Service Quality Perceptions between Cooperative and Islamic Banks of Britain

Abstract

<b>Problem statement:</b> The objectives of this study were to determine mean comparison all 6 dimensions between Cooperative Bank (CB) and Islamic Bank of Britain (IBB) in Leicestershire, United Kingdom, to compare the ranking for CB and IBB based on the customers preference and lastly to identify the similarities between CB and IBB based on customer preference. <b>Approach:</b> A sample of retail banking customers from CB and IBB was surveyed through a set of questionnaires. The proposed scale is called SERVQUAL and comprises 33 items named ‘CARTER’ with six dimensions (Compliance, Assurance, Reliability, Tangible, Empathy and Responsiveness), which customized for suitability of CB and IBB. The data was analyzed based on SPSS. <b>Results:</b> The study indicated that the mean comparison for all 6 dimensions were compared and shown that the Compliance issues were very important for IBB customers, while the same cannot be mentioned for the CB customers, who gave more importance to Empathy and Responsiveness. On the other hand, the highest ranked between IBB and CB were found, where the customers of IBB chose No interest paid nor taken on saving and loan as a preferred items and CB customers more preferred to chose Run on ethical value as the highest rank. The results also demonstrated that the similarities were found where almost of the items in Assurance have a similar ranking in both of banks. <b>Conclusion/Recommendations:</b> Future research should be conducted with a big number of respondents to ensure the representative and conclusive finding. Next, the new research needs to increase a number of banks to obtain the good result

The Impact of Crisis and Macroeconomic Variables towards Islamic Banking Deposits

“…Among the seminal works done in this field is a study by McKinnon (1973); Shaw (1973); King and Levine (1993); Demetriades and Hussein (1996); Levine et al (2000); Beck et al (2000); Beck and Levine (2004); Yucel (2009) ;Adamo et al (2010); Sadek et al (2010) and Zreika and Elkanj (2011).…”

Functional Service Quality Satisfaction of Islamic and Conventional Credit Card Users in Malaysia

“…In addition, various methods are developed and introduced to measure customer satisfaction from service quality perspectives, including the Bankserv, Servperf and Servqual models. More studies employ Servqual or modified Servqual to measure banking service quality compared to other measurement tools (Newman & Cowling 1996;Othman & Owen 2001;Han & Baek 2004;Arasli et al 2005a;Muslim & Zaidi 2008;Wong et al 2008;Kanning & Bergmann 2009;Kumar et al 2009;Ladhari 2009;Osman et al 2009;Sadek et al 2010). However, criticisms of the Servqual (Blanchard & Galloway 1994;Gounaris 2005) resulted in the creation of alternative models such as Servperf (Cronin & Taylor 1992;Angur et al 1999;Abdullah et al 2004), Bankserv (Avkiran 1994) and other models (Levesque & McDougall 1996;Stafford 1996;Johnston 1997;Bahia & Nantes 2000;Lassar et al 2000;Aldlaigan & Buttle 2002;Cui et al 2003;Malhotra et al 2005;Mukherjee & Nath 2005;Petridou et al 2007;Guo et al 2008).…”

“…Othman and Owen (2001) modify Servqual to include the Shari'ah Compliance dimension alongside the five existing Servqual dimensions (i.e., reliability, assurance, tangible, empathy and responsiveness). The modification is intended to cater the non-service quality related dimension into the Servqual model, (Othman & Owen 2001;Muslim & Zaidi 2008;Osman et al 2009;Haque 2010;Sadek et al 2010). Since the modification of the model, which is often referred to as CARTER, the model has gained acceptance for the measurement of customer satisfaction in Islamic banking.…”

“…The present study reviews 39 articles published between 1999 and January 2011 using a systematic database keyword search in five major selected databases (i.e., Scopus, Web of Sciences, Proquest, Ebscohost, and EconLite). Most of the studies focus on conventional banking, while studies in the context of Islamic banking customer satisfaction are very limited (Naser et al 1999;Othman & Owen 2001;Muslim & Zaidi 2008;Masood et al 2009;Osman et al 2009;Haque 2010;Khattak & Rehman 2010;Sadek et al 2010). In addition, various methods are developed and introduced to measure customer satisfaction from service quality perspectives, including the Bankserv, Servperf and Servqual models.…”

Influence of relationship marketing on customer retention in the branches of commercial banks in Meru town, Kenya.

“…Berry et al (2006) explored the relation between emotion and perception of service quality with specific reference to the service facility and concluded that the interior environment can create mixed or trigger feelings which in turn affect behavior, customer satisfaction, retention and perception of service quality. Sadek et al, (2010) A study carried out on customer retention strategies at Ghana banks Kate Agudze (2014) found that the customer retention strategies in the Ghanaian banks were bank service quality switching barriers, customer relationship management and loyalty rewards. Their study found out that the better the banks quality service, the higher the retention rate, hence a significant positive relationship between the bank service quality and customer retention.…”