The Critical Role of Perceived Risk and Trust in Determining Customer Satisfaction with Automated Banking Channels

Abstract

Comparatively little attention has been paid to the role played by trust and perceived risk in determining satisfaction within the banking sector and in particular Automated Teller Machines (ATMs). Here, the key variables in determining satisfaction with ATMs are determined. Based on a literature review, a number of hypotheses have been developed. A linear regression model is used to predict the overall level of consumer satisfaction with ATMs. The final model uses five direct input factors and seven moderated factors, of which the most important were found to be perceived value, trust, and perceived risk. Finally, the managerial and research implications of these results are discussed.

KEYWORDS:

• consumer behaviour
• effects of moderators
• perceived risk
• predicting consumer satisfaction
• trust

Notes

Note. Items on the leading diagonal are Cronbach Alpha Scores and are shown in bold.

∗Statistically significant at the 5% level: two-tailed test.

∗∗Statistically significant at the 1% level: two-tailed test.

∗∗∗Statistically significant at the 0.1% level: two-tailed test.

Note. ∗Statistical significance 5% level; ∗∗Statistical significance 1% level; ∗∗∗Statistical significance at the 0.1% level.

®These questions are reverse coded; The questionnaire used in the study is available on request from the authors.