The Linkages Effect of Service Quality, Customer Satisfaction and Customer Loyalty of Automobile Financing within the Malaysia Islamic Banking Industry

2019 ◽  
Vol 16 (2) ◽  
pp. 31-47
Author(s):  
W Muhammad Zainuddin Wan Abdullah ◽  
Muhammad Iqmal Hisham Kamaruddin ◽  
Wan Nur Rahini Aznie Zainuddin
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Pearson Correlation ◽  
Islamic Banks ◽  
Bank Branches ◽  
Linkage Effect ◽  
Multiple Regression Technique ◽  
Trained Staff ◽  
Conventional Banks

Nowadays, Islamic banks are facing tough competition among themselves and conventional banks that offer services and banking products based on Islamic principles. Such competition leads to issue involving customer satisfaction regarding the Islamic financing products and the efficiency of the services offered. Thus, the aims of this paper is to investigate the linkage effect of service quality (efficiency) on customer satisfaction and customer loyalty of Islamic automobile financing in Malaysia. Survey data was collected from 584 walk-in customers of selected bank outlets in the state of Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya. The data was then analysed using Pearson Correlation and Multiple Regression technique. Results show that customer satisfaction and customer loyalty were positively affected by quality of service offered by Islamic Banks. Hence, based on the results, Islamic bank should have an effective computerised system, good legal advisory, Islamic compliance, well-trained staff, secure transaction, sufficient bank branches, and as well as sufficient facility and information in order to uplift and improve efficiency of the bank.

scholarly journals PENINGKATAN LOYALITAS NASABAH BANK SYARIAH MELALUI PENINGKATAN KUALITAS LAYANAN DAN KEPUASAN NASABAH DENGAN VARIABEL RELIGIUSITAS SEBAGAI VARIABEL MODERATING (Studi pada Bank Syariah di Kota Semarang)

2017 ◽  
Vol 7 (2) ◽  
pp. 141
Author(s):  
Nurhayati Nurhayati ◽  
Fatmasaris Sukesti
Keyword(s):  
Quality Of Service ◽  
Customer Satisfaction ◽  
Product Quality ◽  
Customer Loyalty ◽  
Islamic Banks ◽  
Long Time ◽  
Conventional Banks ◽  
Competitive Rivalry ◽  
Number Of Customers

<em>Competitive rivalry between conventional banks and Islamic banks make Islamic banks should be able to compete with conventional banks in providing good quality of service, product quality and customer satisfaction, thereby increasing the number of customers. Quality of service also can affect customer loyalty directly and indirectly. The quality of service and satisfaction to encourage customers to be loyal to a company's products and services that have an impact on the improvement of market share for a product. Quality of service and customer satisfaction, especially in service companies is very important in retaining customers in a long time. Quality of service and customer satisfaction will determine the performance of the company. Factors religiosity in Indonesia also played in determining and pushing for elections on islamic bank customers because the system for different results offered by the system of interest of conventional banks. These results indicate that the quality of service and level of customer satisfaction and religiosity jointly effect on customer loyalty. Quality of service and customer satisfaction levels also have an effect on customer loyalty which variabels most influence on customer loyalty is the degree of religiosity.</em>

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.

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. 

scholarly journals PENGARUH ISLAMIC MARKETING TERHADAP KEPUASAN DAN LOYALITAS NASABAH PADA BANK MUAMALAT CABANG MALANG

2021 ◽  
Vol 4 (2) ◽  
pp. 239
Author(s):  
Langgeng Setyono
Keyword(s):  
Customer Satisfaction ◽  
Market Share ◽  
Customer Loyalty ◽  
Banking Industry ◽  
Sampling Technique ◽  
Islamic Banks ◽  
Muslim Population ◽  
Conventional Banks ◽  
Islamic Values ◽  
Customer Satisfaction And Loyalty

Indonesia is a country with a majority Muslim population. In the context of Indonesian’s, Muslims constitute a very large market share for marketing products, especially Islamic products. One of the products based on Islamic values is Islamic Bank. In Indonesia, Bank Muamalat is the first bank in existence. With such a large Muslim population, on the other hand, Islamic banks do not hold market share in the national banking industry. Islamic banks lag behind other conventional banks. Therefore, a strategy is needed to increase that market share. Islamic marketing is a strategy that can be used to increase customer satisfaction and loyalty at Bank Muamalat Indonesia.This research is an explanatory research with a quantitative approach. The sampling technique used in this study was purposive sampling. Respondents in this study were 120 people. The Machin and Campbell formula is used to determine the number of respondents. The objectives of this study are (1) to determine the effect of Islamic marketing on customer satisfaction; (2) to determine the effect of Islamic marketing on customer loyalty; (3) To determine the effect of customer satisfaction on customer loyalty.The results of this study are (1) Islamic marketing has a significant effect on customer satisfaction; (2) Islamic marketing has a significant effect on customer loyalty; and (3) Customer satisfaction has a significant effect on customer loyalty. So that Bank Muamalat in increasing customer satisfaction and loyalty needs to improve the existing indicators in Islamic Marketing

Incorporating Attitude towards Islamic Banking in an integrated Service Quality, Satisfaction, Trust and Loyalty Model

