A STUDY ON CUSTOMER STATISFACTION TOWARDS ATM

USERS IN ERODE TOWN

1. Name :
2. Age :
3. Sex :
4. Level of Education :
(a)Primary (b) High –School
(c) Graduate (d) Post-Graduate
5.Occupation :
(a) Business (b) Professional
(c) Service (d) Others
6. Monthly Income :
(a) Below 50000 (b) 5001 to 10000 (c) Above 10000
7. How did you come to know about ATMs?
(a) Television (b) Magazines (c) News
papers (d) At your bank (e) Others specify
8. Which ATM cards do you own?
(a) INDIAN BANK (b) SBI (c) ICICI
(d) UTI
9.What factors necessarily made you to opt for ATM card from
this bank only?
(a) Services (b) Security (c) Locality
(d) More withdrawal facility
10.Whether ATM facility is available as per your requirement?
(a) In terms of time Yes/No (b) In terms of location Yes / No
11. When do you require ATM mostly?
a) Before office hours /06am to 10 am
b) During office hours /10 am to 5 pm
c) After office hours /5pm to 8 pm
d) After office hours /8pm to 10pm
e) Late night say after 10pm
12.How often you use the card?
a) 5 to 10 times a month b) 10to 20 times a month
c) 20 to 50 times a month d) Occasionaly e)Never
13.How do you term it for your usage?
a) Withdrawal b) Accessibility c) Emergency
d) For Fashion
14. Are you satisfied with services provided by ATM?
a) Yes b) No
15.Whether the withdrawal limit prescribed in ATM is sufficient?
a) Yes b) No
16.What are the additional services availed by you from ATM?
Please specify
a) Account information b) Pay bill
c) Recharge Prepaid Card
17. Are you satisfied with cost of this service?
a) Yes b) No
18. Have you faced any problems with ATM usage?
a) Yes b) No
if yes nature of problems faced?
a) b) c) d)
19. How do you compare your ATM service with other bank’s ATM service?
a) Excellent b) Better c) Same d) Worse
20. How do you rate your ATM card system?
a) Excellent b) Good c) Average d) Poor
21. Considering the service / benefits / facilites which bank’s ATM
service do you think is better?
a) INDIAN BANK b) SBI c)ICICI d) UTI
22.Are you satisfied with the overall services provided by the ATMs?
a) Yes b) No
23.Do you prefer ATM services instead of traditional banking?
a) Yes b) No
24.Any suggestion for improvement of the atm system
_______________________________________________________________
 CHAPTER- I

INTRODUCTION AND DESIGN OF THE STUDY

1.1INTRODUCTION:
ATM card is a document .that enables an individual to withdraw cash at
specified branches through debit to their saving or current accounts by use of
Automatic Teller Machines. As these cards are operated through ’’Automatic
Teller Machine", they are known as ATM cards. Some banks are
offering ATM cards, free of cost to their saving and current account
holders.

In general sense, ATM is known as ANY TIME MONEY, since this

facility is available for 24 hours a day and also on holidays and non-banking
hours. They are located not only at specified bank branches but also at other
busy places such as shopping complexes, restaurants, hospitals, Petrol bunks
etc. Having to withdraw from our own assets, there is no fear of overspending
like credit card.

In the case of bank, cash withdrawals have to be done at the same

branch where the customers deposit cash. But the ATM card can be carried
anywhere and can be used in any part of the country and over sometimes any
part of the world when the issuer of the card has the facility of international
acceptant

The introduction of the ATM cards brought up dramatic changes in

withdrawing money. The nationalized banks, private sector banks and foreign
banks are playing an important role drawing a number of people to become.
 ATM cardholders through different facilities, and so the number
of ATM cardholders is increasing and is expected to increase much
more.

State Bank Of India (SBI) is the largest nationalized bank in India

with its seven associates, State Bank Of Hyderabad (SBH) as a
subsidiary o€ State Bank of India (SBI) occupies second place among
its associates in respect of its profits, branches, assets, employees etc.
The State Bank is having the largest network of 4,453 ATM services in
the country and is continuing to expand fast.

