Abstract:Purpose
There are two primary objectives of the research. Firstly, the study aims to explore the service quality dimension of Indonesian Islamic banking using a CARTER model. Secondly, the study aims to examine the relationship of service quality towards customer satisfaction, trust and loyalty in Indonesian Islamic banking.
Design/methodology/approach
The conceptual framework of the study will be examined using the PLS–SEM approach. Then, it will be examined using the 392 collected data from Indonesian Isla… Show more
“…Lewis and Soureli (2006) and Yilmaz et al (2018). Fauzi and Suryani (2019) find customer satisfaction with Islamic banks in Indonesia directly related to customer loyalty. Recent studies by Mulia et al (2020) and Haron et al (2020) explain that satisfied customers tend to reuse and spread positive stories about Islamic mobile banking to their families and friends.…”
Section: Customer Satisfactionmentioning
confidence: 98%
“…The Islamic Financial Services Board [IFSB] (2018) reports that Islamic banking in emerging countries including Indonesia is exhibiting significant improvements in profitability. By 2019, 14 full-fledged Islamic banks operate in Indonesia; however, their assets are small relative to conventional banks (Fauzi & Suryani, 2019). Indonesian Islamic banks' total assets represent only 0.9% of the global volume (BAPPENAS, 2018).…”
“…Lewis and Soureli (2006) and Yilmaz et al (2018). Fauzi and Suryani (2019) find customer satisfaction with Islamic banks in Indonesia directly related to customer loyalty. Recent studies by Mulia et al (2020) and Haron et al (2020) explain that satisfied customers tend to reuse and spread positive stories about Islamic mobile banking to their families and friends.…”
Section: Customer Satisfactionmentioning
confidence: 98%
“…The Islamic Financial Services Board [IFSB] (2018) reports that Islamic banking in emerging countries including Indonesia is exhibiting significant improvements in profitability. By 2019, 14 full-fledged Islamic banks operate in Indonesia; however, their assets are small relative to conventional banks (Fauzi & Suryani, 2019). Indonesian Islamic banks' total assets represent only 0.9% of the global volume (BAPPENAS, 2018).…”
“…The Sharia bank management must continue to develop its human resource competencies, especially on the side of building the character of the bankers to foster integrity and commitment in customer service. Third, as seen in the results of the research conducted by Fauzi and Suryani (2019), efforts to increase customer loyalty can be done by paying attention to their beliefs. To ensure this, Islamic banking must use Sharia principles as an important reference when carrying out the Sharia banking business.…”
Purpose -Loyalty among customers is the baseline for services to use to grow and sustain their competitive advantage, particularly in the banking industry. There are two primary objectives of this research. First, this study aims to empirically test the Muslim Consumer Service Quality (MCSQ). Second, this study aims to test the mediating effect of Muslim Consumer Satisfaction (MCS) on the relationship between MCSQ and Muslim Consumer Loyalty (MCL) in Indonesian Islamic banks.Design/methodology/approach -The proposed hypotheses were tested by collecting data from 280 Indonesian Islamic customers. The collected data were tested using PLS-Graph 3.0.Findings -The findings indicate that MCSQ (consisting of Islamic values, Sharia compliance, honesty, modesty, humaneness and trustworthiness) positively influenced MCS and MCL significantly. Further, the results indicate that MCS partially mediates the influence of MCSQ on MCL.Research limitations/implications -The data were mainly gathered in Indonesia and the model needs to be tested in other contexts. Furthermore, the questionnaire was distributed among the customers of Islamic banks, and future studies could compare it with the customers of conventional banks or dual account (Islamic and conventional bank) customers. Moreover, further studies should compare between the expectations and reality of the delivered services to understand the service quality gap, which this study did not measure.Practical implications -The findings indicate that by measuring the service quality in the Islamic context of Islamic banks, such as MCSQ, the managers can design their services to specifically target their Muslim customers. Furthermore, customer satisfaction must be the focus for the bank's managers when developing MCSQ to close the gap between the expectations and reality of the delivered services.Originality/value -This study empirically tests the developed MCSQ in the context of Indonesian Islamic banks, which is expected to enrich the literature of service marketing. Furthermore, a partial mediation effect of MCS was identified on the influence of MCSQ on MCL, which few studies have discussed previously.
“…SERVQUAL model is chosen to measure service quality because it could portrait service dimensions and it could be measured based on the banking service customer perspective (Fauzi & Suryani, 2019).…”
The purpose of the research is to examine the impact of Total Quality Management (TQM) implementation on Service Quality, the effect of Service Quality on Customer Engagement and Customer Loyalty in banking industry. The other objective of the research also to examine the effect of Customer Engagement on Customer Loyalty. This research was conducted in East Java Province which involved 209 State Owned Enterprises (SOE) bank customer’s as respondents. All variables are measured by Likert scale from bank customer perspectives. By Partial Least Square SEM analysis, the research found that TQM practices has positive effect on Service Quality, Service Quality has positive effect on Customer Engagement and Customer Loyalty and Customer engagement has positive effect on Customer Loyalty. The implication of this research is that SOE banks should implement TQM well so that it has a positive impact on service quality.
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