Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty

Abstract

Journal of Islamic Marketing SERVICE QUALITY, RELIGIOSITY, CUSTOMER SATISFACTION, CUSTOMER ENGAGEMENT AND ISLAMIC BANK'S CUSTOMER LOYALTY ABSTRACT PurposeThis study investigates the influential factors of customer loyalty to Islamic Bank, namely service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approachThis study is a survey of 335 Islamic bank customers in West Sumatra Indonesia. This research deployed purposive sampling and analyzed the data by using Covariance Based Structural Equation Modelling (CB-SEM). Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality-customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implicationsThis study is a combination of cross-sectional and a single country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection and conducted in other countries (e.g., ASEAN countries) would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g., customer value co-creation and customer commitment), hence, the future study may investigate those factors. Practical implicationsBy considering these Islamic banks' antecedents, the Islamic banks might enhance their customer loyalty. Second, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision making. Originality/valueThis study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic bank which is neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationship between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole which have been limited previously.

Customer loyalty to Islamic banks: Evidence from Indonesia

“…CS and CE indicate a significantly positive relationship for private and state-owned Islamic banks (H10). This supports Marino and Lo Presti (2018) and Abror et al (2019) who observe the significant effect of customer emotional engagement on CS. This study suggests that Islamic banks should improve their services to improve CS and CE.…”

“…The relationship between SQ and CS is significantly positive for both private and state-owned Islamic banks (H4). This conforms to Amin et al (2013) Bazrkar et al (2018), Dusuki and Abdullah (2007) Kant et al (2019), Wu and Hussein (2019)De Bruin et al 2020, and Abror et al (2019) explain that when customers perceive good quality service their satisfaction improves. This indicates that Islamic banks have improved their SQ based on Shariah and profit.…”

Factors Influencing the Preference of Customers Towards Islamic Banking: Evidence from Malaysia

“…Services quality of Islamic banks are very critical dimension in attracting the people to deal with, whereby the current open markets including financial market forcing all market players to compete on all sides because consumers always behave rationally. Several prior studies have exhibited the results that service quality of Islamic banks is affecting to the customers loyalty and trust (Abror et al, 2019)namely, service quality, customer satisfaction, customer engagement and religiosity. Design/ methodology/approach: This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia.…”

The Effect of Brand Image, Website Quality, and Trust Towards Customer Loyalty in the Indonesian Consumer-to-Consumer (C2C) E-Commerce Business

“…Loyalty can be understood as customers' personal motivation and drive to re-purchase or re-buy any products or services offered by the same company in the future [1]. Furthermore, the concept of loyalty can also be perceived as the condition in which consumers are willing to re-visit, re-engage or re-communicate with the same company or provider in the future [2] [3].…”