TANGIBLES AND EMPATHY DIMENSIONS (OF SERVPERF MODEL) AND CUSTOMER SATISFACTION IN THE USE OF ATMs

Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 2 Feb, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Ikechi Anne: Tangibles and Empathy Dimensions and Customer Satisfaction in the use of ATMs
pg. 1
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
TANGIBLES AND EMPATHY DIMENSIONS (OF SERVPERF MODEL) AND
CUSTOMER SATISFACTION IN THE USE OF ATMs
1Ikechi Ann, 2Prof. Anyanwu Ahamefule V., & 3Nnamocha, O. PhD
1Department of Marketing, Abia State Polytechnic, Aba
2 & 3Department of Marketing, Imo State University, Owerri
Abstract:
Reliability, Assurance, Tangibles, Empathy and Responsiveness have been identified as the five-
dimensional elements that contribute positively to customer satisfaction. Regrettably, some studies
have downplayed the relevance of tangibles and empathy in this severe role of offering customer
satisfaction. To this end, this paper on tangibles and empathy dimensions (of ServPerf model) and
customer satisfaction in the use of ATMs aims at unveiling the relationship between these two
service quality dimensions and customer satisfaction represented with repeat use and referral. A
survey of five hundred and three ATM users cut across the three senatorial districts of Abia was
carried out using a thirty-seven items five-point Likert scale. SPSS 23 was used for the statistical
analysis, and the reliability test was done using Cronbach’s alpha yielded a result of 0.803. This
shows a high internal consistency of the instrument used. Four hypotheses were tested using
correlation analysis, and the results showed that there is a significant correlation between tangibles
and repeat use; tangibles and referral; empathy and repeat use; empathy and referral. The
demographic results revealed that about 42% of the study population of ATM users could not make
use of ATMs without assistance. This is a pointer to the fact that promotion of education on e-
banking and use of ATMs critical. Hence, this paper suggests that smart, honest and kind looking
customer care staff be stationed at every ATM point to give ATM users the high level of care they
deserve. Banks in Nigeria should ensure that ATM points are made comfortable for users as they
wait to make use of ATMs. Seats, lights, water dispensers should be made available and should not
be seen as a luxury. Strict multiple security layers should be put in place to reduce ATM fraud to
the barest minimum. This includes the use of bio-data in addition to the use of personal identification
numbers. ATMs should be regularly maintained to avert regular breakdowns, especially at critical
seasons. Number of ATMs in Nigeria should be increased to reduce the queues at ATM points,
especially in rural communities, and these machines should meet global standards. Finally, effective
sensitisation programmes should be carried out regularly to educate ATM users on the use of ATMs
and their associated risks. These and more can be done to boost customer satisfaction in this
competitive industry ultimately.
Keywords: RATER, Tangibles, Empathy, Service Quality, Customer Satisfaction.

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1.0 INTRODUCTION
Automated Teller Machine (ATM) is a self-service machine that dispenses cash and performs
some other human teller functions. It is one of the technological feats actualised in the developed
world, which gradually gained acceptance in most developing countries, like Nigeria. In 1989, the
National Cash Register (NCR) installed the first Automated Teller Machine (ATM) for Societe
Generale Bank Nigeria (SGBN), and that was the first time an ATM was introduced in Nigeria.
Agboola (2006) reports that only one bank had ATM in Nigeria in 1998. However, with the
reforms of 2004 in the banking sector, which heralded intense competition among banks, there
was a surge in the use of ATM, despite the presence of some intractable challenges like, illiteracy,
irregular power supply, network failure, insecurity, machine breakdown, long queue, card
retraction, among others. Wole and Louisa (2009) posit that the deployment of ATM by banks and
its use by bank customers is gaining ground and has burgeoned in recent times. Fasan (2007)
further asserts that the growth in the use of ATM is as a result of the consolidation of banks, which
made it possible for more banks to deploy ATMs or at least become part of the shared networks.
The growth in the use of ATMs in Nigeria demands that efforts be intensified to ensure customer
satisfaction, which in turn will enhance profitability. Corroborating, Sabir, Ghafoor, Akhtar,
Hafeez and Rehman (2014) assert that today’s businesses compete for customers, and customer
satisfaction is becoming a key performance indicator and an essential element of business strategy.
Further, Devlin and Dong (1994) note that in an increasingly competitive environment, service
quality is critical to corporate success. In their study, they have linked the notion of service quality
to customer satisfaction. Ultimately, it is customer satisfaction that leads to market share and
profits. PITT, Watson and Kavan (1995) assert that service quality is an essential tool in the
measurement of customer satisfaction.
To operationalise the service quality construct, Zeithaml, Parasuraman and Berry propounded the
ServQual model (Parasuraman, Berry, & Zeithaml, 1988). ServQual model also known as
the RATER model, stands for the five service factors it measures, namely: reliability, assurance,
tangibles, empathy and responsiveness. This model, which was based on the disconfirmation

