The Mediating Effects of Customer Satisfaction in the Relationship between ATM Service Quality and Customer Loyalty – A Case Study from Bank of Kigali

Abstract

The current competition from both national and international markets has created a new assignment for companies to give serious consideration to providing a high quality of service to satisfy and maintain customers. This paper aimed to analyze the effects of ATM service quality on customer satisfaction and customer loyalty. The Bank of Kigali has been chosen as a case in this research. For this investigation, primary data was collected from 284 respondents from Bank of Kigali through a structured questionnaire. Collected data were analyzed with SPSS (Statistical Package for the Social Sciences, 23.0) according to the objectives of the present research. Results of the statistical analysis indicate that the age group of 26-35 dominates with 59.2% of total respondents, with males showing dominance in terms of gender with 75% and 54.2% of respondents being graduates. The study reveals that there is a significant relationship observed between service quality and customer satisfaction, and customer satisfaction and customer loyalty. However, an insignificant relationship has been observed between service quality and customer loyalty. Therefore, the Bank of Kigali must maximize the quality of services offered to its customers through ATMs to create a good brand image and gain loyalty from users.

ATM Service Quality and Customer Satisfaction: The Empirical Evidence from Commercial Banks in Cambodia’s Siem Reap Province

“…(Al-Azzam, 2015;Alexis & Chen, 2019;Chandra, 2023). Customers always try to compare what they receive to their expectations or service quality needs with service quality dimensions (Nshimiyimana, 2020); therefore, it is important to know what a bank has to deliver to its customers (Octaviani et al, 2019). In the banking sector, banks must achieve service quality and customer satisfaction to remain competitive through ATMs (Alexis & Chen, 2019).…”

“…The studies conducted by Krishnamoorthy (2016), Al-Azzam (2015), Alexis and Chen (2019), Lwin (2019), Indrayani et al (2019), Octaviani et al (2019), Nshimiyimana (2020), Tadesse and Bakala (2021), Elifneh et al (2020), andChandra (2023) tried to investigate effects of ATM service quality on customer satisfaction. Various literature revealed that customer satisfaction from the bank sector has been done on ATM service quality and dimension (Al-Azzam, 2015;Aslam et al, 2019).…”

Effect of Service Quality on Brand Image of Logistic Firms in Mombasa County

“…A study by Doreen (2013) on service quality and operational performance in tour operators in Kenya found that despite significant level of implementation of various quality components, firms are still unable to attain high operational performance. Onyancha (2013) in his study on effect of bank brand image on customer satisfaction found that customer satisfaction is the key of loyalty intention and that if customers are satisfied, they may create base of loyalty easily. However these studies have failed to address service quality in relation to brand image of logistic firms.…”

“…However these studies have failed to address service quality in relation to brand image of logistic firms. Furthermore extant reviewed literature on service quality has focused on commercial banks (Onyancha, 2013;Omolo, 2011). This had left a research gap that needed to be addressed hence the current study examined the effect of service quality on brand image of logistic firms with special focus on logistic companies in Mombasa Island.…”

Analysis of the Intermediary Role of Customer Satisfaction in the Relationship between Service Quality of Participation Banks and Bank Loyalty of Participation Bank Customers

“…Hizmet kalitesinin müşteri bağlılığına doğrudan etkisinin bulunmadığı bu çalışmada müşteri memnuniyeti aracılık rolü ile bu ilişkiyi düzenlemektedir. Ismaıl ve diğerleri (2006), işletmeler üzerinde yaptıkları çalışmada benzer sonuç elde etmişlerdir.Lau ve diğerleri (2013), bankacılık sektörü üzerine yaptıkları çalışmada müşteri memnuniyetinin müşteri bağlılığı ve hizmet kalitesi arasındaki ilişkide aracılık rolü üstlendiğini belirtmişlerdir Nshimiyimana (2020),. ATM gibi hizmet kalite göstergeleri ile müşteri bağlılığı arasındaki ilişkide müşteri memnuniyetinin aracılık rolünü kanıtlamıştır.…”