Research Paper Management Volume : 4 | Issue : 5 | May 2014 | ISSN - 2249-555X

Customers Satisfaction Towards Automated Teller

Machine

Keywords ATM services, Customer awareness, Customer satisfaction, Withdrawal

Dr. R. Renuka Mr. A. Paulraj

Asst. Prof. Department of Commerce and Mgmt.
M.Com, SASTRA University, SRC Kumbakonam.
Studiesm SASTRA University, SRC Kumbakonam.
Tamilnadu, India
Tamilnadu-612001, India
ABSTRACT Now a days banking reforms made customers to access their services more conveniently. Among the servic-
es offered by the banks, ATM services play key role to minimize customers time and energy. The study focus
on the customer satisfaction towards ATM services offered by the banks and tries to suggest some ways out to improve
their level of services to keep the force on.

INTRODUCTION Government Arts College, Coimbatore. CUSTOMERS

The influence of technology over banking sector is enor- SATISFACTION LEVELS OF ATM CARDHOLDERS Pub-
mous; the trend in banking has evolved from cash economy lished by A Journal of Radix International Educational
to cheque economy which has further been converted to and Research Consortium, Volume 1, Issue 9 ISSN: 2250
plastic card economy. ATMs play an important role in bank- 3994.This study aims at investigating the satisfaction
ing business. It is one of the most popular delivery channels levels of ATM cardholders with respect to various aspects
as it permits customers to do Anywhere, Anytime banking. of the service quality of ATM and their opinions on vari-
Generally, both the banks and customers get benefit from ous other related issues such as the inconvenient features
ATMs in several ways. This study may prove to be important while using ATM. This study uses purposive sampling
for the Bank management to consider therecommendations technique where samples have been selected on the
with due care for being in competitive position for better cus- basis of certain criteria. This study provides information
tomer service. regarding the satisfaction level and problems faced while
using ATM cards.
CUSTOMER SATISFACTION 3. Vijay KumbharAbasaheb,(2011)Marathe College, Ra-
Customer satisfaction is buzz word used by the business peo- japur, Maharashtra, India. Factors affecting on cus-
ple for the success of the organization in the present days. tomers satisfaction an empirical investigation of ATM
Due to increase of heavy competition in every product line it service International Journal of Business Economic and
become difficult for the longer time. So retain the Customer Management Research Internationally Indexed & Listed
for the longer time the marketer has to do only one thing. i.e. Referred e-Journal IJBEMR Volume 2, Issue 3 (March,
customer satisfaction. 2011) ISSN 2229-4848. This study focus on identifying
key factors that have influences customers satisfaction in
PROFILE OF ATM ATM service provided by public and private sector banks.
ATM is an abbreviation of Automated Teller Machine its a For the purpose of the study primary data were collected
machine used by the banks all over the world. This machine using schedule and collected data from March to No-
allows the account holder to have transactions with their own vember 2010. Results of factor analysis, correlation and
accounts without allowing them to access the entire banks regression analysis show that a cost effectiveness, easy to
database. You can use the ATM of a bank in which you do not use and security and responsiveness in ATM service were
have an account by paying some charges. most important factors in customer satisfaction.

SERVICES OFFERED BY BANKS THROUGH ATM STATEMENT OF THE PROBLEM

The following services are provided by bank through ATM. Now a days most of the people were always busy. So, they
have no time to spend to do branch banking. Due to this, the
Cash Withdrawal and Balance Enquiry use of ATM is increasing day-by-day. So researcher feels it is
Cash/ Cheque Deposit important to study the Customer satisfaction towards the use
Bill Payments of ATM services. Through this researcher can find the prob-
Money Transfer lems which are faced by customers while using ATM services
Mobil Recharge and also he can provide some suggestion to improve ATM
services. So, researcher decides to do this study in Kumba-
REVIEW OF LITERATURE konam town.
1. Mr. Ramraj T. Nadar(2012)Assistant Professor, Guru
Nanak College, Mumbai, India. Customers Satisfac- OBJECTIVES OF THE STUDY
tion towards ATM Service A Study of Bank Customers 1. To study the services offered by banks through ATMs.
in Navi- Mumbai. Published in International Journal of 2. To study the problems faced by customers while using
Physical and Social Sciences Volume 2, Issue 7 July2012. ATM services.
This study helps to understand the services provided by 3. To measure the level of satisfaction of the ATM card hold-
the banks and also to know the strength and weakness ers.
of the ATM services provided by the banks. The study is
to have an insight in which the customers satisfaction HYPOTHESIS OF THE STUDY
with the ATM services and also to identify the customers 1. There is no significance difference between monthly
opinions / expectations with regards to the same. income of respondent and frequency of using ATM ser-
2. Dr. K.Shobha, (2012) Associate Professor In Economics vices.

