scholarly journals Impact of Consumer Awareness on Switching Behavior in Banking

2021 ◽  
Vol 15 (4) ◽  
pp. 467-478
Author(s):  
Tomasz Szopiński
Keyword(s):  
Decision Making ◽  
Switching Costs ◽  
Service Providers ◽  
Switching Behavior ◽  
Primary Data ◽  
Consumer Awareness ◽  
Financial Decisions ◽  
Perceptual Maps ◽  
Independent Decision

In the era of open banking, the phenomenon of bank switching will intensify. The aim of the current study is to answer the following question: is switching, or not switching banks, a result of conscious and independent decision-making? The results from primary data demonstrate that the switching group clients are more conscious than non-switching group clients. They are more likely to compare offers from different banks, visit blogs about finances, demonstrate independence in making financial decisions, and use more service providers which improves their knowledge concerning the offers. The analysis of perceptual maps shows that the switching group is differentiated by various switching costs.

Effect of Disposition Effect on Investment Decision Making in Property Market in Plateau State, Nigeria

2019 ◽  
pp. 83-98
Author(s):  
Dashol Ishaya Usman ◽  
Mary Pam
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Primary Data ◽  
Property Market ◽  
Financial Decisions ◽  
Descriptive Research ◽  
Investment Decision Making ◽  
Plateau State

The purpose of the chapter was to establish the effect of disposition on investment decision making in property market in Plateau State, Nigeria. Descriptive research design was used in the study. Primary data was collected using standard questionnaires with both closed and open-ended questions. The regression analysis results confirmed that there was a significant positive linear relationship between disposition and investor investment decision making in property market in Plateau State in Nigeria. The study concluded that disposition effects bias does not alter rationality in investment decision making. Disposition affected investment decisions. The main recommendation for investors is to make constant attempts to increase their awareness on behavioral finance by educating themselves on the field. Studying about the biases and reflecting on their decisions are likely to help achieve better self-understanding of the extent and manner to which they are influenced by emotions while making financial decisions under uncertainty.

scholarly journals PENGARUH SWITCHING COSTS TERHADAP INERTIA DAN CALCULATIVE COMMITMENT STUDI PADA NASABAH CIMB NIAGA CABANG ITC FATMAWATI

2019 ◽  
Vol 1 (2) ◽  
pp. 143-153
Author(s):  
Teuku Fajar Shadiq
Keyword(s):  
Hypothesis Testing ◽  
Financial Services ◽  
Switching Costs ◽  
Service Providers ◽  
Mutual Influence ◽  
Switching Cost ◽  
Sunk Costs ◽  
Primary Data ◽  
Calculative Commitment ◽  
Financial Products

The purpose of this study is to examine how the mutual influence between Switching Costs is represented by five variables (benefit lost costs, uncertainty costs, evaluation costs, learning costs and Sunk costs) with Inertia and Calculative Commitment. The objective of this research was to analyze whether there is an  impact between the Switching Cost on Inertia and Calculative Commitment which were significantly. This paper presents and develops a model that will articulate and classify the behavior of consumers in the purchase of financial products and services. The theoretical insights generated by this model are then used to examine research data obtained from questionnaires with centralized variables and focus on consumer attitudes towards financial service providers and their financial products. The importance of trust is not explicitly recognized but the relationship between trust and risk largely determines the behavior of a customer Aldas-Manzano et al. (2009). The design of this research applied multiple regression, hypothesis testing of validity (T-test and correlation) and hypothesis testing of reliability (Cronbach’s Alpha). Data analysis used in this research was primary data in which the population of this study is CIMB Niaga ITC Fatmawati branch office in South Jakarta. This research was carried out by distributing 200 questionnaires with samples customers who are over three years as a customer and maintain balance actively. The result of this research concluded that there are variables of switching cost that affect are inertia and calculative commitment that is an important driver of behavioral customer. Product innovation competition among actors of financial services to attract new customers must calculate the commitment and customer resistance in the costs and risks that will be generated

scholarly journals SMEs' Use Of Financial Statements For Decision Making: Evidence From Pakistan

2018 ◽  
Vol 34 (2) ◽  
pp. 381-392
Author(s):  
Shamim Akhtar ◽  
Yanping Liu
Keyword(s):  
Decision Making ◽  
Principle Component Analysis ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
Financial Statements ◽  
Logit Analysis ◽  
Key Factors ◽  
Business Decisions ◽  
Financial Decisions ◽  
Medium Enterprises