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paradigm, means that service quality is understood as the extent to which consumers’ pre-
consumption expectations of quality are confirmed or disconfirmed by their actual perception of
the service experience (Wikipedia). Cronin, J and Taylor, S. expunged the expectation aspect of
the ServQual model, lamenting that the model lacks validity, and should be replaced with the
ServPerf model (Cronin and Taylor, 1992).
Using the RATER model, many authors have tried to examine the extent to which service quality
variables (reliability, assurance, tangible, empathy and responsiveness) correlate with customer
satisfaction. According to Parasuraman et al. (1988), the relative weight that customers seem to
give to each quality dimension can be determined. The authors reveal that one of the outstanding
results that have been reported in the earlier studies of the relative importance is that customers
are entirely consistent in both their direct rankings of the importance of the service quality
attributes. In this important study, reliability was found to be the most important, and empathy the
least important across a seemingly vast array of service types. Zeithaml et al. (1990) report that
tangibles have been consistently unimportant. Mwatsika (2014) shows the result of his empirical
study which ranked reliability the essential dimension followed by responsiveness, empathy,
assurance and tangibles. Regrettably, tangibles and empathy have not so much been projected
concerning ATM studies (Berry, Zeithaml and Parasuraman, 1985). To this end, this study shall
be wading into this critical issue to make resounding recommendations that will reposition the
banking subsector in this highly innovative world.
1.2 STATEMENT OF THE PROBLEM
A tour to most ATM points in the South East region of Nigeria would reveal an insufficient number
of ATMs and seats, inadequate shelter, the absence of customer care staff, among others.
Corroborating, Adebowale (2017) revealed that Leadership findings showed that bank customers
spend an average 50 minutes to 1 hour on queues to perform transactions through the automated
machines on weekdays in the cities where most of the banks are located. The situation is even
worse at weekends and festive periods when between 2-3 hours are spent in the rain or under the
Sun to make a simple cash withdrawal/transfer or other minor electronic transactions. It is a

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common site to find long lines of people waiting to carry out different transactions daily. He further
recalled that at the last count, deployment of ATMs by commercial banks in the country was in
deficit of 72.33 per cent, with about 17,000 units in circulation. Regrettably, he lamented that most
of the ATM galleries across Nigeria are indeed centres of frustration, unending nightmare, pain
and delays. Like a thunderbolt, Nigerians groan under the harsh effect of the poorly managed
machines. The scenario above does not match the status of an average customer, who should be
treated like a king, hence the need to project these two service quality dimensions (tangibles and
empathy) in achieving customer satisfaction.
1.3 OBJECTIVES OF THE STUDY
The primary purpose of this paper is to project the two service quality dimensions of RATER -
tangibles and empathy and to suggest viable ways of using them to satisfy ATM users. However,
the specific objectives of this paper are to:
1. examine the extent of the relationship between empathy and repeat use;
2. ascertain the extent of the relationship between empathy and referral;
3. evaluate the correlation between tangible and repeat use;
4. Evaluate the correlation between tangible and repeat use.
1.4 RESEARCH HYPOTHESIS
Ho1: There is no significant correlation between tangible and repeat use;
Ho2: There is no significant correlation between tangible and referral;
Ho3: There is no significant correlation between empathy and repeat use;
Ho4: There is no significant correlation between empathy and repeat use.
2.0 REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework
RATER as earlier explained consists of reliability, assurance, tangibles, empathy and
responsiveness. These five variables have been used on different occasions by different authors to
evaluate their relationship with customer satisfaction variables. For the sake of this study, only

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tangibles and empathy will be correlated with repeat use and referral, which are the two variables
selected in this study to show how customers express their satisfaction in their use of ATMs.
Service quality as seen in figure 2.1 is the independent variable, which is represented with tangible
and empathy. Customer Satisfaction, on the other hand, is the dependent variable, which is
represented with repeat use and referral. The first hypothesis is obtained by relating tangibles with
repeat use, while the second hypothesis is obtained by relating tangible with a referral. Similarly,
the third hypothesis is obtained by relating empathy with repeat use, while the fourth hypothesis
is obtained by relating empathy and referral.
SERVICE QUALITY CUSTOMER SATISFACTION
(Independent Variable) (Dependent Variable)
FIG. 2.1 CONCEPTUAL MODEL
Source: Researcher (2018)
2.2 THEORETICAL REVIEW
2.2.1 Conceptualization of Service Quality and Customer Satisfaction
Kotler (2003) defines service as any act or performance that one party can offer to another that is
mostly intangible and does not result in the ownership of anything. He stresses that the production
of service may or may not be tied to a physical product.
Anyanwu (2013), in corroborating this assertion, opines that services would include:
a. intangible benefits offered for sale independently (insurance, legal service);
b. intangible activities that must go with tangible goods (house rentals, transportation
service); and
c. intangible activities purchased jointly with products (credit, training).
Tangibles
Empathy
Repeat Use
Referral
H02
H03
H04
H01