2014 ◽  
Vol 1 (1) ◽  
pp. 456 ◽  
Author(s):  
Muhammad Rizwan ◽  
Ghulam Yaseen ◽  
Ashraf Nawaz ◽  
Lal Hussain
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Positive Impact ◽  
Islamic Banking ◽  
Consumer Attitude ◽  
Islamic Banks ◽  
Banking Services ◽  
Perceived Service Quality ◽  
Customer Trust

The Islamic banking is an emerging concept and has gained valuable acceptance not only in the Islamic countries but all over the world and has a visible growth. The purpose to conduct the current study is to empirically check the effect of consumer attitude towards Islamic banking on the customer’s perceived service quality regarding banking services and customer satisfaction with banking services. The proposed research model also investigate the relationships among variables like perceived service quality, customer satisfaction, customer trust and customer loyalty. A survey questionnaire was designed for data collection from the respondents that are the regular users of Islamic banks in Bahawalpur, Pakistan. The method used to collect data was convenience sampling in order to collect data from customers of 4 Islamic banks in Bahawalpur that are Meezan Bank, Bank Islami, Dubai Islamic Bank, and Bank Al-Baraka. Total 200 questionnaires were distributed out of which 163 were collected. Out of 163 collected questionnaires, 157 were in the usable form and used for the final analysis (Regression) using SPSS Ver.20. The results of the study show that attitude towards Islamic banking has a positive impact on the perceived service quality and customer satisfaction regarding the Islamic banking services. Moreover, the results also suggest that perceived service quality also influences customer satisfaction positively, customer satisfaction has positive impact on customer trust and customer loyalty. Furthermore, customer trust also influences customer loyalty positively. The current study enhances the understanding regarding the customer satisfaction, customer trust and customer loyalty and their determinants.

scholarly journals PENGARUH KUALITAS LAYANAN DAN PENANGANAN KELUHAN TERHADAP KEPUASAN DAN LOYALITAS NASABAH BANK UMUM SYARIAH DI SURABAYA

2018 ◽  
Vol 15 (2) ◽  
pp. 210-231
Author(s):  
Anindhyta Budiarti
Keyword(s):  
Quality Of Service ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Significant Influence ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Banking Business

In the service industry is not only a problem in the quality of service only, other issues that need to be considered is how the handling of complaints from users. Of the complaints handling problems can be used as a measure of quality products and services offered. Thus expected to create satisfaction as well as create user loyalty. Similarly, in the banking business after the economic crisis that occurred in 1997. Banking business demanded proactive to enhance service quality and also in the handling of complaints to the customer who is expected to increase customer satisfactionand loyalty. The purpose of this study is Proving and analyze (1) the influence of service quality on customer satisfaction, (2) the influence of the handling of complaints against customer satisfaction, (3) the influence of customer satisfaction on customer loyalty, (4) the influence of service quality on customer loyalty and (5) influence the handling of complaints against customer loyalty Islamic banks in Surabaya. This research was conducted on Islamic banks in Surabaya. This type of research used in this research is the kind of explanatory research. Respondents in this study are customers of Islamic banks in Surabaya. The number of respondents who researched as much as 150 respondents. The analytical tool used in this study is structural equation modeling (SEM). The analysis showed that service quality has a significant influence on satisfaction. Handling complaints have a significant impact on customer satisfaction. Satisfaction has a significant influence on customer loyalty. Service quality has a significant effect on loyalty. Handling complaints have a significant impact on customer loyalty. Customer satisfaction can be improved by improving the quality of service and complaint handling.

The influence of food trucks' service quality on customer satisfaction and its impact toward customer loyalty

2020 ◽  
Vol 122 (10) ◽  
pp. 3213-3226
Author(s):  
Bagyalakshmi Gopi ◽  
Nusrah Samat
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Customer Loyalty ◽  
Pearson Correlation ◽  
Content Type ◽  
Food Trucks ◽  
Correlation And Regression Analysis ◽  
Influence Of Food ◽  
Service Standards

PurposeService quality has been highlighted as the vital element in fulfilling customers' needs, which contributes to the customers' evaluation on the services given. As food truck business is increasingly popular in Malaysia, it is important for the food trucks' service provider to ensure that their service quality meets the standard to satisfy the customers in order to build customer loyalty. Therefore, the aim of this study is to investigate the relationship between food trucks' service quality with customer satisfaction and its impact toward customer loyalty. The customer service was measured using service quality (SERVQUAL) attributes (tangibles, reliability, responsiveness, assurance and empathy).Design/methodology/approachA quantitative study was conducted to examine the influence of food trucks' service quality on customer satisfaction and its impact toward customer loyalty. A total of 100 food truck customers have been randomly selected to answer the self-administered questionnaire. Data collected were analyzed using frequency, descriptive, reliability, Pearson correlation and regression analysis.FindingsFindings indicated that three out of five attributes of service quality have significant relationships toward customer satisfaction. They are tangibles (β = 0.225, p < 0.05), reliability (β = 0.349, p < 0.05) and assurance (β = 0.311, p < 0.05). Moreover, the customer loyalty (β = 0.643, p < 0.01) has a significant relationship with customer satisfaction.Originality/valueService quality can be characterized as the discrepancy between customer service standards and actual service. When expectations are higher than performance, perceived quality is less than acceptable and therefore consumer disappointment exists which eventually decreases customer loyalty toward a product or services. The study suggested that physical image of the food trucks' service like physical facilities, how the service being performed and also courtesy and knowledge of the food trucks' employees are very important to transfer confidence and trust to customers, which then will influence them to be loyal.

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.

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