scholarly journals Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude

2021 ◽  
Vol 13 (19) ◽  
pp. 10758
Author(s):  
Mohamed Albaity ◽  
Mahfuzur Rahman

Islamic banks have faced many challenges either from rivals or customers who look for better products and services. This study examined both the direct and mediating effects of selected variables influencing Islamic banks’ customer loyalty. The direct links were satisfaction, attitude towards Islamic banks, customer trust, and religious obligation to customer loyalty. On the other hand, the indirect links were through the mediators’ trust and attitude. A sample of 416 working Muslims in the UAE was collected and analysed. We used PLS-SEM techniques and the SmartPLS 3.0 software package to investigate customers’ loyalty towards Islamic banks. It was found that all the direct links were positive and significant, and were mediating relationships. This result implied that the respondent’s attitude toward Islamic banks and customer trust plays a significant role in understanding the relationship between customer satisfaction, religious obligation, and customer loyalty. In other words, both customer satisfaction and religious obligation indirectly created customer loyalty through the mediators. This study is one of the few studies that incorporate religious obligation as one of the determinants of customer loyalty.

2021 ◽  
Vol 7 (3) ◽  
pp. 637-650
Author(s):  
Saira Irfan ◽  
Iram Iqbal ◽  
Sumaira Iqbal ◽  
Fatima Bashir

Purpose: This study aims to examine the impact of Corporate Social Responsibility (CSR) image on customer satisfaction in the context of the banking sector of Pakistan. Further, the intervening role of customer trust and customer loyalty in the relationship between CSR image and customer satisfaction is also examined. Design/Methodology/Approach: Present research is quantitative in nature and collects the data through structured questionnaires. By employing the Smart PLS technique to test the proposed hypothesis. Findings: This study reveals the following salient findings: 1) the response of CSR image to customer satisfaction is positive (p<0.01); 2) customer trust and customer loyalty both significantly mediates the impact of CSR image on customer satisfaction. Implications/Originality/Value: Based on novel findings, the current study will help the organizations to realize the significance of CSR practices to enhance the customers’ satisfaction level.


2018 ◽  
Vol 10 (4) ◽  
pp. 94
Author(s):  
Iman Abdel Hamid Hasanin

The study aims to identify the nature of the relationship between the dimensions of corporate entrepreneurship and loyalty of customers. It intends to do that through the mediating role of customer satisfaction, by identifying the extent to which these dimensions apply according to the study the study, as well as the knowledge of the relationship quality. In order to meet the objectives of the study, a regular sample of 384 individuals was selected. These individuals were clients of the selected commercial banks, selected by customers who frequented the banks within a specified period of time. The study also found that there was a statistically significant correlation between corporate entrepreneurship and customer loyalty, which means that the greater the application of corporate entrepreneurship, the higher the effect of internal and external factors. The study suggests a set of recommendations to encourage banks in the study to apply CE to enhance customer loyalty.


2021 ◽  
Vol 3 (2) ◽  
pp. p1
Author(s):  
Mohammadali Shahbandi ◽  
Hessameddin Farrokhshad

The overall purpose of this study was to investigate the relationship between customer satisfaction and customer attitude and loyalty with respect to the mediating variable of customer trust. This research is applied research in terms of purpose and descriptive correlational research in nature and method. This study’s study population is all people who have used or are using Matin Abad Eco Camp. The number of samples was determined based on the Krejcie and Morgan sampling table equal to 120 people selected by a simple random sampling method. To collect information from standard questionnaires of customer satisfaction, attitude, customer loyalty, and customer trust in a 5-point Likert scale have been used. Cronbach’s alpha was used for its reliability, and the obtained numbers indicate the appropriate reliability of the questionnaires. SPSS 24 software and PLS structural equations were used for data analysis. The results indicate that customer satisfaction is related to customer attitude, customer loyalty, and customer trust. Customer trust is related to customer attitude and customer loyalty. The results also showed that customer trust has a mediating role in establishing the relationship between customer satisfaction with customer attitude, and customer loyalty.


