Abstract:
With the intense competition and increasing globalization in the nan-
cial markets, bank management must develop customer-oriented strate-
gies in order to compete successfully in the competitive retail banking
environment. The longer a bank can retain a customer,the greater rev-
enue and cost savings from that customer. However customers are prone
to changing their banking behavior when they can purchase nearly iden-
tical nancial products provided by the retail banks. In order to stay
competitive, bank managers need to understand the customer that are
likely to switch, factors that in uence and determine customers switching
behavior and also to what extent each of the factor in uence customer
switching.
This research aimed at modeling the churn behavior of bank customer
using logistic regression.It also identi ed the factors that contribute to
the switching behavior and also to what extent each of the factors in u-
enced the switching behavior.
The ndings reveal that Bank reputation,Service quality,Service Prod-
ucts and Price are the main factors that have an impact on customers
switching behavior.In general, the results of this research allow service
marketers and practitioners to develop and implement services market-
ing strategies to decrease customer defection rates , and in turn, increase
bank pro ts. Furthermore,this research provides useful information for
future researchers who study switching-behavior in the banking industry.
