Customer Satisfaction and Switching Intentions of Banking Services End-Users in Montenegro

Milorad Jovović (), Nikola Mišnić (), Bojan Pejović () and Marija Mijušković ()
Additional contact information
Milorad Jovović: Faculty of Economics Podgorica, University of Montenegro, Podgorica, Montenegro
Nikola Mišnić: Faculty of Economics Podgorica, University of Montenegro, Podgorica, Montenegro
Bojan Pejović: Faculty of Economics Podgorica, University of Montenegro, Podgorica, Montenegro
Marija Mijušković: Finance plus, Podgorica, Montenegro

Journal of Central Banking Theory and Practice, 2023, vol. 12, issue 1, 45-56

Abstract: Numerous research studies of the various companies' business practices indicate a strong relationship between customer satisfaction, as an overall positive response generated after the use of the specific product or service, and their intention to continue using the products/services of the company. As a rule, satisfied and particularly delighted customers show intention to return and become loyal, whereas dissatisfied and disappointed customers have switching intentions. Therefore, the objective of this study is to empirically test to which extent the intention to switch banks in Montenegro depends on customer satisfaction or dissatisfaction. With this regard, we have posed a question inquiring about the level of consumers satisfaction/dissatisfaction with banking services in Montenegro, what their intentions are regarding the continuation of using services of the chosen bank (customer retention & defection), and to what extent customer satisfaction and dissatisfaction determine their intention to change the bank. The analysis has established a statistically significant correlation between satisfaction, dissatisfaction, and intentions of leaving the bank. Findings has shown a relatively high level of customer satisfaction with banking services in Montenegro, as well as confirming that dissatisfaction usually leads to the intention to leave and change the bank, while satisfaction leads to the continued use of the bank's services. A high level of competition in the banking services market as well as the struggle for each consumer makes this topic undeniably current and this research represents a significant input for the bank management in Montenegro regarding the identification of the real situation with customer satisfaction and their intention to switch banks in accordance with their level of satisfaction.

Keywords: Customer satisfaction; Switching intentions; Customer retention; Customer defection; banking. (search for similar items in EconPapers)
JEL-codes: G20 M39 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cbcg.me/repec/cbk/journl/vol12no1-3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbk:journl:v:12:y:2023:i:1:p:45-56

Access Statistics for this article

More articles in Journal of Central Banking Theory and Practice from Central bank of Montenegro Contact information at EDIRC.
Bibliographic data for series maintained by ().