Financial statements comprise of insightful statistics about likely risk and the return associations of many decisions and have significant role in firms’ success, particularly for SMEs. Thus, through a sample of 94 Pakistani small and medium enterprises (SMEs), this study inspects the influences that could have impact on firms’ practice of the financial statements in making significant financial decisions. Principle component analysis finds key factors which define use of financial statements containing; experience, knowledge and ability. Logit analysis then discloses that these variables have significant association with whether Pakistani SME owners use financial statements while making business decisions. Findings indicates that the owners of Pakistani SMEs practice financial statements in decision making rendering to their knowledge about financial statements, experience and finally their ability to interpret figures confined in financial statements. Outcomes should be valuable for SME owners, educators, and the service providers.

scholarly journals Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making

2019 ◽  
Vol IV (II) ◽  
pp. 51-59
Author(s):  
Taqadus Bashir ◽  
Faisal Mehmood ◽  
Altamash Khan
Keyword(s):  
Decision Making ◽  
Insurance Companies ◽  
Illusion Of Control ◽  
Primary Data ◽  
Stock Exchanges ◽  
Financial Decisions ◽  
Behavioral Biases ◽  
Correlation And Regression Analysis ◽  
Irrational Behavior ◽  
Overconfidence Bias

This research aims at testing and confirming existence of selected behavioral biases of investors that affect their decisions. Five behavioral biases affecting irrational behavior of investors were selected: overconfidence bias, illusion of control bias, confirmation bias and recency bias and optimism bias. Primary data was collected through a questionnaire from 300 investors from banks, insurance companies, stock exchanges etc. The results were obtained by employing a correlation and regression analysis for the presence of behavioral biases and to detect degrees of their influence on decision making. Correlation results indicate moderate association between behavioral biases and decisions of investors. Outcome of the research indicates that while making financial decisions investors are moderately affected by behavioral biases.

Vendor Consideration and Switching Behavior for Buyers in High-Technology Markets

1995 ◽  
Vol 59 (3) ◽  
pp. 30-43 ◽  
Author(s):  
Jan B. Heide ◽  
Allen M. Weiss
Keyword(s):  
Decision Making ◽  
Survey Data ◽  
Logit Model ◽  
Switching Costs ◽  
High Technology ◽  
Switching Behavior ◽  
Buyer Behavior ◽  
Technology Markets ◽  
Antecedent Conditions ◽  
Computer Workstation

High-technology markets represent unique problems for organizational buyers and, in turn, for their existing and potential vendors. These problems are due to high levels of uncertainty and the presence of switching costs tied to existing technologies or vendors. The authors focus on two aspects of buyer decision making in such markets: (1) whether buyers include new vendors at the consideration stage of the process and (2) whether they switch to new vendors at the choice stage. Using survey data from organizational buyers’ purchases of computer workstation equipment, the authors present a joint test of the antecedent conditions that influence the two processes. Based on a sequential logit model, they show that individual antecedents have different effects on consideration and switching behavior. The authors then discuss the implications of their study for the literatures on high-technology markets and organizational buyer behavior.

When do interest rates matter? Two methodological approaches to loyalty

2019 ◽  
Vol 32 (1) ◽  
pp. 46-64
Author(s):  
Huifeng Pan ◽  
Hong-Youl Ha
Keyword(s):  
Interest Rates ◽  
Customer Loyalty ◽  
Customer Orientation ◽  
Real Income ◽  
Switching Behavior ◽  
Consumer Awareness ◽  
Content Type ◽  
Financial Decisions ◽  
Loan Interest Rates ◽  
The Relationship

Purpose Changes in consumers’ awareness of interest rates (deposits and loans) are important for making financial decisions, particularly in the banking industry. However, little is known about the effect of consumer awareness on customer orientation and loyalty. The purpose of this paper is to examine how changes in consumers’ awareness of interest rates in Korea can influence customer loyalty, considering banks’ efforts to improve customer orientation. The authors explicitly rationalize the fact that consumers’ awareness of interest rates can play an important role in moderating the strength of the relationship between customer orientation and loyalty. Design/methodology/approach The data were collected from participants (n=327) who had made banking transactions based on their real income in Seoul. Participants mainly focused on personal loans and debts, and most people had banked with a specific bank (one of the main Korean banks) for longer than three years. The authors tested the effect of interest rates using two methodologies, namely, a field study using SEM and an experimental design. Findings The study tested these relationships with survey data and two simulated experiments. The findings indicated that the influence of customer orientation on customer loyalty decreased with the increase in loan interest rate awareness. Moreover, the customer orientation-loyalty link weakened with the increase in awareness of central bank base rates. Conversely, the awareness that loan rates were decreasing strengthened the relationship. Research limitations/implications Banks need to know the importance of periodic consultation services with valuable consumers who transact with one or more banks because changes in the consumer awareness of interest rates influence customer loyalty (or switching behavior), particularly when their awareness of loan interest rates increases. Originality/value This paper is, to the best of the authors’ knowledge, the first to investigate the consequence of such a change in consumers’ awareness of both deposit and loan interest rates with regard to the relationship between customer orientation and loyalty.

