Minimizing Customer Switching: A Challenge for Banks in Sri Lanka

The banking industry of Sri Lanka has undergone tremendous shift due to intense competition and technological developments. While banks are becoming more customer focused and market driven, customers are becoming more demanding and selective in their preferences. Minimizing of customer switching is one of the biggest challenges facing bankers today. This paper aims to examine the role of the service quality in determining switching behavior of the retail banking customers.

Data gathered through a survey questionnaire from a random sample of 360 retail? banking customers in the Western Province of Sri Lanka. Correlation Analysis and Multiple Linear Regression Analysis used to analyze data to examine degrees of impact on switching propensity from each individual component of service quality. Service quality has measured through tangibles, reliability, responsiveness, assurance and empathy. These are the five dimensions, which are useing to measure qualit