Application of The Theory of Planned Behavior To Customer Switching Intentions in The

International Journal of Bank Marketing
Application of the theory of planned behavior to customer switching intentions in the context of bank
consolidations
Maya F. FARAH
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Maya F. FARAH , (2017)," Application of the theory of planned behavior to customer switching intentions in the context of
bank consolidations ", International Journal of Bank Marketing, Vol. 35 Iss 1 pp. -
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Application of the Theory of Planned Behavior to customer switching intentions in the
context of bank consolidations
Abstract
Purpose
This paper examines the factors that affect customers’ switching intentions among banks in the
context of mergers and acquisitions, and in particular, focusing on the case of the merger
between Lloyds TSB and HBOS, which took place in 2009.
Design/methodology/approach
Based on the Theory of Planned Behavior, a quantitative survey was developed and administered
to 515 account holders from both banks at branches located in Spain. Structural Equation
Modeling (SEM) was then utilized to evaluate the significance of direct and indirect
relationships between the various factors under study.
Findings
Empirical findings indicated a significant direct relationship between switching intentions and
each of the following constructs: behavioral beliefs, normative beliefs, attitudes, and subjective
norms. The results also revealed a significant inverse relationship between switching intentions,
and both control beliefs and perceived behavioral control.
Research Limitations
The absence of a longitudinal study measuring the actual impact of the merger on customer
switching behavior is the main limitation of this study. Moreover, despite being insightful, the
results of this study should be generalized with caution since the sample was based on a list
purposely chosen by the banks’ management.
Originality/Value
This paper discusses customer-switching behavior in the context of a real-life case of banks’
consolidation.
Keyword: Customer switching intentions, bank merger, Theory of Planned Behavior, past
behavior.
1
Introduction
The financial industry worldwide has faced a rising number of bank mergers and consolidations
over the past four decades (Srivastava and Tiwari, 2014). These mergers and acquisitions were
especially evident in times of financial recession and depression (OECD, 2000; Jagtiani, 2008;
Wheelock, 2011) with banks searching for methods to enhance their monetary stability and
strength (Novickytė and Pedroja, 2015). In fact, in Europe, a total of 816 mergers and
acquisitions, totaling 682 billion Euros, took place between January 1996 and December 2005
(Montoriol-Garriga, 2008). Notably, the 2008 international economic recession caused an
unmatched number of bank acquisitions globally (Duchin and Sosyura, 2014), directly resulting
in a 12 percent decrease in the number of US banks and financial institutions between 2007 and
2010 (Wheelock, 2011). These mergers were directly related to the increased globalization,
financial deregulation, and technological advances, striving banks to provide a wider range of
services to customers over a larger geographic base of states and nations (Kumar and Suhas,
2010; Novickytė and Pedroja, 2015).
Mergers tend to make all parties involved stronger: they enhance banks’ efficiency in
meeting targets through combining employee skill sets, while allowing for greater value creation
through the diversification of income and revenue streams. This in turn decreases market risks
for merged institutions (Becher and Campbell, 2005; Jagtiani, 2008). Moreover, mergers lead
parties involved to collaborate in functions related to cost, income, market power, and banking
security (Bottiglia et al., 2010; Novickytė and Pedroja, 2015). Besides, merged banks benefit
from greater profit margins due to the increase in both economies of scale and the scope realized
(European Central Bank, 2000). However, in order to achieve the aforementioned benefits, banks
must first overcome several challenges including: global regulations, division of separate bank
2
holdings, cultural differences, and customer switching intentions (OECD, 2000; Kofman and
Durig, 2010).
Studies indicate that bank mergers are generally characterized by lack of communication,
typically causing customers to feel insecure and dissatisfied and hence encouraged to switch to
another financial institution (Allen et al., 2015; Deloitte, 2010). A survey conducted by the
Deloitte Center for Banking Solutions and Harris Interactive indicated that 17 percent of
customers switched banks directly after a merger, while another 31 percent expressed a tendency
to switch within the year following the merger (Deloitte, 2010). Another study showed that a
customer’s likelihood to switch to other financial institutions increases by up to three times after
a merger takes place. Receiving insufficient information regarding the merger process was a
reason to encourage switching by 94 percent of customers (J. D. Power and Assosciates, 2009).
Likewise, literature indicates that multiple variables cause customers to switch banks in the event
of a merger, including price, reputation, service quality, customer commitment, product
availability, branch locations, a bank’s physical appearance, and interest rates (Manrai and
Manrai, 2007; Clemes et al., 2007). However, it should be noted that research on customers’
switching behavior in retail banks is scarce, particularly in the context of financial institutions,
mergers, and acquisitions (Clemes et al., 2010; Narteh, 2013). To the best of the researcher’s
knowledge, there are no studies on customers’ switching intentions in relation to a real-life bank
merger.
Literature Review and Hypotheses Development
The takeover of Halifax Bank of Scotland (HBOS) by Lloyds TSB (LTSB) to create Lloyds
Banking Group is the specific merger incident investigated in this study. The deal was concluded
3
on January 19, 2009, under the recommendation of the former Prime Minister Gordon Brown.
This merger resulted from the 2008 global financial crisis. At the time of the merger, LTSB held
a total of 1,900 branches, 16 million customers, and 70,000 personnel, while HBOS had 1,100
branches, 22 million customers, and 72,000 employees (British Broadcasting Corporation, 2008).
The bank merger held one-third of all British customer banking accounts, around 28 percent of
the UK mortgage market, raised one billion English pounds in the annual bank’s pre-tax earnings
in 2011, and constituted the fourth largest bank in Britain (Murray-West 2008; Connon 2008).
This study examines the role of the Theory of Planned Behavior (TPB, Ajzen, 1991) in
explaining customers’ switching behavior in the case of mergers or acquisitions. The TPB is a
socio-psychological behavioral theory extended from the Theory of Reasoned Action (TRA).
The latter assumes that a customer’s intention, influenced by his or her attitudes and subjective
norms, is the strongest indicator of his or her purchase behavior (Fishbein and Ajzen, 1975; Ha,
1998; Broadhead-Fearn and White, 2006; Yadav et al., 2015). However, the TPB overcame the
limitation of the TRA and included behaviors that fell under incomplete volitional control
(Broadhead-Fearn and White, 2006; Farah and Newman, 2010; Yen and Chang, 2015).
Literature also shows that the TPB predicts outcomes more accurately than its predecessor, the
TRA (Man, 1998; Giles et al., 2007; Jin et al., 2012). The TPB offers a more comprehensive
framework -taking into account one’s perceived behavioral control, attitudes, and subjective
norms- to explain and induce customers’ switching intentions (Ajzen, 1991; Umeh, 2003;
Rutherford and DeVaney, 2009; Zolait, 2014).
Attitudes
4
According to Ajzen (1991), attitudes consist of various beliefs that impact one’s overall
behavioral intentions. Attitudes signify one’s psychological tendency to evaluate the favorability
of a certain behavior (Ha and Janda, 2014; Lim and Ting, 2014). Attitudes are formed by an
internal association and an assessment process (Adams and de Kock, 2015), and play a direct
role in developing positive or negative intentions (Kang and Hustvedt, 2014). In the specific
context of switching behavior, one’s attitude indicates the degree and manner by which a
customer favorably or unfavorably considers switching behavior (Nimako et al., 2014; Yadav et
al., 2015). Attitudes derive from salient behavioral beliefs that reflect one’s perceived outcomes,
and the desirability of the related switching consequences (Ajzen, 1991; Han et al., 2011;
Rawashdeh, 2015).
Behavioral beliefs indicate the probability that behaving in a certain manner will lead to a
given positive or negative result based on overall analysis of costs and benefits of the said
behavior (Cheng et al., 2006; Kaur Sahi and Mahajan, 2014). For instance, once an individual
believes that switching after a merger will lead to some positive outcomes, he or she will have
positive behavioral beliefs regarding the switching action, which in turn will develop a positive
attitude toward switching service providers (Cheng et al., 2005; Han et al., 2011; Azrina and
Ling Lai, 2014). Accordingly, the following hypothesis is proposed:
H1a: There is a positive relationship between a customer’s behavioral beliefs toward
switching and his or her attitudes regarding switching in the context of bank mergers.
Behavioral beliefs consist of perceived risks and perceived benefits (Wu and Yu-Chen,
2014). Perceived risks encompass one’s level of uncertainty and his or her belief that a certain
action will result in negative consequences. Perceived benefits encompass one’s belief that a
5
certain behavior will result in positive outcomes (Yoon, 2010; Wu and Yu-Chen, 2014).
Likewise, positive behavioral beliefs toward switching tend to reduce a customer’s uncertainty,
and thereby increase his or her likelihood to try other alternatives (Bedi, 2015). Accordingly,
once a customer holds positive behavioral beliefs on switching between banks, he or she is more
likely to do so (Liao, Wang, and Yeh, 2015). Behavioral beliefs proved to significantly affect a
customer’s behavior (Pavlou and Fygenson 2006); accordingly, the following hypothesis is
proposed:
H1b: There is a positive relationship between a customer’s behavioral beliefs toward
switching and switching intention in the context of bank mergers.
Behavioral reactions based on an individual’s cognition, feelings, and emotions upon the
performance of a certain behavior form his or her attitude toward this behavior (Conner and
Armitage, 1998; Rutherford and DeVaney, 2009). Such attitudes are formed by the association
and the strength of certain characteristics and traits regarding the given behavior (Wu and Yu-
Chen, 2014; de Run and Ting, 2014) - in this case, switching. Moreover, the perceived utility and
relative advantage of the behavior itself influence one’s attitudes as well (Gall and Olsson, 2012;
Madahi and Sukati, 2014). Specifically, positive outcomes of switching financial providers affect
one’s attitude toward switching behavior, and hence, increase his or her likelihood to engage in it
(Adams and de Kock, 2015; Yen and Chang, 2015). Hence, the following hypothesis is
proposed:
H1c: There is a positive relationship between a customer’s attitude toward switching and
switching intention in the context of bank mergers.
6
Subjective Norms
Subjective norms are social pressures imposed by significant others including family members,
friends, and work colleagues. These social norms tend to influence a person’s decision to partake
in a certain activity (Ajzen, 1985; Ruefenacht et al., 2015; Yen and Chang, 2015). According to
the TPB, customers are rational beings who set their norms and behave according to normative
beliefs (Fishbein and Ajzen, 1975; Zhang and Ng, 2012). Research has established that
subjective norms are directly influenced by, and based upon, one’s normative beliefs and
perceptions of acceptable social behaviors (Fishbein and Ajzen, 1975; Lopez-Quintero et al.,
2009; Chiao-Chen and Yang-Chieh, 2011; Bartikowski and Walsh, 2014), in addition to his or
her motivation to comply with them (Ajzen, 1991; Sprott et al., 2003; Marler et al., 2009;
Mishra, 2014). Therefore, the following hypothesis is proposed:
H2a: There is a positive relationship between normative beliefs and one’s subjective norms in
the context of bank mergers.
Normative beliefs depend on external and interpersonal influences; external influences
include media, advertising, and other indirect platforms, whereas interpersonal influences
comprise direct references from one’s social circle (Lin, 2010). Normative beliefs incorporate:
(a) descriptive normative beliefs that indicate the likelihood of one’s important others to partake
in a certain behavior and (b) injunctive normative beliefs that denote the expectations of one’s
important others that he or she will perform a certain behavior (Clarke, 2014). Both forms of
normative beliefs emphasize the effect of social influences on one’s consumption decisions
(Song et al., 2015).
7
Literature on switching behavior indicates that normative beliefs play a significant role in
facilitating or limiting customers’ switching behaviors (Bansal et al., 2005; Lariviere et al.,
2014). Strong normative beliefs and pressure to leave a given bank in the event of a merger seem
to increase the likelihood that an individual will consider switching to another institution
(Lariviere et al., 2014). Moreover, positive normative beliefs alleviate customer doubts and
reservations regarding switching from one provider to another, which in turn increases one’s
likelihood to do so (Jolaee et al., 2014). Consequently, the following hypothesis is proposed:

