Which Factors Influence the Customers Switching Behavior? (Evidence from the Customers of Banking Sector of Pakistan)

Abstract

This study investigates which factors influence customer’s switching behavior specifically in banks. Flourishing organizations very well aware about one fact that the road to their success moves with their customers. Those companies who do not value their customers they create chance for their rivals to capture customers. Same instance happen in banking sector.  We developed a questionnaire and used that for data collection survey from 200 customers having their bank accounts in different banks of Pakistan.  Results of the current study expose that number of bank branches, quality of services, profit or interest rates offered by banks to their customers directly impact on the attitude and it drive intention to behave in a particular way of customers. If the profit or interest rate will not be higher than any other bank then this factor will create intention to switch. Same behavior will be establish by customers in the case of low service quality and single bank branch or distant branch from center of city. Study also indicate that banks should concentrate on improving their service quality according to the market demand and for the betterment of customers’ perception, satisfaction and loyalty.

Keywords: Switching behavior, service quality, convenience, religious belief, advertisement, profit & interest rate