scholarly journals Impact of Islamic Motives, Customer Profitability and Service Quality on Customer Satisfaction from Islamic Banks

2021 ◽  
Vol 3 (1) ◽  
pp. 75-87
Author(s):  
ARSHAD KHAN ◽  
SAYYAM ◽  
ABDUR RAHMAN
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Strong Predictor ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Customer Profitability ◽  
Alpha Reliability ◽  
Reliability Methods ◽  
Relationship Of

Success of any Islamic banks greatly depends on consumers, so Islamic banks need to create ethical environment, where perception of Islamic banks are carefully developed. The persistence of this is explained the nature and pervasiveness of Islamic banking and to pinpoint the linkage between consumer’s satisfaction and banks performance in Pakistani Islamic banks. And also make out that customer preferred Islamic banks. Islamic banks sector was selected for the research, In order to obtain the required objectives, From Meezan bank and Bank Islami, Nowshera we selected 137customer’s, and data was collected from them through a well-designed questionnaire. SPSS (17.0) were used for analyze togetherthe data. The Cranach’s Alpha () Reliability methods were used to test the reliability of data. Findings exposed that there was significant and up relationship of ISLAMIC banks performance with customer’s satisfaction. So Islamic bank is strong predictor of customer’s fulfillment and determination of C’S depends upon on the Islamic banks performance of relationship.

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.

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 Customer satisfaction in the digital era: evidence from Islamic banking

2020 ◽  
Author(s):  
Ghazi zouari ◽  
Marwa Abdelhedi
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Five Dimensions ◽  
Islamic Bank ◽  
Digital Era ◽  
The Impact

Abstract PurposeBased upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approachTwo dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.FindingsThe factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implicationsAlthough the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively small sample size in one country (Tunisia). This limits the generalizability of the study results. It might also be useful to enlarge the study sample and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction.Managerial implications:To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/valueThis study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia’ laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

The impact of customer service quality on customer satisfaction in Islamic banking

2017 ◽  
Vol 8 (4) ◽  
pp. 595-604 ◽  
Author(s):  
Mohamed Abdulnaser Janahi ◽  
Muneer Mohamed Saeed Al Mubarak
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Banking Sector ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Impact

Purpose The purpose of this paper is to contribute to the Islamic banking literature by examining the impact of different factors of customer service quality on customer satisfaction. Design/methodology/approach The paper presents a model which is not frequently used in Islamic banking literature and shows relationships between six factors of customer service quality and customer satisfaction in the Islamic banking sector. Customers of five main Islamic banks are contributing in this study. Findings This paper demonstrates strong and positive relationships between the six main dimensions of customer service quality (Compliance, Assurance, Reliability, Tangibility, Empathy and Responsiveness) and customer satisfaction. Research limitations/implications The study may suffer from lack of generalization, as it is conducted in one country (Bahrain). It might also be useful to enlarge the study sample and include comparison between Islamic versus conventional banking with regard to service quality and customer satisfaction. Practical implications This paper can influence the current Islamic banks with regard to service quality with an ultimate aim of increasing customer satisfaction and retaining customers. Originality/value This study is one of the few that focus on effects of customer service quality dimensions on customer satisfaction in the Islamic banking sector. It reveals that, although customers pay special attention to Sharia’h laws (compliance) in their transactions with banks, the way services are delivered matters to them too.

Measuring the effects of service quality by using CARTER model towards customer satisfaction, trust and loyalty in Indonesian Islamic banking

2019 ◽  
Vol 10 (1) ◽  
pp. 269-289 ◽  
Author(s):  
Abu Amar Fauzi ◽  
Tatik Suryani
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Islamic Banking ◽  
Content Type ◽  
Key Driver ◽  
Customer Trust ◽  
Relationship Of ◽  
The Relationship ◽  
Practical Implications ◽  
Carter Model

