Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty

Afifah Afifah(1*), Nurul Alfiah Kurniawati(2)

(1) Airlangga University
(2) University of Edinburgh
(*) Corresponding Author

Abstract

ABSTRACT

Strengthening Islamic banking funding is one of particular strategies in the Indonesian Islamic banking master plan for 2019-2024, as one of their expected outputs is to increase market share and customer satisfaction of Islamic banks. This study aims to identify influence of service quality dimensions on customer satisfaction and their impacts on customer loyalty in Islamic banks in Indonesia. This study used a quantitative approach. Its data were collected by an online questionnaire with five Likert scales randomly given to 136 customers from several Islamic banks who had direct transactions at the Islamic banks. The sampling technique of this study used a purposive sampling technique, and its analysis technique used Structural Equation Modeling based on Partial Least Square (SEM-PLS). The findings of this paper indicate that the dimensions of both compliance and responsiveness have significant influence on customer satisfaction and customer loyalty. Meanwhile, assurance, reliability, and empathy dimensions have no significant impacts on customer satisfaction and customer loyalty. Tangible dimension has significant influence on customer satisfaction but has no significant influence on customer loyalty. Customer satisfaction has a significant impact on customer loyalty.

Keywords: Islamic bank, CARTER model, customer satisfaction, customer loyalty

Keywords

Islamic bank, CARTER model, customer satisfaction, customer loyalty

Full Text:

PDF

References

REFERENCES

Ahmed, A. and Rehaman, K-u. (2010). An Imperical Investigation of Islamic Banking in Pakistan Based on Perception of Service Quality. International Journal of Business and Management, 1185-1193.

Akhtar, M.N., et al. (2011). Relationship Between Customer Satisfaction and Service Quality of Islamic Banks. World Applied Sciences Journal, 453-459.

Amin, M. and Isa, Z. (2008). An Examination of The Relationship Between Service Quality Perception and Customer Satisfaction a SEM Approach Towards Malaysian Islamic Banking. International, 191-209.

Amin, M., et al. (2013). Islamic Banks Contrasting The Drivers of Customer Satisfaction on Image, Trust, and Loyalty of Muslim and non-Muslim Customers In Malaysia. International Journal of Bank Marketing, 79-97.

Asnawi, N., Sukoco, B.M. and Fanani, M.A. (2018). Halal Products Consumption In International Chain Restaurants Among Global Moslem Consumers. International Journal of Emerging Markets, 1273-1290.

Bloemer, J., et al. (1999). Linking Perceived Service Quality and Service Loyalty: A Multi-Dimensional Perspective. European Journal of Marketing, 1082-1106.

Caceres, R.C. and Paparoidamis, N.G. (2007). Service Quality, Relationship Satisfaction, Trust, Commitment and Business-to-Business Loyalty. European Journal of Marketing, 836-867.

Casidy, R. and Wymer, W. (2015). The Impact of Brand Strength on Satisfaction, Loyalty and WOM: An Empirical Examination in The Higher Education Sector. Journal of Brand Management, 117-135.

Chaudhuri, A. and Holbrook, M.B. (2001). The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing, 81-93.

Chen, M.F. and Wang, L.H. (2009). The Moderating Role of Switching Barriers on Customer Loyalty in The Life Insurance Industry. The Service Industries Journal, 1105-1123.

Ciptono, W.S. and Sofiyanti, E. (2007). Adapting Islamic Banks’ CARTER Model: An Empirical Study In Riau’s Syariah Banks, Indonesia. Proceeding PESAT (Psikologi, Ekonomi, Sastra, Arsitek and Sipil), 120-127.

Cronin, J.J. and Taylor, S.A. (1992). Measuring Service Quality: A Reexamination and Extension. Journal of Marketing, 55.

Cullen, J. and Hollingum, J. (1987). Implementing Total Quality. Bedford: IFS Publications.

Dandis, A.O., and Wright, L.T. (2020). The Effects of CARTER Model on Attitudinal Loyalty in Islamic Banks. International Journal of Quality and Service Scinces, 149-171.

Dick, A.S. and Basu, K. (1994). Customer Loyalty: Toward an Integrated Conceptual Framework. Journal of the Academy of Marketing Science, 99-114.