H2b: There is a positive relationship between a customer’s normative beliefs and his or her
switching intention in the context of bank mergers.
Subjective norms dictate social expectations in regard to one’s behavioral intentions.
They develop from one’s subconscious examination and adoption of certain habits and behaviors
as he or she strives for social acceptance, esteem, love, popularity, and prestige (Bernheim, 1994;
Lee et al., 2009; Chen et al, 2016). In the case of bank mergers, individuals tend to switch banks
to conform with subjective norms and peer groups (Conner and Armitage, 1998; Rutherford and
DeVaney, 2009; Bhattacherjee and Park, 2014). Notably, research indicates that subjective
norms affect one’s switching behavior in the service industry specifically (Bansai and Taylor,
1999; Bansai et al., 2004; Han and Hwang, 2014). For instance, a person is motivated to switch
service providers only when his or her social environment supports and approves the act of
switching (Grube and Morgan, 1990; Bansal and Taylor, 2002; Zhou et al., 2015). Therefore, the
following hypothesis is suggested:
H2c: There is a positive relationship between a customer’s subjective norms toward switching
and his or her switching intention in the context of bank mergers.
8
Perceived Behavioral Control
The TPB incorporates Perceived Behavioral Control (PBC) as its third variable in explaining
customers’ behaviors (Ajzen, 1985; Ajzen, 1991). PBC is the individual’s perception of the
easiness or difficulty to complete a certain behavior, in this case, to switch banks (Conner and
Armitage, 1998; Han et al., 2011; Liñáan et al., 2015). PBC is a function of a customer’s control
beliefs and perceived power to complete a certain behavior (Ajzen and Madden, 1986; Wu and
Yu-Chen, 2014; Morar et al., 2015). Control beliefs refer to an individual’s perception of the
availability, or lack, of opportunities and resources required in completing a certain behavior
(Ajzen, 1991; Stead et al., 2005; Farah, 2014). Explicitly, when a customer perceives that he or
she does not possess enough resources to complete the switching act, then his or her level of
PBC will inevitably decrease (Kaur Sahi and Mahajan, 2014). As a result, the next hypothesis is
proposed:
H3a: There is a positive relationship between one’s control beliefs and his or her perceived
behavioral control in the context of bank mergers.
Control beliefs consist of two components: (a) perceived self-efficacy, or one’s internal
perception that he or she possesses the necessary resources and abilities to complete the given
behavior, and (b) controllability, or the external ease or difficulty related to performing a certain
behavior (Winchester and Huston, 2014). The internal element of control beliefs influences
behavioral intentions, while external elements impact the performance of the behavior itself
(Bhattacherjee and Park, 2014). Therefore, one’s control beliefs are influenced by his or her
knowledge regarding a behavior, in addition to his or her ability to complete it (Clarke, 2014).
The aforementioned beliefs proved to have moderating effects on one’s behavioral intentions
9
through increasing and enhancing one’s PBC (Ajzen, 2002; Winchester, 2014). Hence, a
person’s likelihood to switch is directly related to his or her confidence that he or she possesses
the abilities and means required to switch (Conner and Abraham, 2001; Cheng et al., 2006;
Baker et al., 2007; Hashim et al., 2015). Consequently, the subsequent hypothesis is suggested:
H3b: There is a positive relationship between one’s control beliefs and his or her switching
intention in the context of bank mergers