Inertia in services: causes and consequences for switching

2017 ◽  
Vol 31 (6) ◽  
pp. 485-498 ◽  
Author(s):  
David M. Gray ◽  
Steven D’Alessandro ◽  
Lester W. Johnson ◽  
Leanne Carter
Keyword(s):  
Service Provider ◽  
Online Survey ◽  
Structural Model ◽  
Switching Costs ◽  
Service Providers ◽  
Switching Behavior ◽  
Service Firms ◽  
Actual Behavior ◽  
Path Modeling ◽  
Content Type

Purpose This paper aims to examine the antecedents of customer inertia (i.e. knowledge, confusion, perceptions of competitor similarity and switching costs) and their relationship to customer satisfaction, service providers’ switching intentions and actual switching behavior. Customer inertia is said to reduce the incidence of service provider switching; however, little is known about the antecedent drivers of inertia. Design/methodology/approach The conceptual model was tested by a longitudinal/discontinuous panel design using an online survey research of 1055 adult (i.e. +18 years old) subscribers to cell phone services. Partial least squares (PLS) path modeling was used to simultaneously estimate both the measurement and structural components of the model to determine the nature of the relationships between the variables. Findings Findings of the PLS structural model provide support for the direct relationship between customer inertia and its antecedents (i.e. knowledge, confusion, perceptions of competitor similarity and switching costs). The results show that customer inertia has a moderate negative effect on the intention to change service providers but had no measurable effect on the actual behavior of changing service providers, other than indirectly, by influencing the perception of difficulty in switching some 11 months later. Further results from an analysis of indirect pathways of the antecedents to inertia show that switching costs are the only variable which indirectly reduce intentions to change service providers. The results also show that the effect of satisfaction on switching service providers is partially moderated by inertia. Importantly, these relationships are reasonably robust given past switching behavior and contract status of consumers. Research limitations/implications The authors find evidence which explains some of the causes of inertia, and show that it has both direct and moderating effects on service provider switching intentions, though not necessarily the behavior of changing service providers. However, support was found for its indirect role through intent as an influence on switching behavior. Importantly, the authors find that inertia has lingering effects, in that it influences the perception of switching difficulties and, hence, behavior up to 11 months in the future. Practical implications Managerial implications are that service firms can profit from customer inertia through a reduction in churn. However, high levels of customer inertia over the longer term may increase the level of customer vulnerability to competitor offers and marketing activities, as satisfaction with the provider does not in itself explain switching intentions or behavior. Originality/value This study is the first study to contribute to an understanding of the antecedent drivers of customer inertia with respect to service provider switching and to empirically evaluate a variety of antecedent factors that potentially affect switching intentions. Importantly, the long lasting latent effect of inertia in indirectly influencing service switching behavior was found to persist some 11 months later.

Would you Make the Right Decision? – Decision Making Biases in Economy - Related Dilemmas

2018 ◽  
Vol 9 (1) ◽  
pp. 59-66
Author(s):  
Zsuzsanna Gödör ◽  
Georgina Szabó
Keyword(s):  
Decision Making ◽  
Online Survey ◽  
Framing Effect ◽  
Economic Knowledge ◽  
Bank Account ◽  
Financial Decisions ◽  
Hungarian Population ◽  
The Moment ◽  
The Right ◽  
Decision Making Biases

Abstract As they say, money can’t buy happiness. However, the lack of it can make people’s lives much harder. From the moment we open our first bank account, we have to make lots of financial decisions in our life. Should I save some money or should I spend it? Is it a good idea to ask for a loan? How to invest my money? When we make such decisions, unfortunately we sometimes make mistakes, too. In this study, we selected seven common decision making biases - anchoring and adjustment, overconfidence, high optimism, the law of small numbers, framing effect, disposition effect and gambler’s fallacy – and tested them on the Hungarian population via an online survey. In the focus of our study was the question whether the presence of economic knowledge helps people make better decisions? The decision making biases found in literature mostly appeared in the sample as well. It proves that people do apply them when making decisions and in certain cases this could result in serious and costly errors. That’s why it would be absolutely important for people to learn about them, thus increasing their awareness and attention when making decisions. Furthermore, in our research we did find some connection between decisions and the knowledge of economics, people with some knowledge of economics opted for the better solution in bigger proportion

Factors Affecting Customer Switching Behavior towards Hybrid Electrical Vehicles (HEV’s) from a Customer Perspective in Jordan

2018 ◽  
Vol 1 (3) ◽  
pp. 53
Author(s):  
Bushra Mahadin
Keyword(s):  
Decision Making ◽  
Consumer Behaviour ◽  
New Technologies ◽  
International Marketing ◽  
Current Trend ◽  
Switching Behavior ◽  
Future Research ◽  
Decision Making Process ◽  
Customer Switching ◽  
Electrical Vehicles

