The linkages effect of service quality, customer satisfaction and customer loyalty of automobile financing within the Malaysia Islamic banking industry

The linkages effect of service quality, customer satisfaction and customer loyalty of automobile financing within the Malaysia Islamic banking industry. The Journal of Muamalat and Islamic Finance Research, 16 (2). pp. 31-47. ISSN 1823-075X (2019)



Abstract

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.

Item Type: Article
Keywords: Islamic banking, Customer satisfaction, Customer loyalty, Service quality, Efficiency
Taxonomy: By Niche > Islamic Banking > Banks and Banking > Customer Services
By Niche > Islamic Banking > Banks and Banking > Finance
Local Content Hub: Niche > Islamic Banking
Depositing User: Ilya Nur Fateen Othman
Date Deposited: 01 Feb 2024 09:44
Last Modified: 01 Feb 2024 09:44
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