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1 – 10 of over 6000Muslim Amin and Zaidi Isa
This study attempts to examine the relationship between service quality perception and customers' satisfaction in Malaysian Islamic banking using the SEM approach.
Abstract
Purpose
This study attempts to examine the relationship between service quality perception and customers' satisfaction in Malaysian Islamic banking using the SEM approach.
Design/methodology/approach
This model starts with SERVQUAL measurement scales consisting of six dimensional structures: tangibles, reliability, responsiveness, assurance, and empathy, and plus the compliance dimensions to measure Malaysian Islamic banking service quality. Respondents are the customers (Muslim and non‐Muslim) who visit the bank counters. They must have an account with one of the full‐fledged Islamic banking and dual‐banking systems.
Findings
The results showed that the proportion of Malaysian Muslims' awareness of the Islamic banking products and services were high compared to non‐Muslim customers. The majority of the Islamic banking customers were satisfied with the overall service quality provided by their banks. The findings suggest that the standard model of Islamic banking service quality dimensions should consist of the six dimensions and good determinants of satisfaction. The relationship between service quality and customer satisfaction was significant.
Research limitations/implications
Further research should be considered in order to gather more information regarding service quality and customer satisfaction dimensions in the context of Malaysian Islamic banking industry.
Practical implications
The six dimensions of SERVQUAL represent a valid instrument to measure service quality in Malaysian Islamic banking. Providing financial counseling to attract Muslim customers to use more Islamic banking products and services is critical, where 60 percent of the Malaysian population is Muslim. There is a potential target market for Islamic banking that needs be concerned.
Originality/value
This research is important in line with the obvious cross‐cultural and religious differences between these two key customer segments; Muslims and non‐Muslims. In the Malaysian context, there is a strategic dimension that needs to be understood.
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Nelson Oly Ndubisi and Tam Yin Ling
To examine the post dissatisfaction behaviour of Malaysian consumers vis‐à‐vis their complaint behaviour and defection. Specifically, the relationship between public…
Abstract
Purpose
To examine the post dissatisfaction behaviour of Malaysian consumers vis‐à‐vis their complaint behaviour and defection. Specifically, the relationship between public complaint behaviour (i.e. complaining to the organization), private complaint behaviour (complaining to family members and friends without a word to the organisation) and customer defection were considered. The research also investigates the moderating effect of gender and income in this relationship.
Design/methodology/approach
Consisted of a survey of 218 randomly selected customers of banks in Malaysia.
Findings
shows that both public and private complaints are associated with defection, albeit the determinant strength of private complaint is more robust. These findings are generic as there is no gender‐moderated effect. However, income moderates the private complaint‐defection relationship. Lower income customers are more likely to defect without a word to the bank than higher income Malaysian bank customers.
Practical implications
Emphasises that an apparant each of complaints doesn’t mean that all is well. Also, stresses the need for encouraging complaints from customers and a system to hand complaints. Originality/value Income levels may affect a customers expression of dissatisfaction.
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Abdelghani Echchabi and Oladokun Nafiu Olaniyi
The purpose of this paper is to shed light on the preferences of Malaysian banks' customers for Islamic banking attributes.
Abstract
Purpose
The purpose of this paper is to shed light on the preferences of Malaysian banks' customers for Islamic banking attributes.
Design/methodology/approach
The paper uses mixed methodology. The quantitative approach consists of the collection of primary data through a self‐administered questionnaire distributed to 500 Islamic banks' customers in Malaysia. The data gathered were analysed using factor analysis as well as Friedman test. In parallel, qualitative approach was used, in forms of semi structured interviews with ten Islamic banks' customers. The results of both approaches were then reported accordingly.
Findings
The quantitative approach reveals that the preference for Islamic banking attributes in Malaysia is a combination of the quality of services offered by the Islamic banks, as well as the convenience associated with it. On the other hand, the qualitative approach revealed that choosing Islamic banks was mainly due to the religious motivation of the customers.
Originality/value
This paper is one of the few that has used a qualitative approach to study consumer preferences for Islamic banking attributes. Furthermore, the paper employs this methodology in the context of Malaysia, which enriches the studies done in this context and area.
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Muahmmad Kashif, Sharifah Suzana Wan Shukran, Mohsin Abdul Rehman and Syamsulang Sarifuddin
– The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context.
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.
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Mobile phones have provided an opportunity for banking institutions to introduce new services to the public. The latest service, which is now available in Malaysian…
Abstract
Purpose
Mobile phones have provided an opportunity for banking institutions to introduce new services to the public. The latest service, which is now available in Malaysian banking institutions, is the mobile phone credit card. The purpose of this paper is to provide a preliminary investigation of the factors that determine whether Malaysia's bank customers will use the new mobile phone credit card technology.
