Most previous research on investigating the performance of banks have concentrated on customer retention and have ignored the importance of customers' cross-selling behavior. Customer retention seems to be the result of a kind of repetitive decision by the customers, however their decision to cross-buy involves a more complicated process. Customer retention is an most important components of banking. Bank management must identify and improve upon factors that can limit customer loss. These include employee performance and professionalism, willingness to solve problems, friendliness, level of knowledge, communication skills, and selling skills, among others. The purpose of this study is to identify the variables influencing customer purchase behavior in retail banks in Mongolia. Primary data has been collected from retail banking sector. Convenient sampling was used to select the sample which of 200 banking clients from big four banks in Mongolia. Some previous studies strongly suggest that relationship quality of satisfaction and relationship quality of trust positively effects customer retention and cross-selling, but statistic results cannot support these results. On contrary, the factors explained the quality of relationship can including customer orientation, employee's expertise, effective communication are directly influences to customer retention significantly, and the employee's expertise directly influences to customer cross buying significantly explain the customer retention and cross-selling behavior.
