Loyalty towards Islamic banking: service quality, emotional or religious driven?

Abstract

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

Motivation for Purchasing Halal Products: The Influence of Religiosity, Trust, and Satisfaction

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Perilaku Konsumen Dalam Membeli Produk Halal Di Kota Bandung

“…Selain itu, di sebagian besar negara Muslim, konsumsi makanan halal adalah bagian dari mematuhi hukum negara (Ahmad, 2003). Bagi pelanggan yang memiliki komitmen pada agamanya, ia cenderung menunjukkan kesetiaan positif terhadap produk yang berlandaskan syariah (Suhartanto et al, 2019), bahkan jika ia bukan konsumen (calon konsumen), ia memiliki komitmen untuk loyal terhadap produk atau jasa yang berlandaskan syariah (Suhartanto et al, 2018 Tabel 4 menunjukkan pengaruh setiap variabel terhadap variabel minat. Hasil pengujian menyatakan bahwa faktor yang berpengaruh terhadap minat membeli produk halal adalah religiusitas dengan koefisien sebesar 0,747 yang signifikan pada p<0,01 atau 1%.…”

The branding of religious financial institutions in the UK: conversations with market actors within the Islamic financial sector

“…The sustainability of habitus is manifested from the unreflective nature of these social norms and the complicity of the participating actors (Ignatow, 2009;Alcaniz et al, 2010;Papista and Krystallis, 2013;Saatcioglu and Ozanne, 2013). In this light Islamic habitus would drive market actors to actively seek out financing means that are seen to fulfil their conscious morality and religiosity (Usman et al, 2017;Elseidi, 2018;Suhartanto et al, 2019). This is relatively explicit within Islam and It is possible to reconcile this with the economic literature on the rationality of religion and religious utility in the form of salvation (Azzi and Ehrenberg, 1975).…”