Customer Switching in Retail Banking: A Deep Dive Analysis

Retail Banking plays a vital role in the economic development of a region and customer loyalty is crucial for sustained progress. This study focuses on customer switching behavior in the retail banking industry in Solapur India. Factors such as increasing prosperity changing demographics and competition from product specialists and non-financial services players have led to a significant number of customers switching banks. The study aims to identify the factors influencing customer switching behavior and reduce customer churn thereby contributing to sustainable economic development. The research objectives include identifying influential factors determining their importance and assessing the impact of demographic characteristics on switching behavior. The study develops eight hypotheses based on the objectives. A mixed-method approach combining qualitative and quantitative research is employed including surveys and focus group interviews. The data analysis involves exploratory factor analysis regression analysis sensitivity analysis and statistical tests. The study's findings highlight the importance of service quality reputation price switching costs distance and advertising in influencing customer switching behavior. The research contributes to the understanding of customer switching behavior in retail banking and provides valuable insights for marketers practitioners and future researchers in this field.