Mk proposal re_submitted4_july2

Mount Kenya University
The research proposal
Kigali Campus

TOPIC:
By
THE ROLE OF AUTOMATIC TELLER MACHINE (ATM)
CARDS IN FRANK MAKAKA
CUSTOMER SATISFACTION:

A CASE OF BANK OF KIGALI (BK)
Reg. No. : MBA/2084/11

Kigali, July2012

i

TABLE OF CONTENTS
DECLARATION.................................................................................................................................................................... ii

DEDICATION......................................................................................................................................................................iii

ACKNOWLEDGEMENT.......................................................................................................................................................iv

ABSTRACT........................................................................................................................................................................... v

TABLE OF CONTENTS.........................................................................................................................................................vi

LIST OF ABREVIATIONS......................................................................................................................................................ix

LIST OF FIGURES................................................................................................................................................................. x

LIST OF TABLES ................................................................................................................................................................. xi

DEFINITION OF TERMS .....................................................................................................................................................xii

1 Automated Teller Machine (ATM).........................................................................................................................xii

.2 Automated Teller Machine Card..........................................................................................................................xiii

1.7.3 Customer satisfaction....................................................................................................................................xiv

CHAPTER ONE.................................................................................................................................................................. 16

1.0 INTRODUTION...........................................................................................................................................................16

1.1 Background of the Study........................................................................................................................................16

1.2 Statement of the Problem.......................................................................................................................................20

1.3 Objectives of Study................................................................................................................................................20

1.3.1 General objectives...........................................................................................................................................20

1.3.2 Specific objectives..........................................................................................................................................20

1.4 Research Questions................................................................................................................................................21

1.5 Significance of the Study.......................................................................................................................................21

1.6 Limitations of the Study ........................................................................................................................................22

1.7 Scope of the study..................................................................................................................................................22

CHAPTER TWO................................................................................................................................................................. 24

vi

2.0 LITERATURE REVIEW .................................................................................................................................................24

2.1.1 Factors influencing customer satisfaction ......................................................................................................24

2.1.2 Measuring customer satisfaction....................................................................................................................24

2.1.3 Customer satisfaction in banks........................................................................................................................26

2.3 Theoretical framework and Model development....................................................................................................29

2.3.1 Customer satisfaction theory .........................................................................................................................29

2.3.2 Model development........................................................................................................................................30

2.3.2 Research Hypothesis.......................................................................................................................................32

CHAPTER THREE...............................................................................................................................................................33

3.0 RESEARCH DESIGN AND METHODOLOGY ..................................................................................................................33

3.1 Introduction ...........................................................................................................................................................33

3.2 Research design.....................................................................................................................................................33

3.3 Research environment...........................................................................................................................................34

The study will be carried out in Bank of Kigali at head quarter and its branches in Kigali city. The bank was
launched on 02-12-1966 with start-up capital of RWF 40 million. Bank of Kigali Ltd. is Rwanda’s biggest lender by
assets, expects “runaway” profit growth this year as it opens new branches in a country where only one in 10 people
have a bank account, Chairman Lado Gurgenidze said................................................................................................34

3.4 Population.............................................................................................................................................................. 35

3.5 Sample design and size..........................................................................................................................................35

3.6 Research instrument...............................................................................................................................................36

3.7 Data collection.......................................................................................................................................................40

3.7.1 Primary data collection....................................................................................................................................40

3.7.2 Secondary data collection...............................................................................................................................41

3.8 Data analysis.......................................................................................................................................................41

3.9 Validity and reliability.........................................................................................................................................41

3.10 Research budget...................................................................................................................................................43

3.11 Time Line ............................................................................................................................................................44

vii

References .................................................................................................................................................................. 45

ATM in Africa. http://blog.standardbank.com . Consulted 30/6/2012............................................................................45

Bank experts share ideas on the issue of ATM fraud .http://www.rwandagateway.org. Consulted 28/4/2012..............45

Into Africa ATM makers explore a growth market. http://www.atmmarketplace.com. Consulted 30/6/2012..............45

Market Directions. Discussion Paper on Scales for Measuring Customer Satisfaction. info@makretdirectionsmr.com.
Consulted 30/6/2012.......................................................................................................................................................46

Rwanda: Erratic ATMs weaken roll-out of modern payment system http://in2eastafrica.net Posted Mon, Sep 26th,
2011 By In2EastAfrica Staff Consulted 28/4/2012.....................................................................................................46

Rwandans and ATMs: still a difficult relationship. Rwanda Focus. Tuesday, March 29th, 2011. On http://focus.rw.
Consulted 28/4/2012.......................................................................................................................................................46

Appendices...................................................................................................................................................................47

1.Questionnaire........................................................................................................................................................47

2.Interview questions ..............................................................................................................................................53

viii

LIST OF ABREVIATIONS

ATMs: Automated Teller Machines
BCR: Banque Commerciale du Rwanda (Rwanda Commercial Bank)
BK: Bank of Kigali
BPR: Banque Populaire du Rwanda( The People Bank)
CPSS: The Committee on Payment and Settlement Systems
CSM: Customer Satisfaction Model
EDPRS: Economic Development and Poverty Reduction Strategy
GoR Government of Rwanda
IB: International Business Machines
ICT: Information and Communication Technology
KCB: Kenya Commercial Bank
NBR: National Bank of Rwanda (The Central Bank )
NICI: National Information and Communications Infrastructure
PIN: Personal Identification Number
PoS: Points of Sale
RPV: Relative Perceived Value
SIMTEL S.A.: Societé Intel-Bancaire De Monetique Et De Tele-Compensation Au Rwanda
USA: United State of America
OG: Official Gazette

ANOVA: ANalysis Of VAriance

ix

LIST OF FIGURES
Figure 1: The customer satisfaction model with the use of ATM cards ...........................................................................30

x

LIST OF TABLES
Table 1 : Time-line............................................................................................................................................................44

xi

DEFINITION OF TERMS

1 Automated Teller Machine (ATM)

ATM means neither “avoids travelling with money” nor “any time money,” but certainly implies both Singh
& Komal (2009).
According to investopedia, automated teller machine – ATM is defined as an electronic banking outlet, which
allows customers to complete basic transactions without the aid of a branch representative or teller. There are
two primary types of automated teller machines, or ATMs. The basic units allow the customer to only
withdraw cash and receive a report of the account's balance. The more complex machines will accept deposits,
facilitate credit card payments and report account information. To access the advanced features of the
complex units, you will usually need to be a member of the bank that operates the machine.

According to CPSS (2003), ATM is an electromechanical device that permits authorized users, typically using
machine-readable plastic cards, to withdraw cash from their accounts and/or access other services, such as
balance enquiries, transfer of funds or acceptance of deposits. ATMs may be operated either online with real-
time access to an authorization database or offline.

In Finance, automated teller machine (ATM) is a computerised telecommunications device that provides the
clients of a financial institution with access to financial transactions in a public space without the need for a
cashier, human clerk or bank teller.

