Customer Switching Behavior in Commercial Banking Industry: With Special Reference to Colombo District, Sri Lanka

Abstract

In the modern business world the customer is the most important factor because the survival and growth of any organization highly defended upon the customer base. Therefore retain the customer is a challenge for any organization. Because if the customers are dissatisfied with the level of service offered that they will move to another service provider. So in this study the main objective is to find out the key factors affect for customer switching in commercial banking sector in Sri Lanka. Further the attempts have been made to find out the degree of the influence of these factors on customer switching behavior in Sri Lankan commercial banking industry. In this research the researcher selected 10 leading Licensed Commercial Banks in Sri Lanka and 200 customers in Colombo area as sample to gather data. The findings of this research revealed that demographic factors and advertising are more important factors for customer switching behavior. Also Service quality, customer satisfaction, price and innovations & technologies have an impact on customer switching behavior in banking industry of Sri Lanka. The results of this research allow bankers and practitioners to develop and implement marketing strategies to decrease customer switching behavior and increase bank profits. Furthermore, this research provides useful information for future researchers investigating customer switching behavior in the commercial banking industry in Sri Lanka.