A Structural Framework for Switching Intention in the Cambodian Banking Industry

Switching intention can significantly lead to customer switching, which severely damages a service firm’s number of customers and profits. Thus, the objective of this research was to help bank managers identify the significant factors regarding switching intention by examining the impacts of convenience, price, perceived value and customer satisfaction, as well as their complex relationships with switching intention. Self-administered questionnaires were used in this study to collect data from 323 banking customers in Phnom Penh, Cambodia. Furthermore, path analysis was used since it has the ability to extend multiple regressions within a framework that has more complex relationships. Hence, results firstly indicate that convenience and price significantly influenced perceived value and customer satisfaction. Next, perceived value significantly influenced customer satisfaction. Finally, customer satisfaction and price significantly influenced switching intention. The results of this paper provide suggestions as well as solutions to bank managers, for example, how to design an appropriate strategy for adjusting a reasonable price setting, and how to provide convenience in order to enhance value and satisfaction; thus, future switching propensities can be minimized.