Non-Muslim Customer Switching Behavior In Islamic Bank In Indonesia

The growth of Islamic banking in Indonesia has occurred significantly, one of which is in the Metro City area, Lampung Province, Indonesia. Many consumers have moved from conventional banks to Islamic banks, even this has happened to non-Muslim consumers. This study aims to describe the factors that influence the behavior of non-Muslim consumers in Metro City, Lampung Province, Indonesia, when choosing Islamic banking services over conventional banks. This is because the understanding of non-Muslim customer switching behavior is very important, especially for Islamic banking, where the application of religious principles is contained therein. This research was conducted using a mixed method with quantitative and qualitative approaches. Data collection was carried out by filling out questionnaires and interviewing 40 non-Muslim customers who became customers at Islamic Bank. Furthermore, the data were analyzed statistically using ANOVA test and Post Hoc Test to see the influence of the factors that gave the most significant influence. The results of this study indicate that the factors of price, reputation, service quality, promotion, product, location, profit, coercion, and recommendations from other customers have a significant effect on non-Muslim customers to switch to services to Islamic banks with a significance value of 0.000 at ANOVA test. Of the nine factors, recommendation factors from other customers (whether friends, relatives, or family), price, and profit are the most influencing factors.

Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour

The interaction of a hybrid transshipment policy and customer switching behaviour will exacerbate the complexity of the structure of a hybrid transshipment policy. To cope with this problem, a discrete-time dynamic programming model framework with customer switching behaviour is developed. Based on this framework, we demonstrate that the retailer can obtain more profits with a hybrid transshipment than without one. Next, the existence of a reactive and preventive transshipment policy is shown, respectively. We further analyse the structural property of the holdback policy of reactive transshipment and give the threshold of customer switching rate when always rejecting the request. Meanwhile, a dominant preventive transshipment policy is formulated by which the retailer can control the inventory regardless of the influence of the preventive transshipment policy of the other as long as the inventory is observed by developing an easy-to-implement optimal hybrid transshipment strategy. In addition, the existence of an ordering Nash equilibrium of two retailers is proven. Then, we also illustrate the existence of a transshipment area and analyse the impact of the transshipment cost and switching rate on ordering, the hybrid transshipment policy, and profit by using numerical examples. Finally, we find that the retailer is more willing to adjust inventory by ordering when there is a lower transshipment price and adjust inventory by hybrid transshipment when there is a higher transshipment price.

Long-Term Relationship Building and Customer Switching Behaviour in the Mobile Telecommunication Industry in Nigeria

This paper examined long-term relationship building and customer switching behavior among mobile telecommunication operators in Nigeria. The population of this study includes all mobile telecommunication company and their subscribers in Edo State, Nigeria. The samples for this study were drawn from Mobile Network Service Providers and their subscribers. For service providers, three (3) out of the nine (9) mobile network operators were selected (Nigeria Communication Commission NCC, 2020). Morgan and Krejcie's (1970) sampling methods were implemented to choose a sample of 322 mobile telecom subscribers Godden (2004). The paper employed regression analysis to analyze and test the hypothesis formulated. The result showed that long-term relationship building (Two-way Communication, Customer retention Strategy, Customer Loyalty, and Relational Bond) had a positive statistically significant relationship with customer switching behavior among mobile telecommunication operators (Network service providers) at p>0.05. The research recommends among others that players of the mobile telecommunication Industry (mobile network service providers) should embrace the application of long-term relationship-building to achieve, sustain and retain customers' usage of their products, this will enable them to compete better with other players in the industry. Also, they should engage in relational bonding aimed at creating attachment with the customer leading to customer retention and subsequently profitability.

Customer Switching Intentions in Commercial Banks: A case of selected commercial banks in Dar es Salaam

The negative consequences of customer switching behaviour in the banking industry cannot be underestimated. Since there are limited studies addressing customer switching intentions and actual switching behaviour in the banking sector of Tanzania, this study intended to bridge the knowledge gap by addressing factors influencing customer switching intentions in the context of Tanzanian commercial banks. 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 the city of Dar es Salaam with 400 respondents who were customers from NMB Bank Plc, TPB Bank Plc and NBC Bank Ltd. Multi-stage sampling method was used to generate sample size for this study. Multiple linear regression was employed to analyze the collected data. The findings of Thé study indicated that subjective norms were insignificant in influencing customer switching intentions in commercial banks. These findings suggested that commercial banks customers in the city of Dar es Salaam are not under robust social pressure that requires a vital social group to approve their switching intentions. Further findings revealed that perceived control of bank charges, attitude toward service quality and convenience significantly influenced customer switching intentions in commercial banks.

Strengthening the satisfaction loyalty link: the role of relational switching costs

The extant retail research has placed much emphasis on understanding customer switching and the concept of switching costs (SCs). However, the empirical evidence is inconclusive with respect to the moderating role of SCs in general and relational switching costs (RSCs) in particular. Therefore, this research focuses on the moderating role played by SCs on the satisfaction-loyalty link. Specifically, our study attempts to clarify the nonlinear moderating effect of RSCs. Furthermore, we investigate RSCs in greater depth, considering their two dimensions, brand relationship loss costs (BRLCs), and personal relationship loss costs (PRLCs). We find that there is an optimal level of BRLC whereas increasing PRLCs decreases the impact of satisfaction on loyalty in a linear manner, calling for a more nuanced assessment of this type of SC in future studies. Our findings contribute to a deeper understanding of the effectiveness of SCs as a retention strategy.

Evaluation of Customer’s Switching Behavior towards Banking Service Providers in Hanoi

Service quality and customer switching behavior are among the most important factors that affect service firms’ market share and profitability, yet they remain understudied in Vietnam’s service sectors. This study surveys 343 customers who using service of bank in Hanoi to explore the perceived importance of customer switching behavior in banking service sector. By using seceral statistical analytical tools, i.e. descriptive statistics, Independent T-test and Anova; the study identifies the following: There is, statistically, significant difference in the level of customer’s switching behavior towards banking service providers in Hanoi from these different gender, age, Academic standard and income. Based on the findings, some recommendations are given for banks in Hanoi to improve the quality service and loyalty of customers.

Islamic influence on customer satisfaction: evidence from Takaful and conventional insurance industry

Purpose This paper aims to identify Islamic influence on customer satisfaction in Pakistan Takaful and conventional insurance industry. Specifically, it analyses the vital role of Shari’ah perception in achieving higher customer satisfaction. Design/methodology/approach The data from 400 customers of both the family Takāful and life insurance (200 each) were collected. Further, the regression-based bootstrapping approach was applied through process macro developed by Hayes (2013). Findings The results indicate that a higher Shari’ah perception positively affects the customer satisfaction in the Takaful industry with improved service and relationship quality; whereas, it negatively affects customer satisfaction in case of the conventional insurance. Further, it has been found that customer satisfaction partially mediates the customer switching intentions in both the Takaful and conventional insurance industry in the presence of service quality and relationship quality. Practical implications This research will enable the practitioners to understand the factors that affect customer satisfaction in Pakistan. It has the essential policy and managerial implications for the growth of the Takaful and conventional insurance industry. Originality/value This is one of the pioneer studies investigating the impact of Islamic influence (specifically Shari’ah perception) on customer satisfaction in both the Takaful and conventional insurance industry in Pakistan.