Factors Affecting Switching Behavior of Paints Consumers in Building Materials Modern Retail Channel in Greater Jakarta

Abstract

This paper aims to define the factors that can influence switching behavior of paints consumer in building materials modern retail channel in greater Jakarta. The authors constructed a model containing the relationship between exogenous variables (consumer satisfaction, switching cost, attractiveness of alternatives, and promotional factors) with endogenous variables (switching intention and switching behavior). The population in this study was consumers who bought paint products from building materials supermarkets in Greater Jakarta. Sample of 160 respondents was analyzed using structural equation modelling (SEM) technique with software Lisrel 8.80. The result of SEM analysis showed that switching intention significantly affected by consumer satisfaction and attractiveness of alternatives, switching intention did not affected by switching cost and promotional factors and switching intention has significant influence on switching behavior. Future research should continue exploring the switching cost variable with broader indicators and or other variables which can help to fill knowledge gap in The Indonesian paints industry.