CHAPTER THREE

RESERCH METHODOLOGY

3.1 Introduction

A cross sectional descriptive study was adopted as similarly used by Agbor (2011) who

studied the relationship between customer satisfaction and service quality. The study was

descriptive considering that it aims at describing the relationship between social economic

factors, various aspects of ATM services and customer satisfaction and Saunders et al (2009)

describes this sort of study as descriptive. Systematic sampling method was used to draw sample

of 100 customers counted one to four and each fourth customer was interviewed until the sample

of 100 customers was obtained. The researcher collected primary data from ATM card holders

through questionnaires in which respondents transcribed their responses that depicted their

perceptions on customer preferences on various ATM services; suggestions on areas for

improvement were obtained so as to determine factors for customer satisfaction and effect of

each factor on customer satisfaction.

3.2 Research Design

Research design adopted for this study is Ex-post-facto type under survey. Ex-post-facto

is the research condition where the independent variable is inherently not manipulatable because

they are already in existence. Inferences and observations are made to deduce reasoning into the

available independent variable.

The research was descriptive and analytical in nature. However in order to find out the role of

Automated Teller Machine in the satisfaction of customers, quantitative and qualitative methods

was used.
The research design for the study is Ex-post-facto and you said the population is randomly

selected.

Ex-post-facto does not work with random selection.

3.3 Population of the Study

In the course of this study, the total populations of 100 respondents including bank

customers, managers and staff that were involved and the study only targeted Automated Teller

Machine users. A random sampling system was used in the study.

The target population comprises of all commercial banks in Osun state, Nigeria however because

of time limit and cost implications, only united bank for Africa Olonkoro branch in Osogbo, its

management staff and two hundred randomly selected ATM users constitute the sample for the

study.

How did you get the population of 100?

Under 3.1 Introduction you said of 100 customers was used and under 3.3 Population, you said

populations of 100 respondents includes bank customers, managers and staff

3.4 Sample Size and Selection Methods

A sample of selected ATM users from all the total population of 89 respondents including

bank customers, managers and staff that was selected. The selection was achieved through

random sampling methods. This is because the sample study was relatively small spitted in to a

portion of 50 women respondents and 39 male respondents. Due to the large sample size, lack of

access to all members of statistical population, being costly and time-consuming, convenience

sampling technique was used to obtain a representative and homogenous sample.

How did you get 89 respondents from 100 respondents under population of the study?
3.5 Instrumentation

An instrument tagged automated teller machine questionnaire was used to collect the data

for this study. The instrument is self-constructed by the Researcher. It contains sections A, B,

and C with various items aimed at eliciting information from the respondents on the mode of

operation of ATM by the users.

3.5.1 Interview

An interview guide was used. This is an instrument where mostly general questions are

used to collect data mainly from key respondents (Amin, 2005). This instrument also contained

open-ended questions. The interview guide was used for this study due to the breadth of the

information sought. It was administered to the Key Informants (Financial Manager, Customer

Care Consultant and the HR Manager). Interviews were face-to-face and they lasted for 25

minutes only due to the busy schedule of the Key Informants.

3.5.2 Documentary Review

According to Monageng Mogalakwe (2006) documentary review refers to a technique

where there is a document with an artifact which has as its central feature an inscribed text, being

used to develop information. This was one of the ways for data collection. This method was used

to get secondary data from different sources like from United Bank of Africa (UBA) Osun state

annual reports, Kampala international University library among other, articles, journal

and unpublished dissertations.

3.5.3 Focus Group Discussion

United Bank of Africa (UBA) Osun state, these were found at the branch and requested to be

engaged in a discussion that lasted for 15 minutes. The researcher used a FOD guide that was

designed basing on variables of effectiveness, time saving and accessibility of ATM services.

The views that were obtained were noted down by the researcher one by one that they

were received. The reason for inclusion of this category of respondents was to ascertain the

benefits or challenges received from the ATM services.

3.6 Sources of Data and Collection Methods

The sources of data were both primary and secondary, which assisted the researcher to

make a thorough analysis of the study problem at hand.