Finally, PBC is attained when customers believe they have the prerequisite opportunities
and resources to switch (Madden et al., 1992; Rutherford and DeVaney, 2009; Kulviwat et al.,
2014). PBC describes that a customer’s perceived switching costs may discourage him or her
from switching (Bansal and Taylor, 2002; Lee et al., 2009). Switching costs include search, time,
transaction, monetary, emotional, cognitive, and psychological barriers. They decrease one’s
perceived control of a certain behavior and thus reduce his or her motivation and intention to
perform it (Bansal and Taylor, 2002; East et al., 2012). The impact of switching costs and lack of
PBC create significant customer resistance even if he or she perceives switching as beneficial
(Han et al., 20011; Hashim et al., 2015). Therefore, if a customer perceives switching as difficult
and costly, he or she is unlikely to switch financial institutions after a merger despite his or her
positive attitude toward it (Jones et al., 2000; Chan and Chan, 2011). Certainly, as switching
costs increase, the level of PBC decreases, which in turn will reduce the customer’s motivation
and intention to switch (Bansai and Taylor, 2002; Xiao et al., 2015). Accordingly, the next
hypothesis is proposed:
H3c: There is a positive relationship between one’s perceived behavioral control over
switching and his or her switching intention in the context of bank mergers.
10
Past Behavior
Researchers have indicated the need to include past customer behavior in the TPB to overcome
few limitations of the theory and enhance its predictive capacities (Perugini and Bagozzi, 2001;
Song et al., 2012). Research showed that past behavior is a significant and vital indicator in
explaining future customer behaviors (Sutton, 1994; Kim and DeVaney, 2001). Customers who
switched service providers in the past have been shown to exhibit a greater switching behavior
likelihood subsequently (Ganesh et al., 2000; Wirtz et al., 2014). Given the habitual nature of
humans (Leone et al., 2004; Perugini and Bagozzi, 2004), past switching behaviors and
experiences subconsciously impact one’s beliefs, and hence encourage him or her to repeat it
(Ratchford, 2001; Inman and Zeelenber, 2002). Consequently, the ensuing hypothesis is
proposed:
H4: There is a positive relationship between a customer’s switching past behavior and his or
her switching intention in the context of bank mergers.
(Insert Figure 1 about here)
Methodology
The researcher started with a qualitative study and conducted 30 semi-structured face-to-face
interviews with customers from both banks in the cities of Madrid, Barcelona, and Calpe. These
interviews aimed to identify the main factors affecting customers’ switching in this specific
merger, develop the foundations for the quantitative phase of this study, and refine the research
problem (Beall, 2002; Weischedel et al., 2005). The researcher selected a semi-structured design
to encourage respondents to elaborate further and help the researcher collect detailed information
11
so as to better understand customers’ beliefs and intentions (Cachia and Millward, 2011; Drew,
2014; Gowanit et al., 2016). Moreover, the researcher favored individual interviews to encourage
interviewees to privately express their opinions on this sensitive topic (Denzin and Lincoln,
1994; Stahl et al., 2011; Bennett and Sung, 2013); in fact, most people would feel disturbed if
discussing confidential information regarding their finances and banking behaviors in the
presence of others (O'Loughlin and Szmigin, 2005).
Branch managers of selected banks provided a purposeful sample of customers