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 Research Paper Volume : 4 | Issue : 5 | May 2014 | ISSN - 2249-555X

2. There is no significant difference between the occupa- Table 2 shows that out of 150 respondents 58 respondents
tion of customer and frequency of using ATM services. were self-employed; 57 respondents were employee; 21 re-
spondents were agriculture; and 14 respondents were pro-
TOOLS USED FOR DATA ANALYSES: fessional.
Statistical tools like Chi-Square, percentage analysis, Likert
scaling technique are the tools used to analyze the data. Null Hypothesis:
There is no significant relationship between the occupation
PERIOD OF STUDY: of customer and frequency of using ATM services.
The period of this study covers one year from 2013 to 2014.
Chi-square table
Table 1 DEMOGRAPHIC CHARACTERISTICS OF RE-
SPONDENTS
Value df Asymp. Sig.
(2-sided)
Particulars Frequency percentage
Pearson Chi-Square 48.787a 12 .000
11 7 Likelihood Ratio 46.872 12 .000
Below 20 years 87
21-30 years 58 Linear-by-Linear As-
AGE 31-40 years 17 11 sociation 9.841 1 .002
41-50 years 28 19
Above 50 years N of Valid Cases 150
7 5
a. 8 cells (40.0%) have expected count less than 5. The
Male 94 63 minimum expected count is 1.59.
GENDER
Female 56 37 Degrees of Freedom = 12
Chi-square value = 48.787
Employee 57 38 Table Value = 21.026
OCCUPA- Professional 14 9 The distribution is significant at 5% level.
TION Agriculture 21 14
Self-employed 58 39 Result:
Thus the 2 value is greater than table value we reject the
School level 16 11 hypotheses. There is relationship between occupation of cus-
EDUCATION- Under Graduate 57 38 tomer and frequency of using ATM services.
AL QUALIFI-
CATION Post graduate 73 48
Others 4 3 Table 3 MONTHLY INCOME AND FREQUENCY OF USING
ATM SERVICES
Below Rs.10,000 46 31
MONTHLY Rs.10,000 to Rs. 59 39 FREQUENCY OF USE
INCOME 20,000 Rs.20,000
to Rs.30,000Above 28 19
Rs.30,000 17 11 Monthly
Income sev-
Source: Primary Data eral once TO-
times in a twice a once occa- TAL
in week month in a
month sionally
S.No.

Table 1 highlights demographic characteristics of respond-

week
ents58% of the respondents age ranges between 21-30
years, 63% of the respondents were male, 39% of the re-
spondents were self-employed, 48% of the respondents below
were post graduates, 39% of the respondentsfamily income 1 Rs.10,000 7 11 8 14 6 46
ranges betweenRs. 10,000 to Rs. 20,000.
Rs.10,000
Table 2 OCCUPATION AND FREQUENCY OF USING ATM to 17 13 17 6 6 59
SERVICES 2 Rs.20,000
FREQUENCY OF USE
OCCUPATION

Rs.20,000
to 12 4 9 2 1 28
3 Rs.30,000
several once twice a once Occa-
TOTAL

times in a month in a
S.No.

in week week month sionally Above

4 Rs.30,000 2 4 5 2 4 17

26 12 11 5 3 57
1 Employee
TOTAL 38 32 39 24 17 150

2 1 8 2 1 14
2 Professional Source: Primary Data

0 3 3 7 8 21 Table 3 shows the monthly income of the respondents.

3 Agriculture Out of 150 respondents, 59 respondents were came un-
der Rs.10,000 to Rs.20,000 category: and 46 respondents
Self 10 16 17 10 5 58 were earned income below Rs.10,000; 28 respondents were
4 earned income between Rs.20,000 to Rs.30,000; and 17 re-
Employed
spondents were earned income above Rs. 30,000.
TOTAL 38 32 39 24 17 150 Null Hypothesis:
There is no significant relationship between the monthly in-
Source: Primary data come and frequency of using ATM services.

334 X INDIAN JOURNAL OF APPLIED RESEARCH

 Research Paper Volume : 4 | Issue : 5 | May 2014 | ISSN - 2249-555X

Chi-Square Table Degrees of Freedom = 12

Chi-square value = 22.307
Chi-Square Tests The distribution is significant at 5% level.

Result:
Value df Asymp. Sig. Thus the calculated value is greater than table value of 2. So
(2-sided)
the Null hypothesis is rejected. Therefore there is a relation-
ship between monthly income of customer and frequency of
Pearson Chi-Square 22.307a 12 .034 using ATM services.

