IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiiy2020i4p132-151.html
   My bibliography  Save this article

The Effect of Religiosity on the Improvement of Customer Loyalty Towards Islamic Banks

Author

Listed:
  • Sunaryo
  • Soegeng Wahyoedi
  • Achmad Sudiro
  • Sudjatno

Abstract

Purpose: The main objective of this research was to analyze the effect of religiosity as a moderator on the relationship between service quality, customer trust, satisfaction, and loyalty towards Islamic banks in Jakarta. Design/Approach/Methodology: The research sample was 240 respondents (Islamic bank customers) taken by purposive sampling. The data were analyzed using Partial Least Square (PLS), a covariance-based SEM with WarpPLS 6.0 software. In general, the structural model fit carried out in this research was adequate, and the measurement model met the validity of internal consistency reliability. Findings: The results showed that the variables of service quality, customer satisfaction, and religiosity had a positive and significant direct effect on customer loyalty. However, the direct effect of customer trust on customer loyalty was not significant. Meanwhile, religiosity had a positive and significant effect on the relationship between service quality and trust in customer loyalty. Also, religiosity failed to moderate the effect of customer satisfaction on customer loyalty. Practical Implications: This research is expected to contribute not only to the development of literature but also to the banking industry, especially Islamic banks, in developing marketing strategies related to the impact of religiosity so that the promotion of religious activities that are meticulous and sensitive to customers can help spread and strengthen moral norms of ethical behavior in understanding Islamic banks. Originality/Value: This study is original research that provides references to the factors that influence customer loyalty in Islamic banks, especially in Islamic countries, where the role of culture is powerful.

Suggested Citation

  • Sunaryo & Soegeng Wahyoedi & Achmad Sudiro & Sudjatno, 2020. "The Effect of Religiosity on the Improvement of Customer Loyalty Towards Islamic Banks," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 132-151.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:132-151
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/575/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaiswal, A. K. & Niraj, Rakesh, 2007. "Examining the Nonlinear Effects in Satisfaction-Loyalty-Behavioral Intentions Model," IIMA Working Papers WP2007-11-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Sri Murni Setyawati & Mahardhika Cipta Raharja, 2018. "Trust Dimensions Model in Creating Loyalty Stage for Service Consumers of Sharia Rural Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 507-518.
    3. Andres Kuusik, 2007. "Affecting Customer Loyalty: Do Different Factors Have Various Influences In Different Loyalty Levels?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 58, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    4. Muhammad Ridwan Basalamah & Moeljadi Moeljadi & Sunaryo Sunaryo & Sudjatno Sudjatno, 2018. "The Effect of Service Quality And Relationship Marketing Towards Customer Loyalty for Sharia Banking (Sharia Banking Study in Makassar Indonesia)," International Review of Management and Marketing, Econjournals, vol. 8(1), pages 107-114.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claudia BOBALCA, 2015. "The Loyal Customers’ Perception Regarding The Online Buying Process," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7(2), pages 241-255, August.
    2. Nur Hasnida Abd Rahman & Fatimah N. R. M. Sofian & Fadhilah Abdullah Asuhaimi & Farihana Shahari, 2020. "A Conceptual Model of Depositors’ Trust and Loyalty on Hajj Institution - Case of Lembaga Tabung Haji Malaysia," International Review of Management and Marketing, Econjournals, vol. 10(1), pages 99-106.
    3. Yuen Yee Yen* & Wan Fahmy Wan Rasdi & Devinaga A. P. Rasiah & Suganthi A. P Ramasamy, 2018. "Key Determinants of Smart Phone Brand Loyalty," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 724-733:2.
    4. Md. Shahnawaz Abdin & Dr. N. H. Mullick, 2016. "A Conceptual Perspective on Brand Switching Behaviour of Consumers in Telecommunication Industry," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 11(1), pages 50-58, April.
    5. Khansa Zaman & Asma Arshad & Aqeel Shahzad, 2012. "Customer Loyalty in FMCG Sector of Pakistan," Information Management and Business Review, AMH International, vol. 4(1), pages 41-48.
    6. Mohammed A. Hajar & Ammar Ahmed Alkahtani & Daing Nasir Ibrahim & Mohammed A. Al-Sharafi & Gamal Alkawsi & Noorminshah A. Iahad & Mohd Ridzuan Darun & Sieh Kiong Tiong, 2022. "The Effect of Value Innovation in the Superior Performance and Sustainable Growth of Telecommunications Sector: Mediation Effect of Customer Satisfaction and Loyalty," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    7. Claudia Bobâlcă, 2014. "Determinants Of Customer Loyalty. A Theoretical Approach," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 995-1005.
    8. Claudia, 2014. "Romanian Perspective On Customer Loyalty For Direct Selling Companies," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6(3), pages 6-16, September.
    9. Claudia BOBALCA, 2013. "Study Of Customers’ Loyalty: Dimensions And Facets," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 104-114, May.
    10. Sonia Kataria & Vinod Kumar Saini & Ajay Kumar Sharma & Renu Yadav & Harpuneet Kohli, 2021. "An integrative approach to the nexus of brand loyalty and corporate social responsibility," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(3), pages 361-385, September.
    11. Akpoviroro Kowo Solomon & Amos Akinbola Olufemi & Oladipo Akinrinola Olalekan & Adewale Adegbite Ganiu, 2020. "Product Branding and Consumer Loyalty in Telecommunication Industry," Economics and Culture, Sciendo, vol. 17(1), pages 94-103, June.
    12. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2013. "Some thoughts on accurate characterization of stock market indexes trends in conditions of nonlinear capital flows during electronic trading at stock exchanges in global capital markets," MPRA Paper 49921, University Library of Munich, Germany.
    13. Syahida Abd Aziz & Muhammad Shahar Jusoh & Mohammad Harith Amlus, 2017. "Investigating Critical Success Factors of Brand Loyