THE MODERATING EFFECT OF SWICHING COST ON THE INFLUENCE OF PRICE AND SERVICE QUALITY TOWARDS SWITCHING INTENTION
Muhammad Zakiy
Universitas Muhammadiyah Yogyakarta
Abstract
Abstract This study aims to identify the role of switching cost as a moderating variable in the influence of price and service quality on switching intention. This study attempts to answer the current state of Islamic bank customers in Indonesia by using Reinforcement Theory in the context of switching intention by determining whether price, service quality and switching cost variables play an important role in customer switching intention studies. The sample in this study consists of 239 customers from 5 sharia banks with the highest customer loyalty index in Indonesia. Data were collected through offline and online questionnaires and then analyzed using Moderated Regression Analysis (MRA). The results of this study proved that price and service quality is the main predictor of switching intention of sharia bank customers in Indonesia. In addition, switching costs successfully moderate the effect of service quality on switching intention. This study also discussed the relation to theoretical, methodological and practical issues.
Keywords: Islamic banking, Sharia compliance, switching intention in bank, CARTER, MRA
Topic: International Conference of Islamic Economic and Financial Inclusion