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The outstanding feature of service, here, is its intangibility. Apart from services being intangible,
they are also heterogeneous, perishable and inseparable.
(A) Service Quality
Jiang, Klein, Chen and Tesch (2003), define Service Quality as the comparison between what the
customers feel should be offered (expectations) and what is delivered (perceptions). Parasuraman
et al. (1988), define Service Quality as the global overarching judgment or attitude relating to the
overall excellence or superiority of the service (conceptual aspect). These authors, in trying to
view service quality from a measurement perspective, define it as the degree of discrepancy
between customers’ normative expectations for the service and their perceptions of the service
performance. Lewis and Booms (1983) support the latter definition when they define service
quality as how well the service level delivered matches the expectations of the customer.
(B) Customer Satisfaction
Customer Satisfaction is a transaction specific affective response from customers’ comparison of
product performance to some pre-purchase standard (Halstead, David and Sandra, 1994). Fornell
(1992) defines customer satisfaction as an overall post-purchase evaluation. From a psychological
perspective, Cacioppo (2000) sees customer satisfaction as the state of mind that customers have
when their expectations have been met or exceeded over the lifetime of a good or service. Churchill
and Surprenant (1982) define customer satisfaction as a summation of satisfaction with various
attributes of a product. This work aligns with this last definition.
Customer satisfaction is a key performance indicator within the business and is often part of a
Balanced Scorecard. In a competitive market place where business competes for customers,
customer satisfaction is seen as a critical differentiator and increasingly has become an essential
element of business strategy (Farris, 2010).

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2.2.2 Service Quality Vis-À-Vis Customer Satisfaction
It is pertinent to note that Service Quality (SQ) is an important construct in Customer Satisfaction
studies. Anderson and Fornell (1994) support this assertion by affirming that SQ is essential in the
study of customer satisfaction because many empirical types of research have shown that SQ is an
antecedent of customer satisfaction. Research on SQ and its relationship with customer satisfaction
has been broadly conducted in literature. Poretia and Thanassoulis (2005) corroborate this when
they assert that SQ influences performance superiority and that performance directly affects
customer satisfaction. Naik, Gantasala and Prabhakar (2010) carried out a study on Service
Quality and its Effect on Customer Satisfaction in Retailing. Hazlina, Nasim and Reza (2011)
conducted an empirical study on the Impact of Service Quality on Customer Satisfaction: Study
of Online Banking and ATMs services in Malaysia. Similarly, Yong and Fang (2004) researched
on Online Service Quality Dimensions and their Relationships with Satisfaction. All these are
pointers to the fact that service quality is a predictor of customer satisfaction. Because service
quality is most likely to affect customer satisfaction which in turn leads to repeat use, positive
words of mouth, referrals and the like; most firms try to measure their service quality in order to
ensure the satisfaction of their customers.
RATER Model
The RATER model, created by Valarie Zeithaml, A. Parasuraman and Leonard Berry in
Parasuraman, Berry, & Zeithaml (1988) is a simple method of measuring customer expectations
of a firm’s service quality. This model was initially branded ServQual Model with ten dimensions
to measure service quality. After carrying out several tests, these authors concluded that there were
overlaps within the ten dimensions of the ServQual Model and this culminated into its reduction
to five dimensions, which they branded the RATER model.
The model emphasises five dimensions that customers generally consider important when they
seek quality services. The model focuses on the difference between customer experiences and

pg. 8
customer expectations. RATER is an acronym for five factors: Reliability, Assurance, Tangibles,
Empathy and Responsiveness. Markovic and Raspor (2010) explain the five factors below:
1. Reliability (ability to perform the promised service dependably and accurately),
2. Assurance (knowledge and courtesy of employees and their ability to gain trust and
confidence) and
3. Tangibles (physical facilities, equipment and personal appearance).
4. Empathy (providing individualised attention to the customers).
5. Responsiveness (willingness to help customers and provide prompt service).
The two dimensions of service quality under study are tangibles and empathy, and they are
explained thus:
a) Tangibles
This attribute has to do with the machine and its components vis a viz customers’ ease of operation.
ATM user would appreciate ATMs that:
 their keypads are easy to press
 have touch screens that can be easily manipulated
 rarely break down
 have menu options that correspond with menu keys
 can accept deposits amidst other functions
 are not worn out and outdated
b) Empathy
This has to do with feeling the heart beats of customers; knowing what they pass through in the
course of using ATMs and being willing to offer personalised services to each ATM user as part
of customer relationship marketing strategy. It just means to put oneself in the place of others to
feel what they feel. ATM users would always appreciate that:
 ATM displayed language is easy to understand;
 ATM users are shaded from sunshine and rainfall;