2021 ◽  
Vol 8 (1) ◽  
pp. 1892256
Author(s):  
Ala’ Omar Dandis ◽  
Len Tiu Wright ◽  
Donna Marie Wallace-Williams ◽  
Ibrahim Mukattash ◽  
Mohammad Al Haj Eid ◽  
...  

Author(s):  
Sagir Muhammad Sulaiman ◽  
Muhammad Abdulaziz Muhammad ◽  
Aliyu Dahiru Muhammad ◽  
Tasiu Tijjani Sabiu

The world has become a global village as competition among banks is now intense. Globalization is fuelling increased competition in Nigerian banking industry and as a result, banks are challenged to adopt customer centred strategies that would enable them to gain customer loyalty, maximize profitability and survive the competition. There is no business that survives without customers’ patronage and Islamic banks are not an exception. Customers are key stakeholders to the survival of any business, thus, satisfying the customer through providing high quality services is core to Islamic banking business. The aim of the study is to examine the mediating role of customer satisfaction in investigating the relationship between service quality and customer loyalty in non-interest bank i.e. Jaiz Bank of Kano state metropolis, Nigeria. The variance based (SEM) technique is employed in analyzing the hypothesized model of the study. Service quality positively and significantly influences customer satisfaction and customer loyalty, whereas, customer satisfaction does not significantly mediate the relationship between service quality and customer loyalty among customers of Jaiz bank in Kano state metropolis, Nigeria. The study recommends for providing high quality service in order to achieved maximum loyalty from the customers. It was further recommended on the need for reviving of the existing regulatory bodies or institutions that will ensure proper implementation of good service quality delivery among non-interest banks in Nigeria.


2018 ◽  
Vol 2 (3) ◽  
pp. 34-38
Author(s):  
Arawati binti Agus

This study investigates the relationships between service quality determinants namely tangible, reliability, responsiveness, competency, courtesy and credibility, with customer satisfaction and loyalty in the context of Malaysian hypermarkets. The paper also investigates the mediating role of customer satisfaction and also determines whether location (from the strategic perspective) plays a significant moderating role in the customer satisfaction-customer loyalty linkage. The findings suggest that service quality has significant relationships with  customer satisfaction and customer loyalty measures. The result indicates that three service quality determinants specifically tangibles, courtesy and credibility demonstrate high associations with customer satisfaction and customer loyalty. The result suggests that customer satisfaction has significant mediating role in the relationship between service quality and customer loyalty. In addition, location moderates the linkage between customer satisfaction and customer loyalty in both directions. The findings suggest that a more strategic location of a hypermarket can strengthen the relationship between customer satisfaction and customer loyalty.


2016 ◽  
Vol 28 (4) ◽  
pp. 616-633 ◽  
Author(s):  
Jiwat Ram ◽  
Ming-Lu Wu

Purpose The purpose of this paper is to investigate the possible mediating role of switching cost (SC) in influencing customer loyalty (CL). Design/methodology/approach The authors derive a model containing the relationships between customer satisfaction (CS), brand image (BI), and CL through mediating effects of SC. Data collected from 200 subscribers of China Mobile was analysed using structural equation modelling technique. Findings The authors find that SC does not mediate the relationship between CS and CL, nor that between BI and CL. While both CS and BI have a direct and positive relationship with CL, only CS is positively associated with the SC. SC in itself has no direct relationship with CL, necessitating further understanding of its role. Research limitations/implications Prior findings have suggested the mediating role of SC, this study, however, show that SC does not have any mediating role in influencing CL. In fact, the direct role of SC is also questioned, as the authors do not find any direct relationship between SC and CL. Practical implications While managers should retain a balanced strategy for implementing SC, developing a strong BI and achieving CS is more important, and could help avoid any negative implications that may ensue from the implementation of SC. Originality/value This paper offers empirical evidence of the importance of SC – or rather lack of it – in enhancing CL. It also helps explain how SC interacts with CS and BI.


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