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Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust

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Abstract

Purpose – The objective of this study is to examine the impact of PAKSERV model on customers’ satisfaction, loyalty and trust in Malaysian Islamic banks. These comprehensive measures concern on the cultural dimension of service quality by focusing on the mediating role of trust in the Malaysian context.Design/methodology/approach –A survey was conducted involving 401 customers of Islamic banks in the states of Kuala Lumpur and Selangor, Malaysia. The data were analyzed through exploratory factor analysis, confirmatory factor analysis and structural equation model employing AMOS 23 and SPSS 23.Findings – The study found positive relationship of PAKSERV dimensions of service quality, customers’ satisfaction, customers’ loyalty and the mediating role of trust in enhancing customers’ loyalty. This study provides new evidence on how trust can act as a partial mediation on the relationship between customers’ satisfaction and customers’ loyalty in the cultural context of Islamic banking in Malaysia. Practical implications – The findings of this study can be used as a framework for other Islamic Financial Institutions (IFIs) in improving services to its customers. Originality/value – This study contributes to the body of knowledge in enhancing the understanding on customers’ satisfaction, loyalty and trust in Islamic banks in Malaysia. This study also covers a broad range of respondents, hence representing a good diversity of Islamic banks’ customers.

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  • Haron, Razali & Abdul Subar, Noradilah & Ibrahim, Khairunisah, 2020. "Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 28, pages 3-23.
    • Handle: RePEc:ris:isecst:0187
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    1. Olgun Kitapci & Ibrahim Taylan Dortyol & Zührem Yaman & Mustafa Gulmez, 2013. "The paths from service quality dimensions to customer loyalty," Management Research Review, Emerald Group Publishing Limited, vol. 36(3), pages 239-255, March.
    2. Zahir Osman & Ilham Sentosa, 2013. "Mediating Effect of Customer Satisfaction on Service Quality and Customer Loyalty Relationship in Malaysian Rural Tourism," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 2(1), pages 25-37.
    3. Asma Abdul Rehman, 2012. "Customer satisfaction and service quality in Islamic banking," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 4(2/3), pages 165-175, August.
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    1. 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.
    2. Ahmed Hassanein & Mohamed M. Mostafa, 2023. "Bibliometric network analysis of thirty years of islamic banking and finance scholarly research," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 1961-1989, June.
    3. Victor William Bwachele & Yee-Lee Chong & Gengeswari Krishnapillai, 2023. "Perceived service quality and student satisfaction in higher learning institutions in Tanzania," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    4. Kiran Faiza, 2023. "Determinants of Consumers’ Decision to Switch to Islamic Banking System: A Case Study of Oman," Contemporary Review of the Middle East, , vol. 10(1), pages 46-61, March.
    5. Mohamed Albaity & Mahfuzur Rahman, 2021. "Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude," Sustainability, MDPI, vol. 13(19), pages 1-19, September.
    6. Abdullah Zubair & Hamid Hasan, 2020. "Exploring Service Quality in Islamic Banking Industry of Afghanistan: An Analysis of Customer Satisfaction," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 2(2), pages 73-97, December.

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