Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Customer satisfaction and its measurement in Islamic banking sector: a revisit and update

Customer satisfaction and its measurement in Islamic banking sector: a revisit and update The purpose of this study is to answer the following questions: How to measure customer satisfaction from the provisioning service of both: Islamic and Conventional banks? Can we trust one tool to measure such satisfaction or both banks are different identities and there is a need for separate measurement tool? What is the relationship between banks operating style (Islamic or Conventional) and bank performance?Design/methodology/approachA cross-sectional survey design was conducted to analyze a sample of customers. A total of 480 Jordanian participants were included in the study.FindingsThe results of confirmatory factor analysis show that the most important drivers of customer satisfaction are Sharia’ compliance, complaints, pricing and convenience, whereas the least important drivers are e-banking, the perception of employees, enjoyment and tangibles. Also, the result of the multi-group analysis shows that the significant impacts of all drivers on customer satisfaction differ from Islamic banks to Conventional banks except for the enjoyment. The significant effects of customer satisfaction on bank performance also differ from Islamic to Conventional banks.Research limitations/implicationsThe result is limited to the selected sample, and hence, future research in other countries should contribute to a better understanding of the impact of customer satisfaction relationship on bank success or performance.Practical implicationsThis study provides a useful information for bank managers on the main driver of customer satisfaction and performance.Originality/valueThis study is intended to add to the existing literature in three ways: There is a lack of studies on the main drivers of customer satisfaction, especially those based on a consumer’s decision-making process in Arabic countries like Jordan. This study broadens the scope by testing the proposed model using data from a sample of consumers in Jordan. This study serves to propose and validate the drivers that influence customer satisfaction and bank performance and elucidate the manner of their influence, to help with the development of more effective business strategies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Islamic Marketing Emerald Publishing

Customer satisfaction and its measurement in Islamic banking sector: a revisit and update

Download PDF
24 pages

Loading next page...
 
/lp/emerald-publishing/customer-satisfaction-and-its-measurement-in-islamic-banking-sector-a-qcljWnrj3w
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1759-0833
DOI
10.1108/jima-07-2017-0080
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to answer the following questions: How to measure customer satisfaction from the provisioning service of both: Islamic and Conventional banks? Can we trust one tool to measure such satisfaction or both banks are different identities and there is a need for separate measurement tool? What is the relationship between banks operating style (Islamic or Conventional) and bank performance?Design/methodology/approachA cross-sectional survey design was conducted to analyze a sample of customers. A total of 480 Jordanian participants were included in the study.FindingsThe results of confirmatory factor analysis show that the most important drivers of customer satisfaction are Sharia’ compliance, complaints, pricing and convenience, whereas the least important drivers are e-banking, the perception of employees, enjoyment and tangibles. Also, the result of the multi-group analysis shows that the significant impacts of all drivers on customer satisfaction differ from Islamic banks to Conventional banks except for the enjoyment. The significant effects of customer satisfaction on bank performance also differ from Islamic to Conventional banks.Research limitations/implicationsThe result is limited to the selected sample, and hence, future research in other countries should contribute to a better understanding of the impact of customer satisfaction relationship on bank success or performance.Practical implicationsThis study provides a useful information for bank managers on the main driver of customer satisfaction and performance.Originality/valueThis study is intended to add to the existing literature in three ways: There is a lack of studies on the main drivers of customer satisfaction, especially those based on a consumer’s decision-making process in Arabic countries like Jordan. This study broadens the scope by testing the proposed model using data from a sample of consumers in Jordan. This study serves to propose and validate the drivers that influence customer satisfaction and bank performance and elucidate the manner of their influence, to help with the development of more effective business strategies.

