Exploring customer switching intentions through relationship marketing paradigm

PurposeThe financial services market is constantly changing in terms of both competition and consumer behaviour. Customer switching is increasing, while bank marketers attempt to maintain a loyal customer base, in order for the banks to survive and be profitable. The aim of this research was to provide deeper insight into the direct effect of price satisfaction as expressed by its various dimensions on bank customer switching behaviour.Design/methodology/approachThe research involved a review of the literature on factors affecting customer switching behaviour, with a particular emphasis on the role of price. In order to obtain the necessary data, a survey was designed and conducted in the greater Athens area. The questionnaire was administered to 306 bank customers by means of personal interviews.FindingsThe data analysis suggests that bank customer “intentions to switch banks” are affected by the level of their “price satisfaction”. “Price satisfaction” in turn is affected positively by “transparency”, “price quality ratio”, “relative price”, “reliability” and “price fairness”. In addition, “information search” exerts a positive impact on “price satisfaction”.Originality/valueThis study extends previous academic research, by analysing “price satisfaction” in depth, through its various dimensions and by examining the relationships between these variables and consumer switching intention. In addition, statistical evidence of these relationships and their synergies is provided.

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“…In fact, as Kaur et al (2012) recently claimed, the nature and extent of switching behaviour in the banking sector has not been passably studied.…”

Section: The Research Gap and Research Modelmentioning

confidence: 96%

The role of price satisfaction in managing customer relationships: the case of financial services

Lymperopoulos

Chaniotakis²,

Soureli³

2013

Marketing Intelligence &Amp; Planning

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“…The review of works carried out by (Berry, 2002;Gummesson, 2002;Juš ius, Navickas, and Jonikas, 2006;Lee and Jun, 2007;Bivainis, Daukševi i t , and Vilkait , 2011;Kaur, Sharma, and Mahajan, 2012) and other scientists revealed that creation, nurturance and fostering of long-term relationship is an underlying and broadly discussed issue; however, it should be highlighted that there has not been reached any united point of view concerning the customer retention.…”

Section: Introductionmentioning

confidence: 95%

Factors Influencing Customer Retention: Case Study of Lithuanian Mobile Operators

Tamulienė

Gabryte

2014

Procedia - Social and Behavioral Sciences

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Factors influencing customer retention are important in the study of consumer relationship conception witch has implications for organizational business strategy and regulatory policies. Much research has already examined the consumers' repeated purchase intentions, however there is no united point of view concerning the factors conditioning customer retention, and means of its assessment and determination. The aim of the paper -to create a theoretical model of customer retention and to prove it in Lithuania Mobile Operators practice. The empirical research results showed that there is a statistically significant positive correlation between factors identified in the theoretical model: customer satisfaction, relationship quality, switching costs and customer retention

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“…Ladhari, Ladhari and Morales (2011) conceptualised loyalty as a customer's continued patronage of a particular bank. Underlining the role of satisfaction, Amin, Isa and Fontaine (2011) and Kaur, Sharma and Mahajan (2012) suggested that customers retort unfavourably and switch to other service providers upon experiencing dissatisfaction, thereby affecting customer loyalty negatively. Rai and Srivastava (2013) defined customer loyalty as a "psychological character formed by sustained satisfaction of the customer coupled with emotional attachment formed with the service provider that leads to a state of willingly and consistently being in the relationship with preference, patronage and premium".…”

Section: Customer Loyalty: Concept and Connotationmentioning

confidence: 97%

Evidence on customer loyalty relationships: An appraisal

Srivastava¹,

Kumar²

2015

Mark. Rev.

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IntroductionOliver (1999), one of the most notable scholars in the area of customer loyalty, approached the conceptual domain of customer loyalty with a question -'Whence consumer loyalty?' This question unwrapped a number of research dimensions, the most important of which are to establish a universal conceptualisation of customer loyalty by discovering the factors responsible for customer loyalty formation and deciphering their precise relationship with it. The surfeit of attention that the construct of customer loyalty has After numerous studies underscoring the tremendous advantages of customer loyalty, as well as a variety of customer loyalty programmes implementing the actual practice across a horde of different industries, customer loyalty has emerged as a new age marketing tool that can turn around the profitability and growth metrics of a firm. Yet, the theoretical realm of customer loyalty is still deficient in terms of universally accepted conceptualisation and measurement of the construct. Taylor, Hunter and Longfellow (2006) noted a number of significant gaps in the understanding of customer loyalty and several other constructs of relationship marketing. Similarly, Brady et al. (2005) pointed towards a lack of knowledge about factors leading to customer loyalty and their relative importance, notwithstanding different studies examining the determinants of loyalty. Thus, the present study endeavours to explore the factors which may hold significance in relation to customer loyalty, and to investigate their roles in the process of customer loyalty formation by examining their relationships with it.

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Exploring customer switching intentions through relationship marketing paradigm

Cited by 68 publications

References 109 publications

The role of price satisfaction in managing customer relationships: the case of financial services

The role of price satisfaction in managing customer relationships: the case of financial services

Factors Influencing Customer Retention: Case Study of Lithuanian Mobile Operators

Evidence on customer loyalty relationships: An appraisal

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