Effects of Service Quality, Customer Trust and Customer Religious Commitment on Customers Satisfaction and Loyalty of Islamic Banks in East Java

Abstract

Effects of Service Quality, Customer Trust and Customer Religious Commitment on Customers Satisfaction and Loyalty of Islamic Banks in East Java. The purpose of the present study was to describe the relationships among service quality, customer trust and customer religious commitment on customer satisfaction and loyalty of Islamic banks in East Java. Respondents were Islamic banks' customers domiciled in East Java. A predetermined number of samples were taken by the use of a simple random sampling technique. Analysis was performed using the Structural Equation Modeling (SEM). Results indicated that service quality and customer trust of Islamic banks jointly had significant effects on customer satisfaction. Service quality and customer trust had direct and indirect effects on customer loyalty mediated by satisfaction of Islamic banks' customer in East Java. Religious commitment had no direct and indirect effect on customer satisfaction and customer loyalty.

The Effect of Perceived Value and Service Quality on Depositor Loyalty

“…From the research hypothesis examination, it is proven that service quality positively influences depositor loyalty. The acceptance of this hypothesis supports the study result of Hidayat et al (2015), Alnaser et al (2017), andAl-Areqi et al (2018). In this study context, to get the depositors' dedication, the bank needs to pay attention to the list of valid and reliable service quality dimension indicators with the inadequate agreeing response (< 60%) (see Table 13).…”

“…This situation makes the research of the determinants of consumer loyalty in the bank to do. According to the evidence of the previous study, they are perceived value (Jumanev, Kumar, & Hanaysha, 2012;Hasan, Kiong, & Ainuddin, 2014;Rahi & Ghani, 2016;Mukerjee, 2018;Fitri, Basrib, & Maryanti, 2019) and service quality (Hidayat, Akhmad, & Mahmud, 2015;Alnaser, Ghani, Rahi, Mansour, & Abed, 2017;Al-Areqi, Al-Hadeq, & Mutahar, 2018;Setiawan, Kusumawati, & Mawardi, 2018). Unfortunately, this indication associated with these determinants does not reach a consensus yet.…”

“…In the same sector, Hidayat et al (2015), Alnaser et al (2017), and Al-Areqi et al 2018demonstrate a positive effect of service quality on consumer loyalty. However, Setiawan et al (2018) depict a negative.…”

“…By referring to this statement, service quality measures something that depositors get based on bank promises. In their study, Hidayat et al (2015) find that the bank can elevate depositors' loyalty by good service quality. This evidence is also in line with Alnaser et al (2017) and Al-Areqi et al (2018), who confirm this evidence.…”

Does the spin-off policy can accelerate the deposit funds in the Indonesian Islamic banking industry?

“…The Sharia compliance is not because of the Islamic business unit form, but, comes from the Islamic bank's operations. The Islamic bank also had to increase the service quality; it will increase the loyalty of the customers (Suryani and Hendryadi, 2015;Hidayat et al, 2015).…”