Research On Switching Cost Of Personal Credit Business In Retail Bank And Competition Strategy

Along with the personal credit business has gradually become a retail bank new profit growth point, how to attract and retain high quality customers become unavoidable issue in retail banks. This article takes the personal credit business as object, analysis different effects of competition strategies on personal credit business. When customers change bank, it causes a series of costs that are switching costs. On the basis of the domestic and foreign relevant research, combined with the products and services’characteristics of the personal credit business, this paper summarize the impact of four kinds of switching costs in the personal credit business, and make explorative research on switching costs and its influencing factors in personal credit business.The author collected372samples by questionnaires investigation, and do the empirical analysis respectively about the switching cost factors and different types of switching costs which have effects on conversion tendency by the statistic software SPSS16.0and Amos17.0.2. Finally, the author tests the hypothesis and discusses the results. In the light of the conclusion, the author puts forward relevant competition strategy.The results of the study show that relationship switching costs, trading switching costs and contract switching costs has negative influence on the customers conversion tendency, and the significant influence is stronger. Meanwhile, business sites, service channels, the satisfaction of products and services have very strong negative relationship with conversion tendency of personal credit customers. In view of the switching costs which have significant influence, the bank should implement the relationship marketing, brand marketing, consummating service channels to retain personal credit customers, then make personal credit business development quickly and sustainably.