Customer Loyalty Islamic Banks in Indonesia: Service Quality Which Mediated by Satisfaction and Customer Trust

Abstract

Purpose: This study aims to analyze the effect of service quality on loyalty mediated by customer satisfaction and trust. A total of 215 Islamic bank customers in the study area were sampled accidently. Theoretical framework: Theoretically, this study contributes to the gaps in the literature, especially those related to the effect of SQ on Islamic banking loyalty which is mediated by satisfaction and trust simultaneously in one research title. Practically, encouraging Islamic banking management to design SQ programs that integrate the value of satisfaction and trust in the same cultural background to gain customer support and loyalty Design/methodology/approach: There are four latent variables observed; service quality, satisfaction, trust, and loyalty with the number of indicators respectively six, four, three, and four. Data collection was carried out through interviews using a questionnaire. Data were analyzed using Smart-PLS 3.0. The validity test uses factor loading and AVE ( Average Variance Extracted ), the reliability test uses Composite reliability (CR) and Cronbach's Alpha (CA), the direct effect test uses the path analysis matrix, while the indirect effect test uses the specific indirect effects matrix. Findings: The volume of research has been increasing over the past nineteen years, although there are only a few authors, institutions and reference journals contributing to the topic’s consolidation and the countries conducting the most joint research in co- authoring for the largest volume of publications, authors and impact journals. Research, Practical & Social implications: This study concludes that customer loyalty of Islamic banks in Indonesia can be optimized through service quality which is mediated by customer satisfaction and trust. Originality/value: The results of the analysis show that the factor loading value is> 0.6 and the AVE value is> 0.5 which means that the data is valid. CR and CA values > 0.6 which means the data is reliable. The direct effect test shows that service quality, satisfaction and trust have a positive and significant effect (p-value <0.05) on loyalty. Furthermore, service quality has an indirect effect ( specific indirect effects) on customer loyalty through the mediation of satisfaction and trust.

Evaluating the Impact of E-Banking on Customer Satisfaction: A Comprehensive Systematic Review

“…In the same way, many researchers investigated the procedures defined towards the advancement in mobile banking contributing to customer satisfaction and tried to mark the mediating part of the trust for customer satisfaction. Some researchers have counted mediator dimensions to present a contribution towards customer satisfaction [28], [29], [30], [31]. The author in [32] evaluated the dimensions contributing towards customer satisfaction and evaluated that risk of performance and perceived value are among vital dimensions; as per the study, working towards perceived value marks more Impact on customer satisfaction than trying to reduce the risk for performance.…”

“…Given the various e-banking offerings, quality of service (e.g., concreteness, dependability, and empathy) has a highly significant impact on customer satisfaction. Various authors have demonstrated a positive correlation between the quality of services and customer satisfaction [44], [45], [46]. An expanded analysis of dimensions shows dependability, Efficiency, adaptability, and interactions, as well as security and privacy, as crucial factors influencing customer satisfaction [47], [48], [49].…”

“…Convenience and ease of use show the easiness to continue with any available services, and literature has shown them both in some way contributing towards the satisfaction level for e-banking services [65].…”

Channel Power, Influence Strategy, Relationship Continuity, and Channel Performance: An Examination of Sanitary Equipment Manufacturers

“…The long-term maintenance of cooperative relationships requires mutual trust among channel members. The trust between channel members will increase the quality and maintenance of the relationships (Kadir, Paly, & Abdullah, 2023). Trust can also reduce conflict between channel members.…”

Customer Selection Criteria: Islamic Banks in South Africa

“…These studies report that customers place importance on several criteria ranging from religious to non-religious reasons when choosing an Islamic bank. Shamsudheen et al, (2021), clarifies this, and states that customers initially supported Islamic banks because of religion, however as the industry grows, customers are placing emphasis on other aspects such as service quality, the range of products and services and the level of corporate social responsibility (Awan & Bukhari, 2011;Ergec et al, 2016;Kadir et al, 2023;Lajuni et al, 2017). Thus, the truism that Muslims are motivated to support Islamic banks on religious grounds is in question (Iqbal et al, 2018).…”