Exploring Customer Motivations for Bank Switching Intention: A Qualitative Analysis of South African Bank Client Conversations on the X Social Media Platform

Sifiso Shandu

doi:10.25159/2663-6549/17996

Authors

Sifiso Shandu University of Kwazulu Natal

DOI:

https://doi.org/10.25159/2663-6549/17996

Keywords:

bank switching, switching intention, switching behaviour, social media, consumer behaviour

Abstract

In an era marked by intensifying competition and digitalisation in the banking sector, understanding customers’ motivations to switch banks is crucial to the sustainability and growth of financial institutions. This study explores customers’ motivations for switching banks through a qualitative analysis of bank clients’ conversations on the X social media platform. Through thematic analysis, this study identifies key factors influencing customers’ decisions to switch banks, including dissatisfaction with current services, perceived benefits of alternative banks, trust issues, and technological advancements. The findings contribute to a deeper understanding of customer behaviours in the banking sector and provide insights to help banks improve customer retention strategies.

References

Abduh, M., Kassim, S., and Dahari, Z. 2013. "Factors Influencing Switching Behaviour of Islamic Bank Customers in Malaysia." Journal of Islamic Finance 2(1): 12-19. https://doi.org/10.12816/0001113 DOI: https://doi.org/10.12816/0001113

Abonta, A.N., and Hapur, P. 2022. "An Exploration of Human Interaction as an Element of Customer Experience within the Age of Digital Transformation: A Multi-Case Study on Standard Bank and Capitec Bank." Vega. https://www.vegaschool.com/life-at-iie-vega/honours-research-articles/an-exploration-of-human-interaction-as-an-element-of-customer-experience-within-the-age-of-digital-transformation

Adriaan @AdriaanZA, April 9, 2024). https://x.com/AdriaanZA/status/1777626874161574155

Ahmed, S., Bangaassa, K., and Akbar, S. 2019. "A Study on Trust Restoration Efforts in the UK Retail Banking Industry." The British Accounting Review 52(1):100871. https://doi.org/10.1016/j.bar.2019.100871 DOI: https://doi.org/10.1016/j.bar.2019.100871

Ajzen, I. 1991. "The Theory of Planned Behavior the Theory of Planned Behavior." Organisational Behaviour and Human Decision Processes 50(2): 179-211. https://doi.org/10.1016/0749-5978(91)90020-T DOI: https://doi.org/10.1016/0749-5978(91)90020-T

Akinbowale, O., Klingelhöfer, H., and Zerihun, M. 2023. "The Assessment of the Impact of Cyberfraud in the South African Banking Industry." Journal of Financial Crime 31(2): 287-301. https://doi.org/10.1108/jfc-10-2022-0260 DOI: https://doi.org/10.1108/JFC-10-2022-0260

Al- Sabri, M.A.S., Amgad Saeed, A. and Yahya, A. 2019. "Role of Social Media in the Promotion of Financial Services: An Empirical Study." Saudi Journal of Business and Management Studies 4(4): 434-440.

Antoni, X., Matchaba-hove, T., and Mathiyase, K. 2017. "The Influence of Non-traditional Banks' Actions on Client Switching Behaviour." Business Studies Journal 11(6) https://www.abacademies.org/articles/the-influence-of-nontraditional-banks-actions-on-client-switching-behaviour-7641.html

Bai, L., Yan, X., and Yu, G. 2020. "Impact of Consumer Engagement on Firm Performance." Marketing Intelligence and Planning 38(7): 847-861. https://doi.org/10.1108/mip-08-2019-0413 DOI: https://doi.org/10.1108/MIP-08-2019-0413

Canguende-Valentim, C.F., and Vale, V. T. 2022. "Examining the Intention to Purchase Luxury Goods Based on the Planned Behaviour Theory." Open Journal of Business and Management 10: 192-210. https://doi.org/10.4236/ojbm.2022.101012 DOI: https://doi.org/10.4236/ojbm.2022.101012

Casalo, L. V., Flavian, C., and Guinaliu, M. 2008. "Promoting Consumers' Participation in Virtual Brand Communities: A New Paradigm in Branding Strategy." Journal of Marketing Communications 14(1): 19-36. https://doi.org/10.1080/13527260701535236 DOI: https://doi.org/10.1080/13527260701535236

Colgate, M., Tong, V.T.U., Lee, C.K.C., and Farley, J.U. 2007. "Back from the Brink: Why Customers Stay." Journal of Service Research 9 (3):211-228. doi: 10.1177/1094670506295849 DOI: https://doi.org/10.1177/1094670506295849

Darmawan, D. 2022. "Literature Review on Antecedents of Customer Switching Behaviour." Bulletin of Science, Technology and Society 1(3): 1-5.

