Factors Influencing the Customer Switching Behaviour in Investment Banking

Abstract

This study examines the factors that influence the customer switching behaviour especially in banks. The data was collected through questionnaires distributions to the respondents who were drawn from the customers who have investment account between Tabung Haji and Amanah Saham Nasional Berhad (ASNB) account banks in Malaysia.  In order to test the hypotheses, the multiple regression analysis was applied in this study, as predicted from the prospect theory. It was discovered that the reputation, service quality, distance, switching cost, price, involuntary switching, advertising as well as religious belief were not significant driver to the switching behaviour among the bank customers in Malaysia. Based on the findings of this study, it was recommended that bank manager should focus on service quality and also give undivided attention to the price. Therefore, the interest rate charged or fees ought to be followed up while adequate, timely information need to be given to the customers on reasons for change.