The Relationship between Service Quality, Economic and Switching Costs in Retail Banking

Business Systems Review, Vol. 2, Issue 1, pp. 1-16, 2013

16 Pages Posted: 27 Dec 2012 Last revised: 6 Jan 2013

Faruk Anıl Konuk

Sakarya University

Filiz Konuk

Sakarya University

Date Written: December 15, 2012

Abstract

The objective of this study is to examine the structural relationships between service quality, economic and switching costs, loyalty and word-of-mouth intentions. For this aim, we proposed a conceptual model based on literature review and proposed hypothesis according to this model. In order to test the hypothesis structural equation modeling technique were applied to the data. Data were collected from 397 retail banking customers during May 2012 in Sakarya/Turkey. The results of this empirical study reveal that service quality has positive effect on economic and switching costs and these costs have positive effect on both loyalty and word-of-mouth intentions. The results also indicate negative relationship between economic costs and switching costs and behavioral intentions. In addition, positive relationship was found between service quality, loyalty and word-of-mouth intentions. At the end of this study some managerial implications are discussed based on the findings.

Keywords: Retail Banking, Service Quality, Economic Costs, Switching Costs, Behavioral Intentions

JEL Classification: L81, M31, G29

Suggested Citation

Konuk, Faruk Anıl and Konuk, Filiz, The Relationship between Service Quality, Economic and Switching Costs in Retail Banking (December 15, 2012). Business Systems Review, Vol. 2, Issue 1, pp. 1-16, 2013. Available at SSRN: https://ssrn.com/abstract=2194157

Faruk Anıl Konuk (Contact Author)

Sakarya University ( email )

Esentepe Campus
Sakarya, 54187
Turkey

Filiz Konuk

Sakarya University ( email )

Esentepe Campus
Sakarya, 54187
Turkey

Paper statistics

Downloads
193
Rank
127,999
Abstract Views
1,013