Dick, A.S. and Basu, K. (1994). Customer Loyalty: Toward An Integrated Conceptual Framework. Journal, 99-113.

Ebrahimi, M.R. and Moghadam, A.H. (2012). A Survey to Recognize The Most Important Dimensions of The Service Quality of Iran Commercial Banks. Journal of Management Research, 303-317.

Estiri, et al. (2011). Determinants of Customer Satisfaction In Islamic Banking: Evidence From Iran. International Journal of Islamic and Middle Eastern Finance and Management, 295-303.

Famiyeh, S., Darko, D.A., and Kwarteng, A. (2017). Service Quality, Customer Satisfaction, and Loyalty in The Banking Sector: The Moderating Role of Organizational Culture. International Journal of Quality & Reliability Management, 1-36.

Fauzi, A.A., and Suryani, T. (2018). Measuring The Effects of Service Quality By Using CARTER Model Towards Customer Satisfaction, Trust and Loyalty in Indonesian Islamic Banking. Journal of Islamic Marketing, 1-22.

Febriandika, N.R., Millatina, A.N., Luthfiyatillah., dan Hearianingrum, S. (2020). Customer E Loyalty of Muslim Millennials in Indonesia: Integrated Model of Trust, User Experience and Branding in E-Commerce Webstore. Association for Computing Machinery Journal, 369-376.

Ganiyu, R.A., et, al. (2012). Is Customer Satisfaction An Indicator of Customer Loyalty? Australian Journal of Business and Management Research, 14-20.

Geyskens.,et. al. (1999). A Meta-Analysis of Satisfaction in Marketing Channel Relationships. Journal of Marketing Research, 223-238.

Ghozali, I. Latan, H. (2012). Partial Least Square : Konsep, Teknik dan Aplikasi SmartPLS 2.0 M3. Semarang: Badan Penerbit Universitas Diponegoro.

Giese, J.L. and Cote, J.A. (2002). Defining consumer satisfaction. Academy of Marketing Science Review, 1-27.

Hennig-Thurau, T., et, al. (2002). Understanding Relationship Marketing Outcomes: An Integration of Relational Benefits and Relationship Quality. Journal of Service Research, 230-247.

Henseler, J., et al. (2009). The Use of Partial Least Squares Path Modeling In International Marketing. Advances in International Marketing, 277-319.

Hossein, V. and Sahel, F. (2013). Factors Influencing Customer Satisfaction With The Success Factors Identified In The Insurance Industry. African Journal of Business Management, 2026-2032.

Indonesia Halal LifeStyle Centre. (2019). Ekonomi Islam Global Laporan 2019/20; Ringkasan Eksekutif Memacu Revolusi Ekonomi Islam 4.0. Dubai: DinarStandard.

Ioannis, E.C. and Lymperopoulos, C. (2009). Service Quality Effect on Satisfaction and Word of Mouth In The Healthcare Industry. Managing Service Quality: An International Journal, 229-242.

Janahi, M.A. and Almubarak, M. (2015). The Impact of Customer Service Quality on Customer Satisfaction In Islamic Banking. Journal of Islamic Marketing, 595-604.

Kasiri, et al. (2017). Integration of Standardization and Customization: Impact on Service Quality, Customer Satisfaction, and Loyalty. Journal of Retailing and Consumer Services, 91-97.

Kasmir. (2004). Bank dan Lembaga Keuangan Lainnya. Jakarta: PT. Raja Grafindo Persada.

Keisidou, E., et al. (2013). Customer Satisfaction Loyalty and Financial Performance: A Holistic Approach of The Greek Banking Sector. International Journal of Bank Marketing, 259-288.

Khafafa, A.J. and Shafii, Z. (2013). Measuring The Perceived Service Quality and Customer Satisfaction In Islamic Bank Windows In Libya Based on Structural Equation Modelling (SEM). Afro, 57-71.

Khamis, F.M., and AbRashid, R. (2018). Service Quality and Customer’s Satisfaction In Tanzania’s Islamic Banks A Case Study at People’s Bank of Zanzibar (PBZ). Journal of Islamic Marketing, 1-18.

Kotler, P. (2005). Manajemen Pemasaran Analisis, Perencanaan, dan Pengendalian. Jakarta: Erlangga.

