INTERNATIONAL JOURNAL OF MARKETING,

FINANCIAL SERVICES & MANAGEMENT RESEARCH

Online Available at indianresearchjournals.com

Vol.1 No. 3, March 2012, ISSN 2277 3622

A STUDY OF THE FACTORS AFFECTING CUSTOMER

SATISFACTION FOR ATM SERVICES IN VELLORE DISTRICT
*J. RAMOLA PREMLATHA, **DR. AJAY KUMAR SHARMA
*Assistant Professor Senior, School of Social Sciences, VIT University, Vellore. Tamil Nadu
**Assistant Professor, School of Social Sciences, VIT University, Vellore. Tamil Nadu

ABSTRACT
This is an electronic age. These modern techniques are helping us by saving our precious time and efforts.
Modern banking has also changes the outlook of the people towards its services. The question is - are we
really satisfied with the present e-banking services like ATM or not? The level of satisfaction depends up on
many factors else we can not be satisfied with any thing. But after all the basic criteria for which we use a
particular machine or service must be satisfied.
Through this paper we would like to highlight some factors which affect the uses and the resulting
satisfaction of ATM service. For this we have made a survey of different bank customers and concluded the
result by adopting some statistical tools.
Key words : ATM, Brand Loyalty, E-banking, Customer satisfaction

INTRODUCTION

interviews. The secondary data was collected from

With the innovation of technology, ATM service is of

books, published journals, magazines and articles from

recent origin, which is very popular and useful for all

various newspapers. This study was placed on a four-

those who access the banking services. In recent years,

point scale range. The scaling technique adopted was

there have been a number of studies conducted on

Summated Rating Scale.

customer satisfaction and the services rendered in the

banking industry. Though ATM services are of recent

FRAMEWORK AND ANALYSIS

origin, there are some problems faced by customers.

For the purpose of analysis, Percentages and Chi-square

The researcher wants to study the performance,

test were used in this study. Chi-square test was adopted

problems and the satisfaction level of customers based

based on the formulated hypothesis.

on this ATM service. There are distinctive segments

1. PERCENTAGE ANALYSIS

within the financial market that had significantly

Percentage analysis is used to compare between the

provided with the usage of financial services. Customer

attributes. The Percentages are calculated based on the

satisfaction with automatic teller machines, credit

following formula:

cards, debit cards, Internet banking and telephone

banking had satisfied most of the customers.
The present study is done in the Vellore District
of Tamil Nadu, India by taking a sample of 200
bank customers.
This study involved the collection of both primary
and secondary data. The primary data was collected
with the help of a Questionnaire by adopting personal

Percentage = Number of Respondents/Total number of respondents x 100

2. CHI-SQUARE TEST
Chi-Square Test is a very strong tool for testing the
significance between the observed and estimated
values. The Chi-Square Test used for the study is ChiSquare Goodness of Fit.
Chi-Square Test can be obtained by the following
114

*J. RAMOLA PREMLATHA, **DR. AJAY KUMAR SHARMA

formula:

weekly basis, 17.5 % of the customers on a monthly

X

= (O E) / E

basis and 58.5 % of them utilise the ATM at

anytime.

HYPOTHES OF THE STUDY

1.

There is no relationship between the Age and

2.

There is no relationship between the Education

TABLE 2
AVAILABILITY OF ATM

Usage of customers.
and Usage of Customer.
3.

There is no relationship between the Occupation

and satisfaction of services provided to customers

4.

There is no relationship between the Education

5.

There is no relationship between the Education of

and operational problems faced by customers.

customer and Awareness of security measure.

FIGURE 2
AVAILABILITY OF ATM

TABLE 1
USAGE OF ATM

INFERENCE
Regarding the availability of ATM, nearly 17.5% of the
FIGURE 1

customers have highly agreed that ATM is available in

USAGE OF ATM

all the major places, when they are in need. About

56.5% of the customers have agreed that ATM is
available in all major places. About 22% of the
customers responded disagree to the availability of
ATM and only 4% of them highly disagree.
TABLE 3
OPERATIONAL PROBLEMS

INFERENCE
Regarding the usage of ATM about 9.5% of the
customers have responded that they utilise the ATM on
a daily basis. About 14.5% of the customers utilise on a
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A STUDY OF THE FACTORS AFFECTING CUSTOMER SATISFACTION FOR ATM SERVICES IN VELLORE DISTRICT

FIGURE 3

secured. About 48% of the customers expressed as

OPERATIONAL PROBLEMS

secured this feature and nearly 3.5% of the customers

responded that they are unsecured for this facility and
only 1% of them expressed as highly unsecured for this
security feature.
TABLE 5
INSTRUCTION GIVEN TO ACCESS THE ATM

