Customer Switching Intention Research Articles

Pengaruh Persepsi Bank Syariah Di Indonesia Terhadap Customer Switching Intention Dengan Customer Satisfaction Sebagai Mediator

ABSTRACT Indonesia's banking industry is still dominated by conventional banking. Sharia banking in Indonesia should use competitive marketing strategies and pay particular attention to the behavior of communities to compete in the national and global banking environment. This study aims to determine the effect of perception of sharia banks in Indonesia to customer switching intention with mediated by customer satisfaction. This research uses descriptive analysis method. Data collection techniques using questionnaires with Likert scale distributed to 100 customers of conventional banks. Hypothesis testing is done by using PLS (Partial Least Square). The results of this study indicate that the perception of sharia banks affect positively and significantly to customer satisfaction and influence directly or indirectly through customer satisfaction as a mediator of customer switching intention. Keywords: perception, customer satisfaction, and customer switching intention.

An integrative framework for customer switching behavior

ABSTRACTDue to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.

Study on Factors Affecting Financial Customer's Switching Intention to Internet only bank: Focus on Kakao bank

Study on Factors Affecting Financial Customer's Switching Intention to Internet only bank: Focus on Kakao bank

ANTECEDENTS FROM SWITCHING INTENTION THE CUSTOMER’S BANK

Now day’s competition at Indonesia banking industry getting strong and difficult. Every bank provides the similar event on same product or service with another bank and continuously tries to improve their quality of service. Not only provides the same or similar products and services, they also try to attract customers with thousand of promises. Refer to that condition, it is easier for the customers to switch from one bank to another bank.This study is designed to identify the factors that influence the customer to switch the bank. The design of this research applies quantitative research by testing the theories through measurement of research variables with numbers and analyzing data with statistical procedures. 170 respondents participated in this study but 154 questioners acceptable to used in this study. The study consisted of seven variables: customer expertise, word of mouth, service quality, switching cost, price, commitment and intention of switching banks. Data analysis applied measuring method on the calculation of reliability, validity, and multiple regression analysis performed using SPSS 15.0 module.The result of the research indicated that word mouth and price have positive impact to drive customer switching to another service provider/bank. Service quality has the negative effect to customer switching intention. In the other hand customer expertise, switching cost and bank commitment have no effect on customer switching intention.The research implies the bank’s founding management once they make strategies to retain their customer or to minimize customer switching intention. Suggest exploring other antecedents of switching intention on future study providers such as reputation, the attractiveness of another alternative, the effectiveness of advertising and anger accident.

Application of the theory of planned behavior to customer switching intentions in the context of bank consolidations

PurposeThe purpose of this paper is to examine the factors that affect customers’ switching intentions among banks in the context of mergers and acquisitions, using particularly the case of the merger between Lloyds TSB and Halifax Bank of Scotland, which took place in 2009.Design/methodology/approachOn the basis of the theory of planned behavior, a quantitative survey was developed and administered to 515 account holders from both banks in branches located in Spain. Structural equation modeling was then utilized to evaluate the significance of direct and indirect relationships between the various factors under study.FindingsEmpirical findings indicate a significant direct relationship between switching intentions and each of: behavioral beliefs, normative beliefs, attitudes, and subjective norms. Results also reveal an inverse significant relationship between switching intentions and both control beliefs and perceived behavioral control.Research limitations/implicationsThe absence of a longitudinal study measuring the actual impact of the merger on customer switching behavior is the main limitation of this study. Moreover, despite being insightful, the results of this study should be generalized with caution since the sample was based on a list purposely chosen by the banks’ management.Originality/valueThis paper discusses customer switching behavior in the context of a real-life case of banks’ consolidation.