BK management defines ATM as an e-payment facility that provides cardholders with an easy, safe and
convenient method of performing financial transactions without the need for a human or bank teller. Its
benefits are:

• Easy access to cash
• 24/7 access to cash

• Cost effective means of banking

• An extension of banking hours
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• Makes self- service banking possible

.2 Automated Teller Machine Card

Electronically, ATM card is a plastic card with a magnetic stripe or a chip, which contains a unique card
number and some security information such as an expiration date. Authentication is provided by the customer
entering a personal identification number (PIN).

3. ATM transaction

An ATM transaction typically involves withdrawing cash from an ATM outlet. The consumer presents an
ATM card, which is issued by the bank holding his or her checking account, at an ATM terminal, which may
or may not be owned by the same bank. The consumer enters a personal identification number (PIN) to verify
identity, the checking account is checked for adequate funds, and if everything is satisfactory, cash is issued.
All of this is routed across one or more ATM networks. (F. Hayashi, R. Sullivan, and Stuart E.)
Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash
advances, and check their account balances as well as purchase prepaid cell phone credit. If the currency
being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.:
Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at a
wholesale exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign travellers and
are heavily used for this purpose as well.

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1.7.3 Customer satisfaction

The Wikipedia, the free encyclopaedia, defines customer satisfaction which is a term frequently used in
marketing as a measure of how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses.

Furthermore, customer satisfaction is an evaluation by the customer, after buying goods and services. The
most popular view of customer satisfaction in academia is that customer satisfaction is the judgment borne out
of the comparison of pre–purchase expectations with post purchase evaluation of the product or service
experience (Oliver, 1997). Customer satisfaction can result from any dimension (whether or not its quality
related) and its judgments may arise from non-quality issues (e.g. needs, equity, and perceptions of fairness)
and require experience with the service or provider (Taylor et al, 1994; Howard and Sheth, 1969).

Customer satisfaction is widely recognized as a key pressure in the formation of consumers’ future purchase
intentions (Taylor and Baker, 1994). Satisfied customers are also likely to tell others of their favourable
experiences and thus engage in positive word of mouth advertising (File and Prince, 1992; Richens, 1983.
Dissatisfied customers, on the other hand, are expected to switch brands and engage in negative word of
mouth advertising.

Customer satisfaction, a business term, is a measure of how products and services supplied by a company
meet or surpass customer expectation. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy.

Satisfaction is an overall psychological state that reflects the evaluation of a relationship between the
customer/consumer and a company-environment-product-service. Satisfaction involves of the following three
psychological elements: cognitive (thinking/evaluation), affective (emotional/feeling), and behavioural.

xiv

Expectations are beliefs (likelihood or probability) that a product/service (containing certain attributes,
features or characteristics) will produce certain outcomes (benefits-values) given certain anticipated levels of
performance based on previous affective, cognitive, and behavioural experiences. Expectations are often seen
as related to satisfaction and can be measured as follows:

1. Importance: value of the product/service fulfilling the expectation.
2. Overall affect—satisfaction expectations: the liking/disliking of the product/service.

3. Fulfilment of expectations: the expected level of performance vs. the desired expectations. This is
“predictive fulfilment” and is a respondent specific index of the performance level necessary to satisfy.

4. Expected value from use: satisfaction is often determined by the frequency of use. If a product/service
is not used as often as expected, the result may not be as satisfying as anticipated. For example a
Harley Davidson that sits in the garage, an unused year subscription to the local fitness centre/gym, or
a little used season pass to a ski resort would produce more dissatisfaction with the decision to
purchase than with the actual product/service.

xv

CHAPTER ONE

1.0 INTRODUTION

1.1 Background of the Study

Nowadays, the up-to-date Information and Communication Technology (ICT) is becoming an important
factor in the development of financial services, and especially banking industry. The developments of
technologies have enabled organizations to provide superior services for customers’ satisfaction (Surjadjaja
et al., 2003). Economies everywhere are in the midst of an e-commerce revolution. This revolution is
ushering in new methods of transacting and payment; and in doing so it promises to introduce new monies
(e-monies) that may ultimately come to displace existing money - both currency and bank deposits. (Palley,
2000) Innovations affecting Consumers- includes credit and debit cards, ATMs, stored value cards and e-
banking.(Singhai, 2010).

ATMs are set up to provide 24 hour services to bank customers, who cannot expect to be able to transact
with banks in the same period of time (Ugwu, 2008). ATMs allow you to do a number of banking functions
– such as withdrawing cash from one’s account, making balance inquiries and transferring money from one
account to another – using a plastic, magnetic-strip card and personal identification number issued by the
financial institution (Singh&Komal, 2009)

In Africa, Standard Bank from South Africa may have been the first "major" commercial bank to introduce
an ATM as was reported end 2011. Over thirty years ago, on Tuesday 21 April 1981, Standard Bank
Group became the first of the major commercial banks in South Africa to introduce automated teller
machines (ATMs) when it launched AutoBank. On the same day AutoBank went live at 25 machines
installed outside 13 Standard Bank branches in selected high-density areas of Johannesburg, where there
was a big demand for after hours cash facilities. National expansion of AutoBank soon followed.

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According to ATM market place, in 2009, there were approximately 36,000 ATMs on the Africa continent
all 11,668,599 square miles of it. It was ranked as the lowest ATM density in the world. And nearly two-
thirds of those ATMs were located in one nation — South Africa. This landscape is changing, though. It
was forecasted 94 percent growth in the number of ATMs on the continent from 2009 to 2015. And
Wincor Nixdorf predicted in 2009 that the continent would see "a significant increase" from its then annual
growth rate of 15 percent. The 2012 ATM Future Trends report found that by 2017, Africa was likely to be
the world's fourth most popular deployment market, after China, the U.S. and India.

Without staying behind, the Government of Rwanda (GoR) recognized the role that ICT can play in
accelerating the socio-economic development of Rwanda towards an information-rich and knowledge-
based economy (NICI 2010). In similar way, the Government of Rwanda; in order to give an overhead the
Central Bank (NBR); established the Law governing the Payment System in 2010 (OG, March 2010). The
Central Bank and the Ministry of Finance have facilitated banks and SIMTEL to ensure that the card-based
payment system spreads throughout the country to reduce cash-based transactions. SIMTEL is the operator
of the Rwandan switch for inter-bank ATM (Automatic Teller Machine) services (The New Times,
Feb.2012)

In 2010, there was approximately 70 ATM’s in Rwanda with 10 accept international cards. Banks were in
the process of installing news ATM’s that would also accept international cards.
That time, Rwandan banks have committed to increase ATM’s installations to close to 400 by 2012. The
governor of the National Bank of Rwanda Francois Kanimba hailed the move saying, the machines will
enable bank customers to access their money wherever they may be (The New Times, 21-10-2010).
In 2011 annual report, BK chairman of the board addressed that their ATM and POS terminal footprint had
been expanded, and a lot of effort was directed at modernizing our retail offering and electronic banking
channels.

