South Asian Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

An Empirical Investigation of the Switching Process in Retail Banking


Affiliations
1 Rajagiri Business School, Rajagiri Valley, Kochi-682 039, Kerala, India
2 School of Management Studies, Cochin University of Science and Technology, Kochi-682 022, Kerala, India
     

   Subscribe/Renew Journal


This study focuses on the influence of switching triggers on perceived service quality in a retail banking context and the effect of consumer commitment on the relationship between service quality and switching intention. The study was conducted among retail banking customers in the state of Kerala in India. The analysis of data was done using variance based structural equation modeling approach employing non-linear partial least squares regression. The results of the study empirically demonstrate that reactional and influential triggers influence customers’ perception of service quality of banks and that affective and calculative commitment have a moderating influence on the relationship between service quality and customers’ switching intention.

Keywords

Commitment, Retail Banking, Service Quality, Switching Intention, Switching Trigger.
User
Subscription Login to verify subscription
Notifications
Font Size

  • Ahluwalia, R., Burnkrant, R. E., & Unnava, H. R. (2000). Consumer response to negative publicity: The moderating role of commitment. Journal of Marketing Research, 37, 203-214.

  • Ajzen, I. (1991). The theory of planned behavior. Organizational Behavioral and Human Decision Processes, 50(2), 179-211.

  • Allen, N. J. & Meyer, J. P. (1990). The measurements and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63, 1-18.

  • Almossawi, M. (2001). Bank selection criteria employed by college students in Bahrain: An empirical analysis. International Journal of Bank Marketing, 19(3), 115-125.

  • Angur, M. G., Nataraajan, R., & Jaheera, J. S. (1999). Service quality in the banking industry: An assessment in a developing economy. International Journal of Bank Marketing, 13(3), 116-123.

  • Bansal, H. S., & Taylor, S. F. (1999). The service provider switching model (SPSM): A model of consumer switching behavior in the services industries. Journal of Services Research, 2(2), 200-218.

  • Bansal, H. S., Irving, P. G. & Taylor, S. F. (2004). A three-component model of customer commitment to service provider. Journal of the Academy of Marketing Science, 32(2), 234-50.

  • Bansal, H. S., Taylor, S. F. & James, Y. S. (2005). Migrating to new service providers: Toward a unifying framework of consumers’ switching behaviors. Journal of the Academy of Marketing Science, 33, 96-115.

  • Bennett, D., & Higgins, M. (1988). Quality means more than smiles. ABA Banking Journal, 80(6), 46.

  • Berger, I. E., & Mitchell, A. A. (1989). The effect of advertising on attitude accessibility, attitude confidence, and the attitude-behavior relationship. Journal of Consumer Research, 16, 269-279.

  • Bitner, M. J. (1990). Evaluating service encounters: The effects of surroundings and employee responses. Journal of Marketing, 54(2), 69-82.

  • Bolton, R. N., & Drew, J. H. (1991). A multistage model of customers’ assessments of service quality and value. Journal of Consumer Research, 17(4), 375-385.

  • Bolton R. N., & Lemon N. K. (1999). A dynamic model of customers’ usage of services: usage as an antecedent and consequence of satisfaction. Journal of Marketing Research 36, 171-186.

  • Bowen, R., & Hedges, B. (1993). Increasing service quality in retail banking. Journal of Retail Banking, 15(3), 21-8.

  • Carman, J. M. (1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing, 66(1), 33-55.

  • Chi Cui, C., Lewis, B. R. & Park, W. (2003). Service quality measurement in the banking sector in South Korea. International Journal of Bank Marketing, 21(4), 191-201.

  • Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd edn.) Hillsdale, NJ: Lawrence Erlbaum Associates.

  • Colgate, M., & Hedge, R. (2001). An investigation into the switching process in retail banking services. The International Journal of Bank Marketing, 19(4/5), 201-213.

  • Colgate, M. & Lang, B. (2001). Switching barriers in consumer markets: An investigation of the financial services industry. Journal of Consumer Marketing, 18(4), 332-347.

  • Cronin, J. J. Jr., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 56, 55-68.

  • Cronin, J. J. Jr., & Taylor, S. A. (1994). SERVPERF versus SERVQUAL: Reconciling Performance-based and perceptions-minus-expectations measurement of service quality. Journal of Marketing, 58(1). 125-131.

