Factors Affecting Bank Switching Intentions in E-Banking

Abstract

The purpose of this research is to identify and examine the factors that contribute to bank switching intentions of e-banking customers and whether these intentions differ according to demographic characteristics (age, gender, education, marital status and income levels) of customers. Regression results suggested that customer dissatisfaction, low service quality, high price, unfavorable bank reputation, limited product variety and involuntary switching factors were positively related to customers’ bank switching intentions in e-banking. On the other hand, promotion efforts were negatively related to customers’ switching intentions. In addition to this, bank switching intentions were revealed to be differing according to education levels. Bank switching intentions of well-educated customers were tend to be higher, while age, gender, marital status and income level didn’t make a difference on intentions. Based on the empirical results of current study, we will provide several theoretical and managerial implications in the area of service industry.