representing gender, age, nationality, location, and relationship with the bank. Interviewees
consisted of 17 males and 13 females, with ages ranging between 45-75 years - the most
common age for the banks’ clients. Moreover, an equal distribution of interviewees from each of
the three cities was observed. Holding a current bank account with the given branch (for at least
5 years in Madrid and Barcelona, and 2 years in Calpe) was also a criterion for section. This
purposive non-probability method of choosing interviewees provided a more accurate
representation of the banks’ client bases. However, it should be highlighted that bank secrecy
laws also commanded the use of a non-probability sampling frame.
Findings of the qualitative phase showed that an individual’s switching behavior in the
financial sector is a complex process influenced by several variables including: comprehension
of the current bank’s status, branch’s closure, changes in brand image, workforce quality,
physical appearance of offices, availability of different banking mediums, holding accounts in
other banks, benefits of switching, normative influence, and facilitators and barriers for
switching. Data of the qualitative study were content analyzed and used in developing
quantitative questions to measure the normative, behavioral, and control beliefs, as well as
attitudes, subjective norms, and PBC.
12
In order to fully examine customers’ switching intentions within the context of the
merger, an adaptation of the existing TPB scales was required. The questionnaire adapted the
guidelines set by Ajzen and Fishbein (1980) for the development of a TPB-based instrument to
allow for an accurate measurement of the TPB framework under study. Additionally, the
researcher reviewed extant literature and compiled a list of all motives behind customers’
switching behaviors in the sector of financial services. Also, the researcher completed a
systematic content analysis of the qualitative results using NVivo, which was also used to
formulate the questionnaire. The researcher then categorized the results into the various TPB-
related constructs.
Based on literature and the results of interviews, the researcher recognized that the
customers could not specify an accurate summary estimate of their general attitudes toward
switching from their current bank especially in the case of a merger. All interviewees were asked
to describe their relationship with their current banks and express what they know about the
merger. They were also asked to weigh the advantages and disadvantages of switching from their
current bank to another financial service provider as a result of the merger. Collected responses
were then content analysed and grouped into categories to reflect behavioral beliefs that may
affect an individual’s switching behavior. Thirteen major behavioral beliefs were identified and
coded into a set of themes thought to affect the switching behavior of the target population.
These themes were embedded in the quantitative questionnaire. The validity of these themes was
confirmed through the thorough coverage of the existing literature on switching.
The “attitude toward switching” construct was directly assessed by asking respondents to
evaluate switching behavior with the following: “For me, switching from my bank to another
bank in the next year would be…” The items were rated on a set of six 5-point semantic
13
differential scales with the following endpoints: useless – useful, harmful – beneficial,
undesirable – desirable, foolish – wise, unpleasant – pleasant, and a bad idea – a good idea.
Ajzen (2000) proposed counterbalancing positive and negative endpoints for the “attitude
construct” to control the tendency of some respondents, particularly those with extremely
positive or negative attitudes, to mark the right -or left- hand sides without reading the labels.
This mixing of endpoints is a common practice designed to minimize the risk of response set;
however, many researchers argue that this alternating approach could be counter-productive
(McColl et al., 2001).
In addition, four sources of “normative pressure” were extracted from the interviews and
labeled as follows: partner, family, close friends, and financial adviser. For the construction of
the questionnaire, and with respect to each of the four identified referents, item pairs were
designed to assess normative beliefs and one’s motivation to comply with each of these
referents’ opinions. Three 5-point rating scales were included as direct measures of the
subjective norms with respect to bank switching intention. The first two scales required
participants to rate the likelihood: (a) that people most important to them would approve
switching to another bank in the next year, and (b) that people who influence their behavior
would approve their switching. This item has an injunctive quality, consistent with the concept of
subjective norms. However, responses risk having low variability because important others are
generally perceived to approve desirable behaviors and disapprove undesirable ones (Ajzen and
Fishbein, 1980). For this, it was suggested to include questions about descriptive norms when
measuring subjective norms, i.e. whether important others themselves perform the behavior in
question. Hence, a third item asking respondents to rate the statement of whether people
important to them would switch to another bank in the next year.
14
Furthermore, PBC appears to be essential when studying switching behavior provided it
is not under total volitional control. Throughout the qualitative stage, interviewees were
encouraged to express which control beliefs, factors, and circumstances facilitate or hinder
switching from their current bank. Based on these interviews and previous research, the
researcher identified the most commonly cited beliefs: (a) customers’ preference, (b)
dependence, and (c) resulting satisfaction (Shukla, 2004; Lee and Romaniuk, 2009; Buell et al.,
2014) with regards to their current bank, as well as (d) the complexity, (e) effort, and (f) the time
required to switch and set up a different account in a different bank (Valenzuela, 2010; Clemes et
al., 2012). Consequently, seven items were included to assess specific control beliefs, in addition
to the three items designed to assess PBC directly. The questionnaire tackled seven factors that
may potentially facilitate or hinder respondents’ switching behavior. Control beliefs were
matched with related perceived power. To measure control-belief strength, respondents were
asked to rate their preference and dependence on their pre-merger bank. Seven questions were
added to identify barriers preventing the customer from switching banks: “I generally prefer my
current bank to other banks,” “I depend heavily on my current bank to handle all my financial
affairs,” “I am comfortable with the set of ethical values that my current bank adopts,” “my
current bank is highly cost-effective for the value it creates for me,” “opening an account with a
new bank is a time-consuming process,” “belonging to a bank in my neighborhood is an
important reason for being with my current bank,” and “setting up a new account in a different
bank is a complex process.”
In their research, Ajzen and Madden (1986) reiterate the fact that, “people who believe
that they have neither the resources nor the opportunities to perform a certain behavior are
unlikely to form strong behavioral intentions to engage in it, even if they hold favorable attitudes
15
toward the behavior and believe that important others would approve of their performing the
behavior” (p.458). Accordingly, PBC was measured through the following direct rating scales:
“I believe that I have the resources and the ability to switch to another bank in the next year,”
“If I want I can easily switch to another bank in the next year,” and “I have total control over
whether I do or do not switch from my current bank in the next year.”
Moreover, the following three items were designed to elicit respondents’ intentions to
switch from their current bank post-merger: “I intend to switch to another bank in the next
year,” “it is my intention to continue searching for ways of switching from my current bank in
the next year,” and “I plan to switch from my current bank in the next year.”
Measures
The quantitative questionnaire included several sections. The first section addressed participants’
demographics (including gender, age, educational level, and nationality), banking behavior
(including current bank, bank geographical location, duration of time and type of activities with
the bank), and past bank switching behavior. Participants were asked to indicate outcome
likelihoods using a 5-point Likert scale (1= extremely unlikely, 5= extremely likely), outcome
evaluations (-2= extremely bad, +2= extremely good), normative beliefs and motivation to
comply with each of the four referents (1= strongly disagree, 5= strongly agree), control beliefs
and their related perceived power (1= extremely unlikely, 5= extremely likely). Additionally, the
direct variable of attitude employed a 5-point semantic differential scale to measure respondents’
attitude toward switching behavior, whereas subjective norms and PBC were measured with the
5-point Likert scale (1= extremely unlikely, 5= extremely likely). The survey required around 10
– 15 minutes to complete.
16
A cross-tabulation analysis was conducted to examine the relationship between each of
the TPB components. Moreover, results underwent structural equation modeling (SEM) using
LISREL, which allows analyzing several inter-related measures within each construct, adjusting
measurement errors, and providing a relevant structure for the covariance among variables
(Levin, 1999; Ahmed et al., 2013).
The SEM results were used to generate two sets of results: (1) an analytical measurement
model of confirmatory factor analysis indicating how well components fit with their respective
variables, and (2) a structural path model predicting relationships among the interdependent
variables in this given context (Levin, 1999).
Empirical Results
Sample and Data Analysis
A purposive/judgmental sampling technique, made feasible with the assistance of the banks’
upper management, was chosen to serve the purpose of the survey stage of this research through
the inclusion of respondents who are of relevance to the study. Judgmental samples are
considered convenient methodical procedures that help ensure a well-rounded representation of
certain dimensions of interest (Sykes, 1990; Turnbull and Moustakatos, 1996; Lin et al., 2013).
Moreover, the nature of the research called for a selection gauge to be utilized (Beloucif et al.,
2004; O'Loughlin and Szmigin, 2005). The latter requirement consisted of obtaining a
representative sample of decision makers from each of the three Spanish cities of interest,
namely: Madrid, Barcelona, and Calpe, where large branches of both banks existed. It also
necessitated that all respondents be bank account holders for the past 5 years at least, except for
Calpe (2 years) due to the recent history of branch openings in the region. It must be noted that
17
purposive sampling is favored with difficult to reach populations (Neuman, 2003; Goetze et al.,
2014) as is the case with bank clients that fall under strict secrecy laws and regulations, which
highly limit access to customer personal information and contact details (Moore, 2014; Tu and
Meredith, 2015).
Banks sent the survey to 890 account holders in Spain, 583 answered the questionnaires
(response rate of 65.5 percent). Of the 583 questionnaires, 68 were discarded for incompleteness.
The remaining 515 completed surveys reached the analysis phase. Males constituted more than
half of the respondents (54.6 percent), 21.9 percent were Spanish, 71.1 percent were British, and
7 percent held other nationalities. Moreover, 71 percent of respondents were HBOS customers,
28 percent were Lloyds TSB customers, and 0.7 percent held accounts in both banks.
Respondents were distributed among Madrid (33.59 percent), Barcelona (46.6 percent), and
Calpe (19.8 percent). The larger sample from HBOS reflected the size of the respective client
base of each bank in 2008: HBOS had 22 million account holders compared to 16 million for
Lloyds TSB (BBC News, 2008; Lloyds Banking Group, 2009). Additionally, HBOS customers
worried the upper management most since their bank was the one being acquired by LTSB.
Indeed, the extant literature establishes that in a merger situation, customers tend to lose faith in
the brand image, which ultimately affects their attitudes toward the acquired brand and
encourages their switching to other providers (Basu, 2006; Hsiang-Ming et al., 2011).
Around half of respondents (49 percent) were extremely likely to remain with their
current bank, 34 percent were likely to remain loyal, and 3 percent expressed their likelihood to
switch banks after the merger. Also, more than half of respondents expressed a neutral attitude
toward switching, 35 percent found it useless and undesirable, and 16 percent thought it is a
useful and wise decision likely to lead to personal positive outcomes. Additionally, findings
18
showed that 43 percent of respondents reported that people important to them would disapprove
their switching decision, while 12 percent believed they would approve their decision to switch
to another bank. However, the sample showed high levels of perceived control with 74 percent
reporting they had the necessary resources and abilities to control their decision to switch,
compared to 23 percent who felt neutral.
Insert about here:

