Influence of category attitudes on the relationship between SERVQUAL and satisfaction in Islamic banks; the role of disruptive societal-level events

Abstract

Purpose The purpose of this study is to modify the service quality scale (SERVQUAL) for measuring the performance of Islamic banks after modifying and validating it to fit the Islamic banking context. Furthermore, it provides insights for the limitations good service delivery has on maintaining favorable provider’s satisfaction in Islamic banks under conditions when category attitudes have been disrupted and made salient by major disruptive events. Design/methodology/approach Focus groups (managers of Islamic banks) were conducted to develop context-specific service quality measures. Exploratory factor analysis and CFA have been conducted to test the validity of scales developed and questionnaires were then sent to Islamic banking customers of major Islamic banks in Egypt for testing the relationships between the research variables and hypotheses developed. Findings The findings of this study are two-fold; identifying a service quality dimension not previously identified in extant service quality measures (SERVQUAL, CARTER), devotion to customers and alerts brand managers that harm to category attitudes caused by societal-level disruptive events can make it difficult to gain high satisfaction even with superior customer service. In this disruptive event context, although high service quality is associated with brand satisfaction, brand satisfaction seems unexpectedly dampened by category attitudes, perhaps, due to the general malaise felt toward the category following the disruptive events. Practical implications Islamic institutions are alerted to the heightened need for providing superior service, as even superior service may no longer assure high satisfaction. Extrapolating to an even bigger societal disruptor, in the soon-to-come post-COVID-19 world, category attitudes toward walk-in banking services will be in turmoil and highly salient. So, brand managers will need to develop creative ways to strengthen not just brand attitudes but also to re-stabilize category attitudes if the category is to recover. Originality/value This is considered a pioneer study in using mixed methods to re-think the famous SERVQUAL scale in a unique context and relating findings to impacts of disruptive events on attitude toward Islamic banking.

Do women customers love to talk about financial brands? An empirical evidence on the mediated service responsiveness and brand sincerity in creating a positive word of mouth

“…Hypothesis 1 stated that responsiveness has a significant impact on customer satisfaction and was supported by the results (β = 0.342, p = .000) which supported the premise that suggested that the repeated contact and salespersons' expression of inclination to offer help to customers are pivotal in establishing a satisfied customer relationship (Crosby et al, 1990). It has also been argued that although high service quality is associated with customer satisfaction, it gets dulled by category attitudes in the financial sector due to disruptive events, however, a responsive attitude helps in bridging the discontent (Farrag et al, 2020). The results are also aligned with the proposition that the use of technology to offer consistent and timely responses to customers has enhanced customer satisfaction (Iberahim et al, 2016;Islam et al, 2020).…”

Banking Marketing Practices During the Covid-19 Pandemic: A Systematic Literature Review

“…Moreover, they found obstacles and so-called blocking effects for potential customers of Islamic banks such as "the perception of risk, image, and weak marketing reach". Farrag et al (2022) investigate the influence of category attitudes on the relationship between the service quality scale (SERVQUAL) and satisfaction in Islamic banks and focus in particular on the role of disruptive societal-level events. For this purpose, they interviewed focus groups consisting of managers of Islamic banks and applied exploratory factor analysis and CFA to test the validity of the developed scales and questionnaires.…”

“…Many issues have thus far been explored, such as the potential determinants of customers' satisfaction with Islamic banking (Alharthi et al, 2021); an assessment of the success of the launching of the new bank digital platform for SMEs (Jegerson & Ahmad, 2021); the role of social media in the internet banking transition during the COVID-19 pandemic (Naeem & Ozuem, 2021); the impact of community relationship management (CoRM), relationship marketing orientation (RMO), customer engagement (CE), and brand trust (BT) on brand loyalty (BL) in a commercial bank (Wongsansukcharoen, 2022); the interrelatedness of entrepreneurial marketing (EM) and bank performance (Hilal & Tantawy, 2022); the influence of category attitudes on the relationship between the service quality scale (SERVQUAL) and satisfaction in Islamic banks (Farrag et al, 2022); the factors that prevent consumers from becoming clients of Islamic banks (Nugraha et al, 2022); the impact of internal marketing practices on employees' job satisfaction (Almaslukh et al, 2022) and the main determinants impacting the digital banking service adoption during the COVID-19 pandemic (Ngo et al, 2023). Source: Author's work…”

Untitled

“…Many issues have thus far been explored, such as the potential determinants of customers' satisfaction with Islamic banking (Alharthi et al, 2021); an assessment of the success of the launching of the new bank digital platform for SMEs (Jegerson & Ahmad, 2021); the role of social media in the internet banking transition during the COVID-19 pandemic (Naeem & Ozuem, 2021); the impact of community relationship management (CoRM), relationship marketing orientation (RMO), customer engagement (CE), and brand trust (BT) on brand loyalty (BL) in a commercial bank (Wongsansukcharoen, 2022); the interrelatedness of entrepreneurial marketing (EM) and bank performance (Hilal & Tantawy, 2022); the influence of category attitudes on the relationship between the service quality scale (SERVQUAL) and satisfaction in Islamic banks (Farrag et al, 2022); the factors that prevent consumers from becoming clients of Islamic banks (Nugraha et 113…”