1.2 IMPORTANCE OF THE STUDY

You can use your card at any Multi-link banking outlet nationwide, and
it is simple to use, with clear instructions provided by the ATM. The card, is
secure as well. If it is ever lost or stolen, your account funds and information
remain confidential and protected. In addition to easy and safe access to your
cash, your ATM card allows you unlimited access to your account information
at any time convenient to you. You can also check your balance before all
withdrawal transactions.

1.3 STATEMENT OF PROBLEM

The comprehensive statement of the problem can be thus stated as “A
STUDY ON CUSTOMER SATISFACTION TOWARDS ATM
CARD USERS IN ERODE TOWN”
 1.4 OBJECTIVES OF THE STUDY
1. To know the customer preference of ATMs in Hubli and
Dharwad.
2. To know the usage and awareness of ATMs among the
customer.
3. To know the customer satisfaction of the ATM users.
4.To know the reasons for not opting ATM services by bank
accountholders.
5. To make suggestions regarding the product improvement and
service.

1.5 SCOPE OF THE STUDY

1.In this study an attempt is made to throw light usage of the
ATMs level of satisfaction, factors influencing the usage and the
problems in ATM.
2.It helps in increasing the customer awareness of ATMs users.
3.The researcher focus qualitative factors which helpful in determining
the customer attitude towards ATMs.

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1.6 RESEARCH METHODOLOGY

A descriptive design intended to produce accurate descriptions of

variables relevant to the decision being faced without demonstrating that some
relationship exists between variables. Since the problem is very clear
descriptive research design and the survey is conducted with the help of a
structured questionnaire. The data collected is according to the customer
response. Two separate questionnaires are designed i.e. one for users and
another for non-users. The data collected is then quantified using scores,
percentage and aggregates, which helped in proper analysis of data. Graphs are
also used in analysis for easy and quick understanding.

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1.7 TOOLS FOR COLLECTION:

Primary data:

Two separate questionnaires, one for users and another for non-users,
are designed and used for data collection. The data are collected personally
by contacting the users and non-users.

Secondary data:

Secondary data is also collected for the purpose of study. The sources of
secondary data are as follows.
• News papers
• Reports
• Company projects
• Magazines
• Book

SAMPLE SIZE & AREA

The sample size is 100 and region is Erode.
SAMPLING TECHNIQUE
The researcher selects convenience sampling for easy coverage of the
population.

STATISTICAL TOOL

The researcher selects simple percentage method for the research analysis &
Interpretations.

No of respondents
Simple percentage =_________________________ X 100
Total no of respondents

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CHI-SQUARE ANALYSIS

Chi-square test
X2=X (0-E)2
0=observed frequencies
E=expected frequencies

Chi-square test is applied in statistics to the goodness of fit to verify the

distribution of observed data with assumed theoretical distribution. Therefore,
it is a measure to study the divergence of actual expected frequencies. It has
great use in statistics. Especially in sampling studies, where we expect a
doubted coincidence between actual and expected. Frequencies and extent to
which the difference can be ignored because of in fluctuations in sampling.

If there is no different between the actual and expected frequencies X is

zero. Thus the chi-square

Test describes the discrepancy between theory and observation.

X2 may be defined as
X2 = I (0-E)2
0 = observed frequencies
E = expected frequencies

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1.8 PERIOD OF THE STUDY
The period of the study is confined to one years that is from 2011-2012 as
that period of study is considerably long and enough to comprise all the
changes in the ATMs Users.

1.9 LIMITATIONS OF THE STUDY

1. Main limitation of the project is the sample size. Only a sample size of
100 is considered for users of ATM and 50 for non-users of ATM for
the project work.

2. The survey is restricted to twin city only i.e., Hubli and Dharwad.

3. Analysis of the data, generated from the questionnaire is done on the

assumption that the respondents divulged correct information.

4. The period allowed is only 60 days which is not enough to study in-
depth.

5. Questionnaire may produce errors because of the different

meanings attached by the different groups of people to the same
question, which leads to misinterpretation of the data.

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1.10 CHAPTER SCHEME

The project report will be presents with the following chapter

scheme.
Chapter-1
Deals with introduction which covers the topics introduction itself,
need for study, Importance of the study, statement of the problem,
Objectives of the study, Methodology, significance and Limitation of the
study.
Chapter-2
It deals with Review of literature
Chapter-3
Deals with ATM’s in consist of contemporary banking which covers at
theoretical framework of ATM’s and profile of banks covered under the study.
Chapter-4
It consists of analysis & discussion Interpretation.
Chapter-5
It shows and the major binding and suggestion conclusions based of the
study.