INFERENCE

Accessible instruction

No. of Respondents

PERCENTAGE

Regarding the operational problems only 39% of the

HIGHLY SATISFIED

98

49.0

respondent customers agreed that they have faced this

SATISFIED

95

47.5

problem. The remaining 61% of the customers have

UNSATISFIED

3.0

strongly agreed that they have not faced such a

HIGHLY UNSATISFIED

0.5

TOTAL

200

100

problem.
TABLE 4

FIGURE 5

PRIVACY IN TRANSACTIONS

INSTRUCTION GIVEN TO ACCESS THE ATM

FIGURE 4
PRIVACY IN TRANSACTIONS

INFERENCE
About 49% of the customers are highly satisfied with
the instructions given to utilise the ATM card. Nearly
47.5% of the customers responded that they are
satisfied. Only 3% of the customers expressed as
unsatisfied and 1% of the customer expressed as highly
unsatisfied for this feature.
TABLE 6
MAXIMUM WITHDRAWAL LIMIT

INFERENCE
Regarding privacy in transactions nearly 47.5% of
the customers responded that by using ATM they have
privacy in their transactions and it is also highly
116

*J. RAMOLA PREMLATHA, **DR. AJAY KUMAR SHARMA

FIGURE 6
MAXIMUM WITHDRAWAL LIMIT

INFERENCE
Regarding the action taken by the bank due to any
crime, nearly 18.5% of the customers are highly
satisfied. About 45% of the customers responded
satisfied for this service. About 31.5% of the customers
are unsatisfied and only 5% of them are highly
unsatisfied.
CHI - SQUARE TEST
Hypothesis No: 1

INFERENCE
Regarding the maximum withdrawal limit of the ATM

Ho: There is no relationship between the Age and

nearly 28% of the customers have expressed that they

Usage of Respondents.

are highly satisfied with this limit. About 45% of the

Age/Usage

Daily

Monthly

Weekly

Anytime

Total

customers responded satisfied with this limit. About

15-25

12

49

74

24.5% of the customers responded that they are

25-35

28

48

unsatisfied and only 2.5% of them are highly

35-45

10

22

46

45-65

11

18

32

Total

19

29

35

117

200

unsatisfied with this withdrawal limit.

Chi- Square Test

TABLE 7
Action Taken By The Bank Due To
Misrepresentation If Any

Table value @ 1%
level of
significance

Table value@ 5%
level of
significance

Computed value

Degrees of
Freedom

21.67

16.92

14.67

Test Result
The table value for 1% level of significance is
FIGURE 7

21.67.The table value for 5% level of significance is

ACTION TAKEN BY THE BANK DUE TO

16.92. The computed value is 14.67. Since, the

MISREPRESTNTARION IF ANY

computed value is less than both the table values the

Ho is accepted. Hence there is no Relationship
between the Age and Usage of Respondents.
Hypothesis No: 2
Ho: There is no Relationship between the Education
and Usage of Respondents.
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A STUDY OF THE FACTORS AFFECTING CUSTOMER SATISFACTION FOR ATM SERVICES IN VELLORE DISTRICT

Education/Usage

Daily

Weekly Monthly

Anytime

Total

SSLCandbelow

12

24

49

Higher Secondary

22

43

UGdegree

12

42

70

PGdegree

29

38

Total

19

29

35

117

200

Chi - square Test

Table value @1%
level of
significance

Table value@5%
level of
significance

Computed value

Degrees of
Freedom

21.67

16.92

15.05

Test Result
The table value for 1% level of significance is
21.67.The table value for 5% level of significance is
16.92.The computed value is 15.05. Since, the
computed value is less than both the table values the
Ho is accepted.

Chi - square Test

Hence, there is no relationship between the

Table value @1%

level of
significance

Table value@5%
level of
significance

Computedvalue

21.67

16.92

9.98

Degrees of
Freedom

Occupation of Respondents and the Services provided

by ATM.

Hypothesis No: 4
Test Result

Ho: There is no relationship between the Education

The table value for 1% level of significance is

and the Operational problems faced by the customers.

21.67.The table value for 5% level of significance is

Education/Problems

YES

NO

TOTAL

16.92.The computed value is 9.98. Since, the

SSLC and below

13

36

49

computed value is less than both the table values the

Higher Secondary

18

25

43

Ho is accepted.

UG degree

26

44

70

Hence, there is no Relationship between the Education

PG degree

21

17

38

TOTAL

78

122

200

and Usage of Respondents.

Chi - square Test

HYPOTHESIS No: 3
Ho: There is no relationship between the Occupation
of Respondents and the Services provided by ATM.

Occupation/Services

Highly
Satisfied Unsatisfied
Satisfied

Highly
Unsatisfied

Total

Table value @ 1%
level of significance

Table value@ 5%
level of significance

Computed value

Degrees of
Freedom

11.34

7.82

6.17

Test Result

Government
employee

11

26

47

Private employee

27

25

19

72

Self
employed/Student

20

16

43

Business/Retired

11

19

38

Total

56

90

49

200

The table value for 1% level of significance is

21.67.The table value for 5% level

of significance is

16.92.The computed value is 6.17. Since the

computed value is less than both the table values the
Ho is accepted.
Hence, there is no Relationship between the
118

*J. RAMOLA PREMLATHA, **DR. AJAY KUMAR SHARMA

Education of Respondents and the Operational

Problems faced by them.

