The impact of automated teller machines (ATMs) service quality on customers' satisfaction: the case of customers of banking Institutions in Dar es Salaam, Tanzania

Automatic teller machines (ATM) being an almost instantaneous communication medium that connects bank customers to their accounts is now a phenomenon that has grown and spread around the globe at an amazing speed. Given the current trend of ATMs usage and its potential growth, this research examined how service quality of the bank's ATMs affect customer behavioral intentions to continue to use ATMs which in turn affect the extent of ATMs usage and satisfaction in the post ATMs adoption phase. The study constituted a sample size of 165 respondents out of 200 questionnaires from 16 commercial banks operating in Dar es Salaam, Tanzania whereas descriptive analysis through SPSS was used in data analysis. Chi-square statistical test was applied to determine the probability (likelihood) that two categorical data variables are associated. The study revealed that quality of services is a major factor that affects customer satisfaction in the banking sector. The level of customer satisfaction and usage were high. In addition, the research indicated that customers have positive attitude toward technology based services. Despite the high usage and satisfaction, customers do face problems, challenges and security threats when utilizing ATMs. Policy makers must create conducive environment in enabling extension of ATMs services cost effectively to wider context. Theoretically the study has empirically tested how service quality, satisfaction and usage rate are related to each other’s and the contributions of service quality towards these constructs.