Customers’ Switching Behaviour in the Banking Industry in Cape Coast Metropolis, Ghana

Abstract

Deregulation, intense competition and the banking sector crises in Ghana has led to increased customer switching. It has, therefore, become crucial not just to attract every potential customer, but also to develop strategies aimed at maintaining the existing customers. This study sought to investigate the factors that affect the switching behaviour of customers in the banking industry in Ghana. Data for this study was obtained using self-administered questionnaires from 500 bank customers. A descriptive cross-sectional survey was adopted for the study. Binary logistic regression technique was used to analyse the data. The results revealed a significant relationship between customers’ switching behaviour and the variables of interest, including, price, advertising, reputation, distance to bank location, switching cost and innovative products offered by banks. The study recommends that banks should embark on effective advertising campaign about the benefits of their products and improve upon their reputation. Banks should invest in technology and reduce their investment in bricks and mortar type of banking structures.

Keywords: Banking, Customer Switching Behaviour, Ghana

DOI: 10.7176/JMCR/61-01

Publication date:October 31^st 2019