Customer switching behaviour in the Chinese retail banking industry

Abstract

of a thesis submitted in partial fulfilment of the requirements for the Degree of M. C. M. Customer Switching Behaviour in the Chinese Retail Banking Industry By Dongmei ZhangWith the intense competition and increasing globalization in the financial markets, bank management must develop customer-oriented strategies in order to compete successfully in the competitive retail banking environment. The longer a bank can retain a customer, the greater revenue and cost savings from that customer. However, customers are also more prone to changing their banking behaviour when they can purchase nearly identical financial products provided by the retail banks. In order to stay competitive, bank managers need to understand the factors that influence and determine consumer's bank switching behaviour. In general, the results of this research allow service marketers and practitioners to develop and implement services marketing strategies to decrease customer defection rates, and in turn, increase bank profits. Furthermore, this research provides useful information for future researchers who study switching-behaviour in the banking industry.

Consumer-Band Association: Determinants of Consumer Bank Switching Intention, Case of the Gambia Retail Banking Sector

“…Also, a small marginal increase in transaction cost causes a significant customers' bank switching in Pakistan [23]. Again, it can be noted that increase in bank charges causes bank switching among young-aged and less educated customers of New Zealand and Australian banks [6]. On the other hand, a study of bank switching in UK shows that when there is a strong relationship between the bank and its customers, increase in bank charges has insignificant influence on customer intention to switch [25].…”

“…Keller [2] demonstrates that increased brand performance especially in terms of its functional and symbolic attributes, helps companies to keep their customers happier and thus increases customer loyalty over a longer period of time. Also, a marginal decrease in service quality has the potential to increase the frequency of switching banks [6]. Therefore, a better brand performance or quality of service is a fundamental source for building higher brand loyalty and positive brand image [32].…”

“…According to Keller [5], one of the challenges in marketing services is that they are less tangible than physical products, and are more likely to vary in quality, depending on the provider or people offering them. For that reason, branding can be particularly important for banks as a way to address intangibility and variability problems [3,6].…”

“…According to Keller [5], one of the challenges in marketing services is that they are less tangible than physical products, and are more likely to vary in quality, depending on the provider or people offering them. For that reason, branding can be particularly important for banks as a way to address intangibility and variability problems [3,6].Despite the challenges, studies show that building strong and favorable service brands among consumers requires number of efforts in terms of delivering the right value proposition -as promised, consistently, expedite delivery process, courtesy and trust [3]. Hinson et al noted that the emergence of internet and related technologies in the banking sector has made branding a strategic resource to access larger market areas while at the same time pose a serious challenge as customers are getting sophisticated in their demand for banking services.…”

Electricity Supplier Switching: A Conceptual Model Based on Migration Theory

“…EY (2014) reveals that 32% of the consumers switched due to a visit from a door-to-door salesperson. Clemes et al (2010) and Roos and Gustafsson (2007) discuss the impact of influential triggers in detail, such as advertisements and salesperson visits, on switching ( Table 9). As a result, influential triggers is proposed as a new construct of Pull effects in the extended model.…”