  • Cronin, J. J. Jr., Brady, M. K., & Hult, G. T (2000). Assessing the determinants of consumer behavioral intentions in service environments: An investigation of a comprehensive model of the effects of quality, value, and satisfaction. Journal of Retailing, 76(2), 193-218.

  • Dabholkar, P. A., Thorpe, D. I., & Rentz, J. O. (1996). A measure of service quality for retail stores: Scale development and validation. Journal of the Academy of Marketing Science, 249(2), 3-16.

  • Dash, S. (2006). Does culture influence service quality expectations? A test of cultural influence in banking service expectation. The ICFAI Journal of Consumer Behaviour, 1(2), 16-30.

  • Day, R. L. (1976). Toward a process model of consumer satisfaction: Conceptualization and measurement of consumer satisfaction and dissatisfaction, Marketing Science institute Proceedings, ed. H. Keith Hunts, 153-183.

  • Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99-113.

  • Edvardsson, B. (1988). Service quality in customer relationships: A study of critical incidents in mechanical engineering companies. The Service Industries Journal, 8(4), 427-445.

  • Fornell, C., & Bookstein, F. L. (1982). Two structural equations models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research, 19(4), 440-452.

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

  • Fullerton, G. (2003). When does commitment lead to loyalty? Journal of Service Research, 5(4), 333-345.

  • Fullerton, G. (2005). The impact of brand commitment on loyalty to retail service brands, Canadian Journal of Administrative Sciences, 22(2), 97-110.

  • Furrer, O., Liu, B., & Sudharshan, D. (2000). The relationships between culture and service quality perceptions – basis for cross cultural market segmentation and resource allocation. Journal of Service Research, 2(4), 355-371.

  • Gardial, S. F., Flint, D. J., & Woodruff R. B. (1996). Trigger events: Exploring the relationships between critical events and consumers evaluations, standards, emotions, values and behavior. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 9, 35-51.

  • Gerrard, P., & Cunningham, J. B. (2004). Consumer switching behaviour in the Asia banking market. Journal of Service Marketing, 18(2/3), 215-223.

  • Gilliland, D., & Bello, D. (2002). The two sides of attitudinal commitment: The effect of calculative and loyalty commitment on enforcement mechanisms in distribution channels, Journal of the Academy of Marketing Science, 30(1), 24-43.

  • Glaveli, N., Petridou, E., Liassides, C., & Spathis, C. (2006). Bank service quality: Evidence from five Balkan countries. Managing Service Quality, 16(4), 380-94.

  • Gruen, T. W., Summers, J. O., & Acito, F. (2000). Relationship marketing activities, commitment, and membership behaviors in professional associations. Journal of Marketing, 64(3), 34-49.

  • Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions and triggers on customer retention. Journal of Marketing, 69, 210-218.

  • Hair, J. F. Jr., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis, (7th ed.) Upper Saddle River, NJ: Prentice Hall.

  • Harrison-Walker, L. J. (2001). The measurement of word-of mouth communication and an investigation of service quality and customer commitment as potential antecedents. Journal of Service Research, 4(1), 60-75.

  • Jarvis C. B, MacKenzie, S. B., & Podaskoff, P. M. (2003). A critical review of construct indicators and measurement model misspecification in marketing and consumer research, Journal of Consumer Research, 30(2), 199-218.

  • Keaveney, S. M. (1995). Customer switching behaviour in service industries: An exploratory study. Journal of Marketing, 59(2), 71-83.

  • Keaveney, S., & Parthasarathy, M. (2001). Customer switching behavior in online services: An exploratory study of the role of selected attitudinal, behavioral, and demographic factors. Journal of the Academy of Marketing Science, 29(4), 374-390.

  • Ketkar, S., Kock, N., Parente, R., & Verville, J. (2012). The impact of individualism on buyer–supplier relationship norms, trust and market performance: An analysis of data from Brazil and the U.S.A. International Business Review, 21(5), 782-793.

  • Kock, N. (2011). Using WarpPLS in e-collaboration studies: Descriptive statistics, settings, and key analysis results. International Journal of e-Collaboration, 7(2), 1-18.

  • Kock, N., & Lynn, G. S. (2012). Lateral Collinearity and Misleading Results in Variance-Based SEM: An Illustration and Recommendations. Journal of the Association for Information System, 13(7), 547-569.

