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.

Loyalty towards Islamic banking: service quality, emotional or religious driven?

2019 ◽  
Vol 11 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Dwi Suhartanto ◽  
Christopher Gan ◽  
Ira Siti Sarah ◽  
Setiawan Setiawan
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Islamic Banking ◽  
Emotional Attachment ◽  
Islamic Banks ◽  
Content Type ◽  
Perceived Service Quality ◽  
Islamic Bank ◽  
Bank Managers

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

scholarly journals Influential Factors on Customer Loyalty of La Moosh (Café), Hyderabad, Pakistan: An Empirical Approach

2020 ◽  
pp. 15-25
Author(s):  
Zuhaib Khokhar ◽  
Ramima Khokhar
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Brand Image ◽  
Positive Impact ◽  
Influential Factors ◽  
Independent Variables ◽  
Strongly Agree ◽  
Customer Trust ◽  
Relationship Of

Customers are the kings of any enterprise. They are considered as the backbone behind the triumph of a company. This is the quantitative and correlational research in nature. It aims at identifying the most influential factors or elements that can bring about impacts on customer loyalty. The most influential factors came out to be our service quality, customer satisfaction, customer trust and brand image have an impact on the loyalty of customers. The elements like service quality, customer satisfaction, customer trust and brand image are independent variables, whereas the dependent variable only includes customer loyalty. The targeted population is comprised of all those people and customers who visit La Moosh (Café), Hyderabad, Pakistan. For a collection of data, a closed-ended 5-point likert scale was established (from strongly disagree to strongly agree). A sample of 250 questionnaires was distributed and administered in IBM SPSS version 25. Three major tests are entertained for analysis such as factor analysis, reliability analysis (Cronbach’s Alpha) test and regression analysis test. Findings show that there is a significant and direct relationship of independent variables including service quality, customer satisfaction, customer trust and brand image on the dependent variable i.e. customer loyalty on La Moosh, Hyderabad, Pakistan. Therefore, it was recommended to enhance all the variables (service quality, customer satisfaction, customer trust and brand image) that have a significant positive impact on customer loyalty.

scholarly journals Factors Affecting Customer Loyalty in Banking Sector of Hyderabad, Pakistan: A Study on Conventional and Islamic Banking

2019 ◽  
pp. 1-16
Author(s):  
Zuhaib Khokhar ◽  
Iqra Laghari ◽  
Muhammad Qasim Lakhani
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Brand Image ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Islamic Banking ◽  
Independent Variables ◽  
Customer Trust

Customers are the prime means for any company or an organization to be successful. Customer loyalty plays a very crucial role in the success of an organization. This research is based on identifying the factors that affect the loyalty of customers in Conventional and Islamic Banking. A sample of 200 respondents were selected which further classified into Conventional and Islamic Banking. There were 143 respondents of conventional banking (including 80 male and 63 female), whereas Islamic banking includes 57 respondents in which male and female accounts for 37 and 20 respectively. The data was collected using Convenience Random Sampling Technique and then transacted into software known as IBM SPSS Statistics version 21. Major four (4) tests were done such as Factor Loading (Confirmative Factor Analysis: CFA), Reliability (Cronbach’s Alpha), t-Test and finally Linear Regression Analysis. There are two (2) variables such as Independent Variables and Dependent Variable. Independent Variables include service quality, customer satisfaction, customer trust, and brand image. Dependent Variable includes only customer loyalty. The data was collected using questionnaire as an instrument for collecting data; the questionnaire contains both closed-ended and open-ended questions. There are five (5) construct in the study and each possesses five (5) items and open-ended questions contain three (3) questions. Data was analyzed using the SPSS software. The results show that there is positive significant relationship of service quality, customer satisfaction, customer trust, and brand image on customer loyalty of both conventional and Islamic banking. Based on findings, it was recommended to prohibit interest (Riba) from banking sectors whether they are conventional or Islamic, there is a need to train employees to behave properly with their customers, and time incurred in transactions should be improved and counters should be increased because of rush of people in banks.

