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Service quality and customer’s satisfaction in Tanzania’s Islamic banks: A case study at People’s Bank of Zanzibar (PBZ)

Fauz Moh’d Khamis (School of Business, State University of Zanzibar, Zanzibar, Tanzania)
Rosemaliza AbRashid (Islamic Business School, College of Business, University Utara Malaysia, Sintok, Malaysia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 8 October 2018

Issue publication date: 18 October 2018




This study aims to examine the relationship between service quality and customers’ satisfaction, and the effect of service quality on customers’ satisfaction in Tanzanian Islamic banking.


This study applied six service quality dimensions of CARTER model, i.e. compliance, assurance, reliability, tangible, empathy and responsiveness, to measure Tanzania Islamic banks’ service quality. The questionnaire was also used to measure the level of customers’ satisfaction to the Islamic banking services provided. A total of 384 questionnaires were randomly distributed to the customers of People’s Bank of Zanzibar Islamic banking division, whereby 255 questionnaires were returned and used for analysis. By using SPSS version 19, descriptive analysis, correlation analysis and regression analysis have been used to meet the research objectives.


The study findings indicate that customers are satisfied with the Islamic banking services provided by Tanzania banks. However, it has been found that customers are attracted by compliance, tangibility and reliability of the banks. The findings further indicate a significant relationship between service quality and customers’ satisfaction. Indeed, empathy, compliance and reliability were found to be the only significant predictors of customers’ satisfaction.

Research limitations/implications

Further researches should be considered to involve more banks to generalize the findings. Again, the study has focused on the influence of service quality on customer satisfaction; however, there may be other issues that have direct or indirect influence on customers’ satisfaction on Tanzania Islamic banking. It is, therefore, suggested that future researchers may broaden their scope and conduct research in these areas.

Practical implications

The findings of the study suggest that there is large number of Muslim and non-Muslims communities who are interested in Islamic modes of finance and banking. Banks have potential to increase customers’ base by improving the quality of their services. Essentially, banks must focus on complying with Islamic principles, improving reliability and empathy, as they statistically influence customers’ satisfaction.

Social implications

The study creates awareness about the nature of the quality of services provided by Islamic banks in Tanzania. Hence, the study may influence more customers to join Islamic banks for better services.


This study is important for Tanzania Islamic banks considering that the country has a large number of Muslim communities and non-Muslims who are interested in Islamic modes of finance and banking. While most of the other studies on customers’ preferences in Tanzania are based on conventional banking services, this study focuses on Islamic modes of finance and banking.



Khamis, F.M. and AbRashid, R. (2018), "Service quality and customer’s satisfaction in Tanzania’s Islamic banks: A case study at People’s Bank of Zanzibar (PBZ)", Journal of Islamic Marketing, Vol. 9 No. 4, pp. 884-900.



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