Factors Influencing Customers’ Switching Intentions in Commercial Banks of Tanzania.

Nzowa, Seule (2021) Factors Influencing Customers’ Switching Intentions in Commercial Banks of Tanzania. Doctoral thesis, The Open University of Tanzania.

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Abstract

The negative consequences of customer switching behaviour in the banking industry cannot be underestimated. Since there are limited studies addressing customers’ switching intentions and actual switching behaviour in the banking sector of Tanzania, this study intended to bridge the knowledge gap by addressing the influence of perceived control of bank charges, attitude toward service quality, subjective norms and convenience on customers’ switching intentions in commercial banks of Tanzania. The study followed a positivism research paradigm out of which a deductive research approach was adopted. In the same line, an explanatory research design was used. The study was conducted in Dar es Salaam with 400 respondents who were customers from NMB Bank Plc, TPB Bank Plc and NBC Bank Ltd. Multi-stage sampling was used to generate a sample for this study while a close-ended questionnaire was used to collect data. Multiple linear regression was employed to test the hypotheses. The findings of the study indicated that subjective norms insignificantly influence customers’ switching intentions in commercial banks. Further findings revealed that perceived control of bank charges, attitude toward service quality and convenience significantly influenced customers’ switching intentions in commercial banks. It was recommended that commercial banks should exercise care in fixing the level of bank charges for their services. Furthermore, commercial banks should invest in improving and maintaining service quality. In the end, commercial banks should ensure customer convenience aiming to promote customer comfort in the banking environment. Keywords: Bank Charges, Service Quality, Subjective Norms and Convenience.

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