The impact of Islamic Shariah compliance on customer satisfaction in Islamic banking services: mediating role of service quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Selim Ahmed ◽  
Muhammad Mohiuddin ◽  
Mahfuzur Rahman ◽  
Kazi Md Tarique ◽  
Md. Azim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Mediating Effect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of Islamic Shariah compliance on customer satisfaction through the mediating effect of service quality in Islamic banking services. Design/methodology/approach A total of 334 completed and usable questionnaires were collected from customers of Islamic banks in Bangladesh to test the hypotheses. The data were analyzed using SmartPLS 3. Findings The findings of this study indicate that Islamic Shariah compliance has a positive and significant influence on service quality and customer satisfaction of Islamic banking services. The research findings also indicate that service quality partially mediate the relationship between Islamic Shariah compliance and customer satisfaction of Islamic banking services. Research limitations/implications This study only emphasized on the Islamic banking services of Bangladesh and thus findings of the present study may not be applicable to other service areas. Practical implications The implications of the research are twofold. First, a strong standardized effect of Islamic Shariah compliance on service quality implies that customers are very sensitive to Shariah compliance related to Islamic banking services. Next, maintaining service quality is another crucial aspect to satisfy customers of Islamic banks. Quality of services will only be materialized when all the promises made by the bank function accordingly. Therefore, strategy makers of Islamic banks should assess the customer service quality and satisfaction regularly to improve the overall service experience of customers. Originality/value Limited studies have been conducted to investigate the mediating effect of service quality on the relationship between Shariah compliance and customer satisfaction in Islamic banking services. This study provides valuable insights to Islamic bank to integrate the service quality along with Shariah compliance to enhance customer satisfaction.

scholarly journals Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman

SAGE Open ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 215824402091951 ◽  
Author(s):  
Bashir Ahmad Fida ◽  
Umar Ahmed ◽  
Yousuf Al-Balushi ◽  
Dharmendra Singh
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Significant Relationship ◽  
Positive Impact ◽  
Study Data ◽  
Islamic Banks ◽  
Sultanate Of Oman ◽  
Relationship Of ◽  
The Impact

This study attempts to examine the impact of service quality on customer loyalty and customer satisfaction using the SERVQUAL model for four main Islamic banks in the Sultanate of Oman. This is a quantitative nature of a study, which involved a structured, self-administered questionnaire based on a convenience sampling method gathering data from 120 customers of Islamic banks in Oman. The study data were analyzed using SPSS, and the reliability coefficient (Cronbach’s alpha) was established. The correlation analysis examined the significant relationships among the study variables. The impact of service quality dimensions on customer satisfaction was captured through regression analysis. The key findings of the study revealed that the respondents showed on average an “Agree” response in the five areas, namely, tangibles, responsiveness, reliability, assurance, and empathy. The correlation results depicted a significant relationship between the three variables: service quality, customer satisfaction, and customer loyalty. Similarly, regression results demonstrated that empathy and responsiveness dimensions have a significant positive impact on customer satisfaction. It is, therefore, recommended that banks should focus more on empathy and responsiveness considering the significant relationship of these two variables on customer satisfaction. However, banks should not neglect the importance of other variables such as reliability, assurance, and tangibles that are revealed as important by responses of the participants for the bank’s provisions.

The Determinants of Service Quality and Its Impact on Customer Satisfaction (A Survey of Islamic Banks Customers in Indonesia)

2017 ◽  
Vol 2 (4) ◽  
pp. 36-45
Author(s):  
Salamah Wahyuni ◽  
Arif Lukman Santoso ◽  
Yacob Suparno
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Descriptive Analysis ◽  
Personal Characteristics ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Automatic Teller Machine

Objective - This study examines the factors affecting the quality of Islamic banking services in Indonesia, and its impact on customer satisfaction. Methodology/Technique - Questionnaires were distributed to 300 people, with 286 respondents having completed and returned the questionnaires. A descriptive analysis was conducted to ascertain the elements of Islamic banking services. Further, multiple regression analysis was used to analyze the influence of the quality of Islamic banking services on customer satisfaction. The results show that all elements of banking services are not in accordance with the expectations of the respondents as customers, particularly with respect to Automatic Teller Machine ('ATM') services. Findings - The results show that, with respect to all elements examined, the value of expectations was higher than the service received by customers. In addition, not all of the study hypotheses were accepted. The expectations of banking services were not influenced by Word of Mouth ('WOM'), personal characteristics or experience. Further, the source of information obtained, the age or income of the respondents, and their education and experience, did not have an affect on the expectations of Islamic banking services. Novelty - A high quality of Islamic banking services significantly affects customer satisfaction. In an effort to improve services in that industry, Islamic banking in Indonesia would benefit from placing more attention on all elements of the services provided to customers, particularly ATM services. Further, based on the findings of this study, the elements of customer service should be addressed regardless of the characteristics of the customers, such as age, income, education or experience. Type of Paper - Empirical Keywords: Service Quality; Customer Satisfaction; Islamic Banks; Indonesia. JEL Classification: G20, G21, G29.

