E-banking and consumer behavior: the role of switching costs

Abstract

The objective of this study was to examine the behavior of consumer continuing intention to use e-banking. In the model, the consumer’s continuance intention was designed as target variable which affected by perceived relationship marketing and electronic service quality (e-serqual) as well as mediated by the attitude of consumer satisfaction and trust, and moderated by the magnitude of perceived switching costs. Data were gathered from 200 e-banking users, by using the convenience sampling method, and the participants as the subject for this study were Business Administration Students of Krisnadwipayana University, Jakarta – Indonesia. The result indicated that the correlation between relationship marketing and electronic service quality was to be reciprocal, and mutually positive and significant. In addition, perceived e-serqual had only positive effects on customer statisfaction and customer trust. But both of the observed key variables (relationship marketing and electronic service quality) showed no direct or indirect effects on consumer intention to continue using e-banking either through mediation of customer satisfaction and customer trust. However, after being given the moderating effect by low and high level of switching costs, it turned out that switching costs quite moderate significantly consumer intentions to continue using e-banking. Thus in this study, the findings of unsignificant effects were also discussed in order to provide theoretically and practically implication.