With the amazing growth of the Rwanda development today, the need for efficient financial services has
steadily developed but it has to be improved also; thus the encouragement to use ATMs by Rwandan
banks. Speaking at the meeting with traders, Sanjaeev Anand, the Managing Director of BCR, urged
Rwandans to embrace electronic banking services in their transactions, citing on line banking, mobile

17

banking, electronic banking, electronic purchase and ATM services. Anand said that it would enable clients
to save time, get quick services, save money and improve their operational efficiency. In Rwanda, a
number of banks extend ATM Cards to their customers. Customers from BPR (Banque Populaire du
Rwanda), Ecobank, Access bank, BCR (Banque Commerciale du Rwanda), FINA bank, (BK) Bank of
Kigali, KCB (Kenya Commercial Bank), Equity Bank, etc. use ATM Cards.

What makes it interesting is the fact that the above banks in Rwanda are interconnected through SIMTEL
shared networks where by the use of an ATM cards BK customer can access his/her bank account through
Ecobank or KCB or Access bank or BPR and Vice Versa. According to East African Business Week of 11
October 2011, eight banks were automated; connected to a network of 27 ATMs (Automated Teller
Machines) and one hundred fifty Points of Sale (PoS) terminals, of which 100 are for domestic use and
fifty are international, PoS terminals.

Generally, shared networks are used because they increase the convenience of ATM use by enabling a
given bank’s customers to carry out banking transactions everywhere one goes than would be possible with
a proprietary network. Through spreading the fixed cost associated with ATMs over transactions initiated
by customers of many different banks, a shared network can take advantage of economies of scale
(Laderman, 1990 in Olatokun & Joyce 2009).

Khan(2010) adds that the ATM offers diversified financial services like cash withdrawal, funds transfer,
cash deposits, payment of utility and credit card bills, cheque book requests, and other financial enquiries.
However ATMs in Rwanda do not perform all those financial transactions. For example cash deposits and
cheque books request are impossible. “To get an ATM card in Rwanda, it may take a minimum of 3-4
months sometimes stretching to 6 months. These ATMs can only perform withdrawals and balance
enquiries,” reported East African Business Week of 11 October 2011.

While banks are trying to encourage customers to use ATMs, many people are still distrustful of machines
handling money (Rwanda Focus, March 2012). Despite central bank’s implementation of modern payment
systems long queues are still visible within banks (The New Times 26 Sep 2011). Business Times has
learnt that use of ATMs that are connected to the national switch, Simtel, which was rebranded to Rswitch,
are prone to periodic malfunctions casting a dark cloud as to whether the sector’s commitment to migration
to a more efficient means of payment will be met before the end of the EDPRS period. ATMs users are

18

frustrated by the malfunctioning and unreliability of the service. Besides the limited applications on the
ATM cards, bank clients always complain about regular breakdowns.

In a mini-survey by Business Times, four banks namely BPR, BCR, Fina bank registered the highest ATM
failures while KCB and Bank of Kigali (BK) registered slightly lower complaints. Reasons attributed to
lower malfunctioning cases by KCB and BK is due to the fact that both the banks issue Visa cards options
for its clients. Their usage stands at 4,000 cards in just two months of its introduction. KCB for instance
uses its regional switch based in Nairobi to service such functions.

The above arguments show that, although efforts are made to distribute ATMs countrywide and offer
ATM Cards to bank customers, problems are still there. Besides, all bank customers are not willing to get
ATM Cards. Consequently, long lines inside the banks are observed where customers wait many hours to
be served by the personal teller. Some bank clients possess ATM Cards but prefer personal contact which
causes them tiresome queuing and loss of time. This is found in BPR where some days at 10 o’ clock 1,000
individuals are already on the waiting line to be served by a cashier. The same problem is present in BK
and other Rwandan banks although the waiting lines lengths differ proportionally to the difference in
market share.

Hence the researcher came up with the need to investigate the present topic just because the trend in bank
marketing is customer oriented services. That is services offered by the banks are to be worked out in such
a manner that they fulfil the needs of the customers which is opposed to the traditional ways where
bankers were accustomed to think in terms of what banks can offer and not what customers want. E-
Commerce is becoming popular and by the emergence of E-banking backed to it trying to find out and
offer what bank customers need. As a new technology, ATMs are supposed to make life easier and more
efficient for the customers of banks. Concerning banks, ATMs ought to assist in improving a banks’
turnover (Batiz-Lazo & Barrie, 2005). Therefore, lack of satisfaction by ATM cards users will harm the
banks’ profit but satisfied customers augment banks profit and positively build bank’s image.

19

1.2 Statement of the Problem

Although some research has beendone in the developed world, abput the role of ATMs on customer
satisfaction; for instance Khan(2010) and Singh(2009), in Rwanda, there is lack of sufficient information in
e-banking because everyday e-banking comesup with new challenges. Given that the concept of e-bamking
is growing, banks are obliged to adopt new ways of meeting the customer demands. Automatic Teller
Machine techonology is one of the modern technological innovations toserve bank customers as people of
this era are attracted by effiecient, convinient, quick and timely service. The problem is: “are ATM Cards
important for facilitating the delivery of better service in banks? Are bank customers satisfied by using
ATM Cards? How do they value their usage?”

1.3 Objectives of Study

1.3.1 General objectives

Generally, this study aimed at examining the role of ATM Cards in banks customer satisfaction.

1.3.2 Specific objectives

i. To find out importance of using ATM Cards in banking services

ii. To assess the contribution of ATMs in achieving customer satisfaction

20

1.4 Research Questions

This study seeks to answer the following questions:
1. To what extent do ATM Cards help to provide better services to Bank customers?
2. How are bank customers satisfied by using ATM Cards as a current innovation in banking services?
3. Why don’t all bank depositors have ATM Cards?
4. Why holders of ATM Cards do not use them all times to withdraw, pay or transfer cash?

1.5 Significance of the Study

The study will be important in the sense that it will reveal to what extent ATMs contribute to satisfy the
needs of bank customers. It will make awareness to both banks and depositors about the role of Automatic
Teller Machines in achieving customer satisfaction which results in increase in market share thus
organizational profitability. Current business organizations are concerned with finding out new ways to
serve their clients with respect to modern technological requirements and trying to give what customers
want.
Therefore, the study will show bankers how far they are in using current technological ways and how
depositors consider them. In this way, they will be encouraged to maintain or improve them so that
customers could continue to experience better and satisfactory services. This study will encourage bank
customers who are still hesitant to using ATMs as it will show them their benefits. The project will
contribute to RWANDA development as advanced information technology in all economic sectors is
central to achieve the economic goals of Rwanda’s Vision 2020 and EDPRS. The project will contribute in
academic and research fields by coming up with a tangible document containing the contribution of ATMs
in customer satisfaction. Researchers will find the findings useful for their further studies of customer
behaviour and motivation, and how they may affect organization success due to the adoption and use of an
innovative service like e_banking channels such as ATMs. The project will help BK stakeholders in

21

general and BK managers and marketing researchers in particular by revealing to them whether their
customers are satisfied with the new technology or not.

