scholarly journals An analysis of customer satisfaction on employee professionalism: a comparison between Islamic and conventional banks in Malaysia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ainatul Aqilah Kamarudin ◽  
Salina Kassim
Keyword(s):  
Comparative Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Design Methodology ◽  
Specific Area ◽  
Quantitative Approach ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
One Year

Purpose This paper aims to make a comparative analysis about the level of customer satisfaction on employee professionalism between Islamic and conventional banks in Malaysia. It also explores the important factors that attract customers to banks and identifies the strategies to improve customer satisfaction on employee professionalism. Design/methodology/approach This study uses a quantitative approach, where questionnaires are distributed to a total of 312 respondents. Findings The results show that customers are more satisfied with the conventional banks’ employees in terms of their reliability, responsiveness, assurance and empathy, except for tangibility, where they are more satisfied with the Islamic banks’ employees. It is also found that customers who have been engaging with the bank for more than one year consider each dimension of employee professionalism as important in ensuring their satisfaction with the bank. Research limitations/implications This study is conducted in Malaysia and the respondents of this study are limited to 312 respondents only. Originality/value This study provides some insights on the area of service quality and customer satisfaction from a developing country’s environment (Malaysia) using the modified SERVQUAL model to perceive professionalism. This paper also explores a more specific area by highlighting the significance of service quality towards customer satisfaction from the perspective of gender, religion and respondents’ period of being a customer to the bank.

Does service quality increase the level of banks performance

2019 ◽  
Vol 38 (6) ◽  
pp. 442-454 ◽  
Author(s):  
Syed Faraz Ali ◽  
Muhammad Naeem
Keyword(s):  
Service Quality ◽  
Multiple Regression ◽  
Positive Impact ◽  
Quality Parameters ◽  
Cluster Sampling ◽  
Islamic Banks ◽  
Content Type ◽  
Banking Systems ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

Purpose The purpose of this paper is to unfold the relationship between service quality and level of performance of conventional and Islamic banks. Also, it intends to uncover what are the features of service quality which can raise the level of performance either in conventional banks or Islamic banks. There is rare literature available that focused on comparative study between above stated banking systems based on emerging parameters of SERVQUAL model. Design/methodology/approach To meet the objectives of this investigation, research data has been from 450 customers who have had accounts and dealings with conventional and Islamic banks in the previous five years. The customers are selected based on cluster sampling from regional offices of conventional and Islamic banks. Findings The collected data have been analyzed by using confirmatory factor analysis (CFA) technique followed by common method variance (CMV), multiple regression test and independent sample t-test used to examine the parameters of service quality in the context of banks performance. The purpose of CFA is to find the model validity, while multiple regression and t-test is performed in order to examine the influence of service quality parameters on banks performance. Originality/value The study used compliance as a one of the emerging and unique dimension of service quality. This dimension is rarely investigated in the context of measuring the level of bank performance of conventional and Islamic banking systems. Findings reveal responsiveness and assurance is the strongest predictor of conventional banking performance. Compliance and reliability has significant and positive impact on the level of performance of Islamic banks. Moreover, the study has practical implications for the top management and stakeholders of conventional and Islamic banks to increase the level of performance by using SERVQUAL model.

scholarly journals Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty

2019 ◽  
Vol 11 (6) ◽  
pp. 1691-1705 ◽  
Author(s):  
Abror Abror ◽  
Dina Patrisia ◽  
Yunita Engriani ◽  
Susi Evanita ◽  
Yasri Yasri ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Moderating Role

Purpose The purpose of this study is to investigate the influential factors of customer loyalty to Islamic banks, namely, service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approach This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia. This research deployed purposive sampling and analyzed the data by using covariance-based structural equation modeling. Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality–customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implications This study is a combination of cross-sectional and a single-country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection are conducted in other countries (e.g. ASEAN countries), which would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g. customer value co-creation and customer commitment); hence, the future study may investigate those factors. Practical implications By considering these Islamic banks’ antecedents, the Islamic banks might enhance their customer loyalty. Also, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision-making. Originality/value This study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic banks, which is, to the authors’ knowledge, neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationships between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole, which have been limited previously.

