A study on consumer switching behavior with a matching problem in electricity markets

Purpose The purpose of this paper is to contribute to the existing literature of driving and impeding switching factors by operationalizing the catalyst factor of perceived power among customers. Acknowledging the importance of trust in a financial context, a trust-based framework for the analysis is used. The study explicitly analyzes factors of importance for subsequent switching of banks for empowered customers (i.e. savers) and low-on-power customers (i.e. borrowers). Design/methodology/approach The study measures factors driving or impeding switch of service provider, together with measures of trust and power using online survey methods. The sample is intended to focus on savers and borrowers, defined quantitatively as well as perception wise. Through a multi-group SEM analysis, differences between the samples of savers and borrowers are analyzed. The dependent variable was in both cases inclination to switch. Findings The paper manages to define differences between empowered and less empowered customers, such as borrowers and savers. The mediating effect of trust prevails only for borrowers: here, the only effect on switching behavior stems from a full mediation of stability through trust. For savers, direct influences of both service failure and lack of involvement on trust are of major importance. The importance of trust, however, is lacking; for the sample of savers, the link between trust and switching behavior is insignificant. Practical implications The results may be used as a tool box in order to address consumer switching behavior and mobility in the financial services market. The biggest obstacle for switching banks among savers is the low level of involvement. This has clear implications regarding how to increase switching, e.g., by raising interest. Focusing instead on borrowers, stability of the chosen financial institution turned out to be the most important factor. Originality/value This paper introduces a view on consumer switching behavior, taking into account differences regarding service provider relations (empowered savers vs less empowered borrowers) and the importance of trust in these two settings. The paper introduces trust as a mediator between switching behavior and four determinants: stability, personal relations, service failure and internet-related issues, and involvement.

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Consumer switching behavior in banking industry: Can consumer base be purchased, or earned?

Uluslararası İktisadi ve İdari İncelemeler Dergisi ◽

10.18092/ulikidince.399671 ◽

2018 ◽

Author(s):

Mehmet Özer Demir

Keyword(s):

Banking Industry ◽

Switching Behavior ◽

Consumer Switching

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Consumer Switching Behavior: An Effect of COVID-19 in Jember Regency

10.2991/assehr.k.211020.062 ◽

2021 ◽

Author(s):

HP Agustin ◽

Saiful Amin

Keyword(s):

Switching Behavior ◽

Consumer Switching

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Communication-Based Approach for Promoting Energy Consumer Switching: Some Evidence from Ofgem’s Database Trials in the United Kingdom

Energies ◽

10.3390/en13195179 ◽

2020 ◽

Vol 13 (19) ◽

pp. 5179

Author(s):

Muyi Yang ◽

Yuanying Chi ◽

Kristy Mamaril ◽

Adam Berry ◽

Xunpeng Shi ◽

...

Keyword(s):

United Kingdom ◽

Influencing Factors ◽

Price Discrimination ◽

Electricity Markets ◽

Analytical Framework ◽

Policy Makers ◽

General Lack ◽

The United Kingdom ◽

Vulnerable Consumers ◽

Consumer Switching

Prompted by rising concern about weak consumer switching and the practice of price discrimination, over the period of 2016–2019, the Office of Gas and Electricity Markets (Ofgem) undertook a series of trials on communication-based interventions to encourage consumer switching in the United Kingdom. The main purpose of this paper is to assess the experience of these Ofgem trials with a view to draw some lessons for policy makers. The analytical framework adopted for this purpose is informed by existing literature on the barriers for consumer switching. The results of the analysis suggest that while the Ofgem trials have made positive impacts on consumer switching, these impacts varied significantly across the trials, suggesting that some interventions were more effective than others. Further, the overall impacts of the Ofgem trials were moderate, as around 70% of participants did not switch suppliers even in the most impactful trial. This reflects a general lack of understanding in the literature about the behaviour-influencing factors, their impacts, and their context-connects. By implication, the difficulty in stimulating consumer switching, as demonstrated by the Ofgem trials, suggests that weak consumer switching and the practice of price discrimination may simply reflect significant competition, rather than a lack of it, especially if retail margins are not greater than the competitive level. In this case, the communication-based intervention aimed at encouraging consumer switching may lead to further price discrimination, especially for the most vulnerable consumers, who are more likely to stay with their incumbent suppliers.

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Switching intentions in Telecom industry: a case of University students in Bahawalpur

Journal of Public Administration and Governance ◽

10.5296/jpag.v3i3.6226 ◽

2013 ◽

Vol 3 (3) ◽

pp. 355

Author(s):

Muhammad Rizwan ◽

Muhammad Aurangzeb Khan ◽

Rabia Khan ◽

Saima Shafiq

Keyword(s):

Service Failure ◽

Switching Behavior ◽

Telecommunication Industry ◽

Retention Period ◽

Services Sector ◽

Customer Switching ◽

Negative Effect ◽

Core Service ◽

Consumer Switching ◽

Self Administered Questionnaire

Consumers are the valuable assets of the organization as they are the ultimate destination of any product or services since they are the ultimate users of the any product or services thus the success of any organization depends upon the satisfaction of the customers, if not they will switch to other brands. The present paper attempt to study the consumer switching intentions in the telecommunication industry. The research aimed to find the reasons behind the customer switching behavior in cellular services sector of Pakistan. To conduct the research, we surveyed 170 respondents across the different departments in the ISLAMIA UNIVERSITY BAHAWALPUR. The survey was based on the self administered questionnaire. Respondents were selected on the random basis. After examining the collected results, we inferred that the customer switching intentions mainly dependent on the price, core service failure and then the customer satisfaction. This research also confirms the negative effect of trust on switching .intentions .Trust can increase the loyalty of customer which decreases the intentions of consumers to switch. Using regression it is concluded that proposed variables have a significant relationship with the switching. Companies should focus on these factors to retain their customers and make them loyal enough that they could have a long retention period with the company.

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In or Out

Journal of Organizational and End User Computing ◽

10.4018/joeuc.2011040103 ◽

2011 ◽

Vol 23 (2) ◽

pp. 37-56 ◽

Cited By ~ 3

Author(s):

Yinglei Wang ◽

Darren Meister ◽

Peter H. Gray

Keyword(s):

Information Technology ◽

Competitive Advantage ◽

Knowledge Integration ◽

Switching Behavior ◽

Knowledge Sources ◽

External Knowledge ◽

Work Settings ◽

International Consulting ◽

Contemporary Work ◽

Consumer Switching

The way individuals use internal and external knowledge sources influences organizational knowledge integration, an important source of competitive advantage. Drawing on research into knowledge sourcing and consumer switching behavior, the authors develop an integrated model to understand individuals’ choices between internal and external knowledge sources in contemporary work settings, where information technology has made both easily accessible. A test of the model using survey data collected from an international consulting firm yields an important new insight: satisfied individuals in knowledge reuse friendly environments are likely to use internal knowledge sources while they may also be tempted by easily accessible external knowledge sources. The implications for researchers and practitioners are also discussed.

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