  • Langley, A. (1999). Strategies for theorizing from process data. Academy of Management Review, 24, 691-710.

  • Lassar, W. M., Manolos, C., & Winsor, R. D. (2000). Service quality perspectives and satisfaction in private banking. International Journal of Bank Marketing, 18(4), 181-189.

  • McDougall, G. H. G., & Levesque, T. J. (1994). A revised view of service quality dimensions: An empirical investigation. Journal of Professional Services Marketing, 11(1), 189-209.

  • MacKenzie, S. B., Podsakoff, P. M., & Jarvis, C. B. (2005). The problem of measurement model misspecification in behavioral and organizational research and some recommended solutions. Journal of Applied Psychology, 90(4), 710-730.

  • Meyer, J. P. & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage Publications.

  • Meyer, J. P. & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human Resource Management Review, 11(3), 299-326.

  • Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis, (2nd ed.). Thousand Oaks, CA: Sage.

  • Morgan, R. M. & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(July), 20-38.

  • N’Goala, G. (2007). Customer switching resistance (CSR): The effects of perceived equity, trust and relationship commitment. International Journal of Service Industry Management, 18(5), 510-533.

  • Oliver, R., & Swan, J. E. (1989). Consumer perceptions of interpersonal equity and satisfaction in transactions: a field survey approach. Journal of Marketing, 53, 21-35.

  • Parasuraman, A., Zeithamal, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49, 41-50.

  • Parasuraman, A., Zeithamal, V. A. and Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.

  • Patterson, P.G. (2004). A contingency model of behavioural intentions in a services context. European Journal of Marketing, 38(9/10), 1304-1315.

  • Peterson, M. F. (1998). Embedded organization events: the units of process in management science. Organization Science, 9(1), 16-33.

  • Reichheld, F. F., & Sasser, W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5), 105-112.

  • Roos, I. (1999). Switching processes in customer relationships. Journal of Service Research, 2(1), 68-85.

  • Roos, I., & Friman, M. (2008). Emotional experiences in customer relationships A telecommunication study. International Journal of Service Industry Management, 19(3), 281-301.

  • Roos, I., Edvardsson B., & Gustafsson A. (2004). Customer switching patterns in competitive and non competitive service industries. Journal of Services Research, 6(3), 256-271.

  • Roos, I., Gustafsson, A., & Edvardsson, B. (2006). Defining service quality for customer driven business development – a housing-mortgage company case. International Journal of Service Industry Management, 17(2), 207-223.

  • Stafford, M. R. (1996). Demographic discriminators of service quality in the banking industry. The Journal of Services Marketing, 10(4), 6-18.

  • Strauss, B. (1993). Using the critical incident technique in measuring and managing service quality. In E. Scheuing, and William F. Christopher (eds.). The Service Quality Handbook, New York: American Management Association, 408-427.

  • Van de Ven., A. H. (1992). Suggestions for studying strategy process: A research note. Strategic Management Journal, 13, 169-188.

  • Venetis, K. A., & Ghauri, P. N. (2004). Service quality and customer retention: Building long-term relationships. European Journal of Marketing, 38(11/12), 1577-1598.

  • Yavas, U., & Benkenstein, M. (2007). Service quality assessment: A comparison of Turkish and German bank customers. Cross-Cultural Management: An International Journal, 14(2), 161-168.

  • Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioural consequences of service quality. Journal of Marketing, 60, 31-46.


Abstract Views: 174

PDF Views: 0




  • An Empirical Investigation of the Switching Process in Retail Banking

Abstract Views: 174  |  PDF Views: 0

Authors

Neetha J. Eappen
Rajagiri Business School, Rajagiri Valley, Kochi-682 039, Kerala, India
K. B. Pavithran
School of Management Studies, Cochin University of Science and Technology, Kochi-682 022, Kerala, India

Abstract


This study focuses on the influence of switching triggers on perceived service quality in a retail banking context and the effect of consumer commitment on the relationship between service quality and switching intention. The study was conducted among retail banking customers in the state of Kerala in India. The analysis of data was done using variance based structural equation modeling approach employing non-linear partial least squares regression. The results of the study empirically demonstrate that reactional and influential triggers influence customers’ perception of service quality of banks and that affective and calculative commitment have a moderating influence on the relationship between service quality and customers’ switching intention.

Keywords


Commitment, Retail Banking, Service Quality, Switching Intention, Switching Trigger.

References