Purpose-This paper aims to investigate factors that affect customer switching from Internal Combustion Engine Vehicles (ICEV’s) to Hybrid Electrical Vehicles (HEV’s), in Jordan for the period of (2010-2014).Design/methodology/approach-A self-administered survey was hand-delivered to the targeted sample of car users in Jordan. The authors delivered 400 questionnaires to customers, from which 333 were deemed valid for the analysis, corresponding to the percentage of (83.25%) which indicates the validity of the study. Findings- There was no difference in switching behavior between (ICEV’s) and (HEV’s) based on gender in the Jordanian market. Fuel consumption efficiency was the number one variable that supports the switching behavior towards (HEV's), followed by Eco friendliness, lower taxes and technological features. Price and the current trend in the market were the least supporting factors. In addition to that the perception of the battery life of (HEV's), limited choices in the market, lack of information and fear of the relatively new technology were the major hindering factors of choosing an (HEV).Research limitations-Future research needs to investigate other factors that may affect customers’ behavior such as perceived image, trust, and subjective norms. Future research should investigate into the importance of environmental awareness and new technologies, and gender differences in behavior. From an international marketing standpoint, comparative studies between Jordanian and non-Jordanian customers are potential areas of future research for international marketing strategies and cross-cultural consumer behaviour analysis. Practical implications-The paper identifies the determinants of switching behavior. marketers should focus addressing customers concerns in terms of providing enough information and building awareness towards the technology and it's benefits towards the society and the environment.Originality/value-Our study is one of the few in Jordan that investigates the switching behavior towards vehicles technology. Our study is thought to have made a modest contribution to consumer behaviour literature and, specifically, for decision making process. It offers marketers insights into the determinants of switching behavior towards the hybrid vechicle technology and how this contribute to consumers’ decision making process and attitudes to achieve the intended behavioural outcomes

STRATEGI MAKSIMALISASI ANGGARAN BELANJA PADA BALAI PENELITIAN DAN PENGEMBANGAN LINGKUNGAN HIDUP DAN KEHUTANAN MANOKWARI

2016 ◽  
Vol 8 (2) ◽  
Author(s):  
Arif Hasan ◽  
Dedi Budiman Hakim ◽  
Irdika Mansur
Keyword(s):  
Decision Making ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Primary Data ◽  
Fiscal Year ◽  
The Third ◽  
Swot Matrix ◽  
Three Stages ◽  
Using Data

This study aims to analyze causes of the low uptake of the budget and formulate a strategy of maximizing the absorption of expenditure on Balai Penelitian dan Pengembangan Lingkungan Hidup dan Kehutanan Manokwari. Respondents involved are 20 people that consist of: treasury officials and holder output of activity. The data used were secondary data in the form of reports on budget realization (LRA) quarter I, II, III and IV of the fiscal year 2011 to 2015, and the primary data were in the form of interviews with the help of a questionnaire. While the analysis of the data used was descriptive analysis using data tabulation, and the analysis of the three stages strategy of the decision making used IFE and EFE matrix, SWOT matrix and QSPM matrix.The results showed that there are 19 factors causing low of budget absorption until the end of the third quarter, and there were 10 drafts of policy as a strategy for maximizing the absorption of the budget on Balai Penelitian dan Pengembangan Lingkungan Hidup dan Kehutanan Manokwari.ABSTRAKPenelitian ini bertujuan untuk menganalisis penyebab rendahnya penyerapan anggaran belanja dan merumuskan strategi maksimalisasi penyerapan anggaran belanja pada Balai Penelitian dan Pengembangan Lingkungan Hidup dan Kehutanan Manokwari. Responden yang terlibat adalah 20 orang yaitu pejabat perbendaharaan dan pemegang output kegiatan. Data yang digunakan adalah data sekunder berupa laporan realisasi anggaran (LRA) triwulan I, II, III dan IV tahun anggaran 2011 sampai 2015, dan data primer berupa wawancara dengan bantuan kuesioner. Sedangkan analisis data yang digunakan adalah analisis deskriptif menggunakan analisis tabulasi, dan analisis analisis strategi tiga tahap pengambilan keputusan menggunakan matriks IFE dan EFE, matriks SWOT dan matriks QSPM. Hasil penelitian menunjukkan bahwa terdapat 19 faktor penyebab rendahnya penyerapan anggaran belanja sampai akhir triwulan III, dan terdapat 10 rancangan kebijakan sebagai strategi maksimalisasi penyerapan anggaran belanja di Balai Penelitian dan Pengembangan Lingkungan Hidup dan Kehutanan Manokwari.

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