Mount Kenya University     The research proposal           Kigali Campus                  TOPIC:                   ByTHE R...
DECLARATION              ii
DEDICATION             iii
ACKNOWLEDGEMENT                  iv
ABSTRACT           v
TABLE OF CONTENTSDECLARATION.................................................................................................
2.0 LITERATURE REVIEW .......................................................................................................
References ..................................................................................................................
LIST OF ABREVIATIONSATMs:          Automated Teller MachinesBCR:           Banque Commerciale du Rwanda (Rwanda Commercial...
LIST OF FIGURESFigure 1: The customer satisfaction model with the use of ATM cards ..........................................
LIST OF TABLESTable 1 : Time-line............................................................................................
DEFINITION OF TERMS1 Automated Teller Machine (ATM)ATM means neither “avoids travelling with money” nor “any time money,” ...
•   Makes self- service banking possible.2 Automated Teller Machine CardElectronically, ATM card is a plastic card with a ...
1.7.3 Customer satisfactionThe Wikipedia, the free encyclopaedia, defines customer satisfaction which is a term frequently...
Expectations are beliefs (likelihood or probability) that a product/service (containing certain attributes,features or cha...
CHAPTER ONE1.0 INTRODUTION1.1 Background of the StudyNowadays, the up-to-date Information and Communication Technology (IC...
According to ATM market place, in 2009, there were approximately 36,000 ATMs on the Africa continentall 11,668,599 square ...
banking, electronic banking, electronic purchase and ATM services. Anand said that it would enable clientsto save time, ge...
frustrated by the malfunctioning and unreliability of the service. Besides the limited applications on theATM cards, bank ...
1.2 Statement of the ProblemAlthough some research has beendone in the developed world, abput the role of ATMs on customer...
1.4 Research QuestionsThis study seeks to answer the following questions:   1. To what extent do ATM Cards help to provide...
general and BK managers and marketing researchers in particular by revealing to them whether theircustomers are satisfied ...
-   A General introduction that illustrates the general description of the work, such as Background of       the study, st...
CHAPTER TWO2.0 LITERATURE REVIEW2.1 Introduction2.1.1 Factors influencing customer satisfactionIn general, customer satisf...
Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction willvary from perso...
On or off; just like a switch. A business can measure its customer satisfaction index by relating theaggregates of satisfi...
2.2 Review of past studiesSingh & Komal (2009) presents the Impact of ATM on Customer Satisfaction. They did A Comparative...
Today, ATMs have become a common customer delivery channel that is predominant in urban centres andsometimes even in the c...
Khaled & Abdulrasoul (2008) carried out an exploratory study on banks customer satisfaction in Kuwait.They used primary da...
2.3.2 Model developmentThis part presents a model and a set of hypotheses that describe the role of Automatic Teller Machi...
Image of the bankThis refers to the level at which the citizens rank the chosen bank among others in the region. It is tes...
2.3.2 Research HypothesisFrom the above model and the research related literature, the following are the hypothesis that t...
CHAPTER THREE3.0 RESEARCH DESIGN AND METHODOLOGY3.1 IntroductionThis chapter includes Research design, Research environmen...
Questionnaires will be distributed throughout 8 branches (Kacyiru, Remera, Kanombe, Nyabugogo,Nyarugenge, Kimironko, Mille...
The bank has branches throughout Kigali City at Kacyiru, Remera, Kanombe, Nyabugogo, Nyarugenge,Kimironko, Milles Collines...
order to formulate predictions about the entire population hence we will randomly select a sample of 800participants. From...
Table 1.Questionnaire itemsVariables                     Questionnaire items VariablesATM usage                       1. D...
f) ...your expectations on true information and lack of errors                             g) ...your expectations on amou...
How do you feel about the fact that BK staffs have the ability to provide                      the agreed services timely,...
(d)How do you feel about the fact that ATM installation ignore disabledCustomer satisfaction            Considering all yo...
3.7.2 Secondary data collectionIn order to study the role of ATM cards in bank customer satisfaction, the data are collect...
validity refers to the extent to which the results of a study are generalizable or transferable. Mostdiscussions of extern...
3.10 Research budgetAct                      Cost (RWF)1. RESEARCH              100,0002. INTERNET CONNECTION   30,0003. P...
3.11 Time LineTiming                ActivityFebruary              Topic selection, topic submission to the supervisor and ...
ReferencesATM in Africa. http://blog.standardbank.com . Consulted 30/6/2012ATM. http://subs.accessbankplc.comATMs in Rwand...
Khan M. A. (2010). An Empirical Study of Automated Teller Machine Service Quality and CustomerSatisfaction in Pakistani Ba...
Appendices   1. QuestionnaireInstructions:   •   Tick       in the case corresponding to your answer   •   For part II:1= ...
PART II: CUSTOMER SATISFACTION QUESTIONSQ3. IMAGEThink about the general image of your bank BK in Rwandan society in terms...
f) ...your expectations on true information and lack oferrorsg) ...your expectations on amount of money you canwithdraw pe...
h) Security & Privacy How do you feel on the fact that BK ATM CARS aresecure (perceived risk with use of BK ATM is low)   ...
Q.6 SERVICE VALUEConsider the personal service and technical functions you have access to from your ATM provider. How do y...
Q7. OVERALL SATISFACTIONConsidering all your experience with ATM usage, with BK 1=Very dissatisfied   2= Dissatisfied   3=...
