Article | Open Access | Published: 1 May 2017
IDENTIFYING KEY BARRIERS TO CUSTOMER RETENTION IN BANKING SECTOR OF PAKISTAN
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Abstract:
Objectives: The purpose of this research is to find out the barriers to customer retention in banking sector of Pakistan. This paper aims to enhance the understanding about the barriers that influence the customer retention in banking organizations. Methodology ? A qualitative mathematical based technique called interpretive structural modeling (ISM) is employed to identify the barriers and to understand interaction and mutual relationships among them. Findings ? Seven barriers to customer retention are identified through extensive literature review and subsequent opinions of experts from banking industry and academia. Contextual relationships have been established and ISM based model is developed to represent the mutual interaction among diagnosed barriers. The matrix cross-reference multiplication applied to a classification (MICMAC) analysis has also been carried out to classify the nature of barriers according to their dependence and driving power. Practical Implications ? The adoption of ISM based hierarchal model in this study would help in understanding the barriers and provide useful insights to top managers and policy makers of banking sector who want to focus and minimize these barriers in order to retain their customers for longer time period.
Keywords:
Banking Sector, Barriers, Customer Retention, Interpretive Structural Modeling
Publisher:
ILMA UNIVERSITY
Published:
1 May 2017
Issue:
Issue 1 : Volume 13
E-ISSN:
2409-6520
P-ISSN:
2414-8393
DOI:
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This is an open access article distributed under the terms of the Creative Commons Attribution CC BY 4.0 license, which permits any use, distribution, and reproduction of the work without further permission provided the original author(s) and source are credited.