1.6 Limitations of the Study

Banking is a wide field and it is not possible to explore it in one spot research thus this study will be
limited to the role of ATM Cards in achieving bank customer satisfaction. A big number of depositors
from various banks in Rwanda use ATMs, but this study will be concerned only by clients from Bank of
Kigali who use ATMs. As it is not possible to attend all ATM Cards holders in BK, a sample survey
method will be used and a representative sample will be selected. This study will not measure the effect of
satisfaction or dissatisfaction of customers on the bank.

1.7 Scope of the study

1.7.1 The concept scope

The researcher under this study is interested in examining the role of ATM cards in bank customer
satisfaction. On one hand, satisfied customers are a benefit to the business organization but on the other
hand, dissatisfied customers are harm to it. Hence the study will be guided by the customer satisfaction
theory by Ronald from which a customer satisfaction model is built to support the idea that use of ATM
cards by customers is satisfactory and beneficial.

1.7.2 The content scope

This work will be consisted of five chapters:

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- A General introduction that illustrates the general description of the work, such as Background of
the study, statement of the problem, objectives of the study, research questions, significance of the
study, the limitation of the study, the scope of the study and conceptual framework.
- The second chapter will deal with the theoretical concepts relating to customer satisfaction and to
the ATM system.it will include introduction to literature review, review of theoretical literature,
review of empirical/ analytical/critical literature, summary and gaps to be filled by the study.
- The third chapter will contain research design and methodology. The chapter will include an
introduction, study design, target population, sample design, data collection procedures and
instruments used, data analysis methods.
- The Chapter four will be presentation of findings that covers introduction to data analysis,
presentation of findings, summary of data analysis.
- The Chapter five which is the last will be summary of findings/discussion, conclusions and
recommendations. It will cover introduction, summary of major findings, answers to research
questions/instruments of hypothesis, conclusions, recommendations and suggestion for further
study

1.7.3 The geographical scope

The study will be carried out in Bank of Kigali heardquarters in Rwanda; the country of thousand hills in
Central Africa

1.7.4 The time scope

This research will be curried up for five months and a half. That is from end February up to July 2012.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

2.1.1 Factors influencing customer satisfaction

In general, customer satisfaction is multifactorial and is considered as part of overall consumer behaviour
model. Consumer behaviour evolves over time and is influenced by many factors. Several key factors that
greatly influence satisfaction include consumer’s expectations, attitudes, and intention about the service
provided (Ronald, 2001).
Ronald explained that expectations are the consumer’s anticipated beliefs about a product or service prior
to the interaction. Attitudes consist of the consumer’s evaluations, emotional feelings, and action
tendencies towards a product or service that has developed over time. Intentions are the decisions the
consumer makes about future actions towards the firm producing the product or service. Together, these
factors influence the future behaviour or the actual future action taken by the customer. For the most part,
these factors are intangible so it is the perceived performance rather than the actual performance that is
more critical to customer satisfaction.

2.1.2 Measuring customer satisfaction

Organizations need to retain existing customers while targeting new customers. Measuring customer
satisfaction provides an indication of how successful the organization is at providing products and/or
services to the marketplace.

24

Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will
vary from person to person and product/service to product/service. The state of satisfaction depends on a
number of both psychological and physical variables which correlate with satisfaction behaviours such as
return and recommend rate. The level of satisfaction can also vary depending on other factors the customer,
such as other products against which the customer can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered
SERVQUAL1 which provides the basis for the measurement of customer satisfaction with a service by
using the gap between the customer's expectation of performance and their perceived experience of
performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature.
Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman,
Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of
performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements using a Likert
Technique or scale2. The customer is asked to evaluate each statement in terms of their perception and
expectation of performance of the service being measured. Arguably, consumers are less complex than
some of these surveys tend to portend. They are basically in two simple states; satisfied or not satisfied.

1
SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-
satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to indicate the gap
between customer expectations and experience.
2
A Likert Scale is a type of psychometric scale frequently used in psychology questionnaires. It was
developed by and named after organizational psychologist Rensis Likert.

On a survey or questionnaire, a typical Likert item usually takes the following format:

1. Strongly disagree(Very dissatisfied)
2. Disagree(Dissatisfied)
3. Neither agree nor disagree(Neutral)
4. Agree(Satisfied)
5. Strongly agree(Very satisfied)
25

On or off; just like a switch. A business can measure its customer satisfaction index by relating the
aggregates of satisfied customers versus dissatisfied customers. The theory of customer satisfaction used in
this study, will help to prove whether an individual who uses ATM card is satisfied or not.

2.1.3 Customer satisfaction in banks

Satisfaction with banking services is an area of growing interest to researchers and managers. The
commercial banking industry like many other financial service industries is facing rapidly changing
market. New technologies, economic uncertainties, fierce competition and more demanding customers and
the changing climate have presented an unprecedented set of challenges. Intangible assets, particularly
brands and customers, are critical to any organization and in today’s competitive environment relationship
marketing is critical to banking corporate success (Ambabari et al, 2011)

The banking industry like many other financial service industries is facing a rapidly changing market, new
technologies, economic uncertainties, fierce competition and more demanding customers and the changing
climate has presented an unprecedented set of challenges.

Banking can consider the business that really appreciates the value of building long-term relationships with
customers. With the range of services offered by banks – brokerage, home equity, mortgage refinance,
credit cards, and debit cards, among others – successful banks want to serve customers by offering services
and products that meet both personal and business banking needs. In today’s highly competitive,
increasingly consolidated world, offering personalized and differentiating services can be critical to a
bank’s success.

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2.2 Review of past studies

Singh & Komal (2009) presents the Impact of ATM on Customer Satisfaction. They did A Comparative
Study of three major banks: State Bank of India, ICICI bank and HDFC bank. A sample of 360 respondents
equally representing each bank has been taken through questionnaire. Data has also been collected through
interview also. Then various statistical tools have been used accordingly to compile the result. It is
concluded through this paper that material satisfaction level is highest in SBI, and then second is ICICI
Bank and third is HDFC Bank. This is due to the size of the respective bank and number of years of its
establishment. But according to abstract Table-9 & fig.-6 depicts that material customer satisfaction level is
highest for SBI at 79%, 2nd is ICICI Bank with 77% and 3rd is HDFC Bank with 73%. Table also presents
that average customer satisfaction level is highest in HDFC bank with 70%, in ICICI Bank it is 60% and
SBI is at third place with 55%.

Darch and Caltabiano (2004) explored the relationship between demographic, user-situational, attitudinal
variables and ATM use in an Australian sample of older adults. These adults were Volunteers aged 60
years and above, who conducted their own banking transactions. Technology, perceived control and
perceived user comfort were found to have an independent significant effect on ATM usage. Age,
education, attitudes and user situational variables were found to be related to ATM use, only technology
experience, perceived user comfort and control were found to be determinants of ATM use.