Table I: Demographic Characteristics of Survey Respondents
Reliability and Validity of Constructs
The reliability and validity of each of the constructs were analyzed using various statistical
measures. Cronbach’s alpha was conducted for each direct measure construct with all displaying
a value greater than 0.8 (αAttitude = 0.935, αSubjective Norms = 0.911, αPBC = 0.813, αIntention = 0.939),
and showing an adequate reliability figure being above the cutoff value of 0.7 recommended by
Field (2009). Additionally, the Root Mean Square Error of Approximation (RMSEA) for the
constructs was 0.077 showing a significance level of 0.024 (p<0.05), and displaying a
significance at the 95 percent confidence interval. The Chi-square scale factor also amounted to
0.141 with a p-value of 0.00, also indicating a significant relationship between the aforesaid
constructs. A covariance matrix was run as shown in table II.
Insert about here:
Table II: Covariance Matrix
19
This study utilized confirmatory factor analysis (CFA) performed through LISREL since
it is testing an existent theory. Factor loadings for all direct constructs, namely: attitude,
subjective norms, perceived behavioral control, and intentions, were above 0.6 (table III).
Consequently, this signifies an acceptable validity for all variables within each construct (Chin et
al., 1997; Yadav et al., 2015). In fact, results confirm that direct items of the survey load
substantively on their related factor with no significant cross-loadings identified.