2. Interview questions1. How many clients have you already registered in your book account?2. When did you start ATM servi...
2. Interview questions1. How many clients have you already registered in your book account?2. When did you start ATM servi...
2. Interview questions1. How many clients have you already registered in your book account?2. When did you start ATM servi...
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Mk proposal re_submitted4_july2

  1. 1. Mount Kenya University The research proposal Kigali Campus TOPIC: ByTHE 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
  2. 2. DECLARATION ii
  3. 3. DEDICATION iii
  4. 4. ACKNOWLEDGEMENT iv
  5. 5. ABSTRACT v
  6. 6. TABLE OF CONTENTSDECLARATION.................................................................................................................................................................... iiDEDICATION......................................................................................................................................................................iiiACKNOWLEDGEMENT.......................................................................................................................................................ivABSTRACT........................................................................................................................................................................... vTABLE OF CONTENTS.........................................................................................................................................................viLIST OF ABREVIATIONS......................................................................................................................................................ixLIST OF FIGURES................................................................................................................................................................. xLIST OF TABLES ................................................................................................................................................................. xiDEFINITION OF TERMS .....................................................................................................................................................xii 1 Automated Teller Machine (ATM).........................................................................................................................xii .2 Automated Teller Machine Card..........................................................................................................................xiii 1.7.3 Customer satisfaction....................................................................................................................................xivCHAPTER ONE.................................................................................................................................................................. 161.0 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..................................................................................................................................................22CHAPTER TWO................................................................................................................................................................. 24 vi
  7. 7. 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.......................................................................................................................................32CHAPTER THREE...............................................................................................................................................................333.0 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
  8. 8. References .................................................................................................................................................................. 45ATM in Africa. http://blog.standardbank.com . Consulted 30/6/2012............................................................................45Bank experts share ideas on the issue of ATM fraud .http://www.rwandagateway.org. Consulted 28/4/2012..............45Into Africa ATM makers explore a growth market. http://www.atmmarketplace.com. Consulted 30/6/2012..............45Market 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.....................................................................................................46Rwandans 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
  9. 9. LIST OF ABREVIATIONSATMs: Automated Teller MachinesBCR: Banque Commerciale du Rwanda (Rwanda Commercial Bank)BK: Bank of KigaliBPR: Banque Populaire du Rwanda( The People Bank)CPSS: The Committee on Payment and Settlement SystemsCSM: Customer Satisfaction ModelEDPRS: Economic Development and Poverty Reduction StrategyGoR Government of RwandaIB: International Business MachinesICT: Information and Communication TechnologyKCB: Kenya Commercial BankNBR: National Bank of Rwanda (The Central Bank )NICI: National Information and Communications InfrastructurePIN: Personal Identification NumberPoS: Points of SaleRPV: Relative Perceived ValueSIMTEL S.A.: Societé Intel-Bancaire De Monetique Et De Tele-Compensation Au RwandaUSA: United State of AmericaOG: Official GazetteANOVA: ANalysis Of VAriance ix
  10. 10. LIST OF FIGURESFigure 1: The customer satisfaction model with the use of ATM cards ...........................................................................30 x
  11. 11. LIST OF TABLESTable 1 : Time-line............................................................................................................................................................44 xi
  12. 12. DEFINITION OF TERMS1 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, whichallows customers to complete basic transactions without the aid of a branch representative or teller. There aretwo primary types of automated teller machines, or ATMs. The basic units allow the customer to onlywithdraw cash and receive a report of the accounts balance. The more complex machines will accept deposits,facilitate credit card payments and report account information. To access the advanced features of thecomplex 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 usingmachine-readable plastic cards, to withdraw cash from their accounts and/or access other services, such asbalance 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 theclients of a financial institution with access to financial transactions in a public space without the need for acashier, human clerk or bank teller.BK management defines ATM as an e-payment facility that provides cardholders with an easy, safe andconvenient method of performing financial transactions without the need for a human or bank teller. Itsbenefits are: • Easy access to cash • 24/7 access to cash • Cost effective means of banking • An extension of banking hours xii
