Let’s get acquainted: an empirical study on takaful customer-service provider relationships from Saudi Arabian perspectives

Abstract

Purpose This study aims to examine a proposed model based on a combination of relationship marketing and service quality dimensions as a significant predictor of corporate image. More importantly, it attempts to identify whether corporate reputation mediates the relationship between and customer loyalty and corporate image in the takāful (Islamic insurance) context, from the viewpoint of Saudi Arabian customers. Design/methodology/approach An online survey was conducted through an adopted questionnaire from 362 family takāful policyholders from Saudi Arabia. Also, structural equation modelling was used to test the proposed model on the direct relationships of the related constructs, as well as the establishment of corporate reputation as a mediator concerning its relationship between corporate image and customer loyalty. Findings This study discovered that only two dimensions of service quality (i.e. reliability and assurance) and three aspects of relationship marketing (i.e. Islamic ethical behaviour, financial and structural bonds) have a significant impact on the corporate image of the takāful providers. This study further concluded that corporate reputation mediates the relationship between corporate image and customer loyalty. Research limitations/implications This study has presented and tested the perceived service quality using the PAKSERV model in the takāful (Islamic insurance) industry, particularly in the Saudi Arabian context. This research identified the dimensions of PAKSERV (i.e. reliability and assurance) that influence the corporate image and simultaneously, the aspects of relationship marketing (i.e. Islamic ethical behaviour, financial and structural bonds) are also connected to the corporate image. Corporate reputation acts as a mediator between the relationship of corporate image and customer loyalty. This study, nevertheless, only focused in the takāful industry alone, and these findings could also be tested for its validity to different services in other potential studies because of the diversity of the service industry. Originality/value The findings of this study highlight the specific components of PAKSERV measures in influencing the corporate image. Furthermore, relationship marketing addressing Islamic ethical behaviour, as well as the three facets of bonding – structural, financial and social bonds are also incorporated and connected to corporate image. Hence, this study will increase the understanding of the impact of service quality concerning the PAKSERV model and relationship marketing on corporate image, reputation and customer loyalty of the takāful operators in Saudi Arabia.

Forging customer satisfaction through commitment-trust factors in financial insurance services: moderating role of corporate image

“…For instance, Abdur Rehman et al (2021) have investigated the positive role of corporate image with takaful operators’ corporate reputation in Malaysia and Saudi Arabia. Moreover, Osman et al (2021) have investigated the role of different dimensions of service quality and relationship marketing, which helps in developing a positive corporate image of the takaful insurance service provider. However, the moderating role of corporate in strengthening/weakening the relationship ties between the commitment–trust factors is not investigated.…”

Takaful funeral; an innovation for Islamic insurance product

“…The second and third hierarchies are six criteria and 16 sub-criteria of respondents choosing takaful funeral products, whereas the lowest hierarchy is the alternative product choice. The six criteria hierarchies are market needs (Abdur Rehman et al, 2019;Kadirov, 2020), product design (Behare and Dharmapurikar, 2013), premium prices (Zainuddin and Noh, 2013), claim processes (Akhter et al, 2021;Osman et al, 2021), distribution (Shukor, 2020) and market education (Alhassan, 2016). The selected respondents were Indonesian, Turkish and Moroccan takaful funeral participants in Europe.…”

“…Furthermore, technology development should be improved in terms of services for participants, risk management, Islamic reinsurance, investment and strategic alliances with related organizations. This can be achieved through profitable cooperation (Miyamoto et al, 2012;Tung, 2013;Kim and Lee, 2014;Eling and Lehmann, 2018;Adeyemi and Issa, 2020;Osman et al, 2021;Iwasaki, 2023).…”