Publication:
Influence Of Customer Satisfaction, Service Quality, And Trust On Customer Loyalty In Malaysian Islamic Banking

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Abstract

Banks are economically significant. Malaysian Islamic banks operate in a competitive environment, creating the perception that a bank’s sustainability and effectiveness can only be guaranteed by “customer loyalty”. This study aims to investigate the influence of customer satisfaction, service quality, and trust on customer loyalty in Malaysian Islamic banking and determine the relationship among satisfaction, service quality, and trust on customer loyalty. A survey method was used to obtain data on Islamic bank customers in Kuala Lumpur, Malaysia. Principle component analysis was employed in the exploratory data analysis of 100 customer surveys.The Cronbach’s alphas of the parameters that were generated exceed the minimum acceptability threshold. The hypotheses were tested by performing regression analyses. Result shows that only one variable satisfaction significantly influences customer loyalty. This study provides a guide for Malaysian Islamic bank management groups toward building satisfaction by focusing on customers as the prime consideration. In addition, banks should focus in enhancing customer loyalty by revising bank strategies to retain existing customers and attract new customers who have the potential for loyalty. Keywords: Satisfaction, Service quality, Trust, Customer loyalty, Islamic banking.

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Keywords

Satisfaction,, Service quality,, Trust, Customer loyalty,, Islamic banking.

Citation

International Journal of Business and Social Science Vol. 6, No. 11; November 2015