pg. 9
 Alternative channels are provided to decongest long queues at ATM points;
 Bank customer care staff offer customised services to each ATM card user who needs help;
 Customer care staff ensure that ATM users are well seated while they wait for their turn to
use the machine.
From every indication, these items are as much important as other dimensions of service quality
that constitute the RATER model. Corroborating, Khan (2013) asserts that there is a general
agreement that ServQual items (Reliability, Assurance, Tangibles, Empathy and Responsiveness)
are reliable predictors of overall service quality. Contrary to the view of Khan (2013), Ahmed,
Nawaz, Usman, Shaukat and Iqbal (2010) posit that all the five dimensions of RATER do not
positively correlate with customer satisfaction, as there is a negative relationship between empathy
and customer satisfaction. This shall be verified in this study.
3.0 METHODOLOGY
The researcher adopted the descriptive research design. The questionnaire designed for ATM users
is made up of Five Point Likert Scale comprising 37 positive statements that cut across the RATER
model. The questionnaire was divided into two major parts – Performance and Customer
Satisfaction. Responses were analysed using SPSS 23. Correlation analysis was used to determine
the significance of the correlation among the variables. This study is domiciled in two banks: First
Bank of Nigeria Plc. (Aba Main Branch, Arochukwu Branch and Umuahia Branch) and Union
Bank Nigeria. Plc. (Aba Factory Road Branch, Arochukwu Branch and Umuahia Library Avenue
Branch). The six branches of the two banks as specified above cover the three senatorial districts
(Abia North, Abia Central and Abia South) of Abia State. The sampling elements comprise of
customers of banks who are users of First Bank and Union Bank ATMs located in the three
senatorial districts of Abia. The population of ATM users in Abia is not known. Hence the
proportion method was used to obtain a sample size of five hundred and three (503) persons
selected using the convenience sampling technique. The Cronbach’s alpha was used to test the

pg. 10
reliability of the instrument used, and a value of 0.830 was obtained. This shows a high degree of
internal consistency in the measuring instrument used.
4.0 PRESENTATION AND ANALYSIS OF DATA
4.1 Respondents Scores from Questionnaire
The scores of the respondents’ opinion in the questionnaire based on 5 points Likert scale are
presented in Table 4.1 below. The full data for the 503 respondents are given in Appendix II.
4.2 Analysis of the Demographic Profile of Respondents
Demographic characteristics of respondents are analysed with frequency distribution showing their
frequencies and percentages as given in Table 4.1 below.
Table 4.1: Frequency Distribution of Respondents Demographic Characteristics (n=503)
Characteristics Categories Frequency Percentage (%)
Gender
1. Female
2. Male
255
248
50.7
49.3
ATM Users Literacy Status
1. I can use ATM
2. I cannot use ATM
293
210
58.3
41.7
Source: Analysis of Field Survey Data (2018)
Discussion of Results and Findings of the Demographic Profile of Respondents
The result of the frequency distribution of Table 4.1 above shows that out of the 503 ATM users
sampled 255 (50.7%) are females, while 248 (49.3%) are males. This reveals that more females
than males (50.7% - 49.3% = 1.4%) use ATM. The ATM users literacy status reveals that 293
(58.3%) can use ATM on their own without any assistance while 210 (41.7%) of the respondents
cannot use ATM on their own without any assistance.

pg. 11
4.3 Descriptive Statistics Analysis of the Dependent and Independent Variables
The independent variables(X1 and X2) scores shown in appendix 4 are obtained as follows:
Tangibles(X1) = CP14 + CP15 + CP16 + CP17 + CP18 + CP19
Empathy (X2) = CP20 + CP21 + CP22 + CP23 + CP24
The scores of the dependent variables, Referral (Y1) and Repeat use (Y2) are obtained as follows:
Referral (Y1) = CS1 + CS2 + CS3
Repeat Use (Y2) = CS4 + CS5 + CS6 + CS7
The descriptive statistical analysis of the dependent and independent variables is presented in table
4.2 below in this section and the descriptive statistics considered are the mean, standard deviation,
skewness and kurtosis of the study variables: Independent variables (Tangibles(X1), Empathy
(X2),and the dependent variables (Referral (Y1) and Repeat Use (Y2).
Table 4.2: Mean, Standard Deviation, Skewness and Kurtosis of X1, X2, Y1, Y2
Mean Standard Deviation Skewness Kurtosis
Tangibles (X1) 3.67 0.830 -0.496 0.226
Empathy (X2) 3.46 0.929 -0.153 -0.556
Referral (Y1) 3.83 0.928 -0.883 0.706
Repeat Use (Y2) 3.78 0.882 -0.811 0.773
Source: Analysis of Field Survey Data (2018)
Discussion of Results and Findings of Descriptive Statistics of Study Variables
The result of Table 4.2 above shows that in this study, Tangibles (X1) has a mean score of 3.67
(above an expected mean score of 3.00) with a standard deviation score of 0.830 (a relatively low
standard deviation). Also, it has a skewness score of -0.496 (indicating a very low negative
departure from the normal distribution assumed value of 0) and kurtosis score of 0.226 (showing
an approximately normal peak for the distribution curve). Empathy (X2) has a mean score of 3.46
(above an expected mean score of 3.00) with a standard deviation score of 0.929 (a relatively low
standard deviation), a skewness score of -0.153 (indicating a very low negative departure from the
normal distribution assumed value of 0) and kurtosis score of -0.556 (showing approximately

