An Investigation of Repurchase Intentions in the Banking Industry: What Reason Do They Return?

Abstract

In an increasingly competitive market, customer retention is imperative for businesses in the services sector, particularly banks. This study aims to understand how relationship quality as second-order impacts repurchase intentions based on the Theory of Repurchase Decision Making (TRD). The switching cost moderating role is addressed. The model was validated using empirical data from Pakistan. A regression modeling was adopted to measure the research hypotheses that underpinned a proposed conceptual model. Results show that relationship quality positively and significantly influences the repurchase intentions. Switching cost determined to be a moderator between relationship quality and repurchase intentions. The implication is that services industry professionals should not overlook the importance of relationship quality and switching costs, as they have a significant impact on repurchase intentions.