Factors that influence customer defection: Analysis of the banking sector

Sirlene Aparecida Dias Oliveira, José Marcos Carvalho Mesquita, Ronielton Rezende Oliveira

Abstract


The service sector, especially the ongoing ones, greatly depends on customer retention. Thus, in order to increase their profits, companies need to be as good at attracting new customers as they are to retain the customers they have already won. Researchers point out that, by avoiding even small defection from customers to competitors, companies can avoid declines in profitability and even increase it. In this scenario, the objective of this study is to analyze the main elements driving bank clients’ dissatisfaction, as well as to evaluate the influence of dissatisfaction on bank customers’ defection. The relevance of this study lies in the fact that it focuses on the study of bank customers defection and its consequence for the company’s profits. For this purpose, we used a sample of 257 individuals who had some type of dissatisfaction, in the last 18 months, with banking institutions where they maintain or maintained their main account, in the city of Belo Horizonte, Brazil. The sample was of non-probabilistic type and was chosen by convenience. Data collection was done through the application of a structured questionnaire, using the Survey method, and Likert scale, ranging from 1 to 7. By the results, price and service recovery have no influence on either dissatisfaction or defection. The results pointed to service failures and inconvenience as the main elements that cause customer dissatisfaction, with a direct influence, along with competitors’ attractiveness, on the customer defection in the banking sector. As academic contribution, we may cite the identification and measurement of the main drivers of dissatisfaction and defection in the banking sector. This is an unusual nomologic network, less studied in academic terms.


Keywords


Bank Customer; Service Failure; Dissatisfaction; Likelihood Defection; Defection Intention.

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DOI: https://doi.org/10.7213/rebrae.v12i2.25267

DOI (PDF): https://doi.org/10.7213/rebrae.v12i2.25267.g23298

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