Da Nang University of Economics Towson University Degree Programme

English for academic purpose

Project Report

ATM Services and Customer Behavior

By: Don Vit Quang Nguyn Th Ny TUD-09

May,2010 NNG

ATM SERVICE AND CUSTOMER BEHAVIOR

Table of Contents
Table of Contents.................................................................................................................1 Chapter I: INTRODUCTION...............................................................................................1 1.1 Research background:.................................................................................................1 1.2 Research Objectives: .................................................................................................2 1.3 Research Questions:....................................................................................................3 1.4 Research limitations:..................................................................................................4 1.5 Research plan:.............................................................................................................5 Chapter II: Literature Review...............................................................................................6 Chapter III: Methodology.....................................................................................................7 Chapter IV: Research Findings............................................................................................8 Chapter V: Conclusion.........................................................................................................9 References..........................................................................................................................10 Appendix............................................................................................................................11 Appendix 1: Survey Form..............................................................................................11 Appendix 2: Table..........................................................................................................14

ATM SERVICE AND CUSTOMER BEHAVIOR

Chapter I: INTRODUCTION
1.1 Research background:
An Automated Teller Machine (ATM) or the Automatic Banking Machine (ABM) is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date. Authentication is provided by the customer entering a Personal Identification Number (PIN).The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United States and the United Kingdom. In the USA Luther George Simjian was developed the first cash dispenser machine in June -30-1960. The roll out of this machine, called Bankograph, was delayed a couple of years. An experimental Bankograph was installed in New York City in 1961 by the City Bank Of New York. A first Cash dispensing device was used in 1966 in Tokyo. ATM first used in December 1972 in UK, which is designed by IBM2984. OTHER NAMES FOR ATM MACHINE 1. Automated Transaction Machine 2. Automated Banking Machine 3. Cash Point (in Britain) 4. Money Machine 5. Bank Machine 6. Cash Machine 7. Hole-In-The-Wall, Bancomat (in various countries in Europe and Russia) 8. Multibanco ( in Portugal) 9. Any Time Money (in India)

ATM SERVICE AND CUSTOMER BEHAVIOR

LOCATIONS 1. Locations means where ATM machines are placed 2. Near or inside the premises of banks 3. Shopping centres/ malls 4. Airports 5. Grocery stores 6. Petrol/gas stations 7. Restaurants 8. Any place large numbers of people may gather

1.2 Research Objectives:

Currently, ATM cards are being used worldwide, the figure of users are expanding rapidly, and customers demands are higher and higher. The majority of people apply ATM card to transfer and receive money more speedily and conveniently . Each of customers have their own intention such as deposit currency recognition, acceptance, and recycling ; paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) ; printing bank statements ; updating passbooks ; loading monetary value into stored value cards ; and buying games online card and software. To reach the interest and faithfulness of customers, most of marketing strategies are concentrating on their clients. Therefore, the study about the quality of ATM services and the customer behavior may be the two most important requirements which need to be done frequently and constantly. Since then, we can serve the customers better, and satisfy them whenever they use our services. This project is very essential which helps the banks know more about the demands, satisfactions in using ATM service. Particularly, the study focus on the ATM fees which have been advanced for years ago. In this time, there are many ideas which are both for and against about the fees of ATM service, and the leaders can make a decision more accurately. To find out the demography of Da Nang people To determine the bank that most of Da Nang people like To specify the factors that influence the customers choose To identify the response of customers about paying fees on ATM services
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To discover the frequency of customers To define the goals of customers use ATM service To verify the level of customers satisfaction on ATM services

1.3 Research Questions:

After studying and collecting information, our group decided some questions to research. First of all, we want to introduce the problems, and then state the solutions as the following orders: administrative problems research goals identify essential information. All of our study focus on Nngs market as it is the biggest city in the central Vietnam, and also is one of the biggest cities in Vietnam in order to make a conclusion for not only central but also other countries in Vietnam. From the results, we will suggest some solutions to bank industry. The first question is: what is the problem of ATM users? ATM was appeared long time ago and known as an important tool in retail chain of Vietnam banks. However, the proportion of ATM user is lower than other developing countries. The question is why are there still people who do not use ATM service? Many banks are trying to answer the question satisfactorily. Thus, we need to define the reason and the behavior of customer. The second question is: What do banks need to do to attract the customers? We will do a research about the issues of using an ATM card. This information may help banks to understand about their clients more clearly which are used to respond better and attract more customers. Therefore, our group will study about the demands and desires to produce some solutions. The third question is: Is Nng one of the potential visions of banks? Nng is the third biggest city in Vietnam, and it has favorable conditions to develop its economist. It is one of the most potential cities in investment and development, and especially the huge customers market. Hence, the question is Do people really like ATM service?, and Should banks invest and develop the ATM using market in. These problems require us to study the ATM using demands of Nng people and the structure in ATM user in there. We will concentrate on studying about the structure of customer.