pg. 12
normal peak for the distribution curve). Referral (Y1) has a mean score of 3.83 (above an expected
mean score of 3.00) with a standard deviation score of 0.928 (a very low standard deviation), and
a skewness score of -0.883 (indicating a very low negative departure from the normal distribution
assumed value of 0) and kurtosis score of 0.706 (showing approximately normal peak for the
distribution curve). Repeat Use (Y2) has a mean score of 3.78 (above an expected mean score of
3.00) with a standard deviation score of 0.882 (a very low standard deviation), and a skewness
score of -0.811 (indicating a very low negative departure from the normal distribution assumed
value of 0) and kurtosis score of 0.773 (showing approximately normal peak for the distribution
curve).
Each of the independent and dependent variables has a mean score that is higher than each expected
mean score; their standard deviations are low and approximately equal indicating a constant
variance (homoscedasticity) assumption required by the regression analysis and the t-test. The
skewness and kurtosis values that are approximately 0 indicate that the variables are approximately
normally distributed.
4.3 Correlation Analysis
The correlation matrix shown in Table 4.3 below is the Pearson Correlation Coefficients between
the pairs of these variables: Tangibles and Empathy vis-a-viz Referral and Repeat Use. The
correlation coefficients show the degree of association (correlation) between the pair of the study
variables with their corresponding p-values enclosed in brackets. The statistical decision is taken
using the p-value (the correlation is significant if the p-value is less than 0.05. Otherwise, it is
not significant).
Table 4.3: Correlation Matrix of ATM Users Study Variables (n = 503) with associated p-
values in bracket
Variables Tangibles Empathy Referral Repeat Use
Tangible 1
0.638
(0.000)
0.385
(0.000)
0.369
(0.000)
Empathy
0.638
(0.000)
1
0.354
(0.000)
0.350
(0.000)

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Referral
0.385
(0.000)
0.354
(0.000)
1
0.668
(0.000)
Repeat
Use
0.369
(0.000)
0.350
(0.000)
0.668
(0.000)
1
Source: Correlation Analysis of Field Survey Data (2018)
Discussion of Results and Findings of the Correlation between the Dependent
and the Independent Variables
The result of Table 4.3 shows that the degree of correlation between Referral and Tangible is
significant as its p-value is less than 0.05; the degree of correlation between Referral and Empathy
is 0.354 with a p-value of 0.000 which indicates a significant correlation between Referral and
Empathy as its p-value is less than 0.05. Each of them is significant at 0.01 level as shown in the
SPSS output in the appendix.
The degree of correlation between Repeat-use and Tangible is 0.369 with a p-value of 0.000 which
indicates a significant correlation between Repeat-use and Tangible as its p-value is less than 0.05.
The degree of correlation between Repeat-use and Empathy is 0.350 with a p-value of 0.000 which
indicates a significant correlation between Repeat-use and Empathy as its p-value is less than 0.05;
Each of them is significant at 0.01 level as shown in the SPSS output in the appendix.
4.4 HYPOTHESES TEST RESULTS INTERPRETATION
The hypotheses formulated in the first section are addressed in this section using the correlation
analysis on the field survey data.
4.4.1 Hypothesis Test with Correlation Analysis
Correlation analysis results presented in Table 4.5 are used to test hypotheses 1 to 4 of this study
as explained below.

