The Effect of Islamic Service Quality on Customer Satisfaction and Loyalty in Islamic Banks in Indonesia

Main Article Content

Anjelisa
Indah Fatmawati
Nuryakin

Abstract

The performance of Islamic banking in Indonesia continues to improve year after year, but the market share of conventional banking that continues to dominate demonstrates that the existence of Islamic banking in Indonesia's dual banking system is still in the shadow of conventional banking. The goal of this research is to look at how customer perceptions of Islamic service quality affect customer satisfaction and loyalty to Islamic banks in Indonesia. Structural Equation Modeling (SEM) with AMOS as an analysis tool is used in data analysis procedures. According to the study's findings, the quality of Islamic services has a positive and significant influence on customer happiness and loyalty, and customer satisfaction has a positive and significant influence on customer loyalty. These findings highlight the need for evaluating service quality in the context of Islamic banks. If the compliance dimension is thoroughly implemented in the operation of the Islamic banking firm, Islamic banking can have a competitive advantage over conventional banking.

Article Details

How to Cite
Anjelisa, A., Fatmawati, I., & Nuryakin, N. (2023). The Effect of Islamic Service Quality on Customer Satisfaction and Loyalty in Islamic Banks in Indonesia. International Journal of Management Science and Information Technology, 3(1), 70–74. https://doi.org/10.35870/ijmsit.v3i1.1041
Section
Articles
Author Biographies

Anjelisa, Muhammadiyah University Yogyakarta

Master of Management

Indah Fatmawati, Muhammadiyah University Yogyakarta

Master of Management

Nuryakin, Muhammadiyah University Yogyakarta

Master of Management

References

Kotler, P., & Keller, K. L. (2016). Marketing Management. In Marketing Management (15th ed.). Essex Pearson Education Limited.

Tjiptono, Fandy, and Gregorius Chandra. "Pemasaran Strategik, Edisi 2, Yogyakarta, CV." Andi offset (2012).

Haron, Razali, Noradilah Abdul Subar, and Khairunisah Ibrahim. "Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust." Islamic Economic Studies 28.1 (2020): 3-23. https://doi.org/10.1108/ies-12-2019-0041

Asnawi, Nur, Badri Munir Sukoco, and Muhammad Asnan Fanani. "The role of service quality within Indonesian customers satisfaction and loyalty and its impact on Islamic banks." Journal of Islamic Marketing 11.1 (2020): 192-212. https://doi.org/https://dx.doi.org/10.1108/JIMA-03-2017-0033

Dandis, Ala’Omar, et al. "Enhancing consumers’ self-reported loyalty intentions in Islamic Banks: The relationship between service quality and the mediating role of customer satisfaction." Cogent Business & Management 8.1 (2021): 1892256. https://doi.org/10.1080/23311975.2021.1892256

Abdul Rehman, Asma. "Customer satisfaction and service quality in Islamic banking: A comparative study in Pakistan, United Arab Emirates and United Kingdom." Qualitative Research in Financial Markets 4.2/3 (2012): 165-175. https://doi.org/10.1108/17554171211252501

Fauzi, Abu Amar, and Tatik Suryani. "Measuring the effects of service quality by using CARTER model towards customer satisfaction, trust and loyalty in Indonesian Islamic banking." Journal of Islamic Marketing 10.1 (2019): 269-289. https://doi.org/10.1108/JIMA-04-2017-0048

Makanyeza, Charles, and Lovemore Chikazhe. "Mediators of the relationship between service quality and customer loyalty: Evidence from the banking sector in Zimbabwe." International Journal of Bank Marketing 35.3 (2017): 540-556. https://doi.org/10.1108/IJBM-11-2016-0164

Sutanto, Heri, Siti Dyah Handayani, and Susanto Susanto. "Measuring Customer Loyalty and Satisfaction of Bank Bantul Using CRM and Service Quality." JBTI: Jurnal Bisnis: Teori dan Implementasi 12.3 (2021): 172-183.

Peng, Lee Siew, and Sedigheh Moghavvemi. "The dimension of service quality and its impact on customer satisfaction, trust, and loyalty: A case of Malaysian banks." Asian Journal of Business and Accounting 8.2 (2015).

Othman, AbdulQawi, and Lynn Owen. "The multi dimensionality of Carter Model to measure customer service quality (SQ) in Islamic banking industry: a study in Kuwait finance house." International Journal of Islamic Financial Services 3.4 (2001): 1-12.

Sari, Devi Cornelia, and R. A. Marlien. "Pengaruh kualitas layanan, kepercayaan, dan nilai pelanggan terhadap loyalitas pelanggan (Studi pada nasabah tabungan Bank BNI Syariah Cabang Semarang)." (2019).

Lone, Fayaz Ahmad, Ebraheem Mohamad Aldawood, and Ulfat Rashid Bhat. "Customer satisfaction towards Islamic banking in Saudi Arabia: an application of CARTER model." International Journal of Services Operations and Informatics 8.4 (2017): 333-351. https://doi.org/10.1504/IJSOI.2017.086585

Zafar, Mohsin, et al. "Service quality, customer satisfaction and loyalty: An empirical analysis of banking sector in Pakistan." Information management and business review 4.3 (2012): 159-167.

Kashif, Muahmmad, et al. "Customer satisfaction and loyalty in Malaysian Islamic banks: a PAKSERV investigation." International Journal of Bank Marketing 33.1 (2015): 23-40.

Sekaran, Uma, and Roger Bougie. Research methods for business: A skill building approach. john wiley & sons, 2016.

Ghozali, Imam. "Model persamaan struktural konsep dan aplikasi dengan program AMOS 24." Semarang: Badan Penerbit Universitas Diponegoro (2017).