Switching Behaviour Among Bank Customers In Ghana

Abstract

The banking industry in Ghana over the years has experienced significant growth owing to reforms and deregulation that characterised the sector. This however has changed and the sector is beset with slow growth as a result of fierce competition of keeping existing customers and attracting new ones and this has shifted the focus of marketing into a relationship paradigm. Despite the challenges in the banking sector, customers continue to seek value and this however, makes it important to know why switching occur. The factors that makes customers move from one bank to another is based on demographic factors such as age, gender, education and income. The study used a sample size of 329 and a convenience sampling method was employed in the research. Logistic regression was used for the analysis. The findings revealed that, a significant increase in dissatisfaction of bank services will result in about three times likelihood to switch. Again, age was found to be potential moderator of the relationship between the independent variables and the dependent variable. The study recommends that banks must segment markets well in order to tailor products to them as it ensures the needs of different segments being met. Moreover, the design of service products must include technology and price in order to retain customers.