Jimenez and Pia (2010) investigates Electronic Banking: Delivering Microfinance Services to the Poor in
the Philippines. The paper presents a brief overview of the microfinance “industry” in the Philippines as
well as the recent developments of increased commercialization. Two case presentations were made on
existing models in which technological innovations of electronic banking are being used specifically to
serve microfinance clients. First, is the use of mobile telephones through the short messaging services
(SMS) to pay for microfinance loan amortizations using electronic cash platforms. The other case is a brief
example of the distribution of Automated Teller Machine (ATM) cards to microfinance clients, which aims
to lower costs for the microfinance institution while increasing convenience for the clients. Jimenez and Pia
found that e-banking made a promising debut when automated teller machines (ATMs) were Jimenez
introduced in the 1980s revolutionizing how they viewed the conventional, brick-and-mortar bank
structure.
27

Today, ATMs have become a common customer delivery channel that is predominant in urban centres and
sometimes even in the countryside. Aside from ATMs, other innovations have taken place such as phone
and internet banking which again provide customers the ability to access banking services from various
locations and at a 24-hour by 7- days basis.

Olatokun & Igbinedion (2009) investigated the adoption of automatic teller machines in Nigeria. This
study tested the attributes of the theory of diffusion of innovation empirically, using Automatic Teller
Machines (ATMs) as the target innovation. The study was situated in Jos, Plateau state, Nigeria. The
population comprised banks customers in Jos who used ATMs. The sampling frame technique was applied,
and 14 banks that had deployed ATMs were selected. Using primary data of 428 respondents, they found
out that in order to increase the diffusion of ATMs, it was recommended that banks should ensure
enhanced salience of ATM to customers’ needs, greater compatibility of ATM to customers banking norms
and lifestyle, less complex and easy to use system and opportunity for adopters to experiment with the
system before using ATMs.

Khan (2010) carried up the Empirical Study of Automated Teller Machine Service Quality and Customer
Satisfaction in Pakistani Banks. The study investigates significant dimensions of ATM (automated teller
machine) service quality and its effect on customer satisfaction. Primary data were collected from a
convenience sample of 500 customers of multinational and national banks. His regression results indicate
that convenience, efficient operation, security and privacy, reliability and responsiveness are significant
dimensions of ATM service quality and that ATM service quality positively and significantly contributes
toward customer satisfaction.

28

Khaled & Abdulrasoul (2008) carried out an exploratory study on bank's customer satisfaction in Kuwait.
They used primary data from 650 retal customers. Using descriptive statistics methods and ANOVA test (to
compare between different means), the result of this study suggests the degree of customer satisfaction (Muslim
and non-Muslim customers) in term of services provided by retail banks in Kuwait. The ANOVA test shows
slightly differences between Muslim and Non-Muslim customer in their degree of satisfaction. Muslim
customers are mostly satisfied with availability of ATM in several locations, safety of funds, easy to use ATM
and The quality of services provided. While Non-Muslim customers are mostly satisfied with Availability of
ATM in several locations, Phone account access, safety of funds, ease of opening a current account and bank
image and reputation. The worse factor noted in this study is the interest rate on loans, this indicate that most of
customer in Kuwait give more intention to loans.

2.3 Theoretical framework and Model development

2.3.1 Customer satisfaction theory

The theory of customer satisfaction by Ronald postulates that customer satisfaction does have a positive
effect on an organization's profitability, satisfied customers form the foundation of any successful business
as customer satisfaction leads to repeat purchase, brand loyalty, and spread the positive experience by word
of mouth. Satisfied customers are most likely to share their experiences with other people to the order of
perhaps five or six people (advertising), resulting in increased revenues and profitability. Conversely, a
dissatisfied customer will most likely not provide repeat business and will be more than willing to share his
or her bad experience with whoever will listen. Dissatisfied customers are more likely to tell another ten
people of their unfortunate experience. This will have an obvious negative impact on profits and revenues.

29

2.3.2 Model development

This part presents a model and a set of hypotheses that describe the role of Automatic Teller Machine
Cards in customer satisfaction.
The model provides a framework for considering how bank image (technically advanced, national
coverage, customer service,), customer expectations (24 hour per 7 servicing, eliminated line ups, quick
service, easy to use machine, true information), perceived quality of ATM cards(Convenience, efficient
operation, security and privacy, reliability, responsiveness), perceived value of service in terms of money,
customer complaints determine customer satisfaction. When these variables are described positively by the
customers, it means that they are satisfied. Conversely, when these variables are perceived negatively, the
customer is dissatisfied hence s/he complains and is likely to spread negative word of month. Dissatisfied
customers damage the image of the bank.

Figure 1: The customer satisfaction model with the use of ATM cards

BANK
IMAGE
+ +

CUSTOMER
+
+ EXPECTAION
S
ATM
+ QUALITY
CARD + CUSTOMER
SERVICE
SATISFACTIO
+
+ N
SERVICE
VALUE
- -
CUSTOMER
COMPLAINTS
Note:
30

Image of the bank
This refers to the level at which the citizens rank the chosen bank among others in the region. It is tested
using number 1 questionnaire items.

Customer expectations from ATM usage
It is proved that any customer of this era including bank customer is more oriented to the ease, reliability,
and faster services. They want autonomy in transactions, so they prefer self-service delivery systems
(Khan, 2010).
Quality service

Excellence in quality has become an imperative for organizational sustainability in this competitive and
fast moving world (Lewis et al., 1994). Customers perceive ATMs as electronic facility to carry up
financial transaction without the need for a human clerk or bank teller. They provide convenience and
safety to the consumers. They are a good substitute of cash and cheque.

Service value
The valuation of or service according to how much consumers are willing to pay for it, rather than upon its
production and delivery costs. (http://www.businessdictionary) .The use of ATM cards saves the time and
money. It also overcomes inconvenience of going to the bank for cash withdrawals. It is enough for the
cash holder to carry only card with her/him while shopping, travelling, etc. Although some of the ATM
services are charged such as using in another banks machine sharing the network. But it is satisfactory
when the cost of usage is lower than the cost of reaching one’s proper bank premises.

Customer complaints
This refers to all circumstances that make the ATM card user feeling dissatisfied such as working
breakdowns, delayed service, lack of customer care service especially in the nights. Unhappy customers
have their reasons. Some don’t feel well, some have unrealistic expectations, and others may just have
lousy dispositions. (www.hand-ebs.com)

31

2.3.2 Research Hypothesis

From the above model and the research related literature, the following are the hypothesis that this study
intends to test.
Hypothesis 1: By using ATM card, the bank image influences positively customer satisfaction
Hypothesis2: By using ATM card, customer expectations have a positive influence on customer
satisfaction
Hypothesis 3: By using ATM card, quality service has a positive influence on customer satisfaction
Hypothesis 4: By using ATM card, sevice value has a positive influence on customer satisfaction
Hypothesis 5: By using ATM card, customer complaints have negative effects on customer satisfaction

32

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This chapter includes Research design, Research environment, study Population, Sample design and size,
Research instrument, Data collection, Data analysis, Validity and reliability, Research budget,Time line
and References .