3.6.1. Primary Data

Primary data was collected from respondents through distribution of questionnaires,

personal interview guides and observation to some extent of the customers

3.6.2. Secondary Data

Secondary data was obtained from internet articles, business journals and textbooks plus,

United Bank of Africa (UBA) Osogbo branch financial reports.

3.6.3. Data Processing and Analysis

Data was edited, coded, classified and tabulated before entering it into the computer for

analysis. The analysis was done using SPSS. After selecting the respondents, the researcher
embarked on the field research and collected qualitative and quantitative data. The data was

edited to correct possible errors, omissions and contradictions and later coded to attach value to

the data as the information was analyzed in form of tables.

3.6.4. Data Presentation

The data was presented in form of tables. The research presented in a report form and

based on research from the field that is primary data and also available literature authored by

different scholars. Data was presented in both qualitative and quantitative form.
 CHAPTER FOUR

DATA PRESENTATION ANALYSIS AND DISCUSSION OF RESEARCH

4.1. Demographic Characteristics

Customers were asked about their social demographic characteristics are there was

differences regarding these characteristics and these were reflected in terms of gender, academic

qualifications and time spent with United Bank of Africa (UBA) Osogbo Branch among others.

However, it should be noted that for the purposes of getting this information from the ATM

service-users, 10 respondents were engaged in a focus group discussion as well as 3 Key

informants for interviews. Then for quantitative information 89 customers were subjected to a

questionnaire and information obtained is quantitatively presented below.

This was intended to reflect the type of customers and how customers are satisfied by the ATM

services with United Bank of Africa (UBA) Osogbo Branch. Results are presented below in table

Gender Characteristics of respondents

Category Frequency Percentage

Male 25 28.1

Female 64 71.9

Total 89 100

Source: Analyzed Primary Data (2O19)

Source cannot be 2019 for a study conducted in 2022

Under 3.4 sample size, you said 50 women and 39 male respondents will be used, how

did you now get 64 female in the table here?

with the percentage of (7l.9%) and males (28.1). this implies that the female respondents

dominated the study compared to their male counterparts.

Age of respondents

Category Frequency Percentage

18 – 24 years 18 20.2

25 – 31 years 29 32.5

32 – 38 years 19 21.3

39 years and above 23 25.8

Total 89 100

This table shows that the majority was 40 respondents were found in the age group of 25-31 that

is 32.5% 1-lowever, the age group 18-24, and 18 respondents gave minority response rate of

20.2%. On the other hand, 23 respondents were in the age group of 39 and above (25.8%),

further still, 19 respondents (21.3%) were found in the age groups 32-3 8. It can therefore be

deduced that the age groups took part in the study particularly in the majority and those with

more than 10 respondents were quite influential in as far as providing responses to the study

were concerned. By implication of the study therefore, most age brackets were well represented

and therefore ruling out issues of bias.

Academic Qualification of respondents

Category Frequency Percentage

Diploma 21 23.6
Bachelors 42 47.2

Masters 16 18.0

Post graduate 10 11.2

Total 89 100

From the Table, 21 out of 89 respondents had a diploma that is giving 23.6%, 47.2% had a

bachelors level of education and were the majority of the respondents, 18% had attained masters

level of education, 11.2% had a postgraduate and this gave minority response rate. However,

those who had Degrees and diploma respondents had an upper hand in providing responses that

influenced the level of data presentation and analysis. This implied that the respondents with

degree level of education were more satisfied with the ATM services of United Bank of Africa

(UBA) Osogbo Branch and indicated high level of customer satisfaction.

Work Experience of Respondents

Category Frequency Percentage

Less than a year 22 24.7

1 – 5 years 25 28.1

6 – 10 years 19 21.3

11 years and above 23 25.8

Total 89 100

This table, 24.7% of the respondents had work with United Bank of Africa (UBA) Osogbo

Branch for less than a year, 28.1 of the respondents had worked for a period of five years and
 they were the majority, 2 1.3% of the total respondents had worked for a period of 6-10 years

and they were the minority respondents and 25.8% had a working experience of 11 years and

above. By implication of this study according to the working experience of the respondents

28,1% in the category of 1-5 years dominated the study. This shows the impact of ATM on

assessment of automated teller machine at united bank for Africa Osun State.

