Customer switching behaviour: an exploratory study of predictive factors in the UK retail banking context

Abstract

The main inquiry for this research is to identify the reasons that contribute to customer switching intention decisions. In addressing this enquiry, two theories - the theory of migration and theory of planned behaviour - were identified as the theoretical framework underpinning the study. Two main objectives of the study were (i) to identify the push-pull and mooring factors and (ii) to measure the relationship between the push-pull and mooring factors towards switching intention. The investigation focused on the impact of with push-pull-mooring factors on switching intention. Early research into switching behaviour studies focused largely on variables that contribute to the switching intention decision, mainly due to the critical incidents encountered by customers that push them from their origin or pull them to another destination or mooring factors that might inhibit or mitigate their switching decision. In view of this, a combination of push-pull and mooring variables were used to measure the switching intention behaviour. A multiple method approach was used to study the issues in two different stages. In the first stage qualitative data collection was used to support and confirm the identification of factors from the literature. For the main quantitative methods, using a hypothetical deductive testing approach, this study (N=2018) used survey data collected via a self-administered, voluntary online survey, to develop switching intention behaviour model. The results indicated that situational factors, positive attachments, perceived switching benefits, positive attitudes towards switching and positive beliefs of others towards switching emerged as consistent push factor while availability of alternatives emerged as the pull factors. Interestingly poor pricing, poor service incidents, positive ability to switch and switching barriers were not supported in this study indicating that there is no relationship between poor pricing, poor service incidents, positive ability to switch and switching barriers towards switching intention.