A Study of Factors Influencing Switching Behaviour of Fixed Deposit Investors of Indian Banks

Abstract

Switching by the individuals is an important issue that every industry faces and there are some factors that are responsible for influencing the switching behaviour. So, the researchers have explored the factors various factors that influence the switching behaviour. The present study identifies the factors influencing switching of Fixed Deposit Investors, it identifies that Fixed deposit Investors are Risk aversive or not and it point outs the measures that can enhance the value of Fixed Deposit as an investment avenue. For the present study primary and secondary data was collected by the researcher to satisfy the objectives of the study. The primary data was collected through self structured questionnaire and secondary data was collected from different sources like website. Books, journals, articles etc. The data was collected from the 402 Fixed Deposit holders, individuals of different age groups, education, occupation and income. Various statistical techniques were used to validate the hypothesis of the study. Principal Component Analysis is used by the researcher to extract the variables in the form of factors that affects switching behaviour. Chi Square is used to associate personal data characteristics like gender, age, income, education, etc. of the respondents with the factors identified that influence the Fixed Deposit holders. Structural Equation Modelling is used to find out the model of switching. From the study it was identified that service quality, interest rate, taxation, opinion of others, reputation of bank, bank facilities etc. are the factors that influences switching behaviour, Fixed Deposit Investors are risk aversive and online access to Fixed Deposit information, Yearly statement of Interest, Timely alerts, notification for deduction in TDS, Ask for Automatic Renewal are the measures that can enhance the value of Fixed Deposit as an investment avenue. In the present study it was found that the decision of switching is dependent to personal data characteristics. Switching is behaviour of human being that can t be changed by the industry but it can be controlled through implication of such strategies that can change the switching intentions of the Investors and can turn them into positive outcomes. newline