pg. 14
Hypothesis 1
H01: There is no significant correlation between Tangible and Repeat-Use.
Since the correlation coefficient between Repeat-Use and Tangible is 0.369 with a p-value of 0.000
which is less than 0.05, we reject the null hypothesis 1, and that indicates there is a significant
correlation between Repeat-Use and Tangibles.
Hypothesis 2
H02: There is no significant correlation between Tangible and Referral.
Since the correlation coefficient between Referrals and Tangible is 0.385 with a p-value of 0.000
correlation between Referral and Tangible.
Hypothesis 3
H03: There is no significant correlation between Empathy and Repeat-Use.
Since the correlation coefficient between Repeat-Use and Empathy is 0.350 with a p-value of 0.000
correlation between Repeat-Use and Empathy.
Hypothesis 4
H04: There is no significant correlation between Empathy and Referral.
Since the correlation coefficient between Referral and Empathy is 0.354 with a p-value of 0.000
correlation between Referral and Empathy.
5.0 SUMMARY OF FINDINGS
The demographic results reveal that the percentage of females and males that make use of ATM is
approximately 51% and 49%, respectively. Gender does not impede the use of ATMs, as both
males and females make use of ATMs.

pg. 15
Further, the study reveals that 58.3% of the study population can use ATMs without assistance
while 41.7% cannot use ATMs without assistance. This is a high risk, given that security details
of ATM users can be compromised as these illiterate users seek assistance from other users. This
buttresses the need to embark on an intensive promotion of education on e-banking and the use of
ATMs among Nigerian populace. It further stresses the immediate need of giving individualised
care to these customers who cannot make use of ATMs on their own. This will ensure their
satisfaction.
The results of the test of the hypotheses conducted reveal that:
1. there is a significant correlation between Tangibles and Repeat-Use;
2. there is a significant correlation between Tangibles and Referral;
3. there is a significant correlation between Empathy and Repeat -Use;
4. there is a significant correlation between Empathy and Referral.
Since repeat use and referral are all outcomes of customer satisfaction, one can invariably deduce
the facts that tangibles correlate with customer satisfaction. This is in tandem with the outcome of
the study done by Jamal and Naser (2002). In the same vein, empathy was found to have a
significant correlation with customer satisfaction. This is consistent with the study of Norazah and
Norbayah (2013). This implies that customers are delighted with individualised attention given to
them in the use of ATMs. Surprisingly, Sudesh (2007) revealed that poor service quality in public
sector banks is mainly because of deficiencies intangibility, lack of responsiveness and empathy,
but private sector banks, on the other hand, were found to be more reformed in this respect. This
makes it expedient for both private and public banks to step up their levels of care, individualised
attention to customers, quality of facilities used and the time taken to respond to customers’
requests.
6.0 CONCLUSION
Nigerians have come to embrace ATMs in this technologically evolving dispensation. Hence
today’s ATM users do not just look out for ATMs that directly dispense cash or offer other

pg. 16
traditional services, but those that can readily accept deposits and even do other transactions. They
prefer ATMs whose keypads are easy to press, touch screens are easy to manipulate, and displayed
language is readable.
7.0 RECOMMENDATIONS
Having established the fact that there is a significant correlation between these two service quality
dimensions, tangibles and empathy, and customer satisfaction dimensions (referral and repeat use),
the following recommendations are made:
i. Banks in Nigeria should ensure that ATM points are made comfortable for users as they
wait to make use of ATMs. Seats, lights, water dispensers should be made available and
should not be seen as a luxury.
ii. They should ensure that ATMs have soft buttons, high screen resolution, good background
music, and incredible window display, among other features.
iii. They should also ensure that customer care staff who are courteous, attractive, neat, smart,
honest, are assigned to various ATM points. These bank staff should be ready to offer help
to any ATM user who needs assistance in his ATM usage without compromising the ATM
user’s identification numbers (PIN), knowing that almost half of the study population
cannot use ATMs without assistance.
iv. Bureaucracy associated with some ATM error reversals, especially dispensing errors
should be seriously eliminated.
v. Strict multiple security layers should be put in place to reduce ATM fraud to the barest
minimum. This includes the use of bio-data in addition to the use of personal identification
numbers.
vi. Alternate channels should be opened up for people who, for any reason, do not want to use
ATMs.

pg. 17
vii. ATMs should be regularly maintained to avert regular breakdowns, especially at critical
seasons.
viii. The number of ATMs in Nigeria should increase to reduce the queues at ATM points,
especially in rural communities, and these machines should meet global standards.
ix. Effective sensitisation programmes should be carried out regularly to educate ATM users
on the use of ATMs and their associated risks.
x. Federal government cashless policy in Nigeria should be promoted to deemphasise the
excessive cash transactions witnessed in the country today.

