Consumer responses to dissatisfaction with financial service providers: An exploration of why some stay while others switch

In spite of research suggesting that services elicit greater dissatisfaction than products, service dissatisfaction has been less widely researched than product dissatisfaction. Although responses to dissatisfaction such as exit and voice have been investigated, the loyalty response to dissatisfaction has been largely overlooked. To begin to address this discrepancy, this paper relates a preliminary research study into customer dissatisfaction and loyalty with financial services. Research was conducted in two phases to explore dissatisfying experiences and consumer decisions to switch or stay with the current provider. The study finds that the most commonly cited reason for staying with a financial services provider is the perceived costs involved in switching or, putting it more colloquially, ‘the hassle factor’. Differences between customers who stay and switch are also revealed in the study.