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The Effect of ATM Service Quality on Customer Satisfaction and Customer Loyalty: An Empirical Analysis

Author

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  • Wajeeha Aslam
  • Ayesha Tariq
  • Imtiaz Arif

Abstract

This study examines the impact of automated teller machine (ATM) service quality on customer satisfaction and its effect on customer loyalty. The data were collected from 360 ATM users in Karachi, Pakistan, using a structured questionnaire. After the data screening process and the removal of outliers, 322 responses were found useable. To identify the dimensions of ATM service quality and their relationship with customer satisfaction and customer loyalty, exploratory factor analysis, confirmatory factor analysis and structural equation modelling (SEM) were used. The findings indicate that (a) fulfilment, reliability, ease of use, and security and privacy are the major dimensions of ATM service quality, (b) dimensions such as convenience and responsiveness are positively insignificantly correlated with customer satisfaction and (c) customer satisfaction significantly influences customer loyalty. This study suggests concrete strategies for bank managers to improve customer experience with ATM and identifies the issues to be resolved in order to improve ATM service quality.

Suggested Citation

  • Wajeeha Aslam & Ayesha Tariq & Imtiaz Arif, 2019. "The Effect of ATM Service Quality on Customer Satisfaction and Customer Loyalty: An Empirical Analysis," Global Business Review, International Management Institute, vol. 20(5), pages 1155-1178, October.
    • Handle: RePEc:sae:globus:v:20:y:2019:i:5:p:1155-1178
    DOI: 10.1177/0972150919846965
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    References listed on IDEAS

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    1. Imtiaz Arif & Sahar Afshan & Arshian Sharif, 2016. "Resistance to Adopt Mobile Banking in a Developing Country: Evidence from Modified TAM Model," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 23-38, January.
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    7. V.V. Ravi Kumar & Anurag Lall & Tanmay Mane, 2017. "Extending the TAM Model: Intention of Management Students to Use Mobile Banking: Evidence from India," Global Business Review, International Management Institute, vol. 18(1), pages 238-249, February.
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    Cited by:

    1. Wajeeha Aslam & Iviane Ramos de Luna & Muhammad Asim & Kashif Farhat, 2023. "Do the Preceding Self-service Technologies Influence Mobile Banking Adoption?," IIM Kozhikode Society & Management Review, , vol. 12(1), pages 50-66, January.
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    3. Masood Ul Hassan & Muhammad Shahid Iqbal & Ume Habibah, 2020. "Self-Service Technology Service Quality: Building Loyalty and Intention Through Technology Trust in Pakistani Service Sector," SAGE Open, , vol. 10(2), pages 21582440209, June.

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