Service Quality Management Practices for Customer Satisfaction in Islamic Banks of Bangladesh

Abstract

This study has taken the initiative for identifying the underlying factors that would facilitate Islamic banks in satisfying their customers better. The objective was to investigate the effects of SERVQUAL model on customer satisfaction among the Islamic banks in Bangladesh. A self-administered structured questionnaire was used to collect data from 211 customers of five major Islamic banks in Bangladesh using convenience sampling technique. The collected data were later analyzed through exploratory factor analysis. Structural equation modelling technique was performed to verify the model of the study and testing the hypotheses. The findings of the study revealed that reliability, tangibility and responsiveness were significant factors for customer satisfaction whereas assurance and empathy were found insignificant . This research opens the door for future researchers to contribute to this area of research through employing a larger sample and extending the current model through the incorporation of new variables. The study will be a meaningful addition to the literature of service quality and customer satisfaction, particularly in the setting of Islamic banks in Bangladesh.