The role of Islamic marketing ethics towards customer satisfaction

2019 ◽  
Vol 11 (4) ◽  
pp. 1001-1018 ◽  
Author(s):  
Aamir Abbas ◽  
Qasim Ali Nisar ◽  
Mahmood A. Husain Mahmood ◽  
Abderrahim Chenini ◽  
Ahsan Zubair

Purpose Islamic marketing ethics focus on the principles of equity, justice and value maximization for the welfare of society. These ethics play a vital role in elevating the standards of customer behavior. The strategy of focusing customer is now considered as important element because of rapidly changing marketing trends in Islamic banks. Therefore, the purpose of this study is to find out the important features of Islamic marketing ethics and identify their effect on customer’s satisfaction in Islamic banking. Design/methodology/approach This study is descriptive and quantitative. Data were collected from 1000 customers of Islamic banks by applying convenient sampling technique. Smart PLS was used to check the scale validation by confirmatory factor analysis. To test the hypotheses, structural equation modeling technique was used. Findings Results enlightened that Islamic marketing ethics play a significant role in enhancing the customer’s satisfaction. Islamic banks should focus on marketing mix along with Islamic and ethical perspectives to improve the customer’s satisfaction level. Practical implications This study highlighted that Islamic marketing ethics have great impact on customer satisfaction. Therefore, Islamic banks need to concentrate on the ethical perspective of Islamic marketing in order to develop long term customer relationships. Islamic banks need to revise their marketing practices, and they should align their marketing tactics with ethical Islamic boundaries. They need to design, communicate and enforce the code of Islamic ethics within organizations. Originality/value This paper fulfills an identified need to study how Islamic marketing ethics effect customer satisfaction.

2019 ◽  
Vol 11 (4) ◽  
pp. 933-959 ◽  
Author(s):  
Tika Kartika ◽  
Achmad Firdaus ◽  
Mukhamad Najib

Purpose This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer. Design/methodology/approach The objectives of this study were the seven major commercial Indonesian Islamic banks using the purposive sampling technique. In total, 105 questionnaires were processed, consisting of questions regarding depositors, financing, single and dual customer. Structural equation modeling using partial least squares were the analysis methods used to test the hypothesis, while in-depth interviews were conducted with Islamic bank managers to validate the findings. Findings Image has a significant relationship with customer satisfaction, as well as trust. Similarly, customer satisfaction has a significant relationship with trust. Trust has a significant relationship with loyalty. For a financing customer, the image is very influential on customer trust. For a depositor customer, customer satisfaction is very influential on customer trust. For single customer, customer satisfaction has a stronger influence on the image, compared to dual customer. Practical implications Islamic banks need to maintain good image and service quality to create strong, reliable and long-term relationships with customers, more specifically, in terms of improvement and product innovation. A bank focuses on the micro or macro segment, as well as financing. Financing products should be referred to customers’ needs. Bank reputation can be done by strengthening branding and corporate culture in marketing strategy. Shariah compliance has the highest loading factor to trust customers. Indonesian Islamic banks need to maintain customer trust by sticking to Islamic principles and continuing to ensure that its products and services are in accordance with Islamic principles. In Indonesian Islamic banks, it is very important to keep the legal aspects in all of products and services. Deposit products and services of Islamic banks should be in line with the rules of the financial services authority and Bank of Indonesia culture. Bank efforts to strengthen reputation can be done by strengthening branding and corporate culture in marketing strategy, while increasing the attractiveness of the products by way of research and development (R&D) must endeavor to make products and services attractive in terms of both product characteristics and price. Furthermore, it is necessary to support a good marketing strategy to market their products. Social implications Research can be used more widely in determining public policy, by strengthening the marketing strategy and public education. Islamic banks can work together with local religious departments to maximize marketing strategies to educate and convince people to be active economically under Islamic sharia guidance. Islamic banks need to maintain customer trust by sticking to the principles of sharia and continuing to ensure that products and services conform to sharia principles. Islamic bank management can strengthen customer trust by having a good risk management system, so that customers feel secure with Islamic bank transactions. In addition, sharia banks as companies must demonstrate social responsibility by distributing ZIS managed from customers and implementing CSR as a form of awareness of the surrounding community. Originality/value The study revealed the factors that lead to loyalty on the financing, depositor and the single and dual customers. The study found that improvement and innovation, strategic and sustainability are new indicators used to build images of Islamic banks.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Berrin Arzu Eren

PurposeThis study aims to investigates customer satisfaction from the use of bank chatbots and the effect of perceived trust in chatbots and banks' reputation on customer satisfaction.Design/methodology/approachA survey is conducted in Turkey involving 240 customers who experienced banking transactions using a chatbot. Partial least squares structural equation modeling (PLS-SEM) is used to investigate the relationships between the variables. The data were analyzed using SPSS 21 and SmartPLS programs.FindingsPerceived performance, perceived trust and corporate reputation significantly affect customer satisfaction with chatbot use. Customer expectations and confirmation of customer expectations have no direct impact on customer satisfaction, but customer expectations positively affect perceived performance. Customer expectations exert an indirect influence on customer satisfaction through perceived performance. Perceived performance has a positive impact on the confirmation of customer expectations, but customer expectations do not significantly impact the confirmation of customer expectations.Research limitations/implicationsThis study relies on a limited number of participants. Moreover, its sample is not representative of the target population due to the convenience sampling technique. Even if the results may not be generalized to the entire population of Turkey, they reflect the reality of emerging markets with relatively high technology sensitivity and a young population.Practical implicationsThe results provide new insights regarding banking service delivery channels, which may be of interest to professionals, academics, banks' top management, product development teams, design teams and customer satisfaction units.Social implicationsThis study is believed to help the community make their lives easier by providing them with knowledge and awareness about chatbots.Originality/valueThis study extends expectations confirmation theory's predictions to chatbot use in banking.