Design/methodology/approach
This paper extends the applicability of the technology acceptance model (TAM) to mobile phone credit cards and includes “perceived credibility (PC)”, the “amount of information about mobile phone credit cards (AIMCs)” and “perceived expressiveness (PE)”, in addition to “perceived usefulness (PU)” and “perceived ease of use (PEOU)”.
Findings
The results indicate that PU, PEOU, PC and the amount of information contained on mobile phone credit cards are important determinants to predicting the intentions of Malaysian customers to use mobile phone credit cards. However, PE is not an important determinant in predicting the intentions of Malaysian customers to use mobile phone credit cards.
Research limitations/implications
The study conducted in Eastern Malaysia contains a small size of sample and a limited number of measures in the model developed for the study. Nevertheless, it provides new information about an emerging market and technology.
Practical implications
The results will be primarily of benefit to the commercial banks in Malaysia since this study offers banking institutions an insight on the intentions of their customers to use mobile phone credit cards.
Originality/value
The study extends the understanding of TAM to newly emerging contexts such as the mobile phone credit card.
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Noradilah Abdul Hadi and Mohd Rizal Muwazir
The purpose of this paper is to examine selection factors among multi-ethnic customers in Malaysian Islamic banking industry. The information is important to reinforce the…
Abstract
Purpose
The purpose of this paper is to examine selection factors among multi-ethnic customers in Malaysian Islamic banking industry. The information is important to reinforce the argument that ethnicity could become significant factor in determining customer behaviour.
Design/methodology/approach
This study uses quantitative approach by using questionnaire (Likert scale) to measure respondents ranking of 25 selection factors. A total of 272 valid responses were generated from 450 questionnaires distributed, with 60.4% response rate. The methods of analysis used are descriptive analysis, factor analysis and Kruskal–Wallis test.
Findings
The findings revealed five selection factors (religious and ethical, services and convenience, service quality and benefit, external and operational and charges), with religious and ethical factor as the most important criteria for Malay customers. As for Chinese and Indian customers, they chose services and convenience factor.
Originality/value
This study is conducted to gain new insights on the perception of multi-ethnic banking customers in Malaysia towards Islamic banks and how cultural differences might affect their decisions. The findings are important for further development of the Islamic banking industry in Malaysia considering ethnicity has a major impact on the society. The acknowledgement of similarities and differences between the ethnic groups could strengthen the relationship with the Islamic banking customers. Furthermore, incorporation of ethnicity factor in bank’s marketing strategies is important to secure competitive advantage particularly in dual banking system such as in Malaysia.
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Mohsin Abdur Rehman, Ismah Osman, Khurram Aziz, Hannah Koh and Muhammad Awais
Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine…
Abstract
Purpose
Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine the customers’ perception of the Takaful (Islamic insurance) in relation to service quality and relationship marketing. More importantly, the examination of the impact of both service quality and relationship marketing on corporate image is further established. Accordingly, corporate reputation and customer loyalty were further evaluated, along with these respective interactions.
Design/methodology/approach
A self-administered survey was conducted from 350 Malaysian customers of Takaful products and services. The purposive sampling was used to collect data from the existing customers of Takaful service operators in the Klang Valley, an area in Malaysia. The questionnaire was constructed through measures of PAKSERV for service quality, as well as other measures related to relationship marketing and other constructs in this study. Structured equation modeling was used in the analysis of data.
Findings
The current study is the first one of its kind to examine perceptions of customers of relationship marketing and service quality as predictors of corporate image, which drives corporate reputation and ultimate customer loyalty from the perspective of the Takaful industry in Malaysia. Service quality dimensions (tangibility, reliability and personalization) and relationship marketing dimensions (Islamic ethical behavior and structural bond) positively influence corporate image of the Takaful organizations. Moreover, customer loyalty can be predicted, mainly through corporate reputation as well as corporate image.
Research limitations/implications
The present study is focused on the existing Malaysian Takaful customers as the population frame. Accordingly, future research studies may evaluate the same model, but perhaps in another different cultural context where the Takaful industry can grow and expand in other countries, including Saudi Arabia, Sudan and Pakistan. More importantly, the same variables may be verified to different service industries in future studies, especially those constructs related to relationship marketing because many products and services at present can be attained without face-to-face interactions through online transactions without having brick and mortar businesses.
Practical implications
It is important for Takaful service operators to focus on connecting the social and financial bonds to ensure the fulfilment of customers’ needs. They also need to improve the qualities related to tangibility, reliability and personalization to be able to increase their market share, especially in this present highly competitive market. Indeed, Takaful generally provides financial protection and risk management; nevertheless, the religious and ethical values need to be embraced in totality unlike conventional insurance, which has the element of gambling, uncertainty and the imposition of interest. Hence, this study aims to assist the Takaful operators toward achieving corporate reputation and apparently customer loyalty for them to remain relevant in this industry.