ATM SERVICE AND CUSTOMER BEHAVIOR

1.4 Research limitations:

During the research, we as the following factors. Time: We cannot collect information and complete the report in a short time without making mistakes. Besides, there are many exercises to do in class. Scale: With the narrow scope, the research cannot reflect the accurate problems. Books and resources: Currently, there are a small number of individual or organization do the research about ATM Service and Customer Behavior. Therefore, we do not have much more materials to consult and to support for our report.

ATM SERVICE AND CUSTOMER BEHAVIOR

1.5 Research plan:

The table below provides the processes of our research Task Brainstorm the topic details We brainstormed about the ATM to discuss the topic We went to the banks and searched from the internet to find the information We used the information for Prepare Introduction Finalize the Research Report Proposal Conduct presentation Design a questionnaire form Distribute it to 30 respondents Record our data in Excel Analyze the data in Report. Provide summaries, conclusion and recommendations in the final report. Conduct presentation by showing the slides in Power Point. Ny and Quang The data are analyzed Ny and Quang 11st 15th June,2010 We use Excel to produce the data We used MS PowerPoint to present From the objectives of the project, we design the questionnaire preparing the introduction of our project Ny Quang Ny Ny and Quang Quang Quang By Ny and Quang Date 18th 20th May, 2010 20th 21st May,2010 22nd 24thMay,2010 25th 26th May,2010 27th-31st May,2010 1st- 3nd June,2010 4th 7th June,2010 8th 10th June,2010

Find information:

Ny and Quang

16th-18th June,2010

ATM SERVICE AND CUSTOMER BEHAVIOR

Chapter II: Literature Review

ATM SERVICE AND CUSTOMER BEHAVIOR

Chapter III: Methodology

This research was conducted by questionnaire and investigated the satisfaction of customers on using ATM services. A total of 30 questionnaires were distributed with 30 random respondents. The questionnaire provided opened and closed question responses for additional comments. No personal information was collected, and this survey was voluntary and anonymous. After getting information, the data will be analyzed by statistics method.

ATM SERVICE AND CUSTOMER BEHAVIOR

Chapter IV: Research Findings

Table 1: The table show the percentage of male and female were questioned

ATM SERVICE AND CUSTOMER BEHAVIOR

Chapter V: Conclusion

ATM SERVICE AND CUSTOMER BEHAVIOR

References

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Appendix Appendix 1: Survey Form

Questionnaire
Dear, We are Towson students. We are doing our project about ATM service and customer behavior. To complete this project, we need your cooperation. All the information is guaranteed to use for this research. Please answer these questions below: 1. What is your gender? Male Female 2. How old are you? 18 and up to 25 years old 25-30 years old Over 30 years old 3. What is your monthly income? Under 1mil 1 mil and less than 5 mils 5-10 mils Over 10 mils 4. Do you use ATM card currently? Yes (then answer the next questions) No (please stop here. Thanks!) 5. What is the name of the bank(s) you are using?( you can choose more than one) Agriculture Bank (AgriBank) Sacom Bank Dong A Bank Exim Bank Maritime Bank Others: .................................................................................................

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6.

What are factors influence your decision on using ATM services of a bank? Not very Not Quite Very Factors Important important important important important Prestige and safe of a bank The branch system of a bank The speed of transaction High interest rate High density of ATM machine 7. What are your purposes when you use ATM? (you can choose more than one) Send and withdraw cash Receive salary Pay school fees Transfer and receive money Others: ................................................................................................. All of them 8. How many times do you use ATM per month? 1-3times 3-5times 5-7times Over 7times 9. What are ATMs functions, which you are usually, using? Very Never Rarely Sometime seldom Deposit and withdraw cash Paying bills Transfer and receive money Receive salary 10. Are you satisfied with the density of the ATM machine? Very dissatisfied Dissatisfied Normal Satisfied Usually Often

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Very satisfied 11. Can you provide me the location of the ATM machine that you are usually use? How far is it from your house or your office? ........................................................................................................................ ...... What do you think about the location of the ATM machine you are using? Very far Far Normal Near Very near 13. If the bank collect fee when you use functions of ATM, do you continue to use it? Yes No

12.

THANKS FOR YOUR COOPERATION!

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Appendix 2: Table

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