2018 ◽  
Vol 30 (2) ◽  
pp. 438-459
Author(s):  
Matti J. Haverila ◽  
Kai Christian Haverila

Purpose Customer-centric measures such as customer satisfaction and repurchase intent are important indicators of performance. The purpose of this paper is to examine what is the strength and significance of the path coefficients in a customer satisfaction model consisting of various customer-centric measures for different types of ski resort customer (i.e. day, weekend and ski holiday visitors as well as season pass holders) in a ski resort in Canada. Design/methodology/approach The results were analyzed using the partial least squares structural equation modeling approach for the four different types ski resort visitors. Findings There appeared to differences in the strength and significance in the customer satisfaction model relationships for the four types of ski resort visitors indicating that the a priori managerial classification of the ski resort visitors is warranted. Originality/value The research pinpoints differences in the strength and significance in the relationships between customer-centric measures for four different types ski resort visitors, i.e. day, weekend and ski holiday visitors as well as season pass holders, which have significant managerial implications for the marketing practice of the ski resort.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durgesh Agnihotri ◽  
Kushagra Kulshreshtha ◽  
Vikas Tripathi ◽  
Pallavi Chaturvedi

PurposeThe purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).Design/methodology/approachA self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.FindingsThe findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.Practical implicationsThis study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.Originality/valueThis is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.


2017 ◽  
Vol 32 (7) ◽  
pp. 951-961 ◽  
Author(s):  
Colin B. Gabler ◽  
Raj Agnihotri ◽  
Omar S. Itani

Purpose The purpose of this paper is to investigate guilt proneness as a prosocial salesperson trait and its impact on outcomes important to the firm, the customer as well as the salesperson. Specifically, the authors look at how this variable relates to job effort and the indirect effects on customer satisfaction. The corollary purpose is to uncover how managers influence these constructs through positive outcome feedback. Design/methodology/approach Prosocial motivation theory grounds the conceptual model which the authors test through survey implementation. The final sample consisted of 129 business-to-business (B2B) salespeople working across multiple industries in India. Latent moderated structural equation modeling was utilized to test the proposed model. Findings The results suggest that guilt proneness positively influences the likelihood that a salesperson adopts a relational orientation, which has a direct effect on individual effort and an indirect effect on customer satisfaction. Supervisors have the ability to amplify this effort through positive outcome feedback, but only when relational orientation is low. Their support had no effect on salespeople with a high relational orientation. Originality/value The study is unique in that it combines an overlooked prosocial trait with a B2B Indian dataset. We provide value for firms because our results show that guilt-prone salespeople put more effort into their job – ”something universally desirable among sales managers” – through the development of a relational orientation. The authors also give practical implications on how to support salespeople given their level of relational orientation.


2019 ◽  
Vol 32 (2) ◽  
pp. 301-324
Author(s):  
Matti Haverila ◽  
Kai Haverila ◽  
Mehak Arora

Purpose The purpose of this study is to compare satisfied and non-satisfied customers in the context of wine tasting rooms using the SERVQUAL model and to examine the relationships in the model in terms of service experience to better understand customer needs. Design/methodology/approach The data used in this study were derived from a survey conducted among wineries in British Columbia, Canada. Analysis of survey results using the partial least squares structural equation modeling was undertaken. Sample size was 402. Findings The findings show that the SERVQUAL constructs that had the most impact on customer satisfaction and dissatisfaction were tangibility and assurance. Somewhat surprisingly, the perceived value for money construct was not significantly related to customer satisfaction but was significantly related to repurchase intent. Furthermore, all SERVQUAL constructs, except the reliability construct, were significantly related to customer satisfaction. Originality/value This study provides an overview of how wineries can improve their services to increase the number of satisfied customers.


2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon

Purpose – The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach – The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model. Findings – Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications – The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value – This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.


2020 ◽  
Vol 4 (1) ◽  
pp. 10-24
Author(s):  
Adhi Nurcahyo Achmad ◽  
Samsir Samsir ◽  
Yulia Efni

This study aims to see and determine the direct effect of the marketing mix on purchasing decisions and customer satisfaction. Research site at the Kimteng coffee shop Pekanbaru. The population in this study were all customers who made repeat purchases at the Kimteng coffee shop Pekanbaru. The sampling technique used was non-probability sampling using the simple random sampling method, because the sampling of members from the population was done randomly without paying attention to the strata in the population. Determining the number of samples 5 times the number of variable indicators as many as 30 are used. Thus, the number of samples to be studied in this study was 150 people. In this study, researchers will use SEM (Structural Equation Modeling) analysis. The results of this study indicate that there is a positive and significant influence between the marketing mix on purchasing decisions and there is a positive and significant influence between the marketing mix and purchasing decisions on customer satisfaction. Purchasing decisions are able to positively and significantly mediate between marketing strategies and customer satisfaction.


2019 ◽  
Vol 37 (5) ◽  
pp. 1215-1233 ◽  
Author(s):  
Kong YuSheng ◽  
Masud Ibrahim

Purpose The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana. Design/methodology/approach Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling. Findings The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty. Research limitations/implications This study offers theoretical support for the adoption of innovative techniques in service provision and delivery. Originality/value This paper provides an initial study into innovation management in financial services context in an emerging economy.


Sign in / Sign up

Export Citation Format

Share Document