Insert about here:
Table III: Communalities (Extraction Method: Confirmatory Factor Analysis)
Covariance and Descriptive Statistics
Findings of the covariance analysis show that customers’ intentions to switch banks are
positively related to three independent variables, namely: attitudes, subjective norms, and PBC.
Moreover, results indicate that attitudes toward switching (rATT-INT=0.29, p<0.05) and the
approval of significant others (rSN-INT=0.35, p<0.05) are important due to their high levels of
significance. Additionally, the relationship between PBC and intentions (rPBC-INT=0.18, p<0.05)
is significant.
Analysis of the means reflects an overall negative attitude toward switching among both
HBOS (M=2.32, p<.01) and LTSB customers (M=2.25, p<.01). Also, means of subjective
norms indicate similar results for customers from both banks (MSN-Banco Halifax = 2.32, and MSN-LTSB
= 2.34, p<.01), and signify respondents’ belief that their significant others were unlikely to
approve their switching to another bank under the merger circumstances. Likewise, customers
from both HBOS (M=3.75, p<.01) and LTSB (M=3.70, p<.01) thought they possessed similar
20
levels of control over their switching decision. Finally, means show that LTSB customers
(M=2.00, p<.01) were slightly more positive than customers of HBOS (M=1.81, p<.01) in
regard to their switching intention.
British versus Spanish Respondents: Comparison of Means
The two merging banks under study are British and their respective managements indicated -
despite the banking secrecy clause- that their customer bases include large portfolios of British
customers. Moreover, respondents were selected by the bank branches to represent their
respective customer bases. Accordingly, the demographic analyzes summarized above reflect
that 21.9 percent of the respondents are Spanish, whereas 71.1 percent are British. A t-test was
conducted to compare the means of past switching behavior and all TPB components for both
nationalities. Results specify significant differences between attitudes and switching intentions of
both British and Spanish respondents at the 0.05 significance level (table IV.)
Insert about here:
Table IV: Comparison of means for British versus Spanish respondents
Furthermore, results indicate that British respondents (M=1.72, SD=0.84) were more
likely to retain their relationship with their current bank, therefore, were significantly less likely
to hold positive switching intentions post-merger comparing to Spanish counterparts (M=1.97,
SD=0.92; t (425) =2.32; p=0.02). These results agree with the findings that British customers
(M=2.27, SD=0.92) had a significantly more negative attitude toward switching than their
Spanish counterparts (M=2.51, SD=2.27; t (425) =2.21; p=0.03). However, both British
21
(M=2.29, SD=0.94) and Spanish (M=2.45, SD=0.97) respondents seemed to be influenced by
people important to them when it comes to switching from their current financial provider (t
(425) =1.39; p=0.16). Also, both British (M=3.88, SD=0.90) and Spanish customers (M=3.89,
SD=0.88) showed high sense of perceived control concerning their switching decision (t (425) =
0.21; p=0.84). Likewise, no significant difference in past switching behavior was found for
neither British (M=1.72, SD=1.27) nor Spanish (M=1.68, SD=0.47) respondents (t (425) = -
0.29; p=0.77).
Hypotheses Testing
Structural Equation Modeling presented the necessary measurements regarding how the
measured TPB constructs predict customer-switching intentions (Levin, 1999). The SEM
allowed the researcher to observe the relationships among attitudes, subjective norms, PBC, past
behaviors and customers’ switching intentions through the concurrent examination of all
relationships under study (Shainesh, 2012). Based on the SEM tests conducted, four structural
equations were deduced specifying the relationships among the various constructs (figure 2.)
(Insert Figure 2 about here)
A positive link was evident between behavioral beliefs and customer attitudes (r= 0.20,
t= 3.72, p= 0.055), while a similar link was also seen between normative beliefs and subjective
norms (r= 0.15, t= 4.30, p= 0.034), thus supporting H1a and H2a respectively. However, a
negative relationship was observed between control beliefs and perceived behavioral control (r=
-0.19, t=-2.39, p= 0.080), thus rejecting H3a. Moreover, customer-switching intentions showed a
22
significant positive relationship with behavioral beliefs (r= 0.023, t= 4.40, p= 0.005), and
normative beliefs (r= 0.066, t= 20.56, p= 0.003), confirming H1b, and H2b respectively. Results
also revealed a negative significant relationship between switching intentions and control beliefs
(r= -0.032, t= -22.02, p= 0.001), which in turn reject H3b. In addition, customer-switching
intentions displayed a significant positive relationship with attitudes (r= 0.27, t= 26.36, p=
0.010), and subjective norms (r= 0.17, t= 22.44, p= 0. 007) confirming H1c and H2c,
respectively. Nevertheless, a negative relationship was evident between switching intentions and
PBC (r= -0.040, t= -13.98, p= 0.002) leading to the rejection of H3c. Finally, customers’
switching intentions showed a significant positive relationship with past behaviors (r= 0.049, t=
3.28, p= 0.015) confirmingH4. Results of the SEM are summarized in table IV.
Insert about here:
Table IV: Structural Model Results
Discussion and Conclusions
Results show that British customers had less favorable attitudes toward switching compared to
their Spanish counterparts. British respondents were mostly expatriates, and hence preferred UK
banks away from home (Caligiuri, 2000). They trusted and were loyal to the British brand. This
result was in line with the literature advancing that expatriate customer behavior is highly
influenced by personal ethnicity and local home-country values (Wijnen et al., 2012). Indeed,
expatriates are typically loyal to their home country and its brands (Marchant and Ward, 2003).
Other studies also highlight that expatriates prefer products and brands that symbolize home,
originate from their home countries, and are recommended by expatriate friends (Gilly, 1995).
23
Yet, Spanish and British customers across both banks seemed to feel conservative toward the
switching.
Results emphasize that each of the TPB components, namely: attitudes, subjective norms,
and PBC impact customers’ switching intentions; however, findings indicate that PBC exerts a
minimal influence on customers’ switching intention. Explicitly, attitudes of customers are their
complex perceptions - with intellectual, emotional, and conative dimensions - in respect to
switching that impact their beliefs, feelings, and intentions related to the act of switching itself
(Anic, 2010). A positive attitude toward switching includes a customer’s preference for,
commitment to, and intention to switch banks in a merger situation, which increases the
probability of switching providers, hence decreasing the level of devotion to the initial bank
(Lodorfos et al., 2006). Additionally, a positive attitude toward a bank enhances customer’s
satisfaction and ensures his or her retention in case of mergers (Mohsan et al., 2011). Therefore,
a customer’s intention to remain loyal to a certain service provider after a merger is significantly
positively associated with one’s personal attitude toward the provider (Kaynak and Harcar, 2001;
Matthew et al., 2012), whereby behavioral beliefs, including one’s emotions, feelings, and
commitment toward the bank, directly affect one’s loyalty toward it (Barsky and Nash, 2002).
This strong impact of behavioral beliefs causes customer patronization of a brand or a service
despite external influences (Taylor et al., 2006), which in turn, becomes the main barrier to
customer switching behavior.
Subjective norms seemed to significantly predict customer’s switching intention; they
indicate the effect of social environment on an individual’s likelihood to switch and his or her
perception of whether the environment will approve this move (Fandos Roig et al., 2013).
Customers face perceived social pressures from their friends and family members that lead them
24
to engage in or avoid switching after a merger. These subjective norms are reference points for
individuals, and thus determine their behaviors and actions (Bicchieri, 2006; Ghorbani and
Salehi, 2014). This is especially true in instances where one desires to fit in and gain social
prestige and esteem (Bernheim, 1994); she or he acts in line with what significant referents
encourage and perceive as correct (Pookulangara et al., 2011).
Research shows that recommendations and guidance of trusted sources play a significant
role in customer’s bank selection and retention (Mokhlis, 2009; Chigamba and Fatoki, 2011).
Moreover, subjective norms have a dominant impact on behavioral intentions as they play a
significant role in forming attitudes (Bock et al., 2005; Weng and de Run, 2013), and thus
customers’ switching intentions. Additionally, correlation evidence between each of the belief-
based measures implied that the strongest correlation pointed to the effect of normative beliefs
on switching intention. This demonstrates that the largest influence on customers’ switching
intentions is their beliefs regarding what other people are likely to approve. In line with previous
research findings (e.g. Al-Gahtani et. al., 2007), the researcher finds that this influence may vary
depending on the social organization and age group to which customers belong.
Furthermore, the aforementioned results related to the dismissal of the third hypothesis
on the existence of a positive relationship between control beliefs and one’s switching intention
in the context of bank mergers clearly demonstrate that switching is a behavior that customers
consider being under their control. Accordingly, switching to another bank does not impose any
concerns or difficulties, especially with a competitive banking environment, whereby retail
banks provide comparable services and rates when setting up a new account in a new bank. Yet,
these findings also imply that perceived behavioral control has a negative impact on customers’
switching intentions. Research indicated that a customer’s perceived level of control over a
25
negatively assessed behavior does not necessarily induce a customer to act in a certain manner
(Conner et. al, 1999; Fife-Schaw et al., 2007). Research also pointed out that PBC has a non-