Investigating the impact of Shari’ah perception on customer switching intentions: A study of Takāful and conventional insurance

AbstractThe core objective of this paper is to examine the relationship between the Shari’ah perceptions and the customers’ switching intentions in both Takāful and Conventional Insurance. In today’s world, most of the businesses are focusing on customer retention rather than the customer acquisition. However, our current knowledge of insurance systems is unable to address the crucial issues of target achieving marketing tactics. Takāful is firming its roots in Muslim communities across the globe. As per customer satisfaction been considered as an important factor of customer switching, we have gone further and investigated the mediating role of customer satisfaction to customer switching intentions. The sample size of 400 customers of major life Insurance and family Takāful companies was taken using convenient sampling method. Mediation analysis was performed to test the mediating role of customer satisfaction in Family Takāful and Life Insurance. The impact of Shari’ah perceptions in life insurance and ...

Satisfaction and switching intention in mobile services: Comparing lock-in and free contracts in the Spanish market

Switching costs are a relevant issue affecting market competition in the mobile services industry. However, customer switching costs have not disappeared, since numerous leading mobile services companies use lock-in strategies, such as obliged long-term contractual relationships. The present study provides and empirically test a conceptual model in order to analyze the creation of customer satisfaction and switching intention with mobile services, as well as to examine the differences between lock-in and free contracts in a South European mature market – Spain. For this purpose, drawing on a sample of 370 customers, we developed Structural Equation Modeling (SEM) through a multi-group analysis. Our findings suggest that service quality is one of the key determinants of satisfaction, while the availability of attractive alternatives is the main switching barrier. Moreover, some interesting differences were found between the two type of contracts analyzed. Consequently, we suggest shifting resources to customer retention through improved service quality for reducing customer churn rate.

The Effect of Service Failure on Customer Switching Intention in the Tourism Industry

As people's standard of living has increased, tourism's is taking a greater share in peoples' consumption. The tourism market continues to expand; however, customers' complaints became more frequent, travel agencies and tourists had more disputes, and there have been increased service failures of travel agencies. Therefore, how to reduce customers switching intention became one of the critical issues. This study investigates the effect of service failures on customers switching intention and personality traits. The results showed that travel agencies notify customers reservation cannot be made due to insufficient number of participants before departure have no effect on the customer switching intention. Service failure on the journey about important attractions unable to visit or must cancel the attractions journey or tour guide provides poor service effect on the customer switching intention.

Self-Congruity and Switching Intention Among Malaysian Hotel Customers

Understanding consumers’ switching intention is crucial due to the reason that it may affect service companies’ performance. Indeed keeping the current customer base is cheaper than gaining new customers. As such, it is crucial to understand what affects customers’ switching intention before it creates serious threat to the firms. Furthermore, it can act as an opportunity for the firms to understand their shortcomings, to develop their present marketing strategies, and to take corrective actions. Few studies have pointed that customer dissatisfaction, service failure, perceived justice, and cultural barriers as the antecedents of customer complaint attitude. However, there is a dearth of research that has examined customers’ psychological aspects as the determinants of such negative attitude towards the service provider. The present study is such an effort to address this gap. Considering this, this study aims to shed some light on customer switching intention based on psychological aspects particularly focusing on self-congruity and its dimensions as the antecedents in the context of Malaysian hotel industry. On the whole, the objective of this study is to examine the direct effect of four dimensions of self-congruity on customers’ switching intention. Data were collected by using survey questionnaires which were distributed to customers of seven Five Star hotels in Kuala Lumpur, Malaysia. 212 completed usable questionnaires were obtained. The data were analyzed using statistical package for social science (SPSS) version 20. Pearson correlation coefficient and multiple linear regression analyses were used to test the research hypotheses. Results reveal that actual self-congruity, social self-congruity and ideal social self-congruity negatively and significantly affect customers’ switching intention. However, data did not support the relationship between ideal self-congruity and customer switching intention. In overall, the results emphasize the significant effect of study variables in decreasing hotel customers’ switching intention. It is expected that the result from this study contributes significantly in the field of consumer behaviour literature as well as to the hotel industry practitioners and policy makers.