3.2 Research design

The researcher will carry up quantitative descriptive research to determine the relationship between ATM
cards usage (an independent variable) and bank customer satisfaction (a dependent or outcome variable).
The research design is descriptive where bank customer satisfaction will be measured once. The study
establishes associations between sub-variables which are bank image, customer expectation from using
ATM card, perceived quality of its use, perceived value and customer complaints. In order to achieve a less
biased estimate of the relationship, a high participation rate in a sample selected due to convenience from a
population is expected. The simplest descriptive study which is a case study is adopted under this research
and will reports data on only the Bank of Kigali (BK).

33

Questionnaires will be distributed throughout 8 branches (Kacyiru, Remera, Kanombe, Nyabugogo,
Nyarugenge, Kimironko, Milles Collines branch, Kigali Market) of Bank of Kigali located in Kigali City.
Respondents will be conveniently selected from bank customers who will visit the sampling locations
during the chosen time intervals, in order to eliminate the sampling frame errors and to ensure the
representation of the population under study in the sample units.

The method of convenience sampling will be used for sample selection. This sampling method is chosen
due to easily accessibility, availability of the respondents, and it involves less time and cost to gather
required data( Bickle, R., & Papaginnis, G. 2001). Contend that “the advantage of non-probability samples
is that they are less complicated and more economical than probability samples.” Furthermore, convenience
sampling involves collecting information of members of the population that are near and readily available
for research purposes.

3.3 Research environment

The study will be carried out in Bank of Kigali at head quarter and its branches in Kigali city. The bank
was launched on 02-12-1966 with start-up capital of RWF 40 million. Bank of Kigali Ltd. is
Rwanda’s biggest lender by assets, expects “runaway” profit growth this year as it opens new
branches in a country where only one in 10 people have a bank account, Chairman Lado Gurgenidze
said.

The bank yesterday posted a 17 percent increase in profit for the 12 months through December to 6.1
billion Rwandan francs ($10.2 million) as net interest income, the money earned from interest charges on
loans, grew 21 percent. Over the past 18 months, the lender increased its number of branches to 33 from
18, In addition to the opening of new outlets, the bank is “investing like mad” to increase the number of
ATMs, offer debit cards and improve its mobile-phone banking service, he said. “The ambition has to be to
participate in one way or another in every franc that is being earned or saved or spent in the country,” he
said.

34

The bank has branches throughout Kigali City at Kacyiru, Remera, Kanombe, Nyabugogo, Nyarugenge,
Kimironko, Milles Collines branch, Kigali Market. In countryside, there are Musanze branch, Rwamagana
branch, Huye branch, Rubavu branch, Ruhango branch,RUSIZI branch, MUHANGA branch,
NYAGATARE branch, KABUGA and KAYONZA Branches, GICUMBI and GATUNA Branches
(BYUMBA), MUSANZE town branch, RUBAVU Town Branch, School of Finance and Banking
(SFB)branch, Rwanda Development Board (RDB) Branch, Nyamata branch, Rusumo branch,The Manor
branch, NGOMA branch, Kabarondo branch, Kabarore branch, Kirehe branch,Gakenke branch,
Bugarama, Ruhango, Byangabo, Karongi, Nyanza, Ruhuha, KCT, Remera II and Butaro on 30-01-2012.

Bank of Kigali aspires to be the leading provider of most innovative financial solutions in the region. BK’s
mission is to be the leader in creating value for its stakeholders by providing the best financial services to
businesses and individual customers, through motivated and professional staff. Their values are Customer
focus, Integrity, Quality and Excellence.

3.4 Population

The research population includes all BK customers holding ATM cards. It is restricted in number to those
ones who are served from the eight above cited branches.

3.5 Sample design and size

A Sample is a segment of the population selected to represent the population as a whole (Kumar, Ranjit,
2005). Selecting a sample is a very important step for a positivistic study (Hussey and Hussey 1997). For
an accurate estimate of the relationship between variables, a descriptive study usually needs a sample of
hundreds or even thousands of subjects. Note the sample should be unbiased and large enough to satisfy the
needs of the research. It is impossible to survey the entire population of this study because of limited
funding and time. Therefore , we will be obliged to survey a sample of the population as an alternative in

35

order to formulate predictions about the entire population hence we will randomly select a sample of 800
participants. From every branch we expect a sample of 100 ATM users.

3.6 Research instrument

The research tool provides the input into a study and therefore the quality and validity of the output (the
findings), are solely dependent on it (Kumar, Ranjit, 2005). At the beginning, the questionnaire (Appendix
1) and structured interview will be used. A questionnaire consists of a set of questions presented to a
respondent for answers. The respondents read the questions, interpret what is expected and then write down
the answers themselves. It is called an Interview Schedule (Appendix 2) when the researcher asks the
questions (and if necessary, explains them) and records the respondent’s reply on the interview schedule
(Kumar, Ranjit, 2005).

As far as this study is concerned, the questionnaire items are selected from previous research and are
rephrased to suit the context of the study and to represent the variables in the research model.
Reviewing prior studies on ATM adoption, attitude of customers towards ATM, customer perception of
ATM cards, e-commerce etc, it was found that many studies used questionnaires to collect data for analysis
and research objective investigation. In this study a survey with questionnaires will be implemented to find
out the role of ATM cards in bank customer satisfaction. In order to facilitate participants’ understanding of
this research, a brief introduction of the research purpose will be provided at the beginning of the
questionnaire. Furthermore, confidentiality and anonymity are guaranteed afterwards. The respondent will
begin answering the questions under qualification criteria part. Then s/he will proceed to five-point Likert
scale, with anchors ranging from “very dissatisfied” to “very satisfied”. All developed items are relevantly
matched with satisfaction of ATM cards users. Few statistical tools such as Mean, Standard Deviation,
Person's Correlation, will be used for the analysis. Mean and standard deviation are measure of dispersion
or variation (Fallik & Brown, 1983). The following are questionnaire items:

36

Table 1.Questionnaire items

Variables Questionnaire items Variables
ATM usage 1. Do you have a bank account in bank of Kigali (BK) which is
operational and an ATM card that you use?

Yes, proceed to next questions
No, don’t answer the following?

2. How long have you been using BK ATM card?

Bank image How do you consider your bank account and ATM card provider to be
generally rated and perceived among people in terms of...

a) ...the image of being a technically advanced, professional bank with
good national coverage?

b) ...the image of providing excellent customer service?

c) ...the image of being a reliable bank?

d) ...the overall image of the bank?

Customer expectations 1. Think about your own expectations on your BK ATM services
based on previous experience,

a) ...your expectations on 24 hour per 7 servicing

b) ...your expectations on eliminated line ups

c) ...your expectation on convenient service

d) ... your expectations on quick service

j) ...your overall expectations considering all aspects you find important
by using ATM Card?