4.2 Regression Analysis for the impact between the effectiveness of ATM Services and

customer satisfaction

Effectiveness of Effectiveness of Customer

ATM Services ATM Services Satisfaction

Pearson Correlation 1 0.369

Sig. (2-tailed) 0.005 0.005

N 89 89

Customer Pearson Correlation 0.005 1

Satisfaction Sig. (2-tailed) 0.005 0.00

N 89 89

Results show that effectiveness of ATM Service is significantly related to customer

satisfaction, since Pearson colorations (0.005) is less than the level of significance (0.05) This

implies that there is a statistical impact between effectiveness of ATM services and customer

satisfaction.

From the interviews held with the Key Informants, results were not different of the

quantitative information as it was reflected that ATM services have had positive effects to United

Bank of Africa (UBA) Osogbo Branch and this technology has made banking reliable, effective
and to the customers’ reach as the customer’s cash is easily accessible through the bank’s ATM

outlets countrywide. Customers are no longer restricted by the banks working hours.

“Our ATM services are reliable and we ensure that all point are filled with money for the

customers to withdraw at any time 24/7, this has enabled this bank to have it customers access

their money as well other services via ATMs (Interview with the Financial Manager)’’

However, from the FGD held with customers, it was however revealed by one participant

that in terms of flexibility there are some challenges are faced for instance long queues on

weekends and school fees paying periods where everyone uses ATM services to get money.

“As customers of United Bank of Africa ~UBA~ Osogbo Branch we face a challenge of long

queues in the evening and periods when students are getting back to school and this disturbs the

flexibility part of the existing ATM in Kampala especially” (FGD with ATM Service

Beneficiaries.

Another ATM service beneficiary added that; ATM services for United Bank of Africa

(UBA) Osogbo Branch create customer satisfaction among the customers but the only challenge

is the rampant theft from the bank that worries them.

“There is flexibility with ATM service jar Tropical as a bank bait theftfrom the ATMs needs to

be worked on” (‘One Services Beneficiary)

4.3 Result and Discussion

The results above imply that United Bank of Africa (UBA) Osogbo Branch considers

customer satisfaction through use and maintenance of ATM points for the customers to have

easy access to ATM services. This may results into more transactions being carried out by
customers all the time round and thus, increasing cash flow for the this bank since customers will

be in position to transact whenever they needed, thus charges will be made by the bank.

Thus, the above research are in line with the literature by Fasan, (2007) who said that ATMs are

value addition instruments and have enhanced service delivery, made banking flexible and

affordable, Therefore, for United Bank of Africa (UBA) Osogbo Branch, there was a lot of

assessment with their ATM services for the employees and the customers at large and this could

partly explain the high market value, profit margin and customer base realized by this bank.

Secondly, in line with the literature by Musa (2007) he also noted that ATMs are cost

efficient way of yielding higher productivity. The cost effectiveness attracts many customers and

this indirectly leads to higher profit margins and a bigger customer base that is enjoyed by this

branch.

Therefore, the argument in line with this objective could be that with flexibility of the

ATM services, commercial banks like United Bank of Africa (UBA) Osogbo Branch can enjoy

lots of benefits from the customers including financial and public image among others. The

presence of an effect between flexibility of ATM Services and Customer Satisfaction makes

United Bank of Africa (UBA) Osogbo Branch be in position to gain financially from customers

carrying out transaction or using ATM services as charges are paid thereafter. The higher

productivity in this sense is the financial return that the bank gains from its customers.

4.4 Interpretation of calculation

It can be concluded from the calculation of those tables that there is significant

relationship between educational level and factors contributing to underutilization of ATM. This

is not far-fetched on the ground that literate minds always understand and comprehend electronic
manipulation of gadget like ATM while the Illiterate minds do otherwise. Among the devices

employed by the banks to ensure adequate security and privacy is the issuance of PIN number

which belongs to the holders of the card alone throughout the hosting community of that bank.

Another devices being employed by the bank is installation of circuit camera at the point of

dispensing cash to discourage impersonation and other related fraud.