Revisiting the corporate image through service quality and relationship marketing: an empirical evidence from Malaysian and Saudi Arabian Takaful customers

Abstract

Purpose This study aims to test a proposed model based on a combination of the relationship marketing and service quality dimensions as predictors of corporate image and customer loyalty via corporate reputation in the Takaful context. More importantly, this study compares the Takaful operators’ services with the perceived service quality and the relationship marketing from the Malaysian and Saudi Arabian customers’ viewpoint. Design/methodology/approach A survey-based study was conducted through a questionnaire, and the data was collected from Takaful customers (362 Saudi Arabian and 350 Malaysian customers) through an online survey. Structural equation modelling is used to test the proposed model. Besides, the perception of Takaful customers between Saudi Arabia and Malaysia is compared through a multi-group analysis. Findings The results from the Malaysian context reveal that positive perceptions of service quality PAKSERV dimensions (personalization, reliability and tangibility) and positive perceptions of relationship marketing dimensions (Islamic ethical behaviour and structural bonds) have a significant influence on the corporate image. Alternatively, in the Saudi Arabian context, results have shown that the positive perceptions of service quality PAKSERV dimensions (assurance and reliability) of service quality and the positive perceptions of the relationship marketing dimensions (Islamic ethical behaviour, structural bonds and financial bonds) have a significant influence on the corporate image. The differences in both countries’ results can also enhance the corporate image on corporate reputation, merely in Malaysia. By contrast, corporate reputation is deemed a significant predictor of customer loyalty, represented as valid for both contexts. Research limitations/implications The proposed research model tested in Takaful Malaysian and Saudi Arabian can be replicated in other contexts – in terms of country and industry. Moreover, the current study reveals the crucial role of corporate image in forming corporate reputation. Future research could be focussed on the importance of other emotional or affective variables that may be involved in determining corporate reputation. Finally, future studies can be carried with another cultural perspective to have more diversified socio-economic implications. Practical implications It is suggested that Takaful operators from both Malaysia and Saudi Arabia need to put maximum effort towards customer loyalty by bringing both the dimensions of service quality and the relationship marketing in compliance with the principles of Islamic business transaction. The findings of the specific dimensions of service quality and relationship marketing will contribute to customers’ perceptions of corporate image and reputation in the Takaful industry. Originality/value The present study tested a blended facet of customer’s overall experience through service quality (PAKSERV) and customer service provider connectivity (relationship marketing) to predict the corporate image of the highly growing financial marketplace (Takaful). Contextually, this study contributes to delineating the factors (corporate reputation) affecting customer loyalty rather than a customer satisfaction tradition. Significantly, Saudi Arabia and Malaysia were chosen for this study, as they are currently the two fast-growing markets for Islamic financial services, especially with regards to the Takaful products and offerings.

Forging customer satisfaction through commitment-trust factors in financial insurance services: moderating role of corporate image

“…The customers are keen to choose the highest credible financial insurance services available in the market (Štrukelj et al, 2022). Moreover, unlike other financial insurance services, takaful plays a crucial role in Islamic finance (Poan et al, 2021;Abdur Rehman et al, 2021). The inclusion of Islamic insurance is getting massive attention since the introduction of segregation of conventional and Islamic banking system (Jan et al, 2019(Jan et al, , 2021a(Jan et al, , 2021b.…”

“…The inclusion of Islamic insurance is getting massive attention since the introduction of segregation of conventional and Islamic banking system (Jan et al, 2019(Jan et al, , 2021a(Jan et al, , 2021b. The takaful insurance services segregate themselves from the traditional financial insurance services by providing a benchmark of Islamic perspective (Abdur Rehman et al, 2021). This perspective primarily includes the firm commitment to provide quality insurance services with premium quality and transparent insurance agreements throughout the insurance journey with the customers (Akhter et al, 2021).…”

“…Moreover, unlike other financial insurance services, takaful plays a crucial role in Islamic finance (Poan et al , 2021; Abdur Rehman et al , 2021). The inclusion of Islamic insurance is getting massive attention since the introduction of segregation of conventional and Islamic banking system (Jan et al , 2019, 2021a, 2021b).…”

“…Although customers do have options, the majority of Muslim customers prefer to choose takaful insurance (Billah, 2001). The Malaysian government adopted takaful, which is derived from the Arabic term kafala, which means "assurance," "care for" and "faith," as a gradually acknowledged addition to the Islamic financial system (Hassan, 2019;Abdur Rehman et al, 2021). Comparatively, it has been evident that the takaful industry, with a share of 15% compared to traditional insurance's contribution of 85%, played a key role in dominating the Malaysian financial market (Ismail et al, 2017).…”

“…Customer satisfaction, a crucial factor, depends especially on loyalty, trust and dedication in the financial services industry (Fauzi and Suryani, 2019). Transparency, excellent service quality, customer safety concerns (Akhter et al , 2021), cost of the service (Terpstra and Verbeeten, 2014) and cost of the service itself (Abdur Rehman et al , 2021) are some of the important factors that help build trust and loyalty between customers and financial service providers. In contrast to other financial services, the role of takaful service in Malaysia has recently gained great popularity as a trend to protect various risks to life (Hassan et al , 2018).…”