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

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 o...

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Bibliographic Details
Published in:Global business review 2019-10, Vol.20 (5), p.1155-1178
Main Authors: Aslam, Wajeeha, Tariq, Ayesha, Arif, Imtiaz
Format: Article
Language:English
Subjects:
Brand loyalty
Confirmatory factor analysis
Customer satisfaction
Data quality
Exploratory factor analysis
Factor analysis
Loyalty
Privacy
Quality of service
Reliability
Satisfaction
Structural equation modeling
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Summary: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.
ISSN:0972-1509
0973-0664
DOI:10.1177/0972150919846965