ATM at very easy locations.

3.

Regarding the denominations, majority of the

customers agreed that ATM provides
denominations specified by them.

Hypothesis No: 5
Ho: There is no relationship between the Education of

4.

About 57.5% of the customers have faced

instances where insufficient money problem was

customer and awareness of security measure.

Education/Security

Highly
secured

Highly
Unsecured
Unsecured

Secured

SSLC and below

23

21

49

compelled to move to another ATM, which had

Higher Secondary

12

23

43

sufficient money.

UG degree

26

39

70

PG degree

12

18

38

have not faced an operational problem in the

Total

73

101

23

200

ATM. Only 39% of them were faced with such a

found in the ATM. Due to this problem they were

Total

5.

Majority of the customers responded that they

problem.
6.

Chi - square Test

Tablevalue @1% Tablevalue@5%
Computedvalue
level of significance level of significance

Almost a majority of the customers responded

that they never lost any money due to any crime.

Degrees of
Freedom

They also expressed that they never met with any

problem due to misrepresentation.

21.67

16.92

10.44

7.

The most important feature of ATM is to provide

privacy in transactions. Nearly 48% of the

Test Result

customers agreed that they are highly secured

The table value for 1% level of significance is

with this feature.

21.67.The table value for 5% level of significance is

8.

Majority of the customers felt that they are highly

16.92.The computed value is 13.41. Since, the

secured with the special video camera facility

computed value is less than both the table values the

provided by their respective banks.

Ho is accepted.

9.

Almost all the customers felt that they are highly

Hence, there is no relationship between the Education

secured for the secret password given at the time

of customers and awareness of security measure.

of acquiring the ATM card.

10. Almost all the customers are highly satisfied with

Findings And Suggestions

the instructions given by the bank to access the

Findings

ATM.

1.

Out of the 200 samples interviewed, 100% of the

customers strongly agreed that ATM is very

action taken by the bank when the ATM card is

essential for the modern life due to advancement

held up in the ATM machine.

in technology.
2.

11. Majority of the customers are satisfied with the

12. Regarding the maximum withdrawal limit of the

Nearly 56.5% of the customers agreed that ATM

ATM nearly 45% of the customers are satisfied

is available in all the places required by them.

with this limitation.

Hence, they are able to withdraw money from the

13. Regarding the action taken by the bank due to

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A STUDY OF THE FACTORS AFFECTING CUSTOMER SATISFACTION FOR ATM SERVICES IN VELLORE DISTRICT

misrepresentation, majority of the customers are

CONCLUSION

very much satisfied with the action taken by the

Service industry has gained more importance in most

bank when such a situation arises.

of the countries of the world. Among the service

industry, banks plays an important role in servicing its

SUGGESTIONS

customers. Banks are able to capture the minds of the

1.

Regarding the availability of ATMs, some of the

customer by providing variety of modern and

customers are of the opinion that the ATM is not

marketing services. Even technology paved the way for

2.

located in the relevant places when and where they

success in the banking industry by providing excellent

are in need. For this, banks should plan ATM

service. Among the services provided to the customers

centers at more convenient locations so that all the

by banks the service of Automatic Teller Machine plays

customers can have access in any region.

a crucial role in the modern society. From the research it

The problem of insufficient money in the ATM is

has been identified that almost all the customers are

very common in all the ATM centers. For the

accepting the ATM, as a useful and modern tool for

insufficient money problem, banks can initiate

dispensing cash due to advancement in technology.

action against this problem by checking the ATM

3.

machine at frequent durations, so that cash can be

REFERENCES

filled in the ATMs at frequent intervals.

BOOKS

Some of the customers opined that the banks are

1.

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p.73.

inform the customers about the operation of the

2.

Management" Virendar Kumar Arya, AITBS

to guide the customers or it can assist the

publishers, p.479, 480

3.

Johnson A.Edosomwan, "Customer and Market-

For recording the details in the passbook, some of

driven quality Management", Tata Mc.Graw-hill

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73.
4.

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Ms. Rohini Gupta Suri, " Services Marketing",

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banks can implement some measures to speed-up

5.

N.C. Jain and Saakshi Jain, " Marketing

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4.

C. Bhattacharjee, "Service Sector Management",

not provided with adequate operational guidance

Delhi, p.73,74.

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JOURNALS AND MAGAZINES

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5.

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September 2007 p.10

banks can take some action to renew the ATM card

at a faster pace.

6.

Mr. Ajay Bimbhie "Technology led customer

service", Professional banker, The ICFAI
120

*J. RAMOLA PREMLATHA, **DR. AJAY KUMAR SHARMA

University press, May 2008, p. 53.

7.

K.D. Dadiseth, "Business intelligence for

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8.

Dr. S.S. Hugar and Nancy H Vaz. "An evaluation

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9.

B.MadhuGopal, "ATMs, A boon to men on the

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12. h t t p :

/ / e n . W i k i p e d i a . o r g

/wiki/Automatic_Teller_Machin # file.note.47.
13.
http://www.icicicbank.com/user/channels/atm.ht
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121