Customer Switching Behaviour in Retail Banking in India

Abstract

Switching is meant to be the decision made by the buyer to discontinue buying the products or services from the company or ending to patronize the company wholly (Bolton and Bronkhurst, 1995; Boote, 1998). When the customer shut their account with the existing bank or shift to some other bank, depicts the switching has taken place in the banking sector. It is not the outcome of a single unfavorable event but due to multiple happenings (Keaveney, 1995). Gerrard and Cunningham (2004) empirically analyzed the switching behavior of the customers and revealed that customers switched not only due to any one unfavorable happening. The reason being as the customer opens an account with the bank as well as the contractual nature of the relationship, a bond is developed amid them slowly (Gerrard and Cunningham, 2004). Switching is accompanied by numerous complications confronted over the period of time (Keaveney, 1995; Colgate and Hedge, 2001). Clients assess these complications along with their decision to move. And when all this is taken together then it results in switching decision by the customers. To prevent clients from moving to other service provider, it is essential to deliberate this topic because it should not be assumed as a static process and in fact it is a convoluted process. newline