Service Provider Migration and Bank Switching Behaviour: Factors Influencing Customer Retention in Harare's Banking Sector

Authors

DOI:

https://doi.org/10.59413/ajocs/v6.i.1.2

Keywords:

Service Provider Migration, Switching Costs, Customer loyalty, Bank Switching Behaviour, online banking, Customer Retention

Abstract

This mixed-methods case study explores the complex landscape of service provider migration and bank switching behaviour among online banking customers in Harare, Zimbabwe, specifically focusing on customer retention factors. The research, which integrates quantitative data from a survey of 224 customers and qualitative insights from in-depth online interviews with 13 bank managerial participants, uncovers significant relationships that provide actionable insights. The quantitative analysis reveals that higher behavioural intentions are associated with increased switching (t = 3.45, p < 0.05), while perceived switching costs (r = -0.72, p < 0.01) and switching barriers (r = -0.65, p < 0.01) serve as barriers to switching banks. The qualitative findings, on the other hand, highlight central themes such as the paramount importance of service quality, emotional factors like trust and personal relationships with bank staff, and the influence of promotional incentives. Customers expressed that while they value service quality, concerns about switching costs and the logistical challenges of changing online banking providers were significant deterrents. These insights, which have practical implications, provide valuable guidance for banking institutions aiming to enhance customer retention strategies and improve online service delivery. Financial service providers can better address customer needs, foster stronger relationships, and contribute to a more resilient online banking environment in Harare by understanding the complexities of service provider migration. 

Downloads

Download data is not yet available.

References

Ahluwalia, R., & Kaikati, A. M. (2023). Travelling the paths to brand loyalty. In Brands and Brand Management (pp. 63-90). Psychology Press. DOI: https://doi.org/10.4324/9781003421320-6

Ahmad, F., Mustafa, K., Hamid, S.A.R., Khawaja, K.F., Zada, S., Jamil, S., Qaisar, M.N., Vega-Muñoz, A., Contreras-Barraza, N. & Anwer, N., (2022). Online customer experience leads to loyalty via customer engagement: The moderating role of value co-creation—Frontiers in Psychology, 13, p.897851. DOI: https://doi.org/10.3389/fpsyg.2022.897851

Ajzen, I. (1991). The theory of planned behaviour. Organisational Behavior and Human Decision Processes, 50(2), 179–211. DOI: https://doi.org/10.1016/0749-5978(91)90020-T

Anderson, C. (2017). Credibility in qualitative research. Qualitative Research, 17(2), 146–164.

Anika, A. (2024). Qualitative Insights into Employee Perspectives on Service Quality in the Banking Industry. DOI: https://doi.org/10.21203/rs.3.rs-3900606/v1

Babbie, E. (2013). The Practice of Social Research. Cengage Learning.

Bryman, A. (2016). Social Research Methods. Oxford University Press.

Cheung, G. W., Cooper-Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Reporting reliability, convergent and discriminant validity with structural equation modelling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41(2), 745-783. DOI: https://doi.org/10.1007/s10490-023-09871-y

Chikoko, V., Kanyoka, P., & Mlambo, T. (2020). Customer perceptions and service quality in the Zimbabwean banking sector. Journal of Banking and Finance, 45(3), 123-135.

Creswell, J. W., & Plano Clark, V. L. (2023). Revisiting mixed methods research designs twenty years later. Handbook of mixed methods research designs, 21-36. DOI: https://doi.org/10.4135/9781529614572.n6

Cronin Jr, J. J., & Taylor, S. A. (1992). Measuring service quality: a re-examination and extension. Journal of Marketing, 56(3), 55–68. DOI: https://doi.org/10.1177/002224299205600304

Ebubedike, S. I., Akanji, O. A., Kunock, M. O., & Fox, O. (2023). Transferability in qualitative research: A review. Qualitative Research, 23(1), 25-40.

Ernst & Young (2011). Banking in the new decade. https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/banking-and-capital-markets/ey-banking-in-the-new-decade-three-big-bets-to-boost-profitability-and-free-up-capital-to-invest-in-transformation.pdf

Fin24 (2016). Big Five SA banks losing market share, 2016, Available: https://www.fin24.com/Companies/Financial-Services/big-five-sa-banks-losing-market-share-20160525.