  13. 13. • Makes self- service banking possible.2 Automated Teller Machine CardElectronically, ATM card is a plastic card with a magnetic stripe or a chip, which contains a unique cardnumber and some security information such as an expiration date. Authentication is provided by the customerentering a personal identification number (PIN).3. ATM transactionAn ATM transaction typically involves withdrawing cash from an ATM outlet. The consumer presents anATM card, which is issued by the bank holding his or her checking account, at an ATM terminal, which mayor may not be owned by the same bank. The consumer enters a personal identification number (PIN) to verifyidentity, 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 cashadvances, and check their account balances as well as purchase prepaid cell phone credit. If the currencybeing 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 awholesale exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign travellers andare heavily used for this purpose as well. xiii
  14. 14. 1.7.3 Customer satisfactionThe Wikipedia, the free encyclopaedia, defines customer satisfaction which is a term frequently used inmarketing as a measure of how products and services supplied by a company meet or surpass customerexpectation. 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 satisfactiongoals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customersatisfaction metric very useful in managing and monitoring their businesses.Furthermore, customer satisfaction is an evaluation by the customer, after buying goods and services. Themost popular view of customer satisfaction in academia is that customer satisfaction is the judgment borne outof the comparison of pre–purchase expectations with post purchase evaluation of the product or serviceexperience (Oliver, 1997). Customer satisfaction can result from any dimension (whether or not its qualityrelated) 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 purchaseintentions (Taylor and Baker, 1994). Satisfied customers are also likely to tell others of their favourableexperiences 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 ofmouth advertising.Customer satisfaction, a business term, is a measure of how products and services supplied by a companymeet 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 businessstrategy.Satisfaction is an overall psychological state that reflects the evaluation of a relationship between thecustomer/consumer and a company-environment-product-service. Satisfaction involves of the following threepsychological elements: cognitive (thinking/evaluation), affective (emotional/feeling), and behavioural. xiv
  15. 15. 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 ofperformance based on previous affective, cognitive, and behavioural experiences. Expectations are often seenas 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
  16. 16. CHAPTER ONE1.0 INTRODUTION1.1 Background of the StudyNowadays, the up-to-date Information and Communication Technology (ICT) is becoming an importantfactor in the development of financial services, and especially banking industry. The developments oftechnologies have enabled organizations to provide superior services for customers’ satisfaction (Surjadjajaet al., 2003). Economies everywhere are in the midst of an e-commerce revolution. This revolution isushering 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 transactwith 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 oneaccount to another – using a plastic, magnetic-strip card and personal identification number issued by thefinancial institution (Singh&Komal, 2009)In Africa, Standard Bank from South Africa may have been the first "major" commercial bank to introducean ATM as was reported end 2011. Over thirty years ago, on Tuesday 21 April 1981, Standard BankGroup became the first of the major commercial banks in South Africa to introduce automated tellermachines (ATMs) when it launched AutoBank. On the same day AutoBank went live at 25 machinesinstalled outside 13 Standard Bank branches in selected high-density areas of Johannesburg, where therewas a big demand for after hours cash facilities. National expansion of AutoBank soon followed. 16
  17. 17. According to ATM market place, in 2009, there were approximately 36,000 ATMs on the Africa continentall 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. Itwas forecasted 94 percent growth in the number of ATMs on the continent from 2009 to 2015. AndWincor Nixdorf predicted in 2009 that the continent would see "a significant increase" from its then annualgrowth rate of 15 percent. The 2012 ATM Future Trends report found that by 2017, Africa was likely to bethe worlds 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 inaccelerating 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 theCentral Bank (NBR); established the Law governing the Payment System in 2010 (OG, March 2010). TheCentral Bank and the Ministry of Finance have facilitated banks and SIMTEL to ensure that the card-basedpayment system spreads throughout the country to reduce cash-based transactions. SIMTEL is the operatorof 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 inthe 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. Thegovernor of the National Bank of Rwanda Francois Kanimba hailed the move saying, the machines willenable 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 hadbeen expanded, and a lot of effort was directed at modernizing our retail offering and electronic bankingchannels.With the amazing growth of the Rwanda development today, the need for efficient financial services hassteadily developed but it has to be improved also; thus the encouragement to use ATMs by Rwandanbanks. Speaking at the meeting with traders, Sanjaeev Anand, the Managing Director of BCR, urgedRwandans to embrace electronic banking services in their transactions, citing on line banking, mobile 17
  18. 18. banking, electronic banking, electronic purchase and ATM services. Anand said that it would enable clientsto save time, get quick services, save money and improve their operational efficiency. In Rwanda, anumber of banks extend ATM Cards to their customers. Customers from BPR (Banque Populaire duRwanda), Ecobank, Access bank, BCR (Banque Commerciale du Rwanda), FINA bank, (BK) Bank ofKigali, 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 SIMTELshared networks where by the use of an ATM cards BK customer can access his/her bank account throughEcobank or KCB or Access bank or BPR and Vice Versa. According to East African Business Week of 11October 2011, eight banks were automated; connected to a network of 27 ATMs (Automated TellerMachines) and one hundred fifty Points of Sale (PoS) terminals, of which 100 are for domestic use andfifty are international, PoS terminals.Generally, shared networks are used because they increase the convenience of ATM use by enabling agiven bank’s customers to carry out banking transactions everywhere one goes than would be possible witha proprietary network. Through spreading the fixed cost associated with ATMs over transactions initiatedby 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 andcheque books request are impossible. “To get an ATM card in Rwanda, it may take a minimum of 3-4months sometimes stretching to 6 months. These ATMs can only perform withdrawals and balanceenquiries,” 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 machineshandling money (Rwanda Focus, March 2012). Despite central bank’s implementation of modern paymentsystems long queues are still visible within banks (The New Times 26 Sep 2011). Business Times haslearnt 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 migrationto a more efficient means of payment will be met before the end of the EDPRS period. ATMs users are 18