Likelihood Ratio 21.859 12 .039

Linear-by-Linear As- 1.005 1 .316

sociation

N of Valid Cases 150

7 cells (35.0%) have expected count less than 5. The mini-

mum expected count is 1.93

Table 4 LEVEL OF SATISFACTION

Highly Dissatisfied (1)

Highly Satisfied

LIKER VALUE
Description

Dissatisfied
Satisfied

Neutral
S.NO

Rank
Total
(5)

(2)
(4)

(3)

The promptness of 39(195) 76(304) 25(75) 6(12) 4(4) 0.969

1 card delivery 150(590) 5

The quality of notes 47(235) 65(260) 26(78) 12(24) 0(0) 0.980

2 (currency) 150(597) 3

35(175) 88(352) 20(60) 7(14) 0(0) 0.987

3 The quality of receipt 150(601) 2

Personnel willingly 26(130) 54(216) 56(168) 14(28) 0(0) 0.890

4 solved your problems 150(542) 10

Availability of ATMs in 52(260) 60(240) 19(57) 18(36) 1(1) 0.591

5 required places 150(360) 14

43(215) 49(196) 44(132) 14(28) 0(0) 0.938

6 Safety-security-Privacy 150(571) 7
28(140) 83(332) 32(96) 7(14) 0(0) 0.956
7 Convenience to access 150(582) 6

Availability of pay-in 25(125) 33(132) 75(225) 15(30) 2(2) 0.844

8 slip deposit envelop 150(514) 12

36(180) 61(244) 42(126) 1(2) 0(0) 0.906

9 Processing time 150(552) 9

Maximum withdrawal 14(70) 71(284) 52(156) 9(18) 4(4) 0.874

10 limit 150(532) 11

Instruction given to 45(225) 67(268) 28(84) 5(10) 5(5) 0.972

11 access ATM 150(592) 4

Compliant book avail- 13(65) 39(156) 70(210) 28(56) 0(0) 0.780

12 ability 150(487) 13

70(350) 43(172) 13(39) 24(48) 0(0) 1

13 24-Hours access 150(609) 1

14 Availability of power & 44(220) 48(192) 41(123) 17(34) 0(0)

150(569)
0.934
8
backup
Source: Primary Data

Table No.4 exhibits the level of satisfaction of the respondents towards ATM services. 24- Hours access got first rank. The quality
of receipt got second rank; The quality of notes (currency) got third rank; Instruction given to access ATM got fourth rank; The
promptness of card delivery got fifth rank; Convenience to access got sixth rank; Safety-security-Privacy got seventh rank; Avail-
ability of power & backup got eighth place.

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 Research Paper Volume : 4 | Issue : 5 | May 2014 | ISSN - 2249-555X

FINDINGS
1. Most Of the respondents (58%) belong to the age group
of 21 to 30 years.
2. Nearly 39% of the respondents monthly income ranges
between Rs.10,000 to Rs.20,000.
3. Majority of the respondents are using ATM services Twice
a month.
4. Majority (98%) of the respondents were using Cash With-
drawal & Balance Enquiry facility in ATM.
5. 72 % of respondents were aware about the features of
ATM.
6. Regarding the maximum Withdrawal limit of the ATM
nearly 60% of the respondents are satisfied with this limi-
tation.
7. Nearly 64% of respondents said machine breakdown is
the major problem in ATM.
8. In likert scale 24-Hours access gotfirst rank .because ma-
jority of the respondents satisfied with the 24-Hours ac-
cess.
9. 55% of the respondents said to improve the safety and
security in ATM services.

SUGGESTIONS:
1. Banks should provide awareness about various facilities
offered by ATM then only people can know about differ-
ent feature of ATM.
2. The limit in with cash per day may be increased.
3. Transactions and withdrawals are made every now and
then thus additional ATMs may be installed in order to
minimize customers transaction time.
4. Bank should frequently inspect the ATMs, it is helpful to
avoid breakdown of ATM.
5. It also suggested that banks should provide security
guards to improve the safety and security in ATM ser-
vices.
6. Bank should establish more user friendly machines in or-
der to reduce the Machine complexity.
7. Bank should establish ATMs in different location in order
to meet customer needs.

CONCLUSIONS
The ATM facility has been extended to all accounts holders
of all the banks. Though it is clear from this study that all the
respondents are fully satisfied with the functioning of ATMs,
Bank could retain its existing customers and attain new cus-
tomers when the suggestion that have been offered in this
study are seriously looked into.

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Ravilochanan, P. (2011) Research Methodology, Margham Publications, Chennai. | 4. Shajahan,S. (2005) Marketing Research concepts and
practice in India, Macmillan India Ltd. | 5. Varshney, R.L.(2005).Marketing Management Text and cases (An Indian Perspective), Sultan Chand & Sons, New Delhi.
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learnmanagement2.com |

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