Kyle, G., et al. (2010). The Effects of Service Quality on Customer Loyalty Within The Context of Ski Resorts. Journal of Park and Recreation Administration, 1-15.

Ladhari, R., et al. (2011). Determinants of Loyalty and Recommendation: The Role of Perceived Service Quality, Emotional Satisfaction and Image. Journal of Financial Services Marketing, 111-124.

Lam., et al. (2004). Customer Value, Satisfaction, Loyalty and Switching Costs: An Illustration From a Business-to-Business Service Context. Journal of the Academy of Marketing Science, 293-311.

Lee, J.-K., et al. (2010). The Influence of Service Quality on Satisfaction and Intention: A Gender Segmentation Strategy. Sport Management Review, 54-63.

Lee, K. and Ullah, S. (2011). Customers’ Attitude Toward Islamic Banking in Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 131.

Lewis, R.C. & Booms, B.H. (1983). The Marketing Aspects of Service Quality" in Berry, L., Shostack, G. and Upah, G. (eds.). Emerging Perspectives on Services Marketing. Chicago: American Marketing Association Chicago.

Loone., Aldawood., and Bhat. (2017). Comparative Analysis of Customer Satisfaction towards Islamic and Conventional Banking: An Empirical Study From Saudi Arabia. International Review of Management and Marketing, 273-280.

Lupiyoadi, R. (2001). Manajemen Pemasaran Jasa : Teori dan Praktik. Jakarta: Salemba Empat.

Misbach, I. and Hadiwidjojo, D. (2013). Islamic Bank Service Quality and Trust: Study on Islamic Bank In Makassar Indonesia. International Journal of Business and Management, 48-61.

Murray, D. and Howat, G. (2002). The Relationships Among Service Quality, Value, Satisfaction, and Future Intentions of Customers at An Australian Sports and Leisure Centre. Sport Management Review, 25-43.

Ofori., et al. (2017). Examining Customers’ Continuance Intentions Towards Internet Banking Usage. Marketing Intelligence and Planning, 756-773.

Okumus, H.S. and Genc, E.G. (2013). Interest Free Banking In Turkey: A Study of Customer Satisfaction and Bank Selection. European Scientific Journal Edition, 144 -166.

Oliver, R. (1980). A Cognitive Model of The Antecedents and Consequences of Satisfaction Decisions. Journal of Marketing Research, 460-469.

Omoregie, et al. (2018). Factors Influencing Consumer Loyalty: Evidence from The Ghanaian Retail Banking Industry. International Journal of Bank Marketing, 1-24.

Osman, I., et al. (2009). Customers Satisfaction In Malaysian Islamic Banking. International Journal of Economics and Finance, 197-202.

Othman, A.Q. and Owen, L. (2001). The Multi Dimensionality of CARTER Model to Measure Customer Service Qaulity (SQ) In Islamic Banking Industry: A Study in Kuwait Finance House. International Journal of Islamic Financial Services, 1-12.

Parasuraman, A., et al. (1998). SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 12-40.

Paul, J., Mittal, A., Srivastav, G. (2016). Impact of Service Quality on Customer Satisfaction in Private and Public Sector Banks. International Journal of Bank Marketing, 606-622.

Pedragosa, V. and Correia, A. (2009). Expectations, Satisfaction and Loyalty in Health and Fitness Clubs. International Journal of Sport Management and Marketing, 450-464.

Qureshi, M.I., Khan, A. and Zaman, K. (2012). Structural Investigation of Service Quality In Conventional and Islamic Banking In Pakistan. International Review of Management and, 99-105.

Ramdhani, M.A., et al. (2011). The Influence of Service Quality Toward Customer Satisfaction of Islamic Sharia Bank. Australian Journal of Basic and Applied Sciences, 1099-1104.

Ratnasari, R.T., Gunawan, T., Septiarini, S., Fitrisia, D., Sylva, R., Kirana, A. and Kusuma, C. (2020). Customer Satisfaction Between Perceptions of Environment Destination Brand and Behavioural Intention. International Journal of Innovation, Creativity and Change, 472 - 487.

Ratnasari. R.T., dan Aksa. M.H. (2011). Manajemen Pemasaran Jasa. Bogor: Ghalia Indonesia.

