Nowadays, Islamic banks are facing tough competition among themselves and conventional banks that offer services and banking products based on Islamic principles. Such competition leads to issue involving customer satisfaction regarding the Islamic financing products and the efficiency of the services offered. Thus, the aims of this paper is to investigate the linkage effect of service quality (efficiency) on customer satisfaction and customer loyalty of Islamic automobile financing in Malaysia. Survey data was collected from 584 walk-in customers of selected bank outlets in the state of Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya. The data was then analysed using Pearson Correlation and Multiple Regression technique. Results show that customer satisfaction and customer loyalty were positively affected by quality of service offered by Islamic Banks. Hence, based on the results, Islamic bank should have an effective computerised system, good legal advisory, Islamic compliance, well-trained staff, secure transaction, sufficient bank branches, and as well as sufficient facility and information in order to uplift and improve efficiency of the bank.

The objective of this study is to ascertain the relationship between service quality factors, customer satisfaction and customer loyalty of Islamic auto financing products in Maybank Islamic Berhad and Bank Islam Malaysia Berhad. Two Islamic auto financing products involved, i.e. Al-Ijarah Thumma Al-Bai’ (AITAB) of Maybank Islamic Berhad and Vehicle Financing-i (Bai’ Bithaman Ajil-BBA) of Bank Islam Malaysia Berhad. Areas of research were in the Klang Valley, specifically in state of Selangor, Wilayah Persekutuan Kuala Lumpur and Wilayah Persekutuan Putrajaya. CARTER was used as a basis of service quality model with the purpose to ascertain the relationship and impact of service quality on customer satisfaction and customer loyalty. It was also used to measure the influence of demographic factors such as age, gender, education and income on service quality dimensions. For data collection purpose, a questionnaire on 5- point likert scale was developed and datas were collected from 500 respondents through self-administered questionnaires. Linear regression and correlation applied for analyzing the data is analyzed using SPSS version 19.0. Ten hypotheses have been tested using Pearson Correlation, Multiple Hierarchical Regression, One Way Analysis of ANOVA and also Independent Sample T- test.