  19. 19. frustrated by the malfunctioning and unreliability of the service. Besides the limited applications on theATM 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 ATMfailures while KCB and Bank of Kigali (BK) registered slightly lower complaints. Reasons attributed tolower malfunctioning cases by KCB and BK is due to the fact that both the banks issue Visa cards optionsfor its clients. Their usage stands at 4,000 cards in just two months of its introduction. KCB for instanceuses its regional switch based in Nairobi to service such functions.The above arguments show that, although efforts are made to distribute ATMs countrywide and offerATM Cards to bank customers, problems are still there. Besides, all bank customers are not willing to getATM Cards. Consequently, long lines inside the banks are observed where customers wait many hours tobe served by the personal teller. Some bank clients possess ATM Cards but prefer personal contact whichcauses them tiresome queuing and loss of time. This is found in BPR where some days at 10 o’ clock 1,000individuals are already on the waiting line to be served by a cashier. The same problem is present in BKand other Rwandan banks although the waiting lines lengths differ proportionally to the difference inmarket share.Hence the researcher came up with the need to investigate the present topic just because the trend in bankmarketing is customer oriented services. That is services offered by the banks are to be worked out in sucha manner that they fulfil the needs of the customers which is opposed to the traditional ways wherebankers 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 andoffer what bank customers need. As a new technology, ATMs are supposed to make life easier and moreefficient 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 thebanks’ profit but satisfied customers augment banks profit and positively build bank’s image. 19
  20. 20. 1.2 Statement of the ProblemAlthough some research has beendone in the developed world, abput the role of ATMs on customersatisfaction; for instance Khan(2010) and Singh(2009), in Rwanda, there is lack of sufficient information ine-banking because everyday e-banking comesup with new challenges. Given that the concept of e-bamkingis growing, banks are obliged to adopt new ways of meeting the customer demands. Automatic TellerMachine techonology is one of the modern technological innovations toserve bank customers as people ofthis era are attracted by effiecient, convinient, quick and timely service. The problem is: “are ATM Cardsimportant for facilitating the delivery of better service in banks? Are bank customers satisfied by usingATM Cards? How do they value their usage?”1.3 Objectives of Study1.3.1 General objectivesGenerally, 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
  21. 21. 1.4 Research QuestionsThis 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 StudyThe study will be important in the sense that it will reveal to what extent ATMs contribute to satisfy theneeds of bank customers. It will make awareness to both banks and depositors about the role of AutomaticTeller Machines in achieving customer satisfaction which results in increase in market share thusorganizational profitability. Current business organizations are concerned with finding out new ways toserve their clients with respect to modern technological requirements and trying to give what customerswant.Therefore, the study will show bankers how far they are in using current technological ways and howdepositors consider them. In this way, they will be encouraged to maintain or improve them so thatcustomers could continue to experience better and satisfactory services. This study will encourage bankcustomers who are still hesitant to using ATMs as it will show them their benefits. The project willcontribute to RWANDA development as advanced information technology in all economic sectors iscentral to achieve the economic goals of Rwanda’s Vision 2020 and EDPRS. The project will contribute inacademic and research fields by coming up with a tangible document containing the contribution of ATMsin customer satisfaction. Researchers will find the findings useful for their further studies of customerbehaviour and motivation, and how they may affect organization success due to the adoption and use of aninnovative service like e_banking channels such as ATMs. The project will help BK stakeholders in 21
  22. 22. general and BK managers and marketing researchers in particular by revealing to them whether theircustomers are satisfied with the new technology or not.1.6 Limitations of the StudyBanking is a wide field and it is not possible to explore it in one spot research thus this study will belimited to the role of ATM Cards in achieving bank customer satisfaction. A big number of depositorsfrom various banks in Rwanda use ATMs, but this study will be concerned only by clients from Bank ofKigali who use ATMs. As it is not possible to attend all ATM Cards holders in BK, a sample surveymethod will be used and a representative sample will be selected. This study will not measure the effect ofsatisfaction or dissatisfaction of customers on the bank.1.7 Scope of the study1.7.1 The concept scopeThe researcher under this study is interested in examining the role of ATM cards in bank customersatisfaction. On one hand, satisfied customers are a benefit to the business organization but on the otherhand, dissatisfied customers are harm to it. Hence the study will be guided by the customer satisfactiontheory by Ronald from which a customer satisfaction model is built to support the idea that use of ATMcards by customers is satisfactory and beneficial.1.7.2 The content scopeThis work will be consisted of five chapters: 22
  23. 23. - 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 study1.7.3 The geographical scopeThe study will be carried out in Bank of Kigali heardquarters in Rwanda; the country of thousand hills inCentral Africa1.7.4 The time scopeThis research will be curried up for five months and a half. That is from end February up to July 2012. 23
  24. 24. CHAPTER TWO2.0 LITERATURE REVIEW2.1 Introduction2.1.1 Factors influencing customer satisfactionIn general, customer satisfaction is multifactorial and is considered as part of overall consumer behaviourmodel. Consumer behaviour evolves over time and is influenced by many factors. Several key factors thatgreatly influence satisfaction include consumer’s expectations, attitudes, and intention about the serviceprovided (Ronald, 2001).Ronald explained that expectations are the consumer’s anticipated beliefs about a product or service priorto the interaction. Attitudes consist of the consumer’s evaluations, emotional feelings, and actiontendencies towards a product or service that has developed over time. Intentions are the decisions theconsumer makes about future actions towards the firm producing the product or service. Together, thesefactors 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 ismore critical to customer satisfaction.2.1.2 Measuring customer satisfactionOrganizations need to retain existing customers while targeting new customers. Measuring customersatisfaction provides an indication of how successful the organization is at providing products and/orservices to the marketplace. 24
