Customer perceived service quality and loyalty in Islamic banks

Abstract

Purpose – There is a plethora of research which has dealt with service quality issues in various service organizations. But a few researchers have presented state of service quality from a cultural perspective, especially within an Asian cultural context. The purpose of this paper is to measure service quality of Pakistani Islamic banks through validating a culturally sensitive scale: PAKSERV. Furthermore, the path from service quality to customer loyalty has been presented through applying PAKSERV service quality scale. Design/methodology/approach – Following a positivist tradition, the service quality to loyalty path in Islamic banking sector of Pakistan is established. A self-administered survey was conducted to approach 300 Islamic bank customers in major cities of Pakistan. The respondents were purposefully selected based on their extent of using the retail banking services. The data were analysed through employing various quantitative measures such as correlation and structural equation modelling employing AMOS. Findings – The findings reveal that Pakistani Islamic banking customers are satisfied with the service quality offered. All the dimensions of PAKSERV are found to significantly contribute towards customer satisfaction and loyalty. However, major focus of customer is on the dimensions such as responsiveness and sincerity which are understandable in high-risk avoiding and moderately power-oriented Pakistani society. Originality/value – The research has been first of its type to present the validity of PAKSERV scale in a collectivist cultural context of Pakistan. Furthermore, the path from the customer satisfaction to loyalty by employing PAKSERV scale has been presented for the first time.

The role of service quality within Indonesian customers satisfaction and loyalty and its impact on Islamic banks

“…Implications 6.1 Academic implications The results of this study have implications related to the development of the relevant theories. First, the results of this study will contribute to the recent debate among service marketers about the use of various scales to measure service quality (Gilmore and McMullan, 2009;Kashif et al, 2016), especially in the context of Islamic banking. This research also methodologically contributes to non-student samples and the application of strong techniques for analysing results.…”

“…However, the scale of the measurement of service quality developed is largely adopted by Western scientists who do not really represent the contextual paradigm where service quality is delivered (Kashif et al, 2016). The efforts of contemporary researchers question the appropriateness and replication of the various scales of measurement of service quality.…”

Brand Image And Customer Loyalty Among Gen-Y

“…Loyalty programs are introduced by organizations to reward customers for repeat business. Previous research about customer loyalty has stated that customer satisfaction strongly contributes towards customer loyalty (Kashif et. al., 2016).…”

Customer Loyalty and its Antecedents in Banking Service Rendering Context

“…For so, studies that consider customer loyalty are opportune, even more in the financial services context (Baumann et al, 2011;Bhatnagar et al, 2017), once the Banks are relevant institutions for the market and the world economy, and people and companies need their services, what makes it relevant to analyze customer loyalty and its determinants in the context of existing relations between the Banks and their customers (Lewis & Soureli, 2006;Licata & Chakraborty, 2009). Facing the exposed, we identified a variety of studies on deepening the understanding of how to encourage bank customers to develop customer loyalty over time (Kashif et al, 2016;Pumim et al, 2017). Therefore, there is a latent need for a better understanding and consolidation of the relationships among the antecedent constructs of customer loyalty (Jing et al, 2011;Dagger & David, 2012).…”