IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v10y2020i2p2158244020919517.html
   My bibliography  Save this article

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

Author

Listed:
  • Bashir Ahmad Fida
  • Umar Ahmed
  • Yousuf Al-Balushi
  • Dharmendra Singh

Abstract

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.

Suggested Citation

  • Bashir Ahmad Fida & Umar Ahmed & Yousuf Al-Balushi & Dharmendra Singh, 2020. "Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman," SAGE Open, , vol. 10(2), pages 21582440209, May.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020919517
    DOI: 10.1177/2158244020919517
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2158244020919517
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2158244020919517?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. A.Ananth & R.Ramesh & B.Prabaharan, 2011. "Service Quality Gap Analysis in Private Sector Banks- A Customers Perspective," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(1), pages 245-252, January.
    2. Naif Mutlaq Al Otaibi & Kausar Yasmeen, 2014. "An Overview of Customer Loyalty, Perceived Service Quality and Customer Satisfaction: Brief on Saudi Grocery Stores," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 1(1), pages 79-122, June.
    3. Vithya Leninkumar, 2017. "The Relationship between Customer Satisfaction and Customer Trust on Customer Loyalty," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 450-465, April.
    4. Brady, Michael K. & Cronin, J. Jr. & Brand, Richard R., 2002. "Performance-only measurement of service quality: a replication and extension," Journal of Business Research, Elsevier, vol. 55(1), pages 17-31, January.
    5. Luciano Munari & Federica Ielasi & Luisa Bajetta, 2013. "Customer satisfaction management in Italian banks," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 5(2), pages 139-160, August.
    6. Yee, Rachel W.Y. & Yeung, Andy C.L. & Cheng, T.C.E., 2011. "The service-profit chain: An empirical analysis in high-contact service industries," International Journal of Production Economics, Elsevier, vol. 130(2), pages 236-245, April.
    7. Akhtar, Muhammad Naeem & Hunjra, Ahmed Imran & Akbar, Syed Waqar & Rehman, Kashif-Ur- & Niazi, Ghulam Shabbir Khan, 2010. "Relationship between customer satisfaction and service quality of islamic banks," MPRA Paper 40661, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S. Ananda & Raghavendra Prasanna Kumar & Dharmendra Singh, 2023. "A mediation analysis of perceived service quality, customer satisfaction and customer engagement in the banking sector," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 570-584, September.
    2. Muhammad Sohaib, 2022. "An Investigation of Repurchase Intentions in the Banking Industry: What Reason Do They Return?," SAGE Open, , vol. 12(1), pages 21582440211, January.
    3. Saud Alsaqer & Ihab M. Katar & Abdelhakim Abdelhadi, 2024. "Investigating TQM Strategies for Sustainable Customer Satisfaction in GCC Telecommunications," Sustainability, MDPI, vol. 16(15), pages 1-18, July.
    4. 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.
    5. Azian Fatin Umaira Muhamad & Khair Nurhayati & Yoong Tum Choo & Ismail Suhana & Tambi Noordeyana, 2023. "The Relationship Between Service Quality and Occupants’ Satisfaction: A Mixed-Use Building," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 78-87, March.
    6. 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.
    7. Nourhan Ah. Saad & Sara Elgazzar & Sonja Mlaker Kac, 2022. "Investigating the Impact of Resilience, Responsiveness, and Quality on Customer Loyalty of MSMEs: Empirical Evidence," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    8. Thowayeb H. Hassan & Amany E. Salem, 2021. "Impact of Service Quality of Low-Cost Carriers on Airline Image and Consumers’ Satisfaction and Loyalty during the COVID-19 Outbreak," IJERPH, MDPI, vol. 19(1), pages 1-16, December.
    9. Evan Nugraha & Rini Mulyani Sari & Arif Yunan, 2020. "Promotion Analysis and Information Systems on Service Quality and Implications on Work Productivity," Technium Social Sciences Journal, Technium Science, vol. 13(1), pages 278-285, November.
    10. Yihan Huang & Daehwan Kim, 2023. "How Does Service Quality Improve Consumer Loyalty in Sports Fitness Centers? The Moderating Role of Sport Involvement," Sustainability, MDPI, vol. 15(17), pages 1-24, August.
    11. Alzhara Humaid Alsulmani & Sheikha Saif Alkindi & Essia Ries Ahmed, 2021. "Customer Accounting Information and Omani Service Companies’ Performance," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 79-88, April.
    12. Dhruba Kumar Gautam & Gunja Kumari Sah, 2023. "Online Banking Service Practices and Its Impact on E-Customer Satisfaction and E-Customer Loyalty in Developing Country of South Asia-Nepal," SAGE Open, , vol. 13(3), pages 21582440231, July.
    13. Premendra Kumar Singh & Asokan Vasudevan & Elangbam Nixon Singh & Bidhu Kanti Das & Raju Ganesh Sunder & Nilesh R. Mate & Rajinder Kumar & Niharika Singh & Bendangienla Aier, 2024. "Impact of Corporate Social Responsibility (CSR) on Customer Loyalty in Indian Telecom Industry: The Moderating Role of Consumer Demographics," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    14. Zaher Abdel Fattah Al-Slehat, 2021. "Determining the Effect of Banking Service Quality on Customer Loyalty Using Customer Satisfaction as a Mediating Variable: An Applied Study on the Jordanian Commercial Banking Sector," International Business Research, Canadian Center of Science and Education, vol. 14(4), pages 1-58, April.