  25. 25. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction willvary from person to person and product/service to product/service. The state of satisfaction depends on anumber of both psychological and physical variables which correlate with satisfaction behaviours such asreturn 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 organizations products.Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 deliveredSERVQUAL1 which provides the basis for the measurement of customer satisfaction with a service byusing the gap between the customers expectation of performance and their perceived experience ofperformance. 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 ofperformance relative to expectation.The usual measures of customer satisfaction involve a survey with a set of statements using a LikertTechnique or scale2. The customer is asked to evaluate each statement in terms of their perception andexpectation of performance of the service being measured. Arguably, consumers are less complex thansome 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 gapbetween customer expectations and experience.2 A Likert Scale is a type of psychometric scale frequently used in psychology questionnaires. It wasdeveloped 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
  26. 26. On or off; just like a switch. A business can measure its customer satisfaction index by relating theaggregates of satisfied customers versus dissatisfied customers. The theory of customer satisfaction used inthis study, will help to prove whether an individual who uses ATM card is satisfied or not.2.1.3 Customer satisfaction in banksSatisfaction with banking services is an area of growing interest to researchers and managers. Thecommercial banking industry like many other financial service industries is facing rapidly changingmarket. New technologies, economic uncertainties, fierce competition and more demanding customers andthe changing climate have presented an unprecedented set of challenges. Intangible assets, particularlybrands and customers, are critical to any organization and in today’s competitive environment relationshipmarketing 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, newtechnologies, economic uncertainties, fierce competition and more demanding customers and the changingclimate has presented an unprecedented set of challenges.Banking can consider the business that really appreciates the value of building long-term relationships withcustomers. 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 servicesand 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 abank’s success. 26
  27. 27. 2.2 Review of past studiesSingh & Komal (2009) presents the Impact of ATM on Customer Satisfaction. They did A ComparativeStudy of three major banks: State Bank of India, ICICI bank and HDFC bank. A sample of 360 respondentsequally representing each bank has been taken through questionnaire. Data has also been collected throughinterview also. Then various statistical tools have been used accordingly to compile the result. It isconcluded through this paper that material satisfaction level is highest in SBI, and then second is ICICIBank and third is HDFC Bank. This is due to the size of the respective bank and number of years of itsestablishment. But according to abstract Table-9 & fig.-6 depicts that material customer satisfaction level ishighest for SBI at 79%, 2nd is ICICI Bank with 77% and 3rd is HDFC Bank with 73%. Table also presentsthat average customer satisfaction level is highest in HDFC bank with 70%, in ICICI Bank it is 60% andSBI is at third place with 55%.Darch and Caltabiano (2004) explored the relationship between demographic, user-situational, attitudinalvariables and ATM use in an Australian sample of older adults. These adults were Volunteers aged 60years and above, who conducted their own banking transactions. Technology, perceived control andperceived 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 technologyexperience, 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 inthe Philippines. The paper presents a brief overview of the microfinance “industry” in the Philippines aswell as the recent developments of increased commercialization. Two case presentations were made onexisting models in which technological innovations of electronic banking are being used specifically toserve 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 briefexample of the distribution of Automated Teller Machine (ATM) cards to microfinance clients, which aimsto lower costs for the microfinance institution while increasing convenience for the clients. Jimenez and Piafound that e-banking made a promising debut when automated teller machines (ATMs) were Jimenezintroduced in the 1980s revolutionizing how they viewed the conventional, brick-and-mortar bankstructure. 27
  28. 28. Today, ATMs have become a common customer delivery channel that is predominant in urban centres andsometimes even in the countryside. Aside from ATMs, other innovations have taken place such as phoneand internet banking which again provide customers the ability to access banking services from variouslocations and at a 24-hour by 7- days basis.Olatokun & Igbinedion (2009) investigated the adoption of automatic teller machines in Nigeria. Thisstudy tested the attributes of the theory of diffusion of innovation empirically, using Automatic TellerMachines (ATMs) as the target innovation. The study was situated in Jos, Plateau state, Nigeria. Thepopulation 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 foundout that in order to increase the diffusion of ATMs, it was recommended that banks should ensureenhanced salience of ATM to customers’ needs, greater compatibility of ATM to customers banking normsand lifestyle, less complex and easy to use system and opportunity for adopters to experiment with thesystem before using ATMs.Khan (2010) carried up the Empirical Study of Automated Teller Machine Service Quality and CustomerSatisfaction in Pakistani Banks. The study investigates significant dimensions of ATM (automated tellermachine) service quality and its effect on customer satisfaction. Primary data were collected from aconvenience sample of 500 customers of multinational and national banks. His regression results indicatethat convenience, efficient operation, security and privacy, reliability and responsiveness are significantdimensions of ATM service quality and that ATM service quality positively and significantly contributestoward customer satisfaction. 28