Fintikasari, S., & Ardyan, A. (2018). Factors affecting customer loyalty in the banking sector. International Journal of Bank Marketing, 36(6), 1050-1070.

Ghamry, S., & Shamma, H. M. (2022). Factors influencing customer switching behaviour in Islamic banks: evidence from Kuwait. Journal of Islamic Marketing, 13(3), 688–716. DOI: https://doi.org/10.1108/JIMA-01-2020-0021

Hidayat, K., & Idrus, M. I. (2023). The effect of relationship marketing towards switching barriers, customer satisfaction, and customer trust on bank customers. Journal of Innovation and Entrepreneurship, 12(1), 29. DOI: https://doi.org/10.1186/s13731-023-00270-7

Kakar, Z. U. H., Rasheed, R., Rashid, A., & Akhter, S. (2023). Criteria for assessing and ensuring the trustworthiness of qualitative research. DOI: https://doi.org/10.56249/ijbr.03.01.44

Kigen, F., & de Villiers, M. V. (2024). Decoding the Symphony of Satisfaction, Commitment and Trust as Predictors of Customer Loyalty in Demarketing Situations. International Review of Management and Marketing, 14(5), 235-249. DOI: https://doi.org/10.32479/irmm.16780

Kim, J., & Jindabot, S. (2021). Understanding the impact of service quality on customer satisfaction in the banking sector. Journal of Banking and Finance, 45(2), 123–135.

Kjellén, M., & Levander, H. (2024). Designing FinTech Applications for Older Adults: Evaluating Previous Design Guidelines and Recommendations by Semi-structured Interviews, Usability Testing, and Prototyping.

Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T., & Tillmanns, S. (2010). Undervalued or overvalued customers: Capturing total customer engagement value. Journal of Service Research, 13(3), 297-310. DOI: https://doi.org/10.1177/1094670510375602

Lemon, K. N., & Verhoef, P. C. (2016). Understanding Customer Experience Throughout the Customer Journey. Journal of Marketing, 80(6), 69-96. DOI: https://doi.org/10.1509/jm.15.0420

Li C. Y., & Zhang, J. T. (2023). Chatbots or me? Consumers’ switching between human agents and conversational agents. Journal of Retailing and Consumer Services, p. 72, 103264. DOI: https://doi.org/10.1016/j.jretconser.2023.103264

Mackay, M., & Major, L. (2017). The effects of service quality on customer satisfaction in the banking sector. Journal of Financial Services Marketing, 22(3), 141–160.

Makudza, F. (2021). Augmenting customer loyalty through customer experience management in the banking industry. Journal of Asian Business and Economic Studies, 28(3), 191–203. DOI: https://doi.org/10.1108/JABES-01-2020-0007

Mataruka, L., Mkumbuzi, WP, Muzurura, J., and Zishiri, C. 2023. The Nexus Among ICT Support for Core Competencies, Competitive Advantage and Firm Performance: A Managerial Phenomenology, Journal of Economics, Finance and Management Studies, ISSN (print): 2644-0490, ISSN (online): 2644-0504, Volume 6 Issue 2, pp. 600-618.

Mlambo, T., & Mlambo, T. (2019). The impact of economic changes on the Zimbabwean banking sector. African Journal of Economic and Management Studies, 10(4), 425-440.

Morgan, R. M., & Hunt, S. D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(3), 20–38. DOI: https://doi.org/10.1177/002224299405800302

Mousavi, P., Shamizanjani, M., Rahimnia, F., & Mehraeen, M. (2024). A metrics-driven approach for customer experience management evaluation: the case of commercial banks in developing countries. The TQM Journal. DOI: https://doi.org/10.1108/TQM-07-2023-0215

Munyoro, M., & Mlambo, T. (2021). Trust and customer loyalty in the Zimbabwean banking sector. International Journal of Bank Marketing, 39(3), 467-482.