Customer satisfaction with sommelier services of upscale Chinese restaurants in Hong Kong

2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Content Type ◽  
The Impact

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.

scholarly journals Measuring Customers Loyalty of Islamic Banking in Bahawalpur Region

2012 ◽  
Vol 2 (2) ◽  
pp. 101 ◽  
Author(s):  
M. Taimoor Hassan ◽  
Bilal Ahmed ◽  
Saleem Ahmed ◽  
Umair Habib ◽  
Saim Riaz ◽  
...  
Keyword(s):  
Customer Loyalty ◽  
Financial Services ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Basic Purpose ◽  
Customer's Loyalty ◽  
Conducting Research ◽  
Viable Model

Purpose: The basic purpose of measuring the customer’s loyalty in Islamic banking in Bahawalpur region is their long term commitment.Design/methodology/approach: This research has been conducted utilizing the actual data with the help of a questionnaire based on the literature extensively written on Islamic banking services, to develop a viable model to explore the attributes which lead towards the customer loyalty in utilizing the financial services of Islamic banks in Bahawalpur region. A new dimension is added by conducting research on customer’s loyalty in Islamic banking in Bahawalpur region, taking sample of 125 respondents from 20 banks operating in Islamic banking services of this region.Findings: Factors abstracted from the customers loyalty are, customers satisfaction, switching cost, customers perception, success philosophy and trust and commitment. It is found that these factors significantly affect the customer’s loyalty in Islamic banking and are greatly associated with the customer’s loyalty.Research limitations/ implication: Only available material is studied in spite of all the material and research is implicated in Bahawalpur region only.  The sample size is small to only 125 respondents but the results are implicated on overall customer’s loyalty in Islamic banking.Practical implications: Pakistani banks are needed to take initiative in creating awareness about Islamic banking and providing more effective services.Originality/ value: This is one of the very first researches on customers loyalty in Islamic banking conducted in Bahawalpur region and could be very useful for countries adopting Islamic banking.Key words: Customers loyalty, Islamic banking.

scholarly journals Pengaruh Kualitas Layanan Terhadap Kepuasan, Kepercayaan Dan Loyalitas Pelanggan Travel Agent Di Kabupaten Badung

2020 ◽  
Vol 2 (2) ◽  
pp. 133-151
Author(s):  
Ni Luh Indiani
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Partial Least Square ◽  
Travel Agent ◽  
Travel Agents ◽  
Insignificant Effect ◽  
Customer Trust ◽  
Online Travel ◽  
Online Travel Agents

The development of increasingly advanced technology has an important influence in the tourism service industry, namely the utilization of internet technology in the process of booking tour and travels through online travel agents. Conventional travel agents are increasingly being abandoned as travelers turn to online travel agents. Under these conditions conventional travel agents need to make a number of efforts to keep customers in order to survive. This study aims to analyze the effect of service quality on satisfaction, trust and loyalty of travel agent customers in Badung regency.Research respondents are domestic and foreign customers who use travel agent services in Badung regency, as many as 70 respondents. Data collection was done through survey using questionnaire. Testing research hypothesis using Partial Least Square (PLS).The result of the research shows that 1) the quality of service has positive and significant effect to customer satisfaction, trust and loyalty, 2) customer satisfaction has positive and insignificant effect to customer loyalty, 3) customer trust has negative and insignificant effect to customer loyalty, 4) satisfaction and customer trust does not mediate the influence of service quality on customer loyalty.Travel agent in Badung regency should improve and pay attention to the indicators supporting the satisfaction, trust and customer loyalty so that customers are not easy to switch to competitors.

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