Journal

Journal of Islamic Marketing – Emerald Publishing

Published: Jun 6, 2019

Keywords: Jordan

References

  • Services quality and customer satisfaction as antecedents of corporate image: a study of banking sector
    Aashish, M.; Kavita, S.
  • Factors that determine consumers’ choice in selecting islamic financing products
    Abbas, S.; Hamid, M.; Joher, H.; Ismail, S.
  • Perceptions of malaysian corporate customers towards islamic banking products and services
    Ahmad, N.; Haron, S.
  • Customer churn analysis: churn determinants and mediation effects of partial defection in the korean mobile telecommunications service industry
    Ahn, J.-H.; Hana, S.-P.; Lee, Y.-S.
  • Clients of conventional and islamic banks in Bahrain: how they choose which bank to patronize
    Al-Ajmi, J.
  • Consumer adoption of mobile banking in Jordan: examining the role of usefulness, ease of use, perceived risk and self-efficacy
    Alalwan, A.; Dwivedi, Y.; Rana, N.; Williams, M.
  • Using a multiple‐attribute approach for measuring customer satisfaction with retail banking services in Kuwait
    Al‐Eisa, A.; Alhemoud, A.
  • The role of bank automated services in gaining customers’ trust: a practical study in UAE
    Al-Hawari, M.
  • Service quality perception and customer satisfaction in islamic banks of Pakistan: the modified SERVQUAL model
    Ali, M.; Raza, S.
  • An examination of the relationship between service quality perception and customer satisfaction
    Amin, M.; Isa, Z.
  • Structural equation modeling in practice: a review and recommended two-step approach
    Anderson, J.; Gerbing, D.
  • Customer satisfaction, productivity, and profitability: differences between goods and services
    Anderson, E.; Fornell, C.; Rust, R.
  • Technology and service quality in the banking industry in Ghana
    Ankrah, E.
  • Customer satisfaction and dissatisfaction in retail banking: exploring the asymmetric impact of attribute performances
    Arbore, A.
  • On the evaluation of structural equation models
    Bagozzi, R.; Yi, Y.
  • Empirical study on customer satisfaction in public sector and private sector banks in India
    Barboza, A.; Shetty, R.; Shetty, P.; Shetty, J.; Shetty, A.
  • Customer satisfaction should not be the only goal
    Bennett, R.; Rundle-Thiele, S.
  • Significance tests and goodness of fit in the analysis of covariance structures
    Bentler, P.; Bonett, D.
  • Mandating a service revolution for marketing
    Brown, S.; Bitner, M.; Lush, R.F.; Vargo, S.L
  • Multi-group analysis with PLS
    Chin, W.
  • Only if it is convenient: understanding how convenience influences self-service technology evaluation
    Collier, J.
  • Construct validity in psychological tests
    Cronbach, L.; Meehl, P.
  • Measuring service quality – a reexamination and extension
    Cronin, J.; Taylor, S.
  • Quality of service and customer satisfaction: a conjoint analysis for the nigerian bank customers
    Dauda, S.; Lee, J.
  • Effects of perceived employee emotional competence on customer satisfaction and loyalty
    Delcourt, C.
  • Examining service quality and customer satisfaction in the retail banking sector in vietnam
    Dinh, V.; Pickler, L.
  • The effects of the global crisis on islamic and conventional banks: a comparative study
    Dridi, M.
  • Why do Malaysian customers patronize Islamic banks?
    Dusuki, A.; Abdullah, N.
  • The influence of corporate image on consumer trust a comparative analysis in traditional versus internet banking
    Flavian, C.; Guinalıu, M.; Torres, E.
  • Evaluating structural equation models with unobservable variables and measurement error
    Fornell, C.; Larcker, D.
  • A logit analysis of electronic banking in New Zealand
    Gan, C.
  • Internationalization of islamic financial institution. Challenges and paths to solution
    Garas, N.
  • Waiting in vain: managing time and customer satisfaction at call centers
    Garcia, D.
  • Service quality measurements: a review
    Ghotbabadi, A.; Feiz, S.; Baharun, R.
  • Assessing the non-random sampling effects of subject attrition in longitudinal research
    Goodman, J.; Blum, T.
  • The theory of power and conflict in channels of distribution
    Graski, J.
  • Understanding service convenience
    Grewal, D.
  • Customer satisfaction and competencies: an econometric study of an italian bank
    Gritti, P.
  • A service quality model and its marketing implications
    Gronroos, C.
  • Customer satisfaction, cash flow, and shareholder value
    Gruca, T.; Rego, L.
  • A study on islamic banking education and Millennium-Malaysian experience
    Hamid, A.
  • Interaction effect of perceived service quality and Brand image on customer satisfaction
    Hamid, A.; Ibrahim, S.; Seesy, A.; Hasaballah, A.
  • Customer orientation of service employees: its impact on customer satisfaction, commitment, and retention
    Hennig, T.
  • Customer perception on service quality in retail banking in Middle east: the case of Qatar
    Hossain, M.; Leo, S.
  • Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives
    Hu, L.; Bentler, P.
  • Customers’ perception of electronic service delivery in the UK retail-banking sector
    Ibrahim, E.
  • A customized measure of service quality in the UAE
    Jabnoun, N.; Khalifa, A.
  • Factors influencing customer satisfaction in the retail banking sector in Pakistan
    Jamal, A.; Naser, K.
  • A tale of two methods
    James, L.; Mulaik, S.; Brett, J.
  • Customer satisfaction at a public sector bank, karachi
    Javed, J.
  • Developing a scorecard for service quality
    Jones, C.
  • The impact of perceived service quality dimensions on customer satisfaction: an empirical study on public sector banks in India
    Kant, R.; Jaiswal, D.
  • Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction
    Kaura, V.; Prasad, C.; Sharma, S.
  • Consumers’ perceptions of the fairness of price-matching refund policies
    Kukar-Kinney, M.
  • Service quality perspectives and satisfaction in private banking
    Lassar, W.; Manolis, C.; Wisor, R.
  • A comparison of methods to test mediation and other intervening variable effects
    MacKinnon, D.; Lockwood, C.; Hoffman, J.; West, S.; Sheets, V.
  • A field study of customers’ switching behaviour for bank services
    Manrai, L.M.
  • An integrated model of price, satisfaction and loyalty: an empirical analysis in the service sector
    Martin-Consuegra, D.M.
  • Customer satisfaction’s key factors in spanish grocery stores: evidence from hypermarkets and supermarkets
    Martinez-Ruiz, M.J.-Z.
  • Economic consequences of applying Islamic principles in Muslim societies
    Metwally, M.
  • Customer satisfaction measurement in the private bank sector
    Mihelis, G.
  • Service quality delivery and its impact on customer satisfaction in the banking sector in Malaysia
    Munusamy, J.
  • Relationship between customer satisfaction and business performance in lloyds bank UK: a case study
    Neupane, R.
  • Imperatives of financial innovation for Islamic Banks
    Noman, A.
  • Measuring perceived service quality using integrated conjoint experiments
    Oppewal, H.
  • An empirical study of direct relationship of service quality, customer satisfaction and bank image on customer loyalty in malaysian commercial banking industry
    Osman, Z.; Mohamad, L.; Mohamad, R.
  • The multidimensionality of CARTER model to measure customer service quality in Islamic banking industry: a study in Kuwait finance house
    Othman, A.; Owen, L.
  • A conceptual model of service quality and its implication for future research
    Parasuraman, A.A.; Zeithaml, V.A.; Berry, L.L.
  • Impact of service quality on customer satisfaction in private and public sector banks
    Paul, J.; Mittal, A.; Srivastav, G.
  • Common method biases in behavioral research: a critical review of the literature and recommended remedies
    Podsakoff, P.; MacKenzie, S.; Lee, J.; Podsakoff, N.
  • Zero defections: quality comes to services
    Reichheld, F.; Sasser, W. Jr
  • Reconceptualizing service encounter quality in a non-western context
    Raajpoot, N.
  • Customer perception regarding shari’ah compliance of islamic banking sector of Pakistan
    Saqib, L.; Farooq, M.; Zafar, A.
  • Customer satisfaction and loyalty in the United Arab Emirates banking industry
    Sayani, H.
  • Understanding organization-customer links in service settings
    Schneider, B.; Ehrhart, M.; Mayer, D.; Saltz, J.; NilesJolly, K.
  • Consumer complaint intentions and behavior: definitional and taxonomical issues
    Singh, J.
  • An examination of the relationship between service quality, customer satisfaction and store loyalty
    Sivadass, E.; Baker-Prewitt, J.
  • Revisiting the smiling service worker and customer satisfaction
    Soderlund, M.
  • Customer satisfaction in banking sector in Oman: what do they care for?
    Tahseen, A.
  • How do corporate reputation and customer satisfaction impact customer defection? A study of private energy customers in Germany
    Walsh, G.; Dinnie, K.; Wiedmann, K.-P.
  • Influence of corporate image and relationship quality on customer trust and customer loyalty on the PT garuda Indonesia in surabaya
    Wellyan, J.
  • Does formality matter? Effects of employee clothing formality on consumers’ service quality expectations and store image perceptions
    Yan, R.
  • Impact of service quality, corporate image and customer satisfaction towards customers’ perceived value in the banking sector in Pakistan
    Zameer, H.; Tara, A.; Kausar, U.; Mohsin, A.
  • Factors influencing customer satisfaction in the retail banking sector in Pakistan
    Jamal, A.; Naser, K.
  • Adopting and measuring customer service quality (SQ) in islamic banks: a case study in Kuwait finance house
    Othman, A.
  • The multidimensionality of CARTER model to measure customer service quality in islamic banking industry: a study in Kuwait finance house
    Othman, A.; Owen, L.
  • The effect of leader moral development on ethical climate and employee attitudes
    Schminke, M.; Ambrose, M.; Neubaum, D.