Abstract:
The objective of this research is to investigate customer switching intentions as a complex
phenomenon that is affected by a series of bank actions in terms of service quality, price,
commitment and anger incident as a direct variables and involvement, switching costs,
alternative attractiveness, and relationship duration as a moderating variable at Commercial bank of
Ethiopia. This study employs an explanatory research design with quantitative research approach to
investigate the factors affecting customers switching intention in CBE. Cluster sampling method was
used and the data collection method was questionnaires sample size of 385 determined using
Cochran's formula to ensure statistical representativeness of the CBE customer population. Data
collection involved distributing 410 questionnaires, resulting in 380 properly completed responses.
Questionnaires were analyzed using descriptive statistics, ANOVA, correlation and regression.
This study finds that service quality and experiences with anger incidents significantly influence customer
switching intention. In contrast, the price of banking services and bank commitment factors do not have a
significant impact. And the variability of customers switching intention can be explained to the extent
of 39.2% by service quality, price, bank commitment and anger incident. This study also underlines
the moderator role of involvement and knowledge about alternatives has an indirect effect on
switching intentions. Based on the findings it is recommended that the concerned bank management
customarily management and supervisors of the Bank at the branches has to give more attention and
improves the banks service quality, price of the bank, bank commitment to maintain their
relationship and minimize the situation that provokes the customer’s anger incident.
