Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships

Abstract

Purpose The purpose of this paper is to investigate the role of trust in enhancing customer loyalty, and to test the mediation role of commitment and customer intimacy in the relationship between trust and customer loyalty. Design/methodology/approach A total of 500 questionnaires were distributed and 200 were returned (40 percent response rate), and a structural equation modeling technique was used to test the hypotheses. Findings The results of this study show that trust has a significant relationship with commitment and customer intimacy but no significant relationship was found with customer loyalty. Commitment and customer intimacy have a significant relationship with customer loyalty. The mediation analysis reveals that commitment and customer intimacy play a mediation role in the relationship between trust and customer loyalty. Practical implications This study indicates that commitment and customer intimacy affect customer loyalty. The role of commitment and customer intimacy as a mediator between trust and customer loyalty indicates that customers are committed to continuing and maintaining the relationships with Islamic banks. Originality/value This study provides empirical evidence on interrelationships between trust, commitment, customer intimacy and customer loyalty in banking relationships.

Influence of Trust on Customer Engagement: Empirical Evidence From the Insurance Industry in Ghana

“…The most often cited problem in any self-report survey is the issue of exposure to common method variance (Malhotra et al, 2017;Tabrani et al, 2018) as it threatens the validity of the results (Kosiba et al, 2018;Reio, 2010). Accordingly, we examined this concern in this study employing the Harman's single factor test.…”

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Accelerating the Social Media Process: The Impact of Internet Celebrity Word-of-Mouth Communication and Relationship Quality on Consumer Information Sharing

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“…1 2018). Based on the relationship among satisfaction, trust and commitment, customer satisfaction (Iglesias et al, 2019;Rather & Sharma, 2017), trust (Tabrani et al, 2018) is an important factor of commitment (Lee & Wong, 2016).…”

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“…A positive perception of value may bring customers back to make another transaction [18]. When customers believe they are being treated fairly in an exchange, they will be satisfied with the transaction if their outcome-to-input ratio is in 13 some sense adequate [15].…”