significant impact on switching intentions, especially in the case where the customer holds an
unfavorable opinion of the switching act itself (Fishbein and Ajzen, 1975; Fortin, 2000; Alnaimi,
2012). If an individual perceives that switching will not provide personal advantages, then he or
she will less likely switch banks in the case of a merger. This study shows that respondents
considered switching from their current bank rather troublesome and useless despite their ability
to do so.
Lastly, adding past switching behavior to the existing TPB components seemed to be a
significant indicator of future behavioral intentions. Self-reported past behavior was identified in
the literature as a strong predictor for switching intentions (Smith et al., 2008), explaining
additional variance than that typically accounted for by the recognized TPB variables (Conner
and Armitage, 1998). Past customer behavior affects current attitudes and beliefs regarding the
brand as well as the switching process, and thus is among the important determinants of
behavioral intentions and behaviors through its impact on self-perception and perceived
cognitive control (Hong et al., 2008). Customers who constantly switch financial service
providers are considered less loyal than non-switchers (Pedersen and Nysveen, 2001), and
accordingly are more prone to switch in the case of a merger. Furthermore, a history of switching
providers makes a customer more experienced in completing the switching process and,
therefore, reduces his or her perceived switching risks and costs (Wirtz et al., 2014). Moreover,
past switching experience reduces a customer’s anxiety of unknown consequences and
demonstrates the usefulness and ease of switching, which increases the perceived benefits of
switching providers (Weisberg et al., 2011).
26
Limitations
The main limitation of this study is that the banks could not disclose the number and identity of
their overall customer base due to banking secrecy clauses, and hence provided the list of
customers surveyed based on their own discretion. Consequently, the unverified representation
of the sample constrained the researcher’s ability to propose some generalizations with regards to
the findings. Another major limitation is the inability to track the actual behavior of participants,
which could have alleviated self-report errors and allowed for more concrete causal relationships
and inferences. This would only have been feasible through a longitudinal study facilitated by a
second round of surveys within the year after the bank merger took place.
Managerial and Theoretical Implications
As a result of the various global financial downturns, characterized by amplified credit risks,
enhancing relationships with existing customers is more important than ever to financial services
companies. The cost of attracting new customers is increasing infinitely with hidden social and
organizational costs. Such facts highlight the importance of this research for bank managers and
scholars who look for a deeper understanding of reasons behind customers’ switching in the case
of mergers and acquisitions. Although switching behavior has gained increased attention in
contemporary customer research, previous studies on the individual level were based on narrow
theoretical frameworks incorporating the underlying motives and cognitive processes behind this
behavior. This gap in literature called for elaborated theoretical frameworks, methods and
empirical investigations on switching behavior, and hence encouraged the implementation of this
study.
27
Drawing on a social psychology theory and applying it on switching behavior in the
financial sector contributed to the managerial and theoretical levels. Specifically, in relation to
financial institutions’ urge to connect efficiently with customers, and embrace measures other
than loyalty programs. Following each financial crisis, financial institutions experience higher
costs associated with lost business due to customers’ behaviors, hence the relevance of this
comprehensive analysis.
At a managerial level, substantial time and attention are required to maintain strong
communication with customers during a bank merger process. Such communication is vital to
maintain customers’ trust and positive attitudes toward the brand and thus reduce the likelihood
of switching from a service provider. Moreover, retail bank managers must ensure their banks
maintain strong social presence, robust customer relationship mechanisms, and customized
attention to meet each client’s needs. This will augment individual customer positive attitudes
toward the bank and generate positive subjective norms regarding the institution. By doing so,
bank managers help decrease customers’ likelihood to switch banks as the latter intention is
typically related to his or her attitude and subjective norms.
Moreover, managers must identify customers with a history of switching behavior, as
those are typically prone to switch another time. Managements can identify such customers
through the utilization of CRM databases and communicate with them to understand the reasons
behind their past switching, and thus, develop strategies to increase customers’ commitment and
loyalty.
This study offers several valuable theoretical contributions. First, it is original in its
application of TPB to study switching behavior in the particular context of bank mergers. It
builds upon existing general TPB literature to demonstrate the impact of past behavior on
28
customers’ switching intentions in the context of bank mergers, in addition to the three classical
TPB components. The literature abounds with studies investigating the value of past behavior in
predicting intentions and future behavior (see Eagly and Chaiken, 1993 for a detailed review),
and arguing that one’s behavior is determined, or at least affected, by past behavior. Literature
also showed that for particular actions, past behavior is an important predictor of future behavior
(Bagozzi and Kimmel, 1995; Norman and Smith, 1995), acting in some situations as the most
important predictor among TPB variables (Godin, et al., 1993). Explicitly, although the TPB
revealed itself to be a valid framework for the study of switching behavior in general, this study
aims to extend the theory by verifying whether the inclusion of past switching behavior in the
context of bank mergers enhanced the predictive validity of the model. Indeed, although the TPB
has been widely applied to explain customers’ switching intentions, few studies adopted TPB
together with past switching behavior to examine customers’ behavioral intentions and findings
needed additional validation (Perugini and Bagozzi, 2001; Wirtz et al., 2014). Interestingly, this
study indicates that the addition of this variable has a significant effect on the predictive potential
of the adopted theory, and emphasizes the need to incorporate it as an additional variable in
similar contexts. By doing so, this study provides future TPB studies with a more accurate
capacity to understand and predict customers’ switching intentions; and yet, invites future
research to further validate this addition in other merger-related switching behavior settings.
Conclusion and Future Research
In conclusion, this study shows that customers from both banks had negative attitudes toward
switching from their current bank to another, viewing it as a rather useless exercise with many
negative repercussions. However, results demonstrate that customers consider switching to be
29
under their personal command to a great extent. This perceived sense of control allowed
customers to feel little dependence on their current bank to particularly handle their financial
transactions and accounts. Another major finding of this study is that past behavior will influence
the likelihood of switching in the event of a disruptive influence such as a merger. Indeed,
customers who have a history of switching are more likely to churn in such instances, unlike
their non-switching counterparts who would remain loyal to their financial services provider
anyway.
It is important to note that customers’ beliefs about what significant others around them
are likely to approve has an affect on their switching behavior. This normative influence may
vary depending on the age and gender of customers. These demographic implications on the
power of subjective norms with regards to one’s switching decision, together with the effect of
the length of conducting transactions with a given bank - in the case of bank mergers or branch
closures - are subjects for future research. Forthcoming research could also consider how cultural
and social perspectives, and values affect the components of the Theory of Planned Behavior and
a customer’s switching behavior. Additionally, it may be of interest for researchers to investigate
how the type and size of the account held by customers affects the switching intention and
behavior of these individuals. Such studies will help managers understand the various behavioral
traits of each customer group, and thus formulate effective strategies to target and retain different
client types.
30
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Dr. Maya F. Farah is an assistant professor of marketing at the Lebanese American University
(Beirut). Maya has several years of undergraduate and graduate teaching experience at several
AACSB accredited universities, including the American University of Beirut (Lebanon) and the
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particular interest in Islamic marketing.
44
Figure 1: Theoretical Framework
H1b
Behavioural
H1a
Beliefs Attitude
H1c
H2a H2c
Normative Subjective
Beliefs Norm Intention
H2b
H3c
H3a Perceived
Control
Beliefs Behavioral H4
Control
H3b
Past
Switching
Behavior
Figure 2: Structural Equation Model Path Coefficients
0.023
Behavioural
0.20
Beliefs Attitude
0.27
0.15 0.17
Normative Subjective
Beliefs Norm Intention
0.066
-0.04
-0.19 Perceived
Control
Beliefs Behavioral 0.049
Control
-0.032
Past
Switching
Behavior
Eq. 1: INT = 0.27*ATT - 0.040*PBC + 0.17*SN + 0.023*BB - 0.032*CB + 0.066*NB + 0.049*PAST
Eq. 2: ATT = 0.20*BB
Eq. 3: PBC = - 0.19*CB
Eq. 4: SN = 0.15*NB
Att = Attitude, SN = Subjective Norms, PBC = Perceived Behavioral Control, INT = Intention; BB = Behavioral
Beliefs, CB = Control Beliefs, NB = Normative Beliefs, PAST = Past Switching Behavior
Table I: Demographic Characteristics of Survey Respondents
Standardized Path Coefficients Frequency Percentage

