Modelling satisfaction with ATMs: Empirical measures

Modelling satisfaction with ATMs: Empirical measures

Endogenous variable

Overall satisfaction was operationalised by asking respondents to rate their overall satisfaction derived from using an ATM (itemised five-point rating scale from 5 = very highly satisfied, to 1 = very highly dissatisfied).

Exogenous variables

Recommend to other customers measured the probability of individual consumers using word of mouth recommendations of ATM services to friends and relatives, and was measured on a five-point scale of likelihood. Full use of services was measured on a five-point scale attached to the question ‘How many of the services offered by ATM do you use?’: withdraw cash, deposit cheques, find balance, transfer funds, order a chequebook. Frequency of use was measured on a five-point level of usage scale, from light users (less than twice a month) to heavy users (more than ten times a month). Expectations. The measurement of this construct was related to specific service attributes: transaction error, location, queuing, accessibility and machine processing time, and it was operationalised through the use of five- point itemised scales. Perceived risk. The assessment of this model construct was totally based on the measurement of perceived functional risk. This was measured by evaluating two dimensions of the degree of functionality of the service (machine breakdowns and transaction errors). Confidence was measured on a five- point rating scale and assessed customer confidence that transaction mistakes would not take place. Charges assessed each customer’s perceived value for money in terms of using an ATM utilising a five- point scale.

Hypothesis development

The focal point of this study is to test whether the structural model for ATM satisfaction developed for the UK by Goode and Moutinho (1995) is applicable across countries, namely to Hungary. If this model is transferable it will provide a framework for customer satisfaction analysis by banks and financial institutions interested in globalisation and new market-places across country borders. Furthermore, if this model were applicable, it would provide a powerful comparative framework and evaluation tool for benchmarking service quality and reviewing the quality of marketing decisions. For the model to be applicable the following hypothesis needs to be met:


The hypothesised model should explain the variations in consumers’ level of overall satisfaction in both countries (as measured by the adjusted R2).