Muslim customer perceived value on customer satisfaction and loyalty: Religiosity as a moderation

Abstract

This study aims to determine the effect of Muslim customer perceived value on customer satisfaction and customer loyalty of sharia banking and religiosity role in moderating the existing effect. The study population includes all customers of Sharia banking. Total samples of 104 respondents are selected by accidental sampling technique. To know and to test the research hypothesis, data are analyzed by partial least square (PLS). This study has four results. First, the Muslim customer perceived value (MCPV) variable directly affects customer satisfaction. It consists of price, emotional values, and social values variables. While the quality, Islamic physical attributes, and Islamic non-physical attributes variables directly do not affect satisfaction of Islamic banking customers. Second, Muslim customer perceived value (MCPV) variable directly affects customer loyalty. It consists of price, emotional value, physical and non-physical attributes of Islam. Moreover, quality and social value variables directly do not affect loyalty of sharia banking customers. Third, satisfaction only mediates the effect of price, emotional value, and social value variables on the loyalty of sharia banking customers. Satisfaction does not mediate the effect of quality, Islamic physical attributes, and Islamic nonphysical attributes affect the loyalty of sharia banking customers. Forth, Religiosity does not moderate the effect of Muslim customer perceived value (MCPV) variable, namely Islamic physical attributes and Islamic nonphysical attributes, on satisfaction of sharia banking customers.

Customer loyalty to Islamic banks: Evidence from Indonesia

“…CS mediates between PV and customer loyalty in private and state-owned Islamic banks (H15a). This study conforms to Rahayu et al (2020) who report mediation of CS between customer loyalty and PV. These results indicate that neither private nor state-owned Islamic banks operate in line with customer expectations and doing so could improve CS and strengthen customer loyalty.…”

“…This finding supports Abubakar (2019), Hamouda (2019), Kaura et al (2015), and Mahadin (2019), who explain that PV represents customer perception of the balance between the benefits they receive and the money they pay. For Islamic banks in Indonesia, Rahayu et al (2020) reveal that Muslims perceive value in the form of price, emotional value, and social value that directly affect CS. Customers assess bank performance against their expectations that determines CS.…”

Islamic bank trust: the roles of religiosity, perceived value and satisfaction

“…Additionally, some studies examined the moderating role of religiosity. Eid and El-Gohary (2015); Rahayu et al (2020) in their studies found that religiosity was a significant moderating variable in the relationship between perceived value and customer satisfaction. In line with their study, Abror, Wardi, Trinanda, and Patrisia (2019) also highlighted the role of religiosity in the relationship between Halal tourism and customer satisfaction.…”

“…Accordingly, when a customer got a high perceived value on the product or service performance, they would be satisfied with the product or service. Rahayu, Setiawan, Irawanto, and Rahayu (2020) investigated the relationship between perceived value and customer satisfaction. They revealed that customer satisfaction was significantly affected by customer perceived value.…”

Understanding mediators and moderators of the effect of customer satisfaction on loyalty

“…The relationship between customer satisfaction and customer loyalty is crucial within the banking sector (El-Adly, 2019; Rahayu et al, 2020;Raza et al, 2020). Furthermore, successful banks are dependent on a strong base of satisfied and loyal customers .…”