Determinants of service switching behavior : A study of banking industry in HCM city
Abstract
For years, customer switching behavior has been affecting the effectiveness of banking industry all over the world. The situation is also evident in Ho Chi Minh banking industry. However, limited researches have been published in academic marketing journals focusing on switching behavior of banking industry in Ho Chi Minh City. This study aims to identify and examine the determinants of individual customer’s switching behavior on banking services of Ho Chi Minh City, specifically, deposit service. “Customer Switching Behavior in Service Industries: An Exploratory Study” of Susan M. Keaveny is adapted to investigate the factors that affect individual customer intention for switching deposit service in Ho Chi Minh City banking industry. Primary data were collected through in – depth interview and questionnaire. A questionnaire with five – point Likert scales on eight independent variables: price, reputation, customer satisfaction, response to service failure, service quality, effective advertising competition, customer commitment, involuntary switching and a dependent variable: switching behavior is designed and distributed to random citizen of Ho Chi Minh City. After statistical analysis, effective advertising competition,service quality, customer satisfaction are proved to be significantly influence the customer intention of switching bank for deposit service, especially, customer satisfaction is considered to be the most important factor that effect customer switching behavior. No evidences have been found to prove that the other factors: price, reputation, responses to service failure, customer commitment has a correlation with the customer switching behavior for deposit service provider.
The result is helpful to provide practical recommendation to marketers, leaders of banks and direction for further study.