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Loyalty towards Islamic banking: service quality, emotional or religious driven?

Dwi Suhartanto (Department of Business Administration, Politeknik Negeri Bandung, Bandung, Indonesia)
Christopher Gan (Department of Agribusiness and Commerce, Lincoln University, Lincoln, New Zealand)
Ira Siti Sarah (Department of Business Administration, Politeknik Negeri Bandung, Bandung, Indonesia)
Setiawan Setiawan (Department of Accounting, Politeknik Negeri Bandung, Bandung, Indonesia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 4 June 2019

Issue publication date: 14 January 2020

1393

Abstract

Purpose

This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking.

Design/methodology/approach

Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty.

Findings

This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks.

Practical implications

This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law.

Originality/value

This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

Keywords

Citation

Suhartanto, D., Gan, C., Sarah, I.S. and Setiawan, S. (2020), "Loyalty towards Islamic banking: service quality, emotional or religious driven?", Journal of Islamic Marketing, Vol. 11 No. 1, pp. 66-80. https://doi.org/10.1108/JIMA-01-2018-0007

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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