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 CHAPTER II
REVIEW OF LITERATURE

Organizations are aware that service quality provides strategic

competitiveness in dynamic business environment. Literature provides
significant relationship between service quality and firms’ performance
based on improved productivity, increased market share, enhanced
customers’ attraction and loyalty, improved staff morale, and sustained
profitability (Lassar et al., 2000).

Research has found that service quality in banks is critical for

satisfaction and retention of customers (Jab noun & Al-Tammie, 2003).
Keeping in view the significance of service quality as a means of
competitive advantage and organizational sustainability, the banks are
pursuing multidimensional approaches to improvement in service quality to
attract and retain customers (Newman, 2001).

According to Castleberry and Resurrection (1989), the physical loc

of banks’ delivery channels influence perception of customers about
quality. Consistent delivery of services, physical dimensions and staff
interaction with customers, trustworthy processes and procedures positively
affect delivery of services quality (Sureshchandar et al., 2002). Pleasant
customer interaction with staff significantly affects customers’
perception of quality (Yves et al., 1997).

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2.1 ATM Service Quality

Use of ATM has become extremely popular among customers as

convenient mode of transactions. The technological innovation has
transformed the banking business. Bankers aggressively adopting this mode.

The advantages of using ATM have given new impetus in dimensions

of service quality and banks are offering new choices to customers. Cab as
(2001) noted investment opportunities, reduction in costs, satisfaction of
customers and competitiveness as motives to install and add new ATM to the
existing network. Moutinho (1992) established that ATM facility resulted in
speed of transactions and saved time for customers.

Literature review indicates different dimensions of ATM service

quality. Lovelock (2000) identified secure and convenient location, adequate
number of ATM, user-friendly system, and functionality of ATM. Davies et
al., (1996) examined the factors that influence customers’ satisfaction
about ATM service quality.

These factors include costs involved in the use of ATM, and

efficient functioning of ATM. Joseph and Stone (2003) examined the United
States customers’ perception of ATM quality and found that user-friendly,
convenient locations, secure positions, and the numbers of ATM provided by
the banks are essential dimensions of ATM service quality.

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 In a case study of Botswana, Mobarek (2007) established
speed of operation, and waiting time as the important predictors of
ATM service quality. Researchers have divergent views about the
use and effectiveness of ATMs.

Effective service delivery in ATM system guarantees quality

excellence and superior performance and provide autonomy to the
customers (Lovelock, 2000). Yavas etal., (2004) argued that customers’
focused ATM delivery system that fulfills their needs and maximize
operational performance are essential dimensions for bank to achieve and
sustain competitive advantage.

Dilijonas et al., (2009) examined the essential aspects of ATM

service quality in Baltic States. They identified essential resources
(adequate number of ATMs, convenient and secure location and user-
friendly system); important dimensions of operation of ATM (maximum
speed, minimum errors, high uptime, cash backup); and value-based aspects
(quality service at reasonable cost, and maximum offering to cover
maximum needs of customers) as vital facets.

Based on the prior studies, Al-Hawari et al. (2006) compiled a list of

five major items about ATM service quality that include convenient and
secured locations, functions of ATM, adequate number of machines and
user- friendliness of the systems and procedures.

An empirical study found that these items constitute important

aspects of ATM service quality. Islam et al., (2005) examined the
satisfaction level of ATM card holders of a leading bank (HBSC) in
Bangladesh.

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 The study found significant relationship of ATM service quality
with customers’ satisfaction. The study identified that location,
personnel response, quality of currency notes, promptness of card
delivery and performance of ATM were positively and significantly
related to customer’ satisfaction.

The security, frequent breakdown of machine, and insufficient number

of ATM were major contributors of customers’ dissatisfaction. In another
study in Bangladesh, Shamsdouhaetal., (2005) found that 24 hours service,
accuracy, and convenient locations were the main predictors of customer
satisfaction. The study also indicated lack of privacy in executing the
transaction, fear of safety and complexity of the machine were the major cause
of concern for the customers.

