Jumped or Pushed? Understanding Customer Switching in the Banking Context

Abstract

The concept of switching generally assumes that customers have choice and the ability to change from one service/product provider to another. Yet, not all situations present consumers with the same degree of choice or ability to switch. In the UK, lack of competition, choice, and switching barriers are cited as particular problems facing consumers in switching from one bank to another. Previous studies of switching have tended to focus only on certain aspects affecting switching behavior, such as switching factors (Keaveney 1995; Gerrard and Cunningham 2004) or staying factors (Patterson and Smith 2003; Panther and Farquhar 2004; Colgate and Lang 2001). Other studies have combined elements (Bansal and Taylor 1999) such as switching and sociopsychological factors; but few studies have combined factors affecting both switching and staying. We attempt to provide a more holistic analysis of the factors prompting switching intentions including those factors that serve to promote or inhibit switching or staying. We take as our theoretical basis migration theory and the theory of planned behavior.