Female 234 45.44%
Gender
Male 281 54.56%
20-35 53 10.29%
36-45 96 18.61%
Age 46-55 113 21.95%
55-65 151 29.33%
Above 66 102 19.82%
Primary 15 2.91%
Secondary 116 22.53%

High School 141 27.38%
Education A Vocational/Technical Degree 110 21.36%
An Undergraduate/Bachelors Degree 95 18.44%
A Master Degree 31 6.02%
A Doctoral Degree 7 1.36%
British 366 71.1%
Nationality Spanish 113 21.9%
Other 36 7%
HBOS – Spain 362 70.29%
Current
LTSB - Spain 142 27.57%
Bank
Both 11 2.14%
Madrid 173 33.59%
Geographical
Barcelona 240 46.61%
Location
Calpe 102 19.80%
0 -2 Years 75 14.57%
Duration 2 – 5 years 92 17.88%
with the
Bank 5 – 10 Years 229 44.45%
More than 10 Years 119 23.10S%
Never Switched Before 181 35.15%
Past Likely to Switch Banks when
Behavior Circumstances Change 306 59.42%
Constant Switchers 28 5.43%

Table II: Covariance Matrix for the Variables in the Adapted Theory of Planned Behavior
Attitudes Intention PBC SN BB CB NB Past

Attitudes 0.56
Intention 0.29 0.35
PBC 0.44 0.18 5.26
SN 0.15 0.35 0.28 0.8
BB 0.59 0.56 1.35 0.75 2.9
CB -1.83 -2.01 -5.13 -2.31 -4.44 26.88
NB 0.83 1.17 0.28 1.18 1.55 -4.88 8.06
PAST 0.18 0.15 0.14 0.15 0.26 -0.87 0.56 0.22
NB: All relationships are significant at the 95% confidence level.

Table III: Communalities (Extraction Method: Confirmatory Factor Analysis)
Constructs Items Initial Extraction
ATT1 1.000 .717
ATT2 1.000 .754
ATT3 1.000 .767
Attitude (ATT)
ATT4 1.000 .804
ATT5 1.000 .724
ATT6 1.000 .780
SN1 1.000 .852
Subjective Norms (SN) SN2 1.000 .896
SN3 1.000 .798

PBC1 1.000 .672
Perceived Behavioral Control (PBC) PBC2 1.000 .820
PBC3 1.000 .702
INT1 1.000 .943
Switching Intention (INT)
INT2 1.000 .943
Table IV: Comparison of Means for British vs. Spanish Respondents

Std. Std. Error sig. (2-
NATIONALITY N Mean t df
Deviation Mean tailed)
Spanish 113 1.68 .468 .052
PAST SWITCHING BEHAVIOR -0.293 425 0.77
British 366 1.72 1.268 .068
Spanish 113 2.5163 .89795 .09916
ATTITUDE 2.209 425 0.028
British 366 2.2686 .91605 .04932
Spanish 113 2.4472 .96612 .10669
SUBJECTIVE NORMS 1.395 425 0.164
British 366 2.2850 .94088 .05066
Spanish 113 3.8984 .87910 .09708
PBC 0.208 425 0.835
British 366 3.8754 .90305 .04862
Spanish 113 1.9695 .92412 .10205
SWITCHING INTENTION 2.319 425 0.021
British 366 1.7246 .84365 .04542
Table V: Structural Model Results
Standardized Path
Relationship t-value Hypothesis
Coefficients
BB → ATT 0.200 3.720 H1a (Supported)
BB → INT 0.023 4.400 H1b (Supported)
ATT → IN 0.270 26.360 H1c (Supported)
NB → SN 0.150 4.300 H2a (Supported)
NB → INT 0.066 20.560 H2b (Supported)
SN → INT 0.170 22.440 H2c (Supported)
CB → PBC -0.190 -2.390 H3a (Rejected)

CB → INT -0.032 -22.020 H3b (Rejected)
PBC → INT -0.040 -13.980 H3c (Rejected)
PAST → INT 0.049 3.280 H4 (Supported)
ATT = Attitude, SN = Subjective Norms, PBC = Perceived Behavioral Control, INT = Intention;
BB = Behavioral Beliefs, CB = Control Beliefs, NB = Normative Beliefs, PAST = Past Switching Behavior

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International Journal of Bank Marketing

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context of bank consolidations

(Montoriol-Garriga, 2008). Notably, the 2008 international economic recession caused an

2010; Novickytė and Pedroja, 2015).

of a merger, including price, reputation, service quality, customer commitment, product

Literature Review and Hypotheses Development

Rutherford and DeVaney, 2009; Zolait, 2014).

Ling Lai, 2014). Accordingly, the following hypothesis is proposed:

H1a: There is a positive relationship between a customer’s behavioral beliefs toward

H1b: There is a positive relationship between a customer’s behavioral beliefs toward

switching and switching intention in the context of bank mergers.

switching intention in the context of bank mergers.

Mishra, 2014). Therefore, the following hypothesis is proposed:

the context of bank mergers.

Normative beliefs depend on external and interpersonal influences; external influences

(Song et al., 2015).

likelihood to do so (Jolaee et al., 2014). Consequently, the following hypothesis is proposed:

switching intention in the context of bank mergers.

Subjective norms dictate social expectations in regard to one’s behavioral intentions.

following hypothesis is suggested:

and his or her switching intention in the context of bank mergers.

availability, or lack, of opportunities and resources required in completing a certain behavior

behavioral control in the context of bank mergers.

intention in the context of bank mergers

her switching intention in the context of bank mergers.

(Insert Figure 1 about here)

presence of others (O'Loughlin and Szmigin, 2005).

Branch managers of selected banks provided a purposeful sample of customers

purposive non-probability method of choosing interviewees provided a more accurate

laws also commanded the use of a non-probability sampling frame.

financial sector is a complex process influenced by several variables including: comprehension

physical appearance of offices, availability of different banking mediums, holding accounts in

attitudes, subjective norms, and PBC.

confirmed through the thorough coverage of the existing literature on switching.

(McColl et al., 2001).

important to them would switch to another bank in the next year.

new bank is a time-consuming process,” “belonging to a bank in my neighborhood is an

bank is a complex process.”

whether I do or do not switch from my current bank in the next year.”

(Levin, 1999; Ahmed et al., 2013).

variables in this given context (Levin, 1999).

Sample and Data Analysis

considered convenient methodical procedures that help ensure a well-rounded representation of

compared to 23 percent who felt neutral.

Insert about here:

Table I: Demographic Characteristics of Survey Respondents

Reliability and Validity of Constructs

constructs. A covariance matrix was run as shown in table II.

Insert about here:

Table II: Covariance Matrix

substantively on their related factor with no significant cross-loadings identified.

Insert about here:

Table III: Communalities (Extraction Method: Confirmatory Factor Analysis)

Covariance and Descriptive Statistics

regard to their switching intention.

British versus Spanish Respondents: Comparison of Means

Insert about here:

Table IV: Comparison of means for British versus Spanish respondents

to hold positive switching intentions post-merger comparing to Spanish counterparts (M=1.97,

(Insert Figure 2 about here)

Insert about here:

Table IV: Structural Model Results

Eq. 1: INT = 0.27ATT - 0.040PBC + 0.17SN + 0.023BB - 0.032CB + 0.066NB + 0.049*PAST