pg. 18
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pg. 21
APPENDIX 1: QUESTIONNAIRE DESIGNED FOR ATM USERS
Please, tick below the option you consider most appropriate:
Gender: Female Male Literacy Status: I can use ATM I cannot use ATM
KEY: SD = Strongly Disagree; D = Disagree; U = Undecided; A = Agree; SA = Strongly Agree
SN CUSTOMERS’ PERCEPTION OF ATM SERVICE QUALITY SD D U A SA
1 ATMs dispense cash and carry out commands as specified
2 ATMs dispense an accurate amount of cash
3 ATMs print balance slips that always show customers’ true balance
4 ATMs do not dispense fake currencies
5 Balance after each transaction is always accurate
6 ATMs work 24 hours a day
7 Only one customer is allowed to enter the ATM cabin
8 Voice prompt does not announce transactions to others
9 There are security officers at ATM points at all times
10 Cards are retracted after the third attempt of keying in the wrong PIN
11 There is always light at ATM points (no darkness)
12 Hackers can never hack my accounts, even if they know my pins
13 Security cameras capture every ATM user, even if he hides his face
14 Key pads of ATMs are easy to press
15 The touch screen is easy to manipulate
16 ATMs rarely break down
17 Menu options match corresponding menu keys
18 ATMs can accept deposits as well as perform other functions
19 ATMs are not easily worn out and outdated
20 ATM displayed language is easy to understand
21 ATM users are shaded from sunshine and rainfall
22 Long queues are not always seen at ATM points
23 Customer Care staff of banks assist ATM card users who need help
24 ATM users are provided with seats
25 I use ATMs on my own volition - not because I am constrained by banks
26 I use ATMs because I am satisfied with their performance
27 Users are dissatisfied with ATM service quality due to the challenges they face in the use of ATMs
aAaaaaAAAAAAATMs
28 Customers face many challenges in their use of ATMs
29 ATM errors are reversed immediately
30 Retracted cards are always retrieved immediately
31 It doesn’t take time for ATMs to respond to users’ request
32 ATMs are reloaded the moment they run out of cash
33 New ATM cards are issued immediately they are requested
34 ATM users are charged for new cards, only when they request for them

pg. 22
35 SMS alert charge for a transaction does not exceed #2 (bulk SMS cost)
36 There are no charges on ATM transactions
37 Using other banks’ ATMs up to three times in a month attracts a charge
SN Customer Satisfaction Variables SD D U A SA
1 I refer friends to ATM points when they have urgent need for cash
2 I refer people to ATM points when I see them queue before cash tellers
3 I refer friends to ATM points where there are no long queues
4 I keep using ATMs because I am satisfied with its service quality
5 I keep using ATMs because I have no better alternative
6 I use ATMs whenever I am in dire need of cash
7 I am generally satisfied with the quality of service of ATMs
APPENDIX 2
Reliability Coefficient of Performance
Reliability Statistics
Cronbach's Alpha N of Items
0.803 37
Scale Statistics
Mean Variance Std. Deviation N of Items
120.35 317.608 17.822 37