Joseph and Stone (2003), through focus group study in the United
States, found that easy access to location, user-friendly ATM, and security are
important factors that influence majority of bank customers’ perception of
ATM service quality. Patricio et al., (2003) undertook a qualitative study of a
Portuguese bank regarding customers’ use of multi channel offerings.

The study identified accessibility and speed of operation as strong

predictors of customers’ satisfaction, whereas security dimension and
technical failures were main causes of dissatisfaction.

Previous researchers have found that reliability feature of ATM is

essential to consumers’ use of electronic channels of banking (Liao & Cheung,
2002; Polatoglu & Eking, 2001).

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 Rugimbana and Iverson (1994) studied the perceive attributes
of ATM service quality and their marketing implication. They
found that convenience, reliability, and ease of use are important
aspects, whereas complexity and unreliability (risk) were causes of
dissatisfaction. Lebanc (1990), in a study of ATM users in Canada,
established that major reasons for using ATM were accessibility,
freedom to do banking at all times, and to avoid waiting lines.

The study also found the users’ apprehension about the risk
associated with its use and complexity of the machine in executing the
transaction. Moutinho (1992) examined relationship of dimensions of
usage rate and performance expectation with customers’ prolonged
satisfaction with ATM services.

The results indicated that usage rate had a negative association with
customer perceived prolonged satisfaction whereas performance
expectations found to have positive and significant predictor of customers’
prolonged satisfaction.

Moutinho and Brown lie (1989) found that accessibility and location of
ATMs significantly affect users’ satisfaction. The research found that
customers were willing to accept new offerings through ATMs. Waiting in
queue to use the ATM was the major cause of dissatisfaction among the users.

Literature provides support to the idea that pleasant experience of

automated services provides enhanced value to the customers and attracted
them to undertake improved business with their banks (Zhu et al., 2002).

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 Simultaneously, the researchers have concluded that
technology-based services are likely to give sense of incompetence
to customers, isolate them, and increase passiveness (Grabner-
Krauter & Kalusha, 2003; Richfield & Schafer, 2000). In addition,
the pattern of adoption of technology and its use may differ across
organizations and cultures (Phillips et al., 1994)

How croft (1991) noted that dissatisfaction among customers is

associated with frequent interruptions and breakdown of ATMs. Intense
competition and technology-based new services are shaping customers
loyalty.

These have resulted into switching of banks by customers based on

competitive services (Lewis & Bingham, 1991). Meller (1993) found that
location of ATMs, increasing number of ATMs, and diversified service
offering are associated with switching of banks.

Marketers identified customers’ satisfaction through behavioural,

cognitive, andattitudinal response to the service provider. These dimensions
manifest in repeated use of services, tolerance with regard to price, word of
mouth promotion and display of cognitive and attitudinal behaviour
(Bowen & Chen, 2001).

Athanassopoulos, (2000) found strong empirical evidence of

innovation, convenience, price, and servicequality as vital dimensions of
customers’ satisfaction. An understanding of customers’ expectations
enables organizations to offer customer-focused services and reduce
attrition of customers.

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 Literature offers significant evidence of the association
between satisfaction of customers and superior financial performance,
customer loyalty, and market share (Beerli et al., 2004; Wood, 2008).

Researchers contend that service quality has a direct link with

customer satisfaction (Parasuraman et al., 1988). Strong evidence exists in
literature about customers’ satisfaction from ATM services (Leblanc, 1990).

Literature finds a large number of studies that highlight the

satisfaction of customers with ATMs (Moutinho & Brownlie, 1989, Wan et al.,
2005; Komal & Singh, 2009; Mobarek, 2007). Some studies have also
identified customers’ dissatisfaction with ATM service quality dimensions.

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 CHAPTER-III
PROFIEL OF THE ATM USERS
INTRODUTION:

Today banking industry stands at a cross roads. Resent bank

consolidation and the entrance of number non-bank organization info financial
service have increased levels of competition. At the same time technology has
sourced banks to reconsider the traditional methods of marketing and delivery
of products.

The changing customer demographic indicates great potential for growth

in consumption, both qualitatively and quantitating .The factor for changing
consumer demographic are.

