An examination of the relationship between service quality perception and customer satisfaction

A SEM approach towards Malaysian Islamic banking

Muslim Amin, Zaidi Isa

Research output: Contribution to journalArticle

86 Citations (Scopus)

Abstract

PurposeThis study attempts to examine the relationship between service quality perception and customers' satisfaction in Malaysian Islamic banking using the SEM approach. Design/methodology/approachThis 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. FindingsThe 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/implicationsFurther 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 implicationsThe 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/valueThis 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.

Original languageEnglish
Pages (from-to)191-209
Number of pages19
JournalInternational Journal of Islamic and Middle Eastern Finance and Management
Volume1
Issue number3
DOIs
Publication statusPublished - 29 Aug 2008

Fingerprint

Islamic banking
Customer satisfaction
Service quality
Quality perception
Muslims
Banking services
Banking system
Proportion
Measurement scales
Counseling
Empathy
Banking industry
Assurance
Target markets
Design methodology
Responsiveness

Keywords

  • Banking
  • Customer satisfaction
  • Customer services quality
  • Islam
  • Malaysia

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Finance

Cite this

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