Internal marketing, service quality and perceived customer satisfaction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leigh De Bruin ◽  
Mornay Roberts-Lombard ◽  
Christine De Meyer-Heydenrych
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Industry ◽  
Marketing Mix ◽  
Internal Marketing ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Internal Process ◽  
Perceived Ability

Purpose This study aims to explore the extent to which internal marketing influences employees’ perceived ability to deliver service quality in the Islamic banking industry in Oman. Additionally, the influence of perceived service quality on perceived customer satisfaction is established. Design/methodology/approach Data was obtained from retail banking branch employees at the customer front line of Islamic banks in Oman using electronic and person-administered surveys, and 272 responses were deemed suitable for data analysis. The measurement and structural models were measured through structural equation modelling. Findings The findings show that internal promotion, internal process and internal purpose are enablers of employees’ perceived ability to deliver service quality in the Islamic banking industry of Oman. In addition, service quality was found to have a strong positive influence on perceived customer satisfaction in Islamic banks. Research limitations/implications This study demonstrates that internal product, internal price, internal promotion, internal process and internal purpose are influencers of service quality, and the latter has a direct relationship with perceived customer satisfaction in Islamic banking. Practical implications The findings can guide the Islamic banking sector in Oman on how internal marketing can foster service quality, ultimately leading to positive perceived customer satisfaction experiences. Originality/value The internal marketing mix model is predominately a Western model, which has been tested primarily in mature Western markets. This study reflects on ten internal marketing mix elements, which have been tested for the enablement of service quality and perceived customer satisfaction in Oman.

scholarly journals The influences of cleanliness and employee attributes on perceived service quality in restaurants in a developing country

2017 ◽  
Vol 11 (4) ◽  
pp. 608-627 ◽  
Author(s):  
Ngan Truong ◽  
Tahir Nisar ◽  
Dan Knox ◽  
Guru Prabhakar
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Design Methodology ◽  
Content Type ◽  
Perceived Service Quality ◽  
Customer Perception ◽  
Behavioural Intentions ◽  
Key Dimensions ◽  
The Relationship

Purpose The purpose of this paper is to investigate the service quality of full-service restaurants in Vietnam to explore possible factors that may impact customer perception, which subsequently influences customer satisfaction and behavioural intentions. Based on the DINESERV model and service clues, the possible dimensions to construct customer perception were realised, and four key dimensions were suggested. Design/methodology/approach Data were collected from four urban local full-service restaurants in Vietnam, and factor analysis and SEM-PLS were then performed to uncover the relationship between customer perception, satisfaction and behavioural intentions. Findings The results suggest that customer perception significantly influences customer satisfaction and behavioural intentions, and customer satisfaction itself is also found to have influence on behavioural intentions. Originality/value This is an original piece of work which contributes to the exploration of service quality in developing countries and to the incorporation of cleanliness into analyses of restaurant service quality in particular.

Sharīʿah appraisal on the issue of imposing burden of proof to the entrepreneur in trust based contracts

2016 ◽  
Vol 7 (2) ◽  
pp. 148-169
Author(s):  
Asmadi Mohamed Naim ◽  
Mohd Noor Habibi Hj Long ◽  
Mahyuddin Abu Bakar ◽  
Muhammad Nasri Md Hussain
Keyword(s):  
Qualitative Research ◽  
Comparative Analysis ◽  
Design Methodology ◽  
World Wide ◽  
Descriptive Analysis ◽  
Burden Of Proof ◽  
Islamic Banks ◽  
Content Type ◽  
Business Requirements ◽  
Practical Implications

Purpose The purpose of this paper is to examine the Shariah view on the legitimacy of requiring the entrepreneur to prove that he/she has complied with all business requirements in case the actual profit was below the expected profit in trust-based contracts such as mudarabah and musharakah. Design/methodology/approach This paper is part of the research which applies qualitative research approaches, including among others, content analysis, interviews, observations and descriptive analysis using fiqh muqaran (comparative analysis of jurists’ arguments) in few phases. Findings The study found that shifting the burden of proof to the fiduciary is the weightier view and necessary to ensure that both sides are protected. The considerations of protecting people’s wealth (ḥifẓ amwāl al-nās) and mitigating widespread greed (ṭamaʿ) are among the reasons for allowing elements such as ʿurf, tuhmah and dalālat al-ḥāl to be treated as bayyinah in trust-based contracts when the fiduciary is obliged to defend himself from litigation. Research limitations/implications The study is meant to strengthen the practices of Islamic banks world wide. Practical implications Few protections can be applied for capital provider. Social implications This study is meant to give solution in dealing with moral hazard of both parties, and to provide solution to the regulator for policy drafting and to increase confidence to the industry. Originality/value The finding is important in assisting the regulators in drafting the policy to protect both parties without neglecting the essence of trust-based contracts.

