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

Author(s):  
Zuhaib Khokhar ◽  
Iqra Laghari ◽  
Muhammad Qasim Lakhani

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.

Author(s):  
Zuhaib Khokhar ◽  
Ramima Khokhar

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.


2020 ◽  
Vol 9 (1) ◽  
pp. 14
Author(s):  
Alo Rahmawati Mulyana ◽  
Hendro Setyono

 The aim of study is to  analyze about effect  product  quality  and  service  quality  on customer’s satisfaction to build customer’s loyalty at Waroeng Spesial Sambal “SS” in the branch of Veteran Yogyakarta. Population in this study are all consumers who make  purchases at Waroeng Spesial Sambal “SS” the branch in the  branch of Veteran Yogyakarta. While the sample  in  this  study  is a portion of consumers who have  made  purchases at least twice in the past year. The sampling technique uses purposive sampling. The data  used in this study is primary data. The number  of studies  in  this  study were  sixty  samples  in  the  city of Yogyakarta which  were processed  using  multiple linear regression  analysis  and mediation analysis  using SPSS 20 for windows. The results of the analysis in this study are: product quality dosen’t have a significant effect on customer satisfaction,  service quality has a significant effect on customer satisfaction, customer satisfaction doesn’t have a significant effect on customer loyalty, product quality  dosen’t  have a significant  effect on  customer loyalty and service quality has a significant effect on customer loyalty of the two independentvariables dosen’t indicate a mediating  relationship  with  customer  satisfaction as a mediator variable.


MANAJERIAL ◽  
2018 ◽  
Vol 4 (2) ◽  
pp. 41
Author(s):  
RETNO AYU MULFI

This study aims to examine the effect of Service Quality, Brand Image and Customer Satisfaction on Logistics Customer Loyalty at PT. Tiki Track Nugraha Ekakurir (JNE) in the City of Gresik. Then a literature review and the preparation of hypotheses were carried out, data were also obtained from questionnaires on 96 Gresik people who had used PT. Tiki Nugraha Ekakurir Line (JNE) using nonprobability sampling technique. Testing is done using multiple linear regression. The results of the analysis show that service quality significantly affects customer loyalty, brand image significantly influences customer loyalty and customer satisfaction significantly influences customer loyalty.


Author(s):  
Muhammad Rizwan ◽  
Ghulam Yaseen ◽  
Ashraf Nawaz ◽  
Lal Hussain

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.


2020 ◽  
Vol 3 (2) ◽  
pp. 111-122
Author(s):  
Muhammad Randi Satrio ◽  
Chalil Chalil ◽  
Ira Nuriya Santi

The  purpose  of  this  research  is  to  test  and  analyze  1)  Influence  simultaneously  variable  of satisfaction and trust to customer loyality of Two Princess Restaurant in Matano Sub-District of Bungku Tengah District. 2) Partial influence of customer satisfaction variable on customer loyalty Two Putri Restaurant in Matano Village, Central Bungku District. 3) Partial influence of customer trust variable on customer loyalty of Two Princess Restaurant in Matano Sub-district of Bungku Tengah District. This type of research is descriptive causally. Sampling technique using Purposive Sampling, obtained sample of 60 respondents. Data analysis technique is multiple linear regression analysis. The results showed that based on the results of Test F, customer satisfaction variables and customer trust simultaneously have a positive and significant impact on customer loyalty Two Putri Restaurant in Matano Village, Central Bungku District. Partially, customer satisfaction variable (X1) has a positive and significant influence on customer loyalty of Two Putri Restaurant in Matano Village, Central Bungku District. The variable of customer trust (X2) has a positive and significant impact on customer loyalty of Two Princess Restaurant in Matano Sub-district, Bungku Tengah District. Tujuan penelitian adalah untuk menguji dan menganalisis 1) Pengaruh secara simultan variabel kepuasan dan kepercayaan terhadap loyalitas pelanggan Rumah Makan Dua Putri di Kelurahan Matano Kecamatan Bungku Tengah. 2) Pengaruh secara parsial variabel kepuasan pelanggan terhadap loyalitas pelanggan Rumah Makan Dua Putri di Kelurahan Matano Kecamatan Bungku Tengah. 3) Pengaruh secara parsial variabel kepercayaan pelanggan terhadap loyalitas pelanggan Rumah Makan Dua Putri di Kelurahan Matano Kecamatan Bungku Tengah. Tipe penelitian adalah deskriptif kausal. Teknik penarikan sampel menggunakan Purposive Sampling, diperoleh sampel sebanyak 60 responden. Teknik analisis data adalah analisis regresi linier berganda. Hasil penelitian menunjukkan bahwa berdasarkan hasil Uji F, variabel kepuasan pelanggan dan kepercayaan pelanggan secara simultan berpengaruh positif dan signifikan terhadap loyalitas pelanggan Rumah Makan Dua Putri di Kelurahan Matano Kecamatan Bungku Tengah. Secara parsial variabel kepuasan pelanggan (X1) berpengaruh positif dan signifikan terhadap loyalitas pelanggan Rumah Makan Dua Putri di Kelurahan Matano Kecamatan Bungku Tengah. Variabel kepercayaan pelanggan (X2) berpengaruh positif dan signifikan terhadap loyalitas pelanggan Rumah Makan Dua Putri di Kelurahan Matano Kecamatan Bungku Tengah.