Dickason, Z., and Ferreira, S.J. 2018. "The Effect of Age and Gender on Financial Risk Tolerance of South Africa." Investment Management and Financial Innovation 15(2): 1-8. https://doi.org/10.21511/imfi.15(2).2018.09 DOI: https://doi.org/10.21511/imfi.15(2).2018.09

Ditau Marimba Band @BandDitauhttps://x.com/BandDitau/status/1776286339794616577

Durmaz, Y., and Alagoz, E. 2019. "The Effect of Social Media on Consumer Behaviour: An Application on University Students in Turkey." European Journal of Business Management and Research 4(3). https://doi.org/10.24018/ejbmr.2019.4.3.39 DOI: https://doi.org/10.24018/ejbmr.2019.4.3.39

Eastman, J. K., Shin, H., and Ruhland, K. 2020. "The Picture of Luxury: A Comprehensive Examination of College Student Consumers' Relationship with Luxury Brands." Psychology and Marketing 37: 56-73. https://doi.org/10.1002/mar.21280 DOI: https://doi.org/10.1002/mar.21280

Farah, M. 2017. "Application of the Theory of Planned Behaviour to Customer Switching Intentions in the Context of Bank Consolidations." The International Journal of Bank Marketing 35(1): 147-172. https://doi.org/10.1108/ijbm-01-2016-0003 DOI: https://doi.org/10.1108/IJBM-01-2016-0003

Ferreira, S.J. 2018. "Reputational Risk: Depositor Behaviour in South Africa." (PhD Thesis, North-West University).

Fletcher, K., and Gbadamosi, A. 2022. "Examining Social Media Live Streams' Influence on Consumer Decision-making: A Thematic Analysis." Electronic Commerce Research. https://doi.org/10.1007/s10660-022-09623-y DOI: https://doi.org/10.1007/s10660-022-09623-y

Georgiou, M., Daskou, S., Anastasiou, A., and Siakalli, M. 2023. "The Effects of the Theory of Planned Behaviour on the Switching Propensity of Retail Banking Customers at Different Critical Switching Incidents." International Journal of Bank Marketing 41(7): 1872-1898. https://doi.org/10.1108/IJBM-12-2022-0532 DOI: https://doi.org/10.1108/IJBM-12-2022-0532

Gerrard, P., and Cunningham, J.B. 2004. "Consumer Switching Behavior in the Asian Banking Market." Journal of Services Marketing 18 (3): 215-223. doi: 10.1108/08876040410536512 DOI: https://doi.org/10.1108/08876040410536512

Golub, M., Štadáni, D., and Bolek, Š. 2022. "Consumers' Attitudes toward Social Media and Targeted Advertising in the Czech Republic."

https://doi.org/10.51650/ezrvs.16.3-4.3 DOI: https://doi.org/10.51650/ezrvs.16.3-4.3

Hegner, S., Fenko, A., and Teravest, A. 2017. "Using the Theory of Planned Behaviour to Understand Brand Love." Journal of Product and Brand Management 26 (1): 26-41. https://doi.org/10.1108/JPBM-06-2016-1215 DOI: https://doi.org/10.1108/JPBM-06-2016-1215

IAm, @MadimetjaTeffo, April 9, 2024). https://x.com/MadimetjaTeffo/status/1261893380457607168

Jacobs, R., Mashego, L., Mofulatsi, K., Beyers, N., and Hougaard, C. 2023. "South African Customer Behaviour and Sentiment Study." Financial Sector Conduct Authority. https://www.fsca.co.za/Documents/South%20African%20Retail%20Financial%20Customer%20Behaviour%20and%20Sentiment%20Report.pdf

Johnston, W., Khalil, S., Le, A., and Cheng, J. 2018. "Behavioral Implications of International Social Media Advertising: An Investigation of Intervening and Contingency Factors." Journal of International Marketing 26(2): 43-61. https://doi.org/10.1509/jim.16.0125 DOI: https://doi.org/10.1509/jim.16.0125

Kang, I. 2022. "A Study on Switching Behavior of Social Media: From a Dynamic Perspective." International Trade, Politics and Development 6(3): 107-120. https://doi.org/10.1108/ITPD-08-2022-0015 DOI: https://doi.org/10.1108/ITPD-08-2022-0015

Kaplan, A. M., and Haenlein, M. 2010. "Users of the World, Unite! The Challenges and Opportunities of Social Media." Business Horizons 53(1): 59-68. https://doi.org/10.1016/j.bushor.2009.09.003 DOI: https://doi.org/10.1016/j.bushor.2009.09.003

Kaur, G., Sharma, R.D., and Mahajan, N. 2012. "Exploring Customer Switching Intentions through Relationship Marketing Paradigm." International Journal of Bank Marketing 30(4): 280-302. doi: 10.1108/02652321211236914 DOI: https://doi.org/10.1108/02652321211236914

Keaveney, S.M. 1995. "Customer Switching Behavior in Service Industries: An Exploratory Study." Journal of Marketing 59 (2): 71-82. doi: 10.1177/002224299505900206 DOI: https://doi.org/10.1177/002224299505900206

Kuehner-Hebert, K. 2023. "Social Media's Growing Role in Bank Customer Service." The BAI Mission. https://www.bai.org/banking-strategies/social-medias-growing-role-in-bank-customer-service/

Kumar, V., and Mirchandani, R. 2012. "Increasing the ROI of Social Media Marketing." MIT Sloan Management Review 54(1): 55-61.

