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The Effect of Automated Teller Machine Use on Customer

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The Effect of Automated Teller Machine Use on Customer THE EFFECT OF AUTOMATED TELLER MACHINE USE ON CUSTOMER SATISFACTION IN BANKING A CASE STUDY OF STANBIC BANK, MBARARA BANK BRANCH BY EZRA MAGARA 2014/HD06/1852U A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF MAKERERE UNIVERSITY NOVEMBER, 2018 1 i ii DEDICATION I dedicate this report to my Mother the Late Mrs. Jenninah Busingye Mikukumo, who gave her all in seeing that I study but didn‟t get the chance to live and witness the result of her commitment. Also to my wife Mrs. Ruth Magara, my daughter Pepe Elizabeth Busingye who supported me endlessly without question and to my friend Mr. Allan Ninsiima, who inspired me in Education. Thank you for being there for me, showing me your love and tolerance for the long hours away from home and work as I pursued my studies. iii ACKNOWLEDGEMENT With thankful and heartfelt appreciation, I acknowledge the contribution of my supervisor, Dr. Proscovia Katumba of Makerere University for her parental and academic guidance, commitment and readiness to help, including the professional listening skills rendered to me towards the completion of this work. Thank you. I acknowledge with gratitude the contributions and co-operation made by respondents for their willingness to provide the necessary information when I found them at the bank‟s ATM point during the research process. Without their cooperation, this study wouldn‟t have been possible to accomplish. I would like to deeply thank all my lecturers at Makerere University. They have adequately guided and equipped me with both theoretical and practical skills. I would also like to acknowledge the contribution of my classmates Mr. Ivan Waggumbulizi, Mr, Julius Ariko, Mr. Bernard Byaruhanga, and Mr. Kisoro Ceaser Karamagi from whom I enjoyed fruitful discussions on challenging topics. Finally, for those not mentioned here, thanks very much for your contribution. May God bless you all! iv TABLE OF CONTENTS DECLARATION............................................................................................................................ i APPROVAL ..................................................................................... Error! Bookmark not defined. DEDICATION.............................................................................................................................. iii ACKNOWLEDGEMENT ........................................................................................................... iv TABLE OF CONTENTS ............................................................................................................. v List of tables.................................................................................................................................. ix ACRONYMS ................................................................................................................................. x ABSTRACT .................................................................................................................................. xi CHAPTER ONE ........................................................................................................................... 1 INTRODUCTION......................................................................................................................... 1 1.1 Background to the study ........................................................................................................... 1 1.2 Statement of the Problem .......................................................................................................... 5 1.3 Purpose of the Study ................................................................................................................. 6 1.4 Specific Objectives of the study: .............................................................................................. 6 1.6 Scope of the Study .................................................................................................................... 7 1.6.1 Content Scope ........................................................................................................................ 7 1.6.2 Geographical Scope ............................................................................................................... 7 1.6.3 Time scope ............................................................................................................................. 7 1.6.4 Significance of the Study ....................................................................................................... 7 1.7 Chapter summary ...................................................................................................................... 8 v CHAPTER TWO .......................................................................................................................... 9 LITERATURE REVIEW ............................................................................................................ 9 2.1 Introduction ............................................................................................................................... 9 2.2. Theoretical Foundation ............................................................................................................ 9 2.2.1 Diffusion of Innovation Theory ........................................................................................... 12 2.2.2 Dissonance Theory............................................................................................................... 13 2.2.3 Combined Level Theory about ATMs and Customer satisfaction. ..................................... 14 2.3 Automated Teller Machine use and Customer Satisfaction .................................................... 15 2.3.1 Forms of customer satisfaction in the use of ATM.............................................................. 15 2.3.2 Challenges in the use of ATM ............................................................................................. 22 2.3.3 Strategies to strengthening customer satisfaction in the use of ATM ................................. 25 2.4 Empirical Literature Review ................................................................................................... 29 2.5 Summary of literature review ................................................................................................. 31 CHAPTER THREE .................................................................................................................... 32 RESEARCH METHODOLOGY .............................................................................................. 32 3.0 Introduction ............................................................................................................................. 32 3.1 Research Design...................................................................................................................... 32 3.2 The study population and sample ........................................................................................... 32 3.2.1 Study population .................................................................................................................. 32 3.2.2 Sample size .......................................................................................................................... 33 3.3 Sample Size and selection methods ........................................................................................ 33 vi 3.4 Sampling Methods .................................................................................................................. 33 3.5 Data source.............................................................................................................................. 33 3.6 Data collection methods and instrument. ................................................................................ 34 3.7 Data Analysis and presentation. .............................................................................................. 34 3.8 Validity and Reliability Tests ................................................................................................. 34 3.9 Ethical Considerations ............................................................................................................ 35 4.0 Limitations of the study .......................................................................................................... 36 CHAPTER FOUR ....................................................................................................................... 37 PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS ...................... 37 4.0 Introduction ............................................................................................................................. 37 4.1 Response rate .......................................................................................................................... 37 4.2 Background information ......................................................................................................... 37 4.2.1 Respondent by Gender ......................................................................................................... 37 4.2.2 Age bracket of respondents .................................................................................................. 38 4.2.3 Respondents on marital status .............................................................................................. 39 4.2.4 Respondents on level education ..........................................................................................
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