Customer satisfaction and loyalty in Malaysian Islamic banks:a PAKSERV investigation

Abstract

Purpose

The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context.

Design/methodology/approach

The dimensionality of the PAKSERV scale is examined with confirmatory factor analysis. A survey approach is adopted to collect data from 300 Islamic banking customers in Kuching, Malaysia.

Findings

Results reveal an excellent model fit for the PAKSERV scale in collectivist cultural context of Malaysia. All dimensions of PAKSERV are validated except reliability. The issue of non-validity of the reliability dimension in an Islamic banking context is explained by extant literature.

Practical implications

Islamic banks are recommended to focus on all the PAKSERV scale dimensions to impart service quality. Given a collectivist cultural setting, a “network marketing” approach is recommended to maintain a desirable level of customer satisfaction and loyalty.

Originality/value

The PAKSERV scale has been employed for the first time to investigate the service quality-loyalty path in a collectivist cultural context. The validity of the PAKSERV scale has been operationalized for the first time in a collectivist cultural context.

Citation

Kashif, M., Wan Shukran, S.S., Rehman, M.A. and Sarifuddin, S. (2015), "Customer satisfaction and loyalty in Malaysian Islamic banks:a PAKSERV investigation", International Journal of Bank Marketing, Vol. 33 No. 1, pp. 23-40. https://doi.org/10.1108/IJBM-08-2013-0084