Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty

ABSTRACTStrengthening Islamic banking funding is one of particular strategies in the Indonesian Islamic banking master plan for 2019-2024, as one of their expected outputs is to increase market share and customer satisfaction of Islamic banks. This study aims to identify influence of service quality...

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Main Authors: Afifah, Afifah, Kurniawati, Nurul Alfiah
Format: UMS Journal (OJS)
Language:eng
Published: Muhammadiyah University Press 2021
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Online Access:https://journals.ums.ac.id/index.php/jisel/article/view/15089
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author Afifah, Afifah
Kurniawati, Nurul Alfiah
author_facet Afifah, Afifah
Kurniawati, Nurul Alfiah
author_sort Afifah, Afifah
collection OJS
description ABSTRACTStrengthening Islamic banking funding is one of particular strategies in the Indonesian Islamic banking master plan for 2019-2024, as one of their expected outputs is to increase market share and customer satisfaction of Islamic banks. This study aims to identify influence of service quality dimensions on customer satisfaction and their impacts on customer loyalty in Islamic banks in Indonesia. This study used a quantitative approach. Its data were collected by an online questionnaire with five Likert scales randomly given to 136 customers from several Islamic banks who had direct transactions at the Islamic banks. The sampling technique of this study used a purposive sampling technique, and its analysis technique used Structural Equation Modeling based on Partial Least Square (SEM-PLS). The findings of this paper indicate that the dimensions of both compliance and responsiveness have significant influence on customer satisfaction and customer loyalty. Meanwhile, assurance, reliability, and empathy dimensions have no significant impacts on customer satisfaction and customer loyalty. Tangible dimension has significant influence on customer satisfaction but has no significant influence on customer loyalty. Customer satisfaction has a significant impact on customer loyalty.Keywords: Islamic bank, CARTER model, customer satisfaction, customer loyalty
format UMS Journal (OJS)
id oai:ojs2.journals.ums.ac.id:article-15089
institution Universitas Muhammadiyah Surakarta
language eng
publishDate 2021
publisher Muhammadiyah University Press
record_format ojs
spelling oai:ojs2.journals.ums.ac.id:article-15089 Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty Afifah, Afifah Kurniawati, Nurul Alfiah Islamic bank, CARTER model, customer satisfaction, customer loyalty ABSTRACTStrengthening Islamic banking funding is one of particular strategies in the Indonesian Islamic banking master plan for 2019-2024, as one of their expected outputs is to increase market share and customer satisfaction of Islamic banks. This study aims to identify influence of service quality dimensions on customer satisfaction and their impacts on customer loyalty in Islamic banks in Indonesia. This study used a quantitative approach. Its data were collected by an online questionnaire with five Likert scales randomly given to 136 customers from several Islamic banks who had direct transactions at the Islamic banks. The sampling technique of this study used a purposive sampling technique, and its analysis technique used Structural Equation Modeling based on Partial Least Square (SEM-PLS). The findings of this paper indicate that the dimensions of both compliance and responsiveness have significant influence on customer satisfaction and customer loyalty. Meanwhile, assurance, reliability, and empathy dimensions have no significant impacts on customer satisfaction and customer loyalty. Tangible dimension has significant influence on customer satisfaction but has no significant influence on customer loyalty. Customer satisfaction has a significant impact on customer loyalty.Keywords: Islamic bank, CARTER model, customer satisfaction, customer loyalty Muhammadiyah University Press 2021-09-13 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/jisel/article/view/15089 10.23917/jisel.v4i2.15089 Journal of Islamic Economic Laws; Vol 4, No 2: July 2021; 105-136 2655-9617 2655-9609 eng https://journals.ums.ac.id/index.php/jisel/article/view/15089/6919 https://journals.ums.ac.id/index.php/jisel/article/downloadSuppFile/15089/3349 Copyright (c) 2021 Journal of Islamic Economic Laws https://creativecommons.org/licenses/by-sa/4.0
spellingShingle Islamic bank, CARTER model, customer satisfaction, customer loyalty
Afifah, Afifah
Kurniawati, Nurul Alfiah
Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty
title Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty
title_full Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty
title_fullStr Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty
title_full_unstemmed Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty
title_short Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty
title_sort influence of service quality dimensions of islamic banks on customer satisfaction and their impact on customer loyalty
topic Islamic bank, CARTER model, customer satisfaction, customer loyalty
topic_facet Islamic bank, CARTER model, customer satisfaction, customer loyalty
url https://journals.ums.ac.id/index.php/jisel/article/view/15089
work_keys_str_mv AT afifahafifah influenceofservicequalitydimensionsofislamicbanksoncustomersatisfactionandtheirimpactoncustomerloyalty
AT kurniawatinurulalfiah influenceofservicequalitydimensionsofislamicbanksoncustomersatisfactionandtheirimpactoncustomerloyalty