pg. 23
Appendix 3 Descriptive Statistics of ATM Users’ Responses
SN Statements SD % D % U % A % SA % Mean SD
1 ATMs dispense cash and carry
out commands as specified
52 10.3 21 4.2 17 3.4 238 47.3 175 34.8 3.92 1.215
2 ATMs dispense accurate amount
of cash
34 6.8 23 4.6 31 6.2 236 46.9 179 35.6 4.00 1.101
3 ATMs print balance slips that
always show customers’ true
balance
51 10.1 36 7.2 38 7.6 233 46.3 145 28.8 3.77 1.229
4 ATMs do not dispense fake
currencies
44 8.7 67 13.3 41 8.2 210 41.7 141 28.0 3.67 1.255
5 Balance after each transaction is
always accurate
31 6.2 32 6.4 37 7.4 238 47.3 165 32.8 3.94 1.100
6 ATMs work 24 hours a day 62 12.3 62 12.3 41 8.2 193 38.4 145 28.8 3.59 1.345
7 Only one customer is allowed to
enter the ATM cabin
22 4.4 48 9.5 26 5.2 250 59.7 157 31.2 3.94 1.067
8 Voice prompt does not announce
transactions to others
31 6.2 60 11.9 47 9.3 227 45.1 138 27.4 3.76 1.159
9 There are security officers at
ATM points at all times
41 8.2 63 12.5 48 9.5 207 41.2 144 28.6 3.70 1.236
10 Cards are retracted after third
attempt of keying in wrong PIN
21 4.2 41 8.2 57 11.3 217 43.1 168 33.2 3.93 1.070
11 There is always light at ATM
points (no darkness)
23 4.6 47 9.3 47 9.3 229 45.5 157 31.2 3.89 1.087
12 Hackers can never hack my
accounts, even if they know my
pins
69 13.7 70 13.9 54 10.7 171 34.0 139 27.6 3.48 1.381
13 Security cameras capture every
ATM user, even if he hides his
face
33 6.6 54 10.7 80 15.9 177 35.2 159 31.6 3.75 1.197
14 Key pads of ATMs are easy to
press
28 5.6 49 9.7 68 13.5 237 47.1 121 24.1 3.74 1.097
15 Touch screen is easy to
manipulate
40 8.0 51 10.1 85 16.9 198 39.4 129 25.6 3.65 1.193
16 ATMs rarely break down 67 13.3 61 12.1 99 19.7 168 33.4 108 21.5 3.38 1.307
17 Menu options match
corresponding menu keys
31 6.2 42 8.3 72 14.3 231 45.9 127 25.2 3.76 1.108
18 ATMs can accept deposits as
well as perform other functions
44 8.7 37 7.4 45 8.9 230 45.7 147 29.2 3.79 1.193
19 ATMs are not easily worn out
and outdated
31 6.2 55 10.9 80 15.9 195 38.8 142 28.2 3.72 1.165
20 ATM displayed language is easy
to understand
23 4.6 42 8.3 47 9.3 217 43.1 174 34.6 3.95 1.088
21 ATM users are shaded from
sunshine and rainfall
59 11.7 47 9.3 81 16.1 173 34.4 143 28.4 3.58 1.306
22 Long queues are not always seen
at ATM points
87 17.3 75 14.9 75 14.9 154 30.6 112 22.3 3.26 1.406
23 Customer Care staff of banks
assist ATM card users who need
help
65 12.9 54 10.7 77 15.3 181 36.0 126 25.0 3.50 1.321
24 ATM users are provided with
seats
122 24.3 82 16.3 79 15.7 118 23.5 102 20.3 2.99 1.478
25 I use ATMs on my own volition -
not because I am constrained by
banks
56 11.1 45 8.9 97 19.3 191 38.0 114 22.7 3.52 1.246
26 I use ATMs because I am
satisfied with their performance
51 10.1 46 9.1 93 18.5 195 38.8 118 23.5 3.56 1.229
27 Customers are dissatisfied with
ATM service quality due to the
challenges they face in the use of
ATMs
102 20.3 223 44.3 79 15.7 54 10.7 45 8.9 2.44 1.186
28 Customers face many challenges
in their use of ATMs
64 12.7 69 13.7 82 16.3 184 36.6 104 20.7 3.39 1.301
29 ATM errors are reversed
immediately
99 19.7 93 18.5 82 16.3 129 25.6 100 19.9 3.08 1.422
30 Retracted cards are always
retrieved immediately
91 18.1 104 20.7 87 17.3 118 23.5 103 20.5 3.08 1.408
31 It doesn’t take time for ATMs to
respond to users’ request
79 15.7 79 15.7 61 12.1 158 31.4 126 25.0 3.34 1.410
32 ATMs are reloaded the moment
they run out of cash
78 15.5 85 16.9 85 16.9 133 26.4 122 24.3 3.27 1.398
33 New ATM cards are issued
immediately they are requested
60 11.9 72 14.3 82 16.3 148 29.4 141 28.0 3.47 1.347
34 ATM users are charged for new
cards, only when they request for
them
43 8.5 38 7.6 45 8.9 215 42.7 162 32.2 3.83 1.206
35 SMS alert charge for a
transaction does not exceed #2
(bulk SMS cost)
60 11.9 70 13.9 72 14.3 156 31.0 145 28.8 3.51 1.351
36 There are no charges on ATM
transactions
78 15.5 61 12.1 68 13.5 161 32.0 135 26.8 3.43 1.399
37 Using other banks’ ATMs up to
three times in a month attracts a
charge
35 7.0 26 5.2 33 6.6 236 46.9 173 34.4 3.97 1.115
1 I refer friends to ATM points
when they have urgent need for
cash
26 5.2 41 8.2 34 6.8 261 51.9 141 28.0 3.89 1.063
2 I refer people to ATM points
when I see them queue before
cash tellers
28 5.6 75 14.9 48 9.5 193 38.4 159 31.6 3.76 1.205
3 I refer friends to ATM points
where there are no long queues
36 7.2 35 7.0 37 7.4 263 52.3 132 26.2 3.83 1.111
4 I keep using ATMs because I am
satisfied with its service quality
35 7.0 62 12.3 47 9.3 249 49.5 110 21.9 3.67 1.151
5 I keep using ATMs because I
have no better alternative
30 6.0 66 13.1 50 5.9 215 42.7 142 28.2 3.74 1.174
6 I use ATMs whenever I am in
dire need of cash
26 5.2 39 7.8 41 8.2 220 43.7 177 35.2 3.96 1.100
7 I am generally satisfied with the
quality of service of ATMs
47 9.3 41 8.2 47 9.3 231 45.9 137 27.2 3.74 1.211

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TANGIBLES AND EMPATHY DIMENSIONS (OF SERVPERF MODEL) AND CUSTOMER SATISFACTION IN THE USE OF ATMs