37

f) ...your expectations on true information and lack of errors

g) ...your expectations on amount of money you can withdraw per day

h) ...your expectations on language switching

) ...your expectations on customer service (waiting-time when contacting
them on telephone due to a problem, opening hours at their help service,
information about, unexpected balance, confusing matter , etc)?

e) ...your expectations on manipulating an easy to use machine

2. To what degree do you consider that your ATM provider (BK)
presently fulfils all your expectations?

Perceived quality of ATM a) Convenience
usage How do you feel on the fact that BK ATM CARDS is convenient (refers
to ease of use and accessibility of the service at all times)

b) Efficient Operation
How do you feel on the fact that BK ATM CARDS provide efficient
operation( this relates to efficient and speedy operation, user-friendliness
of ATM)

c) Security & Privacy
How do you feel on the fact that BK ATM CARS are secure (perceived
risk with use of BK ATM is low)

d) Reliability
How do you feel about the fact that BK ATM CARDS are reliable (you
receive the right quantity and right quality of service at all times, as
promised by the banks )

e) Responsiveness
38

How do you feel about the fact that BK staffs have the ability to provide
the agreed services timely, accurately, dependably, and promptly?

Perceived value 1. Consider the personal service and technical functions you have
access to from your ATM provider. How do you fell in relation to
a)the prices charged (costs of subscription and usage charges taken
together)

b) The value of the customer service and advice supplied by the personnel
of the provider (opening hours, friendliness, speed of responding, etc.)?

c) The value of product and services (cash withdraw, check balance,
subscriptions, renewal, etc)?

d)) The value of the range of services offered from your ATM card
provider

e) The value of the security and level of correctness performed by your
ATM provider (account deposit information, good specifications of
charges, etc.)?

f)The value of the availability of the customer service (contact time,
waiting time etc.)?
g) The “overall value” of the service at your ATM provider in relation to
the total costs of the facility?

Customer complaints (a)How do you feel about the amount of money you allowed to withdraw,
transfer by using BK ATM Card
(b)How do you feel about the fact that, like with any other bank in
RWANDA, it is impossible to deposit cash using BK ATM Cards
(c)How do you feel about the skills required to manipulate ATM
39

(d)How do you feel about the fact that ATM installation ignore disabled
Customer satisfaction Considering all your experience with ATM usage, with BK your provider,
how satisfied are you?

3.7 Data collection

The research data will be collected from primary and secondary sources.

3.7.1 Primary data collection

For the accomplishment of the purpose of the research primary data will be collected from the sample. The
questionnaire will be administered to bank customers in the sample and the interview will be held with the
bank management. A brief invitation and introduction to this research will be provided to participants
before they start filling in the questionnaires. If they accept the invitation, questionnaires will be handed
out to them. Otherwise, they would not receive any questionnaire. After 10 minutes, the completed,
anonymous questionnaires will be directly collected by the researcher. The advantage of this method is that
both the cost and the time required are low (Cavana et al., 2001). Data collection will be conducted mid
June 2012.

40

3.7.2 Secondary data collection

In order to study the role of ATM cards in bank customer satisfaction, the data are collected from previous
research reports, newspapers, magazines and articles and books in hard or soft forms. BK website is
consulted to find out their efforts in providing electronic banking services.

3.8 Data analysis

Quantitative data is analyzed by using descriptive statistics and other standard quantitative methods
(Kontio, Lehtola & Bragge, 2004). After collecting data, the researcher will classify and present them in
meaningful forms to have better insight of a research problem. Data collected from the survey will be
entered into the statistical package, SPSS (statistical package for social science) for analysis, Correlations
among variable will be calculated and the variables represented in each hypothesis be explored through
regression analysis. At this stage, computer software applications like MS-Word and MS-Excel will be
used.

3.9 Validity and reliability

Validity refers to the degree to which a study accurately reflects or assesses the specific concept that the
researcher is attempting to measure( Bee Bornheimer et al 2008). Our study will be valid in the sense that
it will only investigate the role of ATM cards in bank customer satisfaction. It will only be based from the
views of BK customers and BK management. Validity is concerned with the study's success at measuring
what the researcher set out to measure. In order to achieve this, the sample will include only BK customers
who have ATM cards. Researchers should be concerned with both external and internal validity. External

41

validity refers to the extent to which the results of a study are generalizable or transferable. Most
discussions of external validity focus solely on generalizability (Campbell and Stanley, 1966).

The findings of our research will be generalized to all BK system that is in Kigali city and in country side
provinces. Internal validity refers to (1) the rigor with which the study was conducted (e.g., the study's
design, the care taken to conduct measurements, and decisions concerning what was and wasn't measured)
and (2) the extent to which the designers of a study have taken into account alternative explanations for any
causal relationships they explore (Huitt, 1998). To ensure the internal validity of the study, the researcher
will design a simple questionnaire, close ended where the respondent is simple required to indicate his/her
degree of satisfaction or dissatisfaction. During the data correction through questionnaires the researcher
will be present. Additionally the interview to BK management is structured only to gather relevant
information for the topic under study.

Concerning our research, responses will be classified into subgroups on the basis of common characteristic.
Classification ranks the subgroups in a certain order; very dissatisfied, satisfied, neutral, not satisfied and
very satisfied respectively. Reliability is concerned with the accuracy of the actual measuring instrument
or procedure. Reliability estimates are a function of the test scores yielded from an instrument, not the test
itself (Thompson, 1999). Accordingly, reliability estimates should be considered based upon the various
sources of measurement error that may be involved in test administration (Crocker & Algina, 1986). Two
dimensions underlie the concept of reliability: repeatability (or stability over time) and internal consistency
(or homogeneity of the measure) (Zikmund, 2003 p 300). Reliability is the extent to which an experiment,
test, or any measuring procedure yields the same result on repeated trials.

42

3.10 Research budget

Act Cost (RWF)

1. RESEARCH 100,000

2. INTERNET CONNECTION 30,000

3. PRINTING& BINDING 100,000

5. TRANSPORT 100,000

6. AIRTIME 25,000

7. LAPTOP 250,000

TOTAL 630,000

43

3.11 Time Line

Timing Activity

February Topic selection, topic submission to the supervisor and feedback from
the supervisor

February Concept note

March Research proposal

July Submission of the Research proposal to the supervisor and feedback
from her.

July Research Finalisation

July Submission of the final copy to the supervisor and feedback

July Defence

Table 1 : Time-line

44

References

ATM in Africa. http://blog.standardbank.com . Consulted 30/6/2012

ATM. http://subs.accessbankplc.com

ATM's in Rwanda. ( posted FEB 2011 ) On http://www.lonelyplanet.com . Consulted 28.4.2012 18:34P.M

Bank experts share ideas on the issue of ATM fraud .http://www.rwandagateway.org. Consulted
28/4/2012
Customer Friendly, Business Logical Proven retail self-service solution. www.hand-ebs.com .Consulted
7/6/201

Customer Satisfaction of ATM Service: A Case Study of HSBC ATM on http://papers.ssrn.com. 4 May
2012

Definition of perceived value. http://www.businessdictionary.com/definition/perceived-value-
pricing.html#ixzz1xJCbGZLV. Consulted on 7/6/2012

Eduardo C. J.and Pia B. R. (2010).Case Study on Philippines. Electronic Banking: Delivering
Microfinance Services to the Poor in the Philippinesi

From Wikipedia, the free encyclopedia. Customer satisfaction on http://en.wikipedia.org. Consulted 5 May
2012