Ratnasari. R.T., Gunawan. S., dan Mawardi. I. (2020). Emotional Experience on Behavioral Intention for Halal Tourism. Journal of Islamic Marketing, 1-18.

Rehman, K-u. and Khattak, N. (2010). Customer Satisfaction and Awareness of Islamic Banking In Pakistan. African Journal of Business Management, 662-671.

Ren, Y. and Lam, D. (2016). An Investigation Into The Link Between Service Quality Dimensionality and Positive Word-of-Mouth Intention In Mainland China. Journal of Marketing Communications, 513-523.

Rust, R.T. and Zahorik, A.J. (1993). Customer Satisfaction, Customer Retention, and Market Share. Journal of Retailing, 193-215.

Schiffman. L. dan L, Kanuk. (2008). Consumer Behaviour. Jakarta: PT. Indeks.

Shafie, S., et al. (2004). Adopting and Measuring Customer Service Quality (SQ) In Islamic Banks: A Case Study In Bank Islam Malaysia Berhad. Journal of Muamalat and Islamic Finance Research, 1-12.

Shoemaker, S. and Lewis, R.C. (1999). Customer Loyalty: The Future of Hospitality Marketing. International Journal of Hospitality Management, 345-370.

Siala, H. (2013). Religious Influences on Consumers’ High-Involvement Purchasing Decisions. Journal of Services Marketing, 579-589.

Slack, N., Singh, G., and Sharma, S. (2020). The Effect of Supermarket Service Quality Dimensions and Customer Satisfaction on Customer Loyalty and Disloyalty Dimensions. International Journal of Quality and Service Sciences, 1-22.

Souiden, N. and Rani, M. (2015). Consumer Attitudes and Purchase Intentions Toward Islamic Banks: The Influence of Religiosity. International Journal of Bank Marketing, 143-161.

Stafford, M.R. (1996). Demographic Discriminators of Service Quality In The Banking Industry. Journal of Services Marketing, 6-22.

Sudarwati, and Yani, B.A. (2021). Analysis of Customer’s Decision to Choose Sharia Banking in Surakarta. Journal of Islamic Economic Laws, 61-77.

Sugiyono. (2009). Metode Penelitian Administrasi. Bandung: Alfabeta.

Suherman, A. (2018). Analisis Kualitas Pelayanan dengan Model CARTER dan Pengaruhnya Terhadap Kepuasan Nasabah (Studi Pada PT Bank Aceh Syariah KC Banda Aceh). Banda Aceh: Fakultas Ekonomi dan Bisnis Islam UIN Ar-Raniry.

Syauqi. M., Ratnasari. R.T., Herianingrum. S. (2018). The Effects of Islamic Marketing Mix on Consumer Satisfaction and Consumer Loyalty. ICPS 2018 - 2nd International Conference Postgraduate School, 192-200.

Tjiptono, F. (2005). Manajemen Pemasaran dan Pemasaran Jasa. Malang: Bayu Media Publishing.

Tweneboah-Koduah, E. and Farley, Y.D. (2015). Relationship Between Customer Satisfaction and Customer Loyalty In The Retail Banking Sector of Ghana. International Journal of Business and Management, 249-262.

Ullah, H. (2014). Shari’ah Compliance In Islamic Banking An Empirical Study on Selected Islamic Banks In Bangladesh. International Journal of Islamic and Middle Eastern Finance and Management, 182-199.

Wahyuningsih. (2014). Tingkat Kualitas Pelayanan Dengan Model CARTER Pada BPD DIY Syariah. Skripsi. Yogyakarta: UIN Sunan Kalijaga.

Wong, A. and Sohal, A. (2003). Service Quality and Customer Loyalty Perspectives on Two Levels of Retail Relationships. Journal of Services Marketing, 495-513.

Zaim, H., et al. (2010). Service Quality and Determinants of Customer Satisfaction in Hospitals: Turkish Experience. The International Business & Economics Research Journal, 51-58.

Zeithaml, V.A., et al. (1996). The Behavioural Consequences of Service Quality. Journal of Marketing, 31-46.

DOI: 10.23917/jisel.v4i2.15089

Article Metrics

Abstract view(s): 1406 time(s)
PDF: 1127 time(s)

Refbacks

  • There are currently no refbacks.