EAP_Final

Da Nang University of Economics

Towson University Degree Programme

English for academic purpose

Project Report

ATM Services and Customer Behavior

By:

Doãn Việt Quang

Nguyễn Thị Ny

TUD-09

May,2010

ĐÀ NẴNG

ATM SERVICE AND CUSTOMER BEHAVIOR

Table of Contents

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

1


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)

1


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

2


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 Đà Nẵng’s 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 Đà Nẵng one of the potential visions of banks?”

Đà Nẵng 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 Đà Nẵng

people and the structure in ATM user in there. We will concentrate on studying about the

structure of customer.

3


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.

4


1.5 Research plan:

The table below provides the processes of our research

Task details By Date

Brainstorm the topicWe brainstormed about the ATM

to discuss the topicNy and Quang

18th – 20th

May, 2010

Find information:

We went to the banks and searched

from the internet to find the

information

Ny and Quang20th – 21st

May,2010

Prepare Introduction

We used the information for

preparing the introduction of our

project

Quang22nd –

24thMay,2010

Finalize the Research

Report ProposalNy

25th – 26th

May,2010

Conduct presentation We used MS PowerPoint to present Quang27th-31st

May,2010

Design a questionnaire formFrom the objectives of the project,

we design the questionnaireNy

1st- 3nd

June,2010

Distribute it to 30

respondentsNy and Quang

4th – 7th

June,2010

Record our data in Excel We use Excel to produce the data Quang8th – 10th

June,2010

Analyze the data in Report.

Provide summaries,

conclusion and

recommendations in the

final report.

The data are analyzed Ny and Quang11st – 15th

June,2010

Conduct presentation by

showing the slides in Power

Point.

Ny and Quang16th-18th

June,2010

5


Chapter II: Literature Review

6


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.

7


Chapter IV: Research Findings

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

8


Chapter V: Conclusion

9


References

10


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?

FactorsNot very important

Not important

ImportantQuite

importantVery

important Prestige and safe of a

bankThe branch system of a

bankThe speed of transaction

High interest rateHigh density of ATM

machine7. 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 ATM’s functions, which you are usually, using?

NeverVery

seldomRarely Sometime Usually Often

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

12


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? ..............................................................................................................................

12. 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

THANKS FOR YOUR COOPERATION!

13


Appendix 2: Table

14

Documents

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