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Building loyalty in Islamic banking relationship: a multiple mediation approach empirically in Indonesia

Author

Listed:
  • Rizaldi Yusfiarto

    (UIN Sunan Kaljaga Yogyakarta)

  • Septy Setia Nugraha

    (Diponegoro University)

  • Galuh Tri Pambekti

    (UIN Sunan Kaljaga Yogyakarta)

  • Annes Nisrina Khoirunnisa

    (UIN Sunan Kaljaga Yogyakarta)

Abstract

This study emphasizes the investigation of customer relationship construction with Islamic banking. The research model uses six constructs consisting of two exogenous variables (religiosity and service quality), three mediating variables (satisfaction, trust and intimacy), and one endogenous variable (loyalty). The research sample of 287 respondents was then analyzed using a structural equation modeling approach. Empirical findings highlight that the relationship between religiosity and loyalty is fully mediated by customer intimacy and the relationship between service quality and loyalty is mediated serially by customer satisfaction and trust. Furthermore, empirical findings assume that religiosity has entered a deeper appreciation aspect which has implications for the intimacy of social behavior in consumers' lives with banks. Therefore, Islamic banks must be able to respond by providing services in all aspects such as the integration of banking services with the types of community needs, so that Islamic banking services emerge as the main solution in all aspects of the life needs of the Muslim community.

Suggested Citation

  • Rizaldi Yusfiarto & Septy Setia Nugraha & Galuh Tri Pambekti & Annes Nisrina Khoirunnisa, 2023. "Building loyalty in Islamic banking relationship: a multiple mediation approach empirically in Indonesia," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 306-320, June.
    • Handle: RePEc:pal:jofsma:v:28:y:2023:i:2:d:10.1057_s41264-022-00151-2
    DOI: 10.1057/s41264-022-00151-2
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    More about this item

    Keywords

    Intimacy; Trust; Satisfaction; Service quality; Religiosity; Loyalty;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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