scholarly journals Assessing satisfaction among Islamic Bank Customers’ in Bangladesh

2018 ◽  
Vol 10 (3) ◽  
pp. 1377-1405
Author(s):  
Kashrima Nawreen ◽  
Suhaily Shahimi
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Significant Relationship ◽  
Islamic Banks ◽  
Contrast Level ◽  
Significant Percentage ◽  
Independent Variables ◽  
Islamic Bank ◽  
Long Run ◽  
Conventional Banks

This study is conducted to assess the level of customer satisfaction in Islamic banks from the context of Bangladesh.  In the process, 300 questionnaires were distributed, and 236 were returned completed.  The results of the questionnaire analysis reveal that there is significant relationship between three of the independent variables, namely- tangible products, personnel service quality and level of commitment to customer satisfaction.  In contrast, level of compassion does not have a significant relationship with customer satisfaction.  The analyses further reveal that the respondents were satisfied with the overall Islamic Banks’ infrastructure operating in Bangladesh, and most of the respondents did not have intentions to switch to the conventional counterparts.  However, the main reason for the account holders to switch to Islamic banks is because they wanted to deal with Shahriah compliant banking.  The analyses also indicate that a significant percentage of the respondents have accounts with both Islamic banks and conventional banks.  The study has suggested that Islamic Banks should enhance Shahriah compliant framework to generate more income, experience speedy growth, and remain sustainable in the long run. 

Does the tag “Islamic” help in customer satisfaction in dual banking sector?

2019 ◽  
Vol 10 (1) ◽  
pp. 138-149 ◽  
Author(s):  
Fayaz Ahmad Lone ◽  
Ulfat Rashid Bhat
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Level Of Satisfaction ◽  
Alternative Approach ◽  
Future Strategy ◽  
Conventional Banks

Purpose The purpose of this paper is to find out the importance of the tag “Islamic” in the title of banks. This will help to determine the future strategy of Islamic banks, while expanding to the countries where Islamic banking is seen as a religious banking and not an as an alternative approach to the conventional banking. Design/methodology/approach Adopting convenience sampling, a total of 596 customers of both Islamic and conventional banks were surveyed from four regions of Saudi Arabia (Makkah, Madinah, Riyadh and Dammam) using a self-structured questionnaire on a five-point Likert scale. Findings The results concede that Islamic banks without the tag “Islamic” and conventional banks have same customer satisfaction. There are some factors other than the tag “Islamic” which are driving customers towards Islamic banking. Those factors include physical aspects of the bank, level of satisfaction with the services, dealing and attendance by the staff and safety and security of the bank. Besides, the application of fundamental principles of Islamic banking works as a key motivation for customer satisfaction with Islamic banking. Practical implications Applying the tag “Islamic” is not as important as implementing the principles of Islamic banking. Islamic banks can survive and compete well even without using the “Islamic” tag if they implement the prime principles of Islamic banking and work on improving the factors highlighted by this study. This study can prove to be helpful in the expansion of Islamic banking in the countries where religious banking is not generally preferred by customers. Originality/value This is the first study to find out the customer satisfaction in a dual banking system (comprising of conventional banks and Islamic banks that do not use the tag “Islamic”), thereby filling the existing gap in the Islamic banking literature.

Quality and image of banking services: a comparative study of conventional and Islamic banks

2017 ◽  
Vol 35 (6) ◽  
pp. 878-902 ◽  
Author(s):  
Md Abu Saleh ◽  
Ali Quazi ◽  
Byron Keating ◽  
Sanjaya S. Gaur
Keyword(s):  
Service Quality ◽  
Emerging Market ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Content Type ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
Conventional Banks