BISMA ◽  
2020 ◽  
Vol 14 (3) ◽  
pp. 191
Author(s):  
Raden Andi Sularso

This study analyzes the effect of service quality, brand image, brand equity, and corporate rebranding on customer satisfaction and loyalty of Transmart. The sample consisted of 200 respondents taken using the random sampling technique. Data were analyzed using Structural Equation Modeling. The results prove that service quality, brand image, and brand equity affect customer satisfaction and loyalty of Transmart. Corporate rebranding has a direct effect on customer satisfaction but does not affect the customer loyalty of Transmart. Keywords: brand equity, brand image, corporate rebranding, service quality


2020 ◽  
Vol 12 (2) ◽  
pp. 123-135
Author(s):  
Nawari Nawari ◽  
Sigit Marianto

This study aims to determine the effect of service quality, price, brand image on satisfaction of ojek online transportation customers in Lamongan. This study is a survey with quantitative research. The population in this study is Cak Ed Lamongan online motorcycle taxi customers. Sampling used a purposive sampling technique and obtained a sample of 100 respondents using the formula Rao Purba. Data collection techniques in this study used interviews and questionnaires. Analysis of the data used were the validity test, the reliability test, the multiple linear regression analysis, the classic assumption test, the coefficient of determination R2 test, and hypothesis was tested through t test that was used to determine the effect of service quality, price and brand image partially on satisfaction of ojek online transportation customers in Lamongan. From the analysis, results obtained of t test results variable service quality was tcount = 3.934 > ttable = 1.660 which states that the quality of service affects customer satisfaction. Price variable was tarithmetic = 3,622 > ttable = 1,660 which indicates that price influences customer satisfaction, and brand image variable tcount = 2,216 > ttable = 1,660 which states that brand image influences customer satisfaction. While R square of 0.783 shows that 78.3% of the variable Customer satisfaction is influenced by service quality, price, and brand image. While the remaining 21.7% is influenced by other variables that were not examined.


2020 ◽  
Vol 4 (1) ◽  
pp. 98-113
Author(s):  
Samsul Rizal ◽  
Abdul Rahman Rahim ◽  
Eka Wardiana

The purpose of this study was to determine the effect of service quality on customer satisfaction at PT. Bank Rakyat Indonesia (Persero) Tbk. Unit Bengo  Branch Watampone. This research was conducted at PT. Bank Rakyat Indonesia (Persero) Tbk. Unit Bengo Branch Watampone, the research population is all customers of PT. Bank Rakyat Indonesia (Persero) Tbk. Unit Bengo Branch Watampone Unit which was met at the time of the research, where the population was 500 customers while the sample size was determined using incidental sampling technique, which was 84 respondents. Data collection uses descriptive statistical techniques, simple linear regression analysis, and hypothesis testing. The results of data analysis obtained t count of 7.669 while t table amounted to 1.98932, so the t test hypothesis variable service quality has a positive effect on customer satisfaction. From the calculation of SPSS obtained R = 0.646, with R2 = 0.418 or 41.8%, the amount of customer satisfaction has been explained in the service quality data. While the rest, which is 0.582 or 58.2%, information about the amount of customer satisfaction cannot be explained by these independent variables.


2019 ◽  
Vol 7 (4) ◽  
pp. 379-396
Author(s):  
Mohsin Shahzad ◽  
Muhammad Shaukat Malik ◽  
Muhammad Irfan

The preservation of desired levels of service quality, product quality and awareness is domineering for firms to stay competitive. Islamic banking system of Pakistan is more growing and become popular that provide the products with the premises of Sharia compliance, but there is problem in this sector is lack of knowledge about the products. Findings relay on data collected through surveys of 300 customers of south Punjab Islamic banking sector. Through the respondent’s opinions, our study revealed that service quality and product quality have significantly relationship with customer satisfaction and loyalty. There is shortage of familiarity about Islamic banking products to the customers and this caused to low satisfaction. Proper information is highly required in this sector to create patronize customers. More findings exposed that customer satisfaction positively indicates to customer loyalty and by using the Andrew Hayes method religiosity only moderates between service quality and customer satisfaction because religiosity is not the sole factor to satisfy the customers without proper information system about products. To maintain the competitive edge there is highly required proper brochures system in every branch with easily access to the customers for more convenience.


2020 ◽  
Vol 8 (3) ◽  
Author(s):  
Iwan Kurniawan Subagja ◽  
Azis Hakim

<em>This study aims to determine the effect of service quality and brand image on customer satisfaction. The research was conducted at Hotel Grand Candi Semarang. The sampling technique used simple random sampling and data analysis used multiple linear regression analysis. The results showed that service quality and brand image had a positive and significant effect on customer satisfaction at Hotel Grand Candi Semarang.</em>


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