 Increasing affluent with bulging middle class.

 The youngest people in the world.
 Increase literacy level.
 Increasing “consumption” mind set in the India”.

Hence make an attempt to analysis the profit of an respondents in

erode.

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 CHAPTER-V
THE MAJOR FINDING AND SUGGESTION
CONCLUSION FINDING
 The majority of the respondents are female (58%)
 The majority of the respondents education status are post graduate
level (66%).

 The majority of the respondents are business people (40%).

 The majority (40%) of the respondents are monthly income
between is RS.5000 to 10000.
 The majority of the respondents are at your bank advertisement (44%)
 The majority (36%) of the respondents are mostly used for
INDIAN BANK.
 The majority (46%) of the respondents are security.
 The majority (72%) of the respondents about the ATM facility.
 The majority (26%) of the respondents are used for the ATM card
at the during office hours.
 The majority {12%) of the respondents are use this ATM
card about the in a month for 5 to 10 times as month.
 The majority (48%) of the respondents are withdrawal.
 The majority (90%) of the respondents are satisfaction about the
ATM card.
 The majority (76%) of the respondents are feel that the time
limit is sufficient to withdrawal in amount.
 The majority (72%) of the respondents are recounting information.
 The majority (84%) of the respondents are satisfaction at the cost of
this service.
 The majority (64%) of the respondents are facing any problem at the

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 time of ATM usage.
 The majority (62%) of the respondents are our ATM service with
other bank ATM service better.
 The majority (72%) of the respondents are saying the good.
 The majority (48%) of the respondents are saying better in
INDIAN BANK.
 The majority (92%) of the respondents are satisfaction with the
overall service provide by the ATM.
 The majority (88%) of the respondents are preferring service instead
of traditional bank.

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 SUGGESTION:
 The present world people always prefer fashion and modem
technologies. In are study only 62% of the respondents prefer
modem technologies.

 Out of 100 respondents 48% of the respondents aware of

ATM services through bankers. The bank in erode district
spent the amount for media was not reached effectively is one
of the way of nonpersonal advertisement through the good
service in ATM banks.

 Our study reveals the main factor influence the respondent to

use ATM is easy withdrawal only. The other important factor
like safety time savings is not influence them it indicates the
ATM users in erode district. Face the problem like insecurity
for them.

 The research shows that only 8% of the respondents using

ATM services monthly once only. Hence the banks should
concentrate in this for.

 In the competitive world, if ATM service went to reach every

book and comer every bank should relieve the minimum
balance for 5000 to 10000

 Most of the respondents prefer nationalized bank to use

ATM. Hence the private bank in erode the customer by way
of reducing minimum balance and service charge.

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 As erode to town is the textile city main occupation
of the people is bus. The bank should he open more
ATM Centre, so that it will he convenient to the
people to operate and private high level of
satisfaction

 Bank should watch the words of ATM whenever the customer

sufferer problem the hanging cards. Different in operative.
Misuse of ATM by fraud they have to make immediate
enquiry and solve their problem.

 The PIN personal identification number which the uses enters

to perform the transaction should be unique, paid and can be
used to perform transaction across any delivery channel.

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 CONCLUSION

Customer is willing to pay a price for the services provided, it is

make available to him when he wants and where he wants. Over study
reveals the customer reach satisfaction only in withdrawal of money in
ATM. Hence E- banking should serve clients through a network providing,
customer with the full range of banking service such as deposit, fund
transfer loans and other forms of transfer through which the customer will
reach high level of satisfaction and enjoy all the service of ATM. The
popularity of ATM largely deposits upon the instillation confidence I
customers about security and personal privacy of the money and assets.

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 BIBLIOGRAPHY

 “Modem Marketing” principles and practices by pillai, R.N

Bagavathi, Ramnagar,New delhi-2000.

 “Modem marketing” by S.A SHERLEKAR Himalaya publishing

house.

 “satisfaction method”-Gupta S.P sultan Chad and sons,

New delhi-1905

 Indian journal of marketing volume xxxxv, july-2005

 Banking finance, Sep-2005.
 Banking finance, May-2005.
 Banking finance, Jan-2005.
 Banking finance, Aug-2005.
 www.ATM.com.

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