Influence of Service Quality on Customer Switching Behaviour in Commercial Banks of Tanzania: Evidence from Selected Commercial Banks in Dar es Salaam
Keywords:service quality, switching behaviour, reliability, assurance, tangibility, responsiveness and empathy
Intense competition causes Tanzanian banks to experience the threat of customer switching. Customers are sensitive to quality in their access to and use of banking services; hence, they are prone to switching to other banks since the services offered are similar. This study assesses how service quality influences customer switching behaviour among commercial banks in Dar es Salaam. The data constitute 400 randomly sampled customers at NBC Bank Ltd, TPB Bank Plc and NMB Bank Plc, collected using a structured questionnaire and analysed using multiple regression analysis. The main findings are that customers’ switching behaviour is significantly influenced by service reliability, assurance, tangibility and empathy, whereas responsiveness was found to be insignificant. These findings may help policymakers and commercial bank institutions in understanding the dimensions of service quality that may influence customer switching behaviour for the successful enhancement of quality services of the banks.