Antecedents of customer switching intention in the Ghanaian telecommunications industry

Antecedents of customer switching intention in the Ghanaian telecommunications industry

Product quality vs service quality in the mobile industry: Is there a dominant driver of customer intention to switch providers?

As service-dominant logic is being proposed and tested in several industries, this study extends the investigation of this theory and provides insights for both researchers and practitioners under the context of the mobile industry. This study advances the understanding of customer switching intention by assessing the relative strength of product quality and service quality in terms of mobile provider switching behavior. This study develops the proposed research model that integrates previous validated constructs contextualized to the mobile industry and employs partial least square – structural equation modeling (PLS-SEM) to analyze the corresponding survey data and test the model fit. The results strongly support the hypotheses related to quality and its antecedents. The analysis results also suggest that overall mobile provider service quality and customer intention to switch mobile products significantly influence customer intention to switch providers. However, the overall product quality does not significantly influence customer intention to switch mobile products. This research contributes to the debate of goods-dominant and service-dominant logic by empirically supporting the dominance of service quality within the context of one industry, the mobile industry. In addition, this paper discusses the implications of the findings and presents future research directions.

Segmentation of Bank Customers by Loyalty and Switching Intentions

In a highly competitive world, it is imperative to understand why customers switch, as switching has a significant impact on a firm's performance. Just as satisfied customers are not necessarily loyal, dissatisfied customers do not always exit (Yanamandram & White, 2006). Even then much attention has been diverted towards growing relationships as compared to ending of the same (Akerlund, 2005; Halinen & Tahtinen, 2002). This study aimed at predicting customer switching through various relational and switching factors, viz., quality, value, satisfaction, trust, commitment, loyalty, switching costs and barriers, particularly in the context of Indian private banking. Further, the study investigated those traits of the customers, which would facilitate bank managers in formulating different retention strategies. The main findings of the study are: Majority of respondents have no intentions to switch their prime bank, but at the same time these respondents cannot be classified as true loyals. There exist two groups of respondents, i.e., ‘loyal stayers’ and ‘spurious stayers’. A direct relationship exists between ‘customer switching intentions’ on the one hand and ‘quick and effective responses to service failures’, ‘core services up to expectations’, ‘reasonable prices’, ‘switching costs’ and ‘switching barriers‘ on the other. Thus, banks need to undertake the following initiatives, which would be useful for increasing customer retention among bank customers: Promote commitment by implementing and demanding higher standards of conduct from the bank employees. Develop schemes/services that provide value to their customers in a sustained way and maintain them overtime in order to generate competitive advantage. Satisfy its customers, which can be implemented only when customers' needs are known. Hence, every bank should have a separate R&D department, which can pursue market surveys on continual basis. Concentrate on the core service delivery and recovery, so as to seek competitive advantage. Focus on CRM strategies and develop wide-ranging relationships with their customers so as to make it difficult for them to switch their bank. In order to build profitable relationships, firms should not attempt to attract all customers in the market indiscriminately, but focus on those who are more valuable to the company.

이동통신사 서비스 요인과 전환혜택이 고객만족도와 전환의도에 미치는 영향에 관한 연구

이동통신사 서비스 요인과 전환혜택이 고객만족도와 전환의도에 미치는 영향에 관한 연구

The Factors That Impact of e-Customer Relationship Management Performance (e-CRM) of Mobile Services in Jordan

e-Customer Relationship Management (e-CRM) helps business use technology and human recourses to gain insight into the behavior of customer and the value of those customers. The main objective of this paper is to investigate the antecedents of e-CRM performance and its impact on customer loyalty and Customer-switching intention (CSI). A conceptual model, adapted from Technology Acceptance Model (TAM), was built to relate Customer Privacy (CP) and Customer-Switching Intention (CSI) to e-CRM performance of Jordanian Mobile Services. Self-administered questionnaires were used to collect the data from University's students were selected as the respondents for this research. This paper will describe literature review of CRM and e-CRM, customer factors that including CP and CSI. Also, Will describe research model based on Technology Acceptance Model (TAM) and Hypotheses. The data collocation, sample, Analysis of data and desiccation of results.