  29. 29. Khaled & Abdulrasoul (2008) carried out an exploratory study on banks customer satisfaction in Kuwait.They used primary data from 650 retal customers. Using descriptive statistics methods and ANOVA test (tocompare between different means), the result of this study suggests the degree of customer satisfaction (Muslimand non-Muslim customers) in term of services provided by retail banks in Kuwait. The ANOVA test showsslightly differences between Muslim and Non-Muslim customer in their degree of satisfaction. Muslimcustomers are mostly satisfied with availability of ATM in several locations, safety of funds, easy to use ATMand The quality of services provided. While Non-Muslim customers are mostly satisfied with Availability ofATM in several locations, Phone account access, safety of funds, ease of opening a current account and bankimage and reputation. The worse factor noted in this study is the interest rate on loans, this indicate that most ofcustomer in Kuwait give more intention to loans.2.3 Theoretical framework and Model development2.3.1 Customer satisfaction theoryThe theory of customer satisfaction by Ronald postulates that customer satisfaction does have a positiveeffect on an organizations profitability, satisfied customers form the foundation of any successful businessas customer satisfaction leads to repeat purchase, brand loyalty, and spread the positive experience by wordof mouth. Satisfied customers are most likely to share their experiences with other people to the order ofperhaps five or six people (advertising), resulting in increased revenues and profitability. Conversely, adissatisfied customer will most likely not provide repeat business and will be more than willing to share hisor her bad experience with whoever will listen. Dissatisfied customers are more likely to tell another tenpeople of their unfortunate experience. This will have an obvious negative impact on profits and revenues. 29
  30. 30. 2.3.2 Model developmentThis part presents a model and a set of hypotheses that describe the role of Automatic Teller MachineCards in customer satisfaction.The model provides a framework for considering how bank image (technically advanced, nationalcoverage, customer service,), customer expectations (24 hour per 7 servicing, eliminated line ups, quickservice, easy to use machine, true information), perceived quality of ATM cards(Convenience, efficientoperation, 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 thecustomers, it means that they are satisfied. Conversely, when these variables are perceived negatively, thecustomer is dissatisfied hence s/he complains and is likely to spread negative word of month. Dissatisfiedcustomers 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 COMPLAINTSNote: 30
  31. 31. Image of the bankThis refers to the level at which the citizens rank the chosen bank among others in the region. It is testedusing number 1 questionnaire items.Customer expectations from ATM usageIt 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 serviceExcellence in quality has become an imperative for organizational sustainability in this competitive andfast moving world (Lewis et al., 1994). Customers perceive ATMs as electronic facility to carry upfinancial transaction without the need for a human clerk or bank teller. They provide convenience andsafety to the consumers. They are a good substitute of cash and cheque.Service valueThe valuation of or service according to how much consumers are willing to pay for it, rather than upon itsproduction and delivery costs. (http://www.businessdictionary) .The use of ATM cards saves the time andmoney. It also overcomes inconvenience of going to the bank for cash withdrawals. It is enough for thecash holder to carry only card with her/him while shopping, travelling, etc. Although some of the ATMservices are charged such as using in another banks machine sharing the network. But it is satisfactorywhen the cost of usage is lower than the cost of reaching one’s proper bank premises.Customer complaintsThis refers to all circumstances that make the ATM card user feeling dissatisfied such as workingbreakdowns, delayed service, lack of customer care service especially in the nights. Unhappy customershave their reasons. Some don’t feel well, some have unrealistic expectations, and others may just havelousy dispositions. (www.hand-ebs.com) 31
  32. 32. 2.3.2 Research HypothesisFrom the above model and the research related literature, the following are the hypothesis that this studyintends to test.Hypothesis 1: By using ATM card, the bank image influences positively customer satisfactionHypothesis2: By using ATM card, customer expectations have a positive influence on customersatisfactionHypothesis 3: By using ATM card, quality service has a positive influence on customer satisfactionHypothesis 4: By using ATM card, sevice value has a positive influence on customer satisfactionHypothesis 5: By using ATM card, customer complaints have negative effects on customer satisfaction 32
  33. 33. CHAPTER THREE3.0 RESEARCH DESIGN AND METHODOLOGY3.1 IntroductionThis chapter includes Research design, Research environment, study Population, Sample design and size,Research instrument, Data collection, Data analysis, Validity and reliability, Research budget,Time lineand References .3.2 Research designThe researcher will carry up quantitative descriptive research to determine the relationship between ATMcards 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 studyestablishes associations between sub-variables which are bank image, customer expectation from usingATM card, perceived quality of its use, perceived value and customer complaints. In order to achieve a lessbiased estimate of the relationship, a high participation rate in a sample selected due to convenience from apopulation is expected. The simplest descriptive study which is a case study is adopted under this researchand will reports data on only the Bank of Kigali (BK). 33
  34. 34. 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 locationsduring the chosen time intervals, in order to eliminate the sampling frame errors and to ensure therepresentation of the population under study in the sample units.The method of convenience sampling will be used for sample selection. This sampling method is chosendue to easily accessibility, availability of the respondents, and it involves less time and cost to gatherrequired data( Bickle, R., & Papaginnis, G. 2001). Contend that “the advantage of non-probability samplesis that they are less complicated and more economical than probability samples.” Furthermore, conveniencesampling involves collecting information of members of the population that are near and readily availablefor research purposes.3.3 Research environmentThe 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 6.1billion Rwandan francs ($10.2 million) as net interest income, the money earned from interest charges onloans, grew 21 percent. Over the past 18 months, the lender increased its number of branches to 33 from18, In addition to the opening of new outlets, the bank is “investing like mad” to increase the number ofATMs, offer debit cards and improve its mobile-phone banking service, he said. “The ambition has to be toparticipate in one way or another in every franc that is being earned or saved or spent in the country,” hesaid. 34
