve
this it takes three days to fifteen days because of activity of
balance adjustment are national banks responsibility.

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5.3. Recommendations

 As respondents revealed male are dominant user as result of this the bank
better to encourage the females participate
 To easily accessible for ATM user the bank better to located ATM service in
different area like hotels, around hospitals, bus station and etc.
 To increase the user/customer that better to make advertisement
through different promotion tools.

 To improve the challenges face customers when use ATM, it is better if the
bank management take immediate action to address them before lose them to
the competitors

 As a result of the number of ATM not sufficient to provide service, the bank
better to supply additional Automation teller machines (ATM's).
 To enable the ATM to make service simplify the bank better to
increase ATM in number
 It is batter to prepare additional window service for the customers by using visa
card without saving book when ATM is out of service

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 Reference

Christopher H.Love Lock (2004) service marketing, 5th edition prentice hall Englewood cliff New jersy.

G.Armstrong(2005),principle of marketing 11th ed,Prentice-Hall ofnindia private limited New

Delhi-110001.

Hongse and goy year (2004) causual model of customer loyality profession serves firm

Johns N(1999) what is the thing called service quality

Morgan>R.M and Hunt S.D (2000).The commitment-trust theory of relation ship journal marketing vol

Philip kotler gray 8th edition parent hal of India 1996

Philip Kottler andk.kevein (2006). Marketing Management 12th edition, practice, hill New Delhi India

Philip.Kotler, (1997), Marketing Management, Planning, Implementation, and Control, 9th edition.

Page | 35
Z.vararie.A and M.J.Bitner(2003)service marketing. Integrating, customer focus the firm 3 th
edition ,Tata Mc Graw -hill ,New Delhi India www.nationalbankofethiopia.gov.et.net.

Yamane formula:1967

Jornal of e-banking and e-commerce; Gardachew worku (2012) Gonder university

APPENDEX

RESEARCH QUESTION

Dear Respondents:-

The objective of this questionnaire is to collect necessary data to carry out the

Page | 36
Research on assessing impact of ATM on customer service delivery for the partial
fulfillment of BA Degree. The research is counted on the response you give; we would like
to assure you that the information collection is only used for the above objective and we
will kept Confidential so as much as possible fill it properly.

Instruction: - We would like inform you that writing your name is not necessary Please tick
a right sign the answer that you think it is appropriate and write down the answer in the
space provided. Thank you in advance for your kind cooperation & dedicating your time.
The following questions are prepared for customers of Oromia international Bank who
hold ATM cards.

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Section 1; Demographic characteristics of respondents.

Gender male Female

Age: below 25 25-35 Above 45

Educational status of respondents

Grade 10 complete grade 12 complete diploma

Degree Above

Section 2: Basic Information

1. How long did you use ATM?

Less than a year 1-2 2-3 years above

2. What factor influence you to use ATM

Time emergence

Holiday weekend other

3. ATM is located in secured location

Strongly disagree disagree Neutral agree strongly agree

4. ATM is existed in accessible location

Strongly disagree. Disagree neutral. Agree. Strongly agree

5. Is it ATM of the Bank account being debited without dispensing?

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 YES NO

6. Is it ATM of the Bank dispensing the denomination you require?

YES NO

7. Can you use ATM effectively

YES NO

8. Employees of the Bank have willingness to help you when ATM out of service

Strongly disagree disagree neutral agree strongly agree

9. The bank is properly handling your requests

Strongly disagree. Disagree. Neutral agree strongly agree

10. ATM of the Bank enables to speed up service delivery

Strongly disagree disagree neutral agree strongly agree

11. ATM of the Bank is making it is service free from errors

Strongly disagree disagree neutral agree strongly agree

12 ATM of the Bank is simplify the service usage

Strongly disagree disagree neutral agree strongly agree

12. ATM of Bank enabling the Bank customers to have accurate transaction

Strongly disagree disagree neutral agree strongly agree

14. ATM the Bank enabling your account to be secured

Strongly disagree disagree. Neutral agree strongly agree

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15. ATM of the Bank has an appropriate language for non English user

Strongly disagree disagree neutral agree strongly agree

16. Do you have any complain related to service of ATM? Specify

Interview questions

1. Does ATM enable the bank to solve the problem related customer service delivery?

2 How do you evaluate the ATM availability in the bank and customer feedback on this?
Please tell us its strength and weakness

3) How do you handle customer complain?

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