Purpose Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the differing perceptions of customers of Islamic and conventional banking systems in an emerging market, which has rarely been addressed and adds to the body of knowledge on this topic. This study also re-examines the SERVQUAL model of customer banking services to measure their impact on customer satisfaction and loyalty. Design/methodology/approach The study uses responses from a randomly drawn sample of 229 customers from conventional banks and 225 customers from Islamic banks operating in Bangladesh using a structured questionnaire. SPSS and structural equation modeling techniques were employed as statistical tools for data analysis. Findings Overall, the examined service quality dimensions wield varying effects on client satisfaction mediated through the perceived image of banking services. Islamic bank customers’ perceptions of the level of reliability, responsiveness, security and reputation were significantly higher than those of conventional banks. Research limitations/implications This study enhances our understanding of how Islamic banking practices differ from those of conventional banking in terms of service quality and image-related factors. More specifically, the findings of this research explain consumers’ perceived assessment of satisfaction and loyalty in a comparative research setting. Originality/value No prior studies have addressed the impact of the individual service quality dimensions on image factors in the context of conventional and Islamic banking in an emerging market, Bangladesh.

scholarly journals A comparative analysis of financial performance of Islamic banks vis-à-vis conventional banks: evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Tariq Majeed ◽  
Abida Zainab
Keyword(s):  
Comparative Analysis ◽  
Financial Performance ◽  
Islamic Banks ◽  
Financial Industry ◽  
Content Type ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Country Analysis ◽  
And Performance ◽  
Conventional Banks

PurposeIn recent years, the fast growth of Islamic banks (IBs) has generated debates among policymakers and economists about the sustainability and performance of these institutions. This paper aims to undertake a comparative analysis of the financial performance of IBs and conventional banks (CBs) in Pakistan over the period 2008–2019 to evaluate how IBs are faring compared to their conventional peers.Design/methodology/approachThis paper considers financial ratio analysis (FRA) to analyze and compare the performance of the top-10 IBs and CBs operating in Pakistan. The sample includes five full-fledged IBs and five CBs which offer Islamic windows in Pakistan. We have selected the top-5 best performing CBs offering Islamic windows. This study offers a comparative analysis of Islamic v/s conventional banks.FindingsThe results show that Islamic banks are better capitalized, less risky and have higher liquidity. In contrast, the profit of Islamic banks is found lower than CBs. The logical reasoning behind these performance indicators has been discussed in detail.Research limitations/implicationsThe study has provided an analysis of financial performance only for Pakistan. A cross-country analysis could be more representative of the performance of Islamic Banks.Practical implicationsThe size of Islamic banking industry should be enhanced by opening new branches and promoting Islamic finance literacy.Originality/valueThe study assists investors, borrowers and managers in making better decisions. It also provides the latest valuable information to regulators and policymakers in making rules and policies for the financial industry in Pakistan.

Apartment purchase under Shirkah-ul Milk and shariah compliance in Islamic banks: the perception of bankers and clients in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Nazim Uddin
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Explanatory Variable ◽  
Measurement Model ◽  
Equation Model ◽  
Regulatory Body ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
Reflective Measurement

Purpose Apartment purchase is an increasing investment trend in Islamic banks as clients trusted to eradicate the interest from financial dealings to capture the Islamic Principles. The paper aims to investigate the Shariah compliance in the investment of apartment purchases under Shirkah-ul milk in Bangladesh Islamic banks. Design/Methodology/Approach This study examined the perception of 125 clients and 25 managers from five key Islamic banks on the investment practices of apartment purchases. This study applied two data analysis methods: reflective measurement model was operated for examining the consistency, reliability, multicollinearity problems and validity; and Smart PLS-SEM (structural equation model) was used to investigate the direct impact of each explanatory variable on Shari’ah compliance in Islamic banks. Findings The results indicated that Islamic banks could not strictly maintain the Shariah compliance in apartment purchase. Such Shari’ah non-compliance is due to lack of knowledge and understanding with regard to bank’s objectives and philosophy, weak Shariah board, audit, weak regulatory body and supervision problem. These findings also firmly match clients’ and managers’ perceptions. Research Limitations/Implications A limited size of clients and bankers were involved in this study. The study focuses only on perceptions of Islamic banks’ clients and managers and avoids Muslim clients who involved conventional banks. Originality/Value This study provides Shariah-compliant alternatives in investment avenue for apartment purchases. These Shariah modes include Apartment Purchase Musharakah Mutanaqasa; Bai-Muajjal; and Apartment Purchases under Shirkah-ul Milk, which captures various limitations against current apartment purchase practices as well as to develop clients’ trust in Islamic banks.

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