Why customers stay: reasons and consequences of inertia in financial services

Abstract

This research investigated inertia in a financial‐services context, with particular focus on the reasons for consumers’ dissatisfaction and inert behaviour, and studied customers’ complaining behaviours and past and future inertia. The study utilised a two‐part methodology, including both qualitative and quantitative research. A total of 20 in‐depth interviews provided the preliminary data required for developing a questionnaire that was subsequently completed by 410 respondents. Determinants of dissatisfaction included the number and size of account fees, whilst determinants of inertia were the perception of similarity between financial institutions and the complexity, costs and time inherent in switching. Factors differentiating future inertia and future active customers included the type of account, length of time the account had been held, membership of a number of financial institutions, income and level of consideration given to changing financial institution.

Citation

White, L. and Yanamandram, V. (2004), "Why customers stay: reasons and consequences of inertia in financial services", Managing Service Quality: An International Journal, Vol. 14 No. 2/3, pp. 183-194. https://doi.org/10.1108/09604520410528608