The moderating effect of normative commitment on the service quality-customer retention relationship

Purpose– Limited attention has been given to the effects of normative commitment (NC) in a marketing relationship. This paper investigates the effects of service quality and normative commitment on customer retention in a consumer-retailer relationship.Design/methodology/approach– Two distinct studies; a longitudinal experiment and a SEM model were conducted to tease out the normative commitment-service quality interaction on customer switching intentions in services.Findings– Both studies supported the existence of a significant normative commitment-service quality interaction on switching, in addition to the main effects of both variables.Research limitations/implications– The longitudinal experiment has the limitation of being a simple test of theory in a controlled setting. Study II validates this theory in a real-world retail services setting, but there are questions about the extent to which the relationship may hold in other service sectors. The results indicate that the effect of service quality on customer loyalty is moderated by normative commitment. This may also allow us to think about customer commitment in a new way in that it could be a construct rooted in attitude confidence rather than attitude.Practical implications– The findings allow practitioners to recognize that the development of obligation-based normative commitment can give them a basis for successful competition against other firms, even those that may outperform them on other salient attributes, including basic service quality.Originality/value– This is one of a very small number of studies in the discipline that have examined the effects of normative commitment and the first that has demonstrated that normative commitment moderates the service quality-service customer retention relationship. This opens the door for the possibility that other forms of commitment may moderate the relationship between service quality and customer retention.

Why do customers switch? More satiated or less satisfied

This study investigated whether restaurant customers switch to other restaurants due to satiation or diminished satisfaction. To achieve its objectives, this study extended well-known relationships among perceived quality, satisfaction, and behavioral intentions by including satiation and further examined the role of satiation on switching intentions. The results of this study showed that satiation was negatively associated with satisfaction but differed from diminished satisfaction. Further, the study results endorsed that satiation significantly influenced switching intentions, whereas satisfaction did not. This supports that customers switch to other restaurants not because they are less satisfied but because they are satiated. Regarding the relationship between perceived quality and satiation, service quality and food quality considerably reduced satiation levels, whereas physical surroundings were associated with an increase in satiation. In addition, satiation fully mediated the relationship between perceived quality and switching intentions, which emphasizes the importance of satiation in customer switching intentions. Findings and implications are provided in the main body of this paper.

Switching intentions in Telecom industry: a case of University students in Bahawalpur

Consumers are the valuable assets of the organization as they are the ultimate destination of any product or services since they are the ultimate users of the any product or services thus the success of any organization depends upon the satisfaction of the customers, if not they will switch to other brands. The present paper attempt to study the consumer switching intentions in the telecommunication industry. The research aimed to find the reasons behind the customer switching behavior in cellular services sector of Pakistan. To conduct the research, we surveyed 170 respondents across the different departments in the ISLAMIA UNIVERSITY BAHAWALPUR. The survey was based on the self administered questionnaire. Respondents were selected on the random basis. After examining the collected results, we inferred that the customer switching intentions mainly dependent on the price, core service failure and then the customer satisfaction. This research also confirms the negative effect of trust on switching .intentions .Trust can increase the loyalty of customer which decreases the intentions of consumers to switch. Using regression it is concluded that proposed variables have a significant relationship with the switching. Companies should focus on these factors to retain their customers and make them loyal enough that they could have a long retention period with the company.

Factors affecting mobile users' switching intentions: a comparative study between the brazilian and german markets

In the competitive wireless market, there are many drivers behind customer defection. Switching barriers, service performance, perceived value in carriers' offers, satisfaction and other constructs can play a pivotal role in customer switching processes among carriers. This study attempts to compare the influence of these factors, taking into account cultural similarities and dissimilarities, between Brazilian and German mobile users. A survey was conducted on two samples, comprising 202 users in Brazil and 200 users in Germany, with culture being employed as a context variable to compare their behavior. Analysis by means of multi-group structural equation modeling suggests that, in both countries, customer satisfaction, service performance and perceived value have important roles in defining customer switching intentions, while switching barriers did not prove to have significant effects upon switching behavior. The results also suggest that the two cultures are sufficiently similar (considering the sample and the variables involved in the model) to not present differences in the studied consumer behavior, except for the effect of service performance upon satisfaction.

