Pabna University of Science and Technology

Abstract

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Purpose: This study investigates the impact of ATM service quality on customer satisfaction and loyalty. A comprehensive questionnaire based on relevant literature and focus group research was employed to gather primary data from 290 ATM users of four reputable banks in Bangladesh: two state banks, Sonali Bank Limited and Agrani Bank Ltd., and two private banks, Dutch Bangla Bank Ltd. and City Bank Ltd. Methodology: The research developed and tested a theory using ANOVA, exploratory and multiple regression tests, correlation and coefficients, and descriptive statistics to evaluate the relative importance of various ATM service quality factors. Findings: The study identifies that the ATMqual model comprises eight dimensions: reactivity, reliability, affordability, ease of use, privacy and security, fulfillment, empathy, and simplicity. The results show a strong correlation between most of these traits and overall client satisfaction, except for cost and empathy. Practical Implications: The ATMqual factors provide bankers with valuable levers to enhance customer experiences with ATMs and improve the effectiveness and efficiency of ATM services. These insights offer bank managers and policymakers new perspectives and tools for managing customer ATM experiences. Originality: This study advances theoretical understanding by exploring the specific dimensions of ATM service quality and their impact on customer satisfaction and loyalty within the context of Bangladeshi banks. Research Limitations: The study is limited to four banks in Bangladesh, which may affect the generalizability of the findings.