Factors Affecting Customers Satisfaction from Atm Service: A Case of Nepalesae Commercial Banks

Abstract

This study examines the factors affecting customer satisfaction from ATM service variables namely reasonability of fee charged, frequency of problem faced, choice of ATM, usage of services and post purchase behavior in the context of Nepalese commercial banks. The study is based on the primary source of data. The main source of primary data is the structured questionnaire and the study was carried out in Kathmandu valley by distributing 220 questionnaires through field survey. Of them, 184 respondents’ opinions have been used as major source for the study of factors affecting customer satisfaction from ATM services in Nepalese commercial banks. 5 commercial banks were selected out of 27 private sector commercial banks. Different statistical tools like mean, standard deviation, correlation analysis and regression analysis are used for the primary data analysis. The study reveals that the factors from ATM services greatly influence customer satisfaction level in Nepalese commercial banks. The result indicates that the reasonability of fee charged as the most important factor affecting customer satisfaction level from ATM service in Nepalese commercial banks while cash withdrawal is the most useful ATM services provided by the Nepalese commercial banks. Likewise, machine out of order the most frequently faced problem in Nepalese commercial banks. The study further showed that ATM users found limit on daily withdrawal as inconveniency while using ATM and also found that it was costly to withdraw from another bank ATM outlets in Nepalese commercial banks. The study also reveals that the reasonability of fee charged, choice of ATM, usage of services and post purchase behavior factors from ATM services have positive and significant relationship with customer satisfaction in Nepalese commercial banks. It indicated that higher the reasonability of fee charged, choice of ATM, usage of services and post purchase behavior, higher would be the customer satisfaction. However, frequencies of problems faced have negative and significant relationship with customer satisfaction which indicates that higher the frequency of problem faced, lower would be the customer satisfaction. The study also concludes that most of the respondents believe ATM service as the necessity of modern banking and overall ATM services provided by commercial bank is satisfactory.