A STUDY ON DETERMINANTS OF CUSTOMER RETENTION IN BANKING SECTOR
Keywords:
Customer Retention, Competitive Advantage, Determinants, Image, Quality of ServicesAbstract
The banking industry is exceedingly cutthroat competitive, with banks not only challenging among each other; but also with non-banks and other financial organizations. Most banks’ merchandise developments are uncomplicated to duplicate and when banks provide nearly similar services, they can only differentiate themselves on the basis of price, security in transactions, convenience, image, quality of services etc. Therefore, customer retention is potentially an effective tool that banks can use to gain a strategic advantage and survive in today’s ever-increasing banking competitive environment. In this study, the determinants of customer retention have been measured and found the most important determinants from the employees and customers’ perspectives. For this study total 500 customers from public and private banks were chosen. Through analyzing the mean, rank was assigned on the basis of the highest loadings.
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