PurposeThere are two primary objectives of the research. Firstly, the study aims to explore the service quality dimension of Indonesian Islamic banking using a CARTER model. Secondly, the study aims to examine the relationship of service quality towards customer satisfaction, trust and loyalty in Indonesian Islamic banking.Design/methodology/approachThe conceptual framework of the study will be examined using the PLS–SEM approach. Then, it will be examined using the 392 collected data from Indonesian Islamic banking customer in Surabaya.FindingsReliability becomes a key driver of customer satisfaction towards Indonesian Islamic banking. Then, customer loyalty will improve more significant if the Indonesian Islamic bank can firstly improve its customers trust.Research limitations/implicationsThe research results are questionable to represents Indonesia in general because all the sample of the research is Islamic banking customers in Surabaya, East Java Province.Practical implicationsUpdating with the newest technology in delivering integrated products or services will lead Indonesian Islamic banking satisfying its customer more. Then, Indonesia Islamic banking should develop the capability of human resources related to banking skills and understanding of Islamic principles to increase customer trust.Originality/valueThis research is essential in complementing the previous research regarding the level of contribution of compliance in Indonesia Islamic banking. Then, the research discusses how compliance becomes an essential part of service quality that could increase the market share of Indonesian Islamic banking by enhancing the level of customer trust.

scholarly journals The The Effect of Service Quality and Product Quality on Customer Satisfaction of Islamic Banks with Customer Awareness as an Intervening Variable in Islamic Banks West Sumatera, Indonesia

2020 ◽  
Vol 8 (1) ◽  
pp. 682-690
Author(s):  
Yulfis Wandi ◽  
Veithzal Rivai Zainal ◽  
Willy Arafah ◽  
Iwan Kurniawan Subagja ◽  
Ram Al Jaffri Saad
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Product Quality ◽  
Financial Services ◽  
Survey Methods ◽  
Public Awareness ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks

Purpose of the study: This study is to examine the effect of service quality and product quality of Islamic banks on customer satisfaction through customer awareness as a variable intervening in Islamic Banking in West Sumatera. Methodology: In this study, a model with five parameters with 20 questions was used, so the minimum number of respondents for this study sample was 100 respondents. The data used study are primary data collected using survey methods through the distribution of questionnaires directly to respondents. Data analysis used with path analysis. Main Findings: The results showed that the indirect effects of service quality and quality of Islamic bank products on customer satisfaction through awareness had a positive and significant relationship. They also revealed that consumers are aware of Islamic banking products and services. The reason they chose Islamic banks was because of profitability and religious principles. As a result of this finding, it can help the Islamic banking industry in its efforts to formulate promotional policies that are suitable for attracting more banking customers. Research limitations/implications: The results of this study are expected to encourage and motivate the management of Islamic banks in West Sumatra to further improve product quality and service quality to the wider community so that it will further increase public awareness and understanding of Islamic banks. Novelty/Originality of this study: Islamic banking management needs to know how to look after their customers, even though they appear to be satisfied, but the level of competition in the financial services industry is greater than before, so as a menu of banking services companies must increasingly improve their services in proportion to the needs of customers.

scholarly journals AN EXPLORATION OF CUSTOMERS’ SWITCHING BEHAVIOR IN ISLAMIC BANKING INDUSTRY

2017 ◽  
Vol 2 (2) ◽  
pp. 251-286
Author(s):  
Ali Rama
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Industry ◽  
Service Failure ◽  
Switching Behavior ◽  
Survey Method ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Customer Switching

The existence of the switching behavior among Islamic bank customers may affect to the survival of the Islamic banks of the country. Switching behavior is mostly as an outcome of the negative service experience that may be related to several factors. The purpose of the study is to provide an insight of the drivers that lead to a bank customer switching behavior from one Islamic bank to another bank. The study employed survey method through questionnaire instrument and distributed to Islamic banking customers in several areas of Banten Province, Indonesia. The result of statistical analysis shows that customer satisfaction, service quality, shariah compliance, prices and involuntary switching have their significant effect on customers’ switching behavior in the Islamic banks. However, service failure and advertisement are not statistically significant in driving bank switching. Therefore, the Islamic bank manager should shape their business model around customers’ needs and focuses operational improvements on customers’ most valued interactions.  Keywords: Switching behavior, Customer satisfaction, Service quality, Shariah compliance, PricesJEL Classification: G14, G20, G21, M30, D10

scholarly journals Assessing the Service Quality and Customer Satisfaction on Islamic Banking by Using SERVQUAL Model

2019 ◽  
Vol 10 (2) ◽  
pp. 79
Author(s):  
Muhammad Zulfaris Mohd Salleh ◽  
Azwan Abdullah ◽  
Noorshella Che Nawi ◽  
Mohd Zulkifli Muhammad
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Industry ◽  
Social Scientist ◽  
Sampling Technique ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Five Dimensions ◽  
The Relationship