Originality/value
The model used in this study is based on the cultural context of Malaysia from the perspective of the Takaful industry. It attempts to explain customer loyalty through the incorporation of service quality and relationship marketing dimensions, where it is associated with the elements of the values of Islamic ethics especially in business transactions. More importantly, these dimensions were put together to identify its impact on corporate image, corporate reputation, and ultimately, customer loyalty, thus illustrating a distinct set of outcomes of the present study.
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The purpose of this paper is to analyze the probability of Islamic credit card usage intention among Islamic banks' customers. Financial cost, knowledge of Islamic credit…
Abstract
Purpose
The purpose of this paper is to analyze the probability of Islamic credit card usage intention among Islamic banks' customers. Financial cost, knowledge of Islamic credit card, attitude, financial recommendation and demographic items were examined in order to determine whether these factors are influencing the Islamic credit card usage intention or not.
Design/methodology/approach
Drawing upon the theory of reasoned action (TRA), this study proposes a conceptual model to examine the factors determining the Islamic credit card usage intention. The research model is evaluated using survey data from 354 respondents with the help of a questionnaire.
Findings
The results reveal that “financial recommendation”, “knowledge on Islamic credit card”, “age (young)”, “marital status”, “religion” and “education level” are significantly affecting the Islamic credit card usage intention. The research also concludes that “attitude on Islamic credit card” appears to have no effect on the Islamic credit card usage intention.
Research limitations/implications
The research has two limitations. The limitations however provide support for future researches in the area of Islamic credit card. Despite the limitations, the study contributes to the body of academic knowledge by shedding more light onto the factors affecting Islamic credit card usage intention.
Practical implications
Insights reported from this study are of particular importance to bank managers, providing them with an improved understanding pertaining to the Malaysian bank customers' usage intentions for Islamic credit cards. The research helps them to better plan for Islamic credit card facilities, in order to cater for the financial needs of Malaysia bank customers.
Originality/value
The contribution of the research lies in achieving a more profound understanding of Malaysia bank customers' usage intentions for Islamic credit cards. The research manages to discover the factors which particularly determine the use of Islamic credit cards. It also expands the literature on Islamic credit cards.
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Rafikul Islam, Selim Ahmed and Dzuljastri Abdul Razak
This paper aims to identify the gaps and differences between customer expectations and perceptions on service quality of Islamic banks in Malaysia based on six dimensions…
Abstract
Purpose
This paper aims to identify the gaps and differences between customer expectations and perceptions on service quality of Islamic banks in Malaysia based on six dimensions of service quality, namely, reliability, responsiveness, assurance, empathy, tangibles and Islamic Shari’ah compliance.
Design/methodology/approach
This study surveyed 179 customers who have first-hand experience with Islamic banking services in Malaysia. The research data were analysed using reliability analysis, independent samples t-test and one-way analysis of variance.
Findings
The results indicated that customers’ perceptions failed to meet their expectations on the service quality of Islamic banks in Malaysia. The results also indicated that those customers (respondents) aged below 30 years have higher expectations on empathy from the Islamic banking service compared to other age groups. However, there is no significant difference between customer expectations and perceptions of Islamic banking service quality based on educational background and occupation.
Research limitations/implications
This research focused solely on Islamic banks in Malaysia and thus the results might not be applicable for other conventional banks.
Originality/value
The findings are expected to provide guidelines for enhancing the satisfaction level of clients of the Islamic banking system in Malaysia and other countries.
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Muslim Amin, Zaidi Isa and Rodrigue Fontaine
The purpose of this study is to investigate customer satisfaction and its effect on image, trust, and customer loyalty for Islamic banks.
Abstract
Purpose
The purpose of this study is to investigate customer satisfaction and its effect on image, trust, and customer loyalty for Islamic banks.
Design/methodology/approach
The study uses data from Islamic banks and dual‐window Islamic banks, pertaining to two different customer segments (Muslims and non‐Muslims).
Findings
The results indicate that customer satisfaction has a significant relationship with image, image has a significant relationship with trust, and trust has a significant relationship with customer loyalty for both customer segments. Furthermore, significant differences occur in the effect of customer satisfaction on image, image on trust, and trust on customer loyalty between Muslim and non‐Muslim customers.
Practical implications
The findings suggest that Muslim customers establish relationships with Islamic banks because they trust that Islamic banks are Shariah compliant. Therefore, providing secure banking products that are fully compliant with Islamic principles are necessary.
Originality/value
This research is important as it clearly demonstrates that the loyalty of Muslim and non‐Muslim customers to Islamic banks is influenced by customers being satisfied, as well as the image of and trust in Islamic banks. In this context, when customers are unwilling to trust Islamic banks, they are also unwilling to be loyal.
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