    15. Felix & Prihanto Y. Johny Natu & Annas Mohammad, 2023. "Analysis of the Influence of E-Learning Service Quality Factors on Student Perceived Value and Student Satisfaction, with Implication to Student Loyalty," Marketing of Scientific and Research Organizations, Sciendo, vol. 48(2), pages 81-110, June.
    16. Johanna Pangeiko Nautwima & Asa Romeo Asa, 2022. "The Impact of Quality Service on Customer Satisfaction in the Banking Sector amidst Covid-19 Pandemic: A Literature Review for the State of Current Knowledge," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(3), pages 31-38, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lupo, Toni, 2015. "Fuzzy ServPerf model combined with ELECTRE III to comparatively evaluate service quality of international airports in Sicily," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 249-259.
    2. 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.
    3. Sonia Singh & Subhra Mondal & Lata Bajpai Singh & Kalyan Kumar Sahoo & Subhankar Das, 2020. "An Empirical Evidence Study of Consumer Perception and Socioeconomic Profiles for Digital Stores in Vietnam," Sustainability, MDPI, vol. 12(5), pages 1-30, February.
    4. Moro, Sérgio & Lopes, Rui J. & Esmerado, Joaquim & Botelho, Miguel, 2020. "Service quality in airport hotel chains through the lens of online reviewers," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    5. Agim Mamuti, 2015. "The Impact of Brand Name on Consumers, Case of Bosnia and Herzegovina," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 1, May - Aug.
    6. Pablo Gutiérrez Rodríguez & José Vázquez Burguete & Roger Vaughan & Jonathan Edwards, 2009. "Quality dimensions in the public sector: municipal services and citizen’s perception," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 6(1), pages 75-90, June.
    7. Uhrich, Sebastian, 2011. "Explaining non-linear customer density effects on shoppers’ emotions and behavioral intentions in a retail context: The mediating role of perceived control," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 405-413.
    8. Muhammad Salman Azhar & Ismail Bin Lebai Othman & Norzieiriani bt. Ahmad, 2018. "Investigating Customer Satisfaction of Airline Passengers in Aviation Sector of Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(4), pages :561-581, December.
    9. Calabuig Moreno, Ferran & Prado-Gascó, Vicente & Crespo Hervás, Josep & Núñez-Pomar, Juan & Añó Sanz, Vicente, 2016. "Predicting future intentions of basketball spectators using SEM and fsQCA," Journal of Business Research, Elsevier, vol. 69(4), pages 1396-1400.
    10. Chung-Jen Wang & Kuan-Ju Tseng, 2019. "Effects of Selected Positive Resources on Hospitality Service Quality: The Mediating Role of Work Engagement," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    11. Jaroslav Belas & Lenka Gabcova, 2014. "Reasons for satisfaction and dissatisfaction of bank customers. Study from Slovakia and the Czech republic," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 2(1), pages 4-13, June.
    12. Lloyd, Alison E. & Yip, Leslie S.C. & Luk, Sherriff T.K., 2011. "An examination of the differences in retail service evaluation between domestic and tourist shoppers in Hong Kong," Tourism Management, Elsevier, vol. 32(3), pages 520-533.
    13. Lee, Wei-Long & Liu, Chih-Hsing & Tseng, Tzu-Wen, 2022. "The multiple effects of service innovation and quality on transitional and electronic word-of-mouth in predicting customer behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    14. Noor Ul Hadi & Nadia Aslam & Amir Gulzar, 2019. "Sustainable Service Quality and Customer Loyalty: The Role of Customer Satisfaction and Switching Costs in the Pakistan Cellphone Industry," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    15. Calabrese, Armando, 2012. "Service productivity and service quality: A necessary trade-off?," International Journal of Production Economics, Elsevier, vol. 135(2), pages 800-812.
    16. Ayodeji, Yusuf & Rjoub, Husam & Özgit, Hale, 2023. "Achieving sustainable customer loyalty in airports: The role of waiting time satisfaction and self-service technologies," Technology in Society, Elsevier, vol. 72(C).
    17. Wang, Xinghua & Zhang, Mengmeng & Yu, Yiqing & Hu, Biying & Yang, Xiantong, 2021. "Extending the theory of planned behavior to examine Chinese parents’ intention to use child care services for children under age 3," Children and Youth Services Review, Elsevier, vol. 129(C).
    18. Howat, Gary & Assaker, Guy, 2016. "Outcome quality in participant sport and recreation service quality models: Empirical results from public aquatic centres in Australia," Sport Management Review, Elsevier, vol. 19(5), pages 520-535.
    19. Shibashish Chakraborty & Dilip Kumar Chakraborty, 2006. "Study of Important Aspects Affecting Consumer Choice of Mobile Phone Service Providers," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 31(4), pages 309-331, November.
    20. Tifanny & Dr. Ronald & Dr. Amelia, 2023. "Analysis of the Effect of Trustworthiness, Congruence, Expertise, Familiarity, Brand Involvement, Brand Engagement towards Customer Loyalty for Coach x Selena Gomez Customers in Medan (2022)," International Journal of Science and Business, IJSAB International, vol. 18(1), pages 135-152.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020919517. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.