  35. 35. 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, Rwamaganabranch, 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 Manorbranch, 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’smission is to be the leader in creating value for its stakeholders by providing the best financial services tobusinesses and individual customers, through motivated and professional staff. Their values are Customerfocus, Integrity, Quality and Excellence.3.4 PopulationThe research population includes all BK customers holding ATM cards. It is restricted in number to thoseones who are served from the eight above cited branches.3.5 Sample design and sizeA 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). Foran accurate estimate of the relationship between variables, a descriptive study usually needs a sample ofhundreds or even thousands of subjects. Note the sample should be unbiased and large enough to satisfy theneeds of the research. It is impossible to survey the entire population of this study because of limitedfunding and time. Therefore , we will be obliged to survey a sample of the population as an alternative in 35
  36. 36. order to formulate predictions about the entire population hence we will randomly select a sample of 800participants. From every branch we expect a sample of 100 ATM users.3.6 Research instrumentThe research tool provides the input into a study and therefore the quality and validity of the output (thefindings), are solely dependent on it (Kumar, Ranjit, 2005). At the beginning, the questionnaire (Appendix1) and structured interview will be used. A questionnaire consists of a set of questions presented to arespondent for answers. The respondents read the questions, interpret what is expected and then write downthe answers themselves. It is called an Interview Schedule (Appendix 2) when the researcher asks thequestions (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 arerephrased 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 ofATM cards, e-commerce etc, it was found that many studies used questionnaires to collect data for analysisand research objective investigation. In this study a survey with questionnaires will be implemented to findout the role of ATM cards in bank customer satisfaction. In order to facilitate participants’ understanding ofthis research, a brief introduction of the research purpose will be provided at the beginning of thequestionnaire. Furthermore, confidentiality and anonymity are guaranteed afterwards. The respondent willbegin answering the questions under qualification criteria part. Then s/he will proceed to five-point Likertscale, with anchors ranging from “very dissatisfied” to “very satisfied”. All developed items are relevantlymatched with satisfaction of ATM cards users. Few statistical tools such as Mean, Standard Deviation,Persons Correlation, will be used for the analysis. Mean and standard deviation are measure of dispersionor variation (Fallik & Brown, 1983). The following are questionnaire items: 36
  37. 37. Table 1.Questionnaire itemsVariables Questionnaire items VariablesATM 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
  38. 38. 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) Convenienceusage 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
  39. 39. 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
  40. 40. (d)How do you feel about the fact that ATM installation ignore disabledCustomer satisfaction Considering all your experience with ATM usage, with BK your provider, how satisfied are you?3.7 Data collectionThe research data will be collected from primary and secondary sources.3.7.1 Primary data collectionFor the accomplishment of the purpose of the research primary data will be collected from the sample. Thequestionnaire will be administered to bank customers in the sample and the interview will be held with thebank management. A brief invitation and introduction to this research will be provided to participantsbefore they start filling in the questionnaires. If they accept the invitation, questionnaires will be handedout 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 thatboth the cost and the time required are low (Cavana et al., 2001). Data collection will be conducted midJune 2012. 40
  41. 41. 3.7.2 Secondary data collectionIn order to study the role of ATM cards in bank customer satisfaction, the data are collected from previousresearch reports, newspapers, magazines and articles and books in hard or soft forms. BK website isconsulted to find out their efforts in providing electronic banking services.3.8 Data analysisQuantitative 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 inmeaningful forms to have better insight of a research problem. Data collected from the survey will beentered into the statistical package, SPSS (statistical package for social science) for analysis, Correlationsamong variable will be calculated and the variables represented in each hypothesis be explored throughregression analysis. At this stage, computer software applications like MS-Word and MS-Excel will beused.3.9 Validity and reliabilityValidity refers to the degree to which a study accurately reflects or assesses the specific concept that theresearcher is attempting to measure( Bee Bornheimer et al 2008). Our study will be valid in the sense thatit will only investigate the role of ATM cards in bank customer satisfaction. It will only be based from theviews of BK customers and BK management. Validity is concerned with the studys success at measuringwhat the researcher set out to measure. In order to achieve this, the sample will include only BK customerswho have ATM cards. Researchers should be concerned with both external and internal validity. External 41
  42. 42. validity refers to the extent to which the results of a study are generalizable or transferable. Mostdiscussions 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 sideprovinces. Internal validity refers to (1) the rigor with which the study was conducted (e.g., the studysdesign, the care taken to conduct measurements, and decisions concerning what was and wasnt measured)and (2) the extent to which the designers of a study have taken into account alternative explanations for anycausal relationships they explore (Huitt, 1998). To ensure the internal validity of the study, the researcherwill design a simple questionnaire, close ended where the respondent is simple required to indicate his/herdegree of satisfaction or dissatisfaction. During the data correction through questionnaires the researcherwill be present. Additionally the interview to BK management is structured only to gather relevantinformation 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 andvery satisfied respectively. Reliability is concerned with the accuracy of the actual measuring instrumentor procedure. Reliability estimates are a function of the test scores yielded from an instrument, not the testitself (Thompson, 1999). Accordingly, reliability estimates should be considered based upon the varioussources of measurement error that may be involved in test administration (Crocker & Algina, 1986). Twodimensions 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
