Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude

Abstract

Islamic banks have faced many challenges either from rivals or customers who look for better products and services. This study examined both the direct and mediating effects of selected variables influencing Islamic banks’ customer loyalty. The direct links were satisfaction, attitude towards Islamic banks, customer trust, and religious obligation to customer loyalty. On the other hand, the indirect links were through the mediators’ trust and attitude. A sample of 416 working Muslims in the UAE was collected and analysed. We used PLS-SEM techniques and the SmartPLS 3.0 software package to investigate customers’ loyalty towards Islamic banks. It was found that all the direct links were positive and significant, and were mediating relationships. This result implied that the respondent’s attitude toward Islamic banks and customer trust plays a significant role in understanding the relationship between customer satisfaction, religious obligation, and customer loyalty. In other words, both customer satisfaction and religious obligation indirectly created customer loyalty through the mediators. This study is one of the few studies that incorporate religious obligation as one of the determinants of customer loyalty.

Trust and Loyalty in Building the Brand Relationship with the Customer: Empirical Analysis in a Retail Chain in Northern Brazil

“…The results of the study by [15] conclued that trust and attitude towards Islamic banks act as mediators between religious obligation and customer satisfaction in relation to customer loyalty. Thus, satisfaction satisfaction contributes to trust and loyalty with the bank, with religious obligation being a determinant of loyalty.…”

“…The relationship between the customer and the company is therefore crucial for loyalty [3,4]. At the same time, the relevance of the relationship/loyalty of the consumer with the brands is verified, evidenced in several empirical studies, which elaborate constructs that confirm this relationship [5][6][7][8][9][10][11][12][13][14][15][16][17].…”

Utaut Dan Kepuasan Berzakat Melalui Fintech: Peran Religiositas Sebagai Variabel Moderasi

“…Studi sebelumnya mengungkapkan bahwa religiositas setiap orang berbeda-beda karena sifat dan perilaku setiap individu dalam beragama juga berbeda-beda (A.N & Sutarso, 2021). Beberapa penelitian membuktikan adanya pengaruh religiositas terhadap perilaku seseorang termasuk kepuasan (Joshanloo & Weijers, 2016), loyalitas (Albaity & Rahman, 2021), dan kepercayaan (Abror et al, 2022).…”

Objectives of Islamic banking, customer satisfaction and customer loyalty: empirical evidence from South Africa

“…Customer satisfaction has been studied in great detail in the marketing literature due to (among others reasons), the role it plays in explaining customer loyalty (Albaity and Rahman, 2021). Interestingly, the relationship between satisfaction and loyalty is the most researched area in bank marketing (Kumar et al, 2022).…”