Determinants Analysis of Customer Switching Behavior in Private Banking Sector of Pakistan

In this competitive retail banking market of Pakistan, customer switching is injurious for every bank. Banking sector reforms and emerging of foreign and domestic private banks with vast range of new banking products change the banking perspective in Pakistan. This diversity could make a positive or negative impact on banks customers' loyalty and switching. This study investigates the seven factors (Price, Reputation, Service Quality, Effective Advertising Competition, Involuntary Switching, Distance and Switching Cost) of customer switching which effects retail banking operations in Pakistan. These factors never examined before. The primary objective of this study is to identify the factors that influence customers' switching and determine the most important and least important factor that influence customers' switching behavior. Total 302 responses was recorded and show that all considered factors have significant effect on customer switching, however, ‘price' and ‘advertising competition' identified as most important and least important influential factors respectively on customer switching