Managing Customer Switching Behavior in the Banking Industry

Abstract

This study aimed to explore the factors that lead to the intention to stay and the intention to switch in the banking industry. The research adopted a qualitative, inductive approach to data collection using a sample of 19 Australians customers who use banking services, and two Australian bank managers. The factors that are important to the customers' decision to change banks or to diversify their accounts include: (a) customer service and customer intimacy; (b) response to service failure; (c) effect of advertising; (d) reputation; (e) ease of banking; and (f) customer value.