The quality services demanding by Islamic bank’s customers are increased due to the increasing of customer’s awareness on the quality services in Islamic banks. In evaluating the service quality, SERVQUAL instrument that divided by five dimensions which is reliability, responsiveness, tangibility, assurance and empathy will be used. So that, the main objective of this research is to investigate the impacts of (reliability, responsiveness, tangibility, assurance, empathy) on the satisfaction of the customer in the Islamic banking industry. The questionnaires are designed by adapting SERVQUAL model then distributed by employing the convenient sampling technique. Then, the data analysed using Statistical Package for Social Scientist (SPSS). The result indicated the relationship between assurance and empathy are very significance on customer satisfaction while reliability, responsiveness and tangibility are not significance on customer satisfaction.

Customer perception regarding Sharī‘ah compliance of Islamic banking sector of Pakistan

2016 ◽  
Vol 7 (4) ◽  
pp. 282-303 ◽  
Author(s):  
Lutfullah Saqib ◽  
Muhammad Aitisam Farooq ◽  
Aliya Mueen Zafar
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Public Awareness ◽  
Interactive Effect ◽  
Islamic Banking ◽  
Main Stream ◽  
Islamic Banks ◽  
Content Type ◽  
The Impact

Purpose This paper aims to analyze the impact of Sharī‘ah compliance perception on customer satisfaction in Islamic banking sector of Pakistan. Design/methodology/approach Primary data were collected from 242 account holders of Islamic banks and Islamic banking branches of conventional commercial banks and analyzed by correlation and regression through self-administered questionnaires based on SERVQUAL model. Findings Significant moderating effects of Sharī‘ah compliance perception on the relation between service quality and customer satisfaction have been identified. Research limitations/implications As a cross-sectional study with convenience sampling restricts generalizability and because financial benefits offered by banks were not included as a variable, the scope of this study is limited to service quality only. Future research may focus on the moderating effect of Sharī‘ah compliance perception through longitudinal study with larger sample size in a multi-cultural environment. Practical implications Results of this paper recommend Islamic banks to focus on their core strength “Sharī‘ah compliance” while developing their product/service and building marketing strategies. Moreover, assurance of high-quality services will sustain such strategies against competition with conventional banks. Social implications Islamic banks must primarily develop their brand through extensive communication and public awareness programs regarding Sharī‘ah compliance standards in terms of products/services, policy/procedures, code of conduct and Sharī‘ah board. Originality/value This research examines moderating role of Sharī‘ah compliance perception between service quality and customer satisfaction in Islamic banking sector of an Islamic Republic with dual banking system. This interactive effect of Sharī‘ah compliance perception has not been found as an overriding theme in any of the main stream journals/articles. Therefore, this study fills this gap.

Customer perceived service quality and loyalty in Islamic banks

2016 ◽  
Vol 28 (1) ◽  
pp. 62-78 ◽  
Author(s):  
Muhammad Kashif ◽  
Mohsin Abdur Rehman ◽  
Lina Pileliene
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Cultural Context ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Cultural Perspective ◽  
Content Type

Purpose – There is a plethora of research which has dealt with service quality issues in various service organizations. But a few researchers have presented state of service quality from a cultural perspective, especially within an Asian cultural context. The purpose of this paper is to measure service quality of Pakistani Islamic banks through validating a culturally sensitive scale: PAKSERV. Furthermore, the path from service quality to customer loyalty has been presented through applying PAKSERV service quality scale. Design/methodology/approach – Following a positivist tradition, the service quality to loyalty path in Islamic banking sector of Pakistan is established. A self-administered survey was conducted to approach 300 Islamic bank customers in major cities of Pakistan. The respondents were purposefully selected based on their extent of using the retail banking services. The data were analysed through employing various quantitative measures such as correlation and structural equation modelling employing AMOS. Findings – The findings reveal that Pakistani Islamic banking customers are satisfied with the service quality offered. All the dimensions of PAKSERV are found to significantly contribute towards customer satisfaction and loyalty. However, major focus of customer is on the dimensions such as responsiveness and sincerity which are understandable in high-risk avoiding and moderately power-oriented Pakistani society. Originality/value – The research has been first of its type to present the validity of PAKSERV scale in a collectivist cultural context of Pakistan. Furthermore, the path from the customer satisfaction to loyalty by employing PAKSERV scale has been presented for the first time.

Sign in / Sign up

Export Citation Format

Share Document