Le rata depth gore. Ketso28. https://x.com/Ketso28/status/1777736999320854733

Lethukuthula@squbevuuuuu, https://x.com/sgubevuuuuu/status/1777669506342527373

Lim, X., Radzol, A., Cheah, J., and Wong, M. 2017. "The Impact of Social Media Influencers on Purchase Intention and the Mediation Effect of Customer Attitude." Asian Journal of Business Research 7(2). https://doi.org/10.14707/ajbr.170035 DOI: https://doi.org/10.14707/ajbr.170035

Magdalena @Dimplesville, April, May 17 2021). https://x.com/Dimplesville/status/1394360071178555401

MamaKaRose @Victoriamaz1, April 9, 2024). https://x.com/Victoriamaz1/status/1776012149313220610

Mason, A., Brown, M., Mason, K., and Narcum, J. 2021. "Pandemic Effects on Social Media Marketing Behaviors in India." Cogent Business and Management 8(1). https://doi.org/10.1080/23311975.2021.1943243 DOI: https://doi.org/10.1080/23311975.2021.1943243

Mitic, M., and Kapoulos, A. 2012. "Understanding the Role of Social Media in Bank Marketing." Marketing Intelligence and Planning 30(7): 1-16. https://doi.org/10.1108/02634501211273797 DOI: https://doi.org/10.1108/02634501211273797

Mnaka@_Mdooh, April 9 2024) https://x.com/_Mdooh/status/1777636249374736469

Mohammed, V., and Razé, A. 2021. "Towards Sustainable Fashion Consumption: An Exploratory Study of Consumer Behavior in a Developing Country." Journal of Sustainable Marketing 4(1): 90-109. https://doi.org/10.51300/JSM-2023-105 DOI: https://doi.org/10.51300/JSM-2023-105

Parusheva, S. 2017. "Social Media Banking Models: A Case Study of a Practical Implementation in Banking Sector." Ikonomicheski Izsledvania 3: 125-141.

Parusheva, S. 2019. "Social Media Banking Usage from Banks' Perspective." International Journal of E-Business Research (IJEBR) 15(1): 38-54. https://doi.org/10.4018/IJEBR.2019010103 DOI: https://doi.org/10.4018/IJEBR.2019010103

Piha, L.P., and Avlonitis, G.J. 2015. "Customer Defection in Retail Banking." Journal of Service Theory and Practice25 (3):304-326.

https://doi.org/10.1108/JSTP-04-2014-0080 DOI: https://doi.org/10.1108/JSTP-04-2014-0080

Pop, R., Săplăcan, Z., and Alt, M. 2020. "Social Media Goes Green-the Impact of Social Media on Green Cosmetics Purchase Motivation and Intention." Information 11(9): 447. https://doi.org/10.3390/info11090447 DOI: https://doi.org/10.3390/info11090447

Reshika Kassienarian @kassienarian, April 7, 2024. https://x.com/kassienarian/status/1776997667031097474

Samuel @Samuel97383492 (2024) https://x.com/Samuel97383492/status/1777634767493566709

Singh, K. 2021. "Influencer Marketing from a Consumer Perspective: How Attitude, Trust, and Word of Mouth Affect Buying Behavior." European Integration Studies 1(15): 231-241. https://doi.org/10.5755/j01.eis.1.15.28803 DOI: https://doi.org/10.5755/j01.eis.1.15.28803

Statistics South Africa. 2019. Mid-year Population Estimates.

Vlastelica, T., Kostić-Stanković, M., Krstić, J., and Rajić, T. 2023. "Generation Z's Intentions Towards Sustainable Clothing Disposal: Extending the Theory of Planned Behavior." Polish Journal of Environmental Studies 32(3): 2345-2360.

https://doi.org/10.15244/pjoes/157007 DOI: https://doi.org/10.15244/pjoes/157007

Vyas, V., and Raitani, S. 2014. "Drivers of Customers' Switching Behaviour in Indian Banking Industry." International Journal of Bank Marketing 32 (4): 321-342. https://doi.org/10.1108/IJBM-04-2013-0033 DOI: https://doi.org/10.1108/IJBM-04-2013-0033

Ying, S., and Wang, S. 2019. "Understanding Consumers' Intentions to Purchase Green Products in the Social Media Marketing Context." Asia Pacific Journal of Marketing and Logistics 32(4): 860-878. https://doi.org/10.1108/apjml-03-2019-0178 DOI: https://doi.org/10.1108/APJML-03-2019-0178

Zhang, Y., Liu, C., and Lyu, Y. 2023. "Profiling Consumers: Examination of Chinese Gen Z Consumers' Sustainable Fashion Consumption." Sustainability 15(11): 8447. https://doi.org/10.3390/su15118447 DOI: https://doi.org/10.3390/su15118447

Zhao, C., Noman, A.H.M., and Asiaei, K. 2022. "Exploring the Reasons for Bank-switching Behavior in Retail Banking." International Journal of Bank Marketing 40 (2): 242-262. doi: 10.1108/IJBM-01-2021-0042 DOI: https://doi.org/10.1108/IJBM-01-2021-0042