IDeA and LGA (2006) Measuring Customer Satisfaction :A review of approaches. FreshMinds Ltd.
www.freshminds.co.uk

Into Africa ATM makers explore a growth market. http://www.atmmarketplace.com. Consulted
30/6/2012
Khaled & Abdulrasoul (2008). An Exploratory Study On Bank's Customer Satisfaction In Kuwait. Open
University Malaysia

45

Khan M. A. (2010). An Empirical Study of Automated Teller Machine Service Quality and Customer
Satisfaction in Pakistani Banks. Rawalpindi. European Journal of Social Sciences – Volume 13, Number 3
(2010)

Lucy M. Mboma. ATM and Customer Satisfaction: A Case of the Banking Industry in Tanzania. Available
on http://www.ifm.ac.tz consulted 28/4/2012

Market Directions. Discussion Paper on Scales for Measuring Customer Satisfaction.
info@makretdirectionsmr.com. Consulted 30/6/2012

Rafiqul I. et al (2010). Customer Satisfaction of ATM Service: A Case Study of HSBC ATM

Ronald A.N. et al.(2001).Queuing Theory and Customer Satisfaction: A Review of Terminology, Trends,
and Applications to Pharmacy Practice. Volume 36, Number 3.

Rwanda: Country to Produce ATM Cards, - Will Be Third Country in the Africa. East African Business
Weak. 11 October 2011 on http://allafrica.com.

Rwanda: Erratic ATMs weaken roll-out of modern payment system http://in2eastafrica.net Posted Mon,
Sep 26th, 2011 By In2EastAfrica Staff Consulted 28/4/2012

Rwandans and ATMs: still a difficult relationship. Rwanda Focus. Tuesday, March 29th, 2011. On
http://focus.rw. Consulted 28/4/2012
SIMTEL overview. on www.simtel.co.rw. 4 May 2012

Wole Michael Olatokun. The Adoption of Automatic Teller Machines in Nigeria: An Application of the
Theory Of Diffusion of Innovation. Gaborone, Botswane Louisa Joyce Igbinedion. Africa Regional Centre
for Information Science,University of Ibadan, Nigeria. At eagleviewng@yahoo.com 06.03.2012

46

Appendices

1. Questionnaire
Instructions:

• Tick in the case corresponding to your answer

• For part II:

1= Very dissatisfied 2=Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied

PART I: Qualification criteria

3. DO YOU HAVE A BANK ACCOUNT IN BANK OF KIGALI (BK) WHICH IS OPERATIONAL AND AN ATM
CARD THAT YOU USE?

Yes, proceed to next questions
No, don’t answer the following?

4. HOW LONG HAVE YOU BEEN USING BK ATM CARD?

1year 2years 3years 4years 5years 6years and above

47

PART II: CUSTOMER SATISFACTION QUESTIONS

Q3. IMAGE

Think about the general image of your bank BK in Rwandan society in terms of ATM services.
How do you consider your bank account and ATM card provider to be generally rated and perceived among people in terms of...

(Use the scale where 1 means “Very dissatisfied” and 5 means “very satisfied”.)

a) ...the image of being a technically advanced, 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied
professional bank with good national coverage?
b) ...the image of providing excellent customer service?

c) ...the image of being a reliable bank?

d) ...the overall image of the bank?

Q4. 1. CUSTOMER EXPECTATIONS

Now I ask you to think about your own expectations on your BK ATM services based on previous experience, using the scale where 1
means ”not at all satisfied”, and 5 means “very satisfied”.
a) ...your expectations on 24 hour per 7 servicing 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied

b) ...your expectations on eliminated line ups

c) ...your expectation on convenient service

d) ... your expectations on quick service

e) ...your expectations on manipulating an easy to use
machine
48

f) ...your expectations on true information and lack of
errors
g) ...your expectations on amount of money you can
withdraw per day
h) ...your expectations on language switching

i) ...your expectations on customer service (waiting-time
when contacting them on telephone due to a problem,
opening hours at their help service, information about,
unexpected balance, confusing matter , etc)?
j) ...your overall expectations considering all aspects you
find important by using ATM Card?
Q4.2 FULFILLMENT OF EXPECTATIONS

To what degree do you consider that your ATM provider 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied
(BK) presently fulfils all your expectations?
Use the scale where 1 means ”fulfilled much less than
expected” and 5means”fulfilled much more than
expected”.
Q5. QUALITY SERVICE
f) Convenience 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied
How do you feel on the fact that BK ATM CARDS is
convenient (refers to ease of use and accessibility of the
service at all times)
g) Efficient Operation
How do you feel on the fact that BK ATM CARDS
provide efficient operation( this relates to efficient and
speedy operation, user-friendliness of ATM)

49

h) Security & Privacy
How do you feel on the fact that BK ATM CARS are
secure (perceived risk with use of BK ATM is low)
i) Reliability
How do you feel about the fact that BK ATM CARDS are
reliable (you receive the right quantity and right quality of
service at all times, as promised by the banks )
j) Responsiveness
How do you feel about the fact that BK staff have the
ability to provide the agreed services timely, accurately,
dependably, and promptly.

50

Q.6 SERVICE VALUE

Consider the personal service and technical functions you have access to from your ATM provider. How do you rate this in relation to the prices
charged (costs of subscription and usage charges taken together). Use the scale 1 meaning” very low value for money and 5” very high value
for money. How do you perceive:
a) The value of the customer service and advice supplied 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied
by the personnel of the provider (opening hours,
friendliness, speed of responding, etc.)?
b) The value of product and services (cash withdraw, check
balance, subscriptions, renewal, etc)?
c) The value of the range of services offered from your
ATM card provider
d) The value of the security and level of correctness
performed by your ATM provider (account deposit
information, good specifications of charges, etc.)?
e) The value of the availability of the customer service
(contact time, waiting time etc.)?
f) The “overall value” of the service at your ATM provider
in relation to the total costs of the facility?

51

Q7. OVERALL SATISFACTION

Considering all your experience with ATM usage, with BK 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied
your provider, how satisfied are you?
Use the scale where 1 means “not at all satisfied” and 5
means “very satisfied”.
Q9. CUSTMER COMPLAINTS
(a)How do you feel about the amount of money you 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfied
allowed to withdraw, transfer by using BK ATM Card
(b)How do you feel about the fact that, like with any other
bank in RWANDA, it is impossible to deposit cash using
BK ATM Cards
(c)How do you feel about the skills required to
manipulate ATM
(d)How do you feel about the fact that ATM installation
ignore disabled

52

2. Interview questions

1. How many clients have you already registered in your book account?

2. When did you start ATM services in your Bank BK ?

3. How many account owners do have ATM cards?

4. How many transactions do your customers register

a) Per day

b) Per month

c) Per year

5. Considering ATM transaction rate, to what extent do your clients use ATM cards to carry
up your promised transactions?

6. Could you give us the growth rate ATM users from the time it was introduced up to
now?

7. How do you rate the role of ATM usages in your bank, considering your intended goal
the time you decided to introduce it? How are you satisfied?

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