Nyakuwanikwa, P., Chisaka, B. M., Madzivire, B., & Goshomi, E. (2024). Antecedents for Consumer’s Switching Behavioural Intention Retail Banks in Zimbabwe: Integrating the Theory of Planned Behaviour. African Journal of Commercial Studies, 5(3), 179-185. DOI: https://doi.org/10.59413/ajocs/v5.i.3.5

Parasuraman, A., Zeithaml, V. A., & Malhotra, A. (2005). ES-QUAL: A multiple-item scale for assessing electronic service quality. Journal of Service Research, 7(3), 213-233. DOI: https://doi.org/10.1177/1094670504271156

Patel, R. J., & Siddiqui, A. (2023). Banking service quality literature: a bibliometric review and future research agenda. Qualitative Research in Financial Markets, 15(5), 732-756 DOI: https://doi.org/10.1108/QRFM-01-2022-0008

Perannagari, K. T., & Chakrabarti, S. (2020). Factors influencing acceptance of augmented reality in retail: insights from thematic analysis. International Journal of Retail & Distribution Management, 48(1), 18-34. DOI: https://doi.org/10.1108/IJRDM-02-2019-0063

Pinter, S. (2022). Trustworthiness in qualitative research: A critical review. Qualitative Research, 22(2), 146–163.

Qurniawati, R. S., Nurohman, Y. A., & Fatharani, A. (2023). Determinants of Switching Intention: Empirical Evidence from Sharia Bank Mergers in Indonesia. Journal of Finance and Islamic Banking, 6(2). DOI: https://doi.org/10.22515/jfib.v6i2.4927

Rane, N. L., Achari, A., & Choudhary, S. P. (2023). Enhancing customer loyalty through quality of service: Effective strategies to improve customer satisfaction, experience, relationship, and engagement. International Research Journal of Modernization in Engineering Technology and Science, 5(5), 427-452.

Riza, F., & Santoso, R. A. (2023). The Influence of Relationship Marketing on Loyalty with Mediation of Customer Trust at PT. Bank Rakyat Indonesia (Persero) Tbk Krian Branch Office. Dinasti International Journal of Economics, Finance & Accounting, 4(2), 220-236. DOI: https://doi.org/10.38035/dijefa.v4i2.1737

Senanu, B., & Narteh, B. (2023). Banking sector reforms and customer switching intentions: Evidence from the Ghanaian banking industry. Journal of Financial Services Marketing, 28(1), 15-29. DOI: https://doi.org/10.1057/s41264-021-00135-8

Tepetepe, G., Simenti-Phiri, E., & Morton, D. (2022). A survey comparative analysis of the adoption of cartesian and complexity science frameworks in the financial risk management of Zimbabwean banks. Quantitative Finance and Economics, 6(2), 359-384. DOI: https://doi.org/10.3934/QFE.2022016

Tweneboah-Koduah, E. Y., Mann, V., & Quaye, D. M. (2017). Determinants of customer switching behaviour: evidence from the non-bank financial institutions in Ghana. International Journal of Services, Economics and Management, 8(4), 268-286. DOI: https://doi.org/10.1504/IJSEM.2017.095452

Vroom, V. H. (1964). Work and Motivation. Wiley.

Williamson, O. E. (1981). The economics of organisation: The transaction cost approach. American journal of sociology, 87(3), 548–577. DOI: https://doi.org/10.1086/227496

Yesmin, M. N., Hoque, S., Hossain, M. A., Jahan, N., Fang, Y., Wu, R., & Alam, M. J. (2023). SERVQUAL to determine relationship quality and behavioural intentions: an SEM approach in retail banking service. Sustainability, 15(8), 6536. DOI: https://doi.org/10.3390/su15086536

Yin, W., & Matthews, K. (2018). Why do firms switch banks? Evidence from China. Emerging Markets Finance and Trade, 54(9), 2040-2052. DOI: https://doi.org/10.1080/1540496X.2017.1343141

Zeithaml, V. A., Parasuraman, A., & Malhotra, A. (2006). A Conceptual Framework for Understanding E-Service Quality: Implications for Future Research and Managerial Practice. Journal of Marketing, 69(4), 62-75.

Zouari, M., & Abdelhedi, S. (2021). Trust and loyalty in the banking sector: The mediating role of customer satisfaction. Journal of Financial Services Marketing, 26(1), 15–28.

Downloads

Published

2025-01-01

How to Cite

Garatsa, C., Mataruka, L., & Zishiri, C. (2025). Service Provider Migration and Bank Switching Behaviour: Factors Influencing Customer Retention in Harare’s Banking Sector. African Journal of Commercial Studies, 6(1), 10-24. https://doi.org/10.59413/ajocs/v6.i.1.2

Article PlumX Metrics

PlumX Metrics