Antecedents of Customer Switching Intentions: A case study of Nokia Mobile Phones’ users

The current study moves beyond satisfaction and proposes that switching variables are important factors impacting a customer’s decision to switch from a service provider. The purpose of the study analyzes customer switching intention about Nokia mobile. In this sample only one company’s customers include, so the findings may not be generalized to other companies. There are many variables which impact on customer decision and enable to customer choose the better services which available in market. These variables impact on customer decision in many ways like, perceived switching cost, the attractiveness of alternatives and service quality. We propose this study to find and support those variables model which influence between core-service satisfaction and customer switching intention. The results indicates that the influence of core-service quality satisfaction on repurchase intentions and decreases switching intention and make customer loyal with that product for a long period. Although switching variables had no influence on repurchase intentions when satisfaction was high, switching variables positively influenced on repurchase intentions when satisfaction was low. Future research in other service industries is called for.

모바일 음악 서비스의 전환 의도에 영향을 미치는 요인에 대한 고찰: 대안의 매력도와 전환비용의 조절 효과를 중심으로

본 연구의 주목적은 모바일 음악 서비스 품질에 대한 소비자들의 인식이 서비스 충성도와 전환 의도에 미치는 영향 관계를 규명해 보는 것이다. 이러한 연구 목적을 달성하기 위해 선행 문헌들을 근거로 모바일 음악 서비스의 품질 요소로 인터페이스 품질, 서비스 품질, 비용 품질 등의 세가지 요인을 도출하였고, 이들 요인들이 서비스 충성도를 거쳐 전환 의도를 형성하게 되는 구조적 관계에 대한 연구 모델과 가설을 수립하였다. 또한 본 연구는 서비스 충성도와 전환 의도의 관계에서 대안의 매력도와 전환 비용이 조절 효과를 가지는 지를 확인하고자 하였다. 모바일 음악 서비스 이용자 433명을 중심으로 온라인 설문을 실시하였고, 단순, 다중, 위계적 회귀 방법에 의해서 결과를 분석하였다. 분석 결과, 인터페이스 품질, 서비스 품질, 비용 품질은 모두 서비스 충성도에 긍정적 영향을 미쳤다. 또한 서비스 충성도와 대안의 매력도는 전환 의도에 긍정적 영향을 미쳤다. 반면, 전환 비용은 전환 의도에 부정적 영향을 미쳤다. 대안의 매력도는 또한 서비스 충성도와 전환 의도 관계 속에서 긍정적 조절 효과를 지니는 것으로 나타났다. 연구의 결과가 지니는 함의에 대해서도 토의한다. The major purpose of this study is to examine the effects of customers' perceptions toward service quality of mobile music service on customer loyalty and switching intention. For this purpose, this study posited three service quality characteristics including interface, service, price quality as key determinants of customer loyalty and switching intention based on relevant literature reviews. A research model and hypotheses concerning the relationship between these variables were constructed. Moreover, this study explored the moderating effects of attractiveness of alternative and switching costs on the relationship between customer loyalty and switching intention. An online survey was administrated on 433 mobile music service users and a simple, multiple, and hierarchical regression analysis were employed. The results indicated that all of interface, service, price quality have significant positive influences on customer loyalty, and both of service quality and attractiveness of alternatives have influences on the switching intention in a positive way. On the other way, it was shown that switching costs have a negative influence on the switching intention. The moderating effect of attractiveness of alternatives on the relationship between customer loyalty and switching intention was also found. The implications of these results are discussed.