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Customer Defection In Retail Banking: Attitudinal And Behavioural Consequences Of Failed Service Quality

Lamprini Piha, G. Avlonitis
Published 2015 · Business

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Purpose – The purpose of this paper is to provide managers and researchers a comprehensive view of the root causes of customer departure and empirically test the attitudinal and behavioural consequences of failed service quality in a retail banking context. Design/methodology/approach – A quantitative study was conducted among retail banking customers who had defected from a large retail bank provider. Data from 989 usable responses to a questionnaire filled through a telephone survey were applied to model estimation through structural equation modelling. Findings – Findings demonstrate the effect of failed service quality on customers’ negative attitudes towards the retail bank provider (dissatisfaction and lack of commitment), the direct negative impact of failed service quality on loyalty (the opposite of defection), as well as its indirect negative impact on loyalty through negative attitudes. The moderating role of customers’ switching costs and subjective knowledge of the bank’s products is revealed...
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