How do the predictors of switching intention influence switching behavior? : A quantitative study of students’ switching behavior in the retail banking context.
Due to the increased number of niched retail banks in Sweden, the competition for the customers has become severe. Bank customers in the Swedish bank market tend to stay with their bank. The challenge of how to manage to attract new customers is a central part of the retail banks’ management tasks. The research area on which we have been focusing on is the area of consumer behavior. We have been focusing on student switching behavior of financial services provided by retail banks in general and ICA banken in particular. To strengthen the practical connection, we choose to focus on the case of ICA banken. Our objective was to investigate which predictors that affect switching intention and investigate how these predictors affect students’ switching behavior, which in the extension will contribute to how retail banks can work towards manage these rising issues. We formulated the following research question:
How do the predictors of switching intention affect switching behavior in the retail banking context?
Our purpose was to investigate the predictors of switching intention and their effects on switching behavior in the retail banking context.
The study was performed with a quantitative method and a deductive approach. By using a convenience sampling technique, we collected the data electronically. The population examined was the student segment at Umeå University. Our questionnaire was constructed with the theoretical chapter as framework, and the discussion, conclusion and practical implications are based on our empirical findings. Our study was geographically limited to Umeå University. The ability to generalize our findings was also limited, due to our chosen sampling technique.
We reached a conclusion that the greatest predictor of switching intention was attitude towards switching. Additionally, the greatest predictors of switching behavior was a combination of attitude towards switching and customer satisfaction. Our practical implications consisted of the recommendation for retail banks to focus on developing marketing strategies that would bank customers more positive towards the act of switching bank in order to attract new customers. Our findings showed that bank customers in general were neither negative nor positive towards the act of switching bank. For ICA banken we gave three proposals; to attract new customers, to transform customers that only partly use the bank to customers that use ICA banken for the majority of their financial transactions and to maintain current customers. These actions are made by managing customer satisfaction, brand image, the relational investment between ICA banken and customers, and subjective norms since these should affect the attitude towards switching bank.
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