Service loyalty primacy over quality and satisfaction in Islamic banking services
Abstract/Description
This study is an attempt to explore the mediational role of customer satisfaction between service quality and service loyalty for Islamic banks’ customers. Islamic banking customers adopt Islamic way of banking assuming the inherent belief of Shariah compliance of banks. This leads to an increased inclination towards loyalty concerning Islamic banks irrespective of the otherwise psychological flow from banking services availed to satisfaction judgments to loyalty. The mediation model is applied in Islamic banking context with a pretext whether service loyalty exists directly by virtue of service quality availed by Islamic banking customers or their satisfaction plays an important mediational role in between. Questionnaire was developed with the help of three relevant constructs of importance and data gathered by following self-administered but supervised protocol. The instrument was given to and collected from customers at a customer service counter of an Islamic bank in the heart of Karachi city. Structural Equation Modeling (SEM) was employed. The mediation analysis results of the model highlight a partial but weak mediation of customer satisfaction in the flow of service quality availed and service loyalty of Islamic banking customers. The results substantiated the hypothesis due to inherent assumption of deeply rooted latent religiosity.
Keywords
Track
Accounting, Law, and Finance
Session Number/Theme
Session 1A: Islamic Finance
Session Chair
Dr. Irum Saba, Institute of Business Administration, Karachi
Session Discussant
Dr. Mohsin Zahid Khawaja; Dr. Mohsin Sadaqat; Madeeha Omer Lakhani; Nader Virk
Start Date/Time
23-6-2022 11:40 AM
End Date/Time
23-6-2022 12:00 PM
Location
Training Room 3, Marriott Hotel, Karachi
Recommended Citation
Rub Nawaz, R., Reza, S., & Sarwar, B. (2022). Service loyalty primacy over quality and satisfaction in Islamic banking services. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2022/program/3
COinS
Service loyalty primacy over quality and satisfaction in Islamic banking services
Training Room 3, Marriott Hotel, Karachi
This study is an attempt to explore the mediational role of customer satisfaction between service quality and service loyalty for Islamic banks’ customers. Islamic banking customers adopt Islamic way of banking assuming the inherent belief of Shariah compliance of banks. This leads to an increased inclination towards loyalty concerning Islamic banks irrespective of the otherwise psychological flow from banking services availed to satisfaction judgments to loyalty. The mediation model is applied in Islamic banking context with a pretext whether service loyalty exists directly by virtue of service quality availed by Islamic banking customers or their satisfaction plays an important mediational role in between. Questionnaire was developed with the help of three relevant constructs of importance and data gathered by following self-administered but supervised protocol. The instrument was given to and collected from customers at a customer service counter of an Islamic bank in the heart of Karachi city. Structural Equation Modeling (SEM) was employed. The mediation analysis results of the model highlight a partial but weak mediation of customer satisfaction in the flow of service quality availed and service loyalty of Islamic banking customers. The results substantiated the hypothesis due to inherent assumption of deeply rooted latent religiosity.