  43. 43. 3.10 Research budgetAct Cost (RWF)1. RESEARCH 100,0002. INTERNET CONNECTION 30,0003. PRINTING& BINDING 100,0005. TRANSPORT 100,0006. AIRTIME 25,0007. LAPTOP 250,000TOTAL 630,000 43
  44. 44. 3.11 Time LineTiming ActivityFebruary Topic selection, topic submission to the supervisor and feedback from the supervisorFebruary Concept noteMarch Research proposalJuly Submission of the Research proposal to the supervisor and feedback from her.July Research FinalisationJuly Submission of the final copy to the supervisor and feedbackJuly DefenceTable 1 : Time-line 44
  45. 45. ReferencesATM in Africa. http://blog.standardbank.com . Consulted 30/6/2012ATM. http://subs.accessbankplc.comATMs in Rwanda. ( posted FEB 2011 ) On http://www.lonelyplanet.com . Consulted 28.4.2012 18:34P.MBank experts share ideas on the issue of ATM fraud .http://www.rwandagateway.org. Consulted 28/4/2012Customer Friendly, Business Logical Proven retail self-service solution. www.hand-ebs.com .Consulted7/6/201Customer Satisfaction of ATM Service: A Case Study of HSBC ATM on http://papers.ssrn.com. 4 May2012Definition of perceived value. http://www.businessdictionary.com/definition/perceived-value-pricing.html#ixzz1xJCbGZLV. Consulted on 7/6/2012Eduardo C. J.and Pia B. R. (2010).Case Study on Philippines. Electronic Banking: DeliveringMicrofinance Services to the Poor in the PhilippinesiFrom Wikipedia, the free encyclopedia. Customer satisfaction on http://en.wikipedia.org. Consulted 5 May2012IDeA and LGA (2006) Measuring Customer Satisfaction :A review of approaches. FreshMinds Ltd.www.freshminds.co.ukInto Africa ATM makers explore a growth market. http://www.atmmarketplace.com. Consulted 30/6/2012Khaled & Abdulrasoul (2008). An Exploratory Study On Banks Customer Satisfaction In Kuwait. OpenUniversity Malaysia 45
  46. 46. Khan M. A. (2010). An Empirical Study of Automated Teller Machine Service Quality and CustomerSatisfaction 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. Availableon http://www.ifm.ac.tz consulted 28/4/2012Market Directions. Discussion Paper on Scales for Measuring Customer Satisfaction. info@makretdirectionsmr.com. Consulted 30/6/2012Rafiqul I. et al (2010). Customer Satisfaction of ATM Service: A Case Study of HSBC ATMRonald 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 BusinessWeak. 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 28/4/2012Rwandans and ATMs: still a difficult relationship. Rwanda Focus. Tuesday, March 29th, 2011. On http://focus.rw. Consulted 28/4/2012SIMTEL overview. on www.simtel.co.rw. 4 May 2012Wole Michael Olatokun. The Adoption of Automatic Teller Machines in Nigeria: An Application of theTheory Of Diffusion of Innovation. Gaborone, Botswane Louisa Joyce Igbinedion. Africa Regional Centrefor Information Science,University of Ibadan, Nigeria. At eagleviewng@yahoo.com 06.03.2012 46
  47. 47. Appendices 1. QuestionnaireInstructions: • Tick in the case corresponding to your answer • For part II:1= Very dissatisfied 2=Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfiedPART 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
  48. 48. PART II: CUSTOMER SATISFACTION QUESTIONSQ3. IMAGEThink 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 satisfiedprofessional 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 EXPECTATIONSNow I ask you to think about your own expectations on your BK ATM services based on previous experience, using the scale where 1means ”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 satisfiedb) ...your expectations on eliminated line upsc) ...your expectation on convenient serviced) ... your expectations on quick servicee) ...your expectations on manipulating an easy to usemachine 48
  49. 49. f) ...your expectations on true information and lack oferrorsg) ...your expectations on amount of money you canwithdraw per dayh) ...your expectations on language switchingi) ...your expectations on customer service (waiting-timewhen 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 youfind important by using ATM Card?Q4.2 FULFILLMENT OF EXPECTATIONSTo 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 thanexpected” and 5means”fulfilled much more thanexpected”.Q5. QUALITY SERVICE f) Convenience 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfiedHow do you feel on the fact that BK ATM CARDS isconvenient (refers to ease of use and accessibility of theservice at all times) g) Efficient Operation How do you feel on the fact that BK ATM CARDSprovide efficient operation( this relates to efficient andspeedy operation, user-friendliness of ATM) 49
  50. 50. h) Security & Privacy How do you feel on the fact that BK ATM CARS aresecure (perceived risk with use of BK ATM is low) i) ReliabilityHow do you feel about the fact that BK ATM CARDS arereliable (you receive the right quantity and right quality ofservice at all times, as promised by the banks ) j) Responsiveness How do you feel about the fact that BK staff have theability to provide the agreed services timely, accurately,dependably, and promptly. 50
  51. 51. Q.6 SERVICE VALUEConsider the personal service and technical functions you have access to from your ATM provider. How do you rate this in relation to the pricescharged (costs of subscription and usage charges taken together). Use the scale 1 meaning” very low value for money and 5” very high valuefor 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 satisfiedby the personnel of the provider (opening hours,friendliness, speed of responding, etc.)?b) The value of product and services (cash withdraw, checkbalance, subscriptions, renewal, etc)?c) The value of the range of services offered from yourATM card providerd) The value of the security and level of correctnessperformed by your ATM provider (account depositinformation, 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 providerin relation to the total costs of the facility? 51
  52. 52. Q7. OVERALL SATISFACTIONConsidering all your experience with ATM usage, with BK 1=Very dissatisfied 2= Dissatisfied 3=Neutral 4=Satisfied 5=Very satisfiedyour provider, how satisfied are you?Use the scale where 1 means “not at all satisfied” and 5means “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 satisfiedallowed to withdraw, transfer by using BK ATM Card(b)How do you feel about the fact that, like with any otherbank in RWANDA, it is impossible to deposit cash usingBK ATM Cards(c)How do you feel about the skills required tomanipulate ATM(d)How do you feel about the fact that ATM installationignore disabled 52
  53. 53. 2. Interview questions1. 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 year5. 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? 53
  54. 54. 2. Interview questions1. 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 year5. 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? 53
  55. 55. 2. Interview questions1. 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 year5. 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? 53

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