Determinants Analysis of Customer Switching Behavior in India

Abstract

This research study investigates the seven factors of customer switching behavior in private bank industry of India. These factors are price, reputation, service quality, effective advertising competition, involuntary switching, distance and switching cost. Two major objectives were fulfilled in the study and for this purpose, in first objective seven hypotheses were tested and for second objective marginal effects of seven factors were analyze. Zheng (2009) study questionnaire tool were employed and 196 respondents were take part in survey. Positive relationship found in unfavorable perception of price/ reputation/ service quality/ effective advertising/ distance and customers' switching banks and negative relationship established in involuntary switching and switching cost and customers' switching banks. Distance rank most important factor for customer switching and involuntary switching grade least important.

Keywords: customer satisfaction, service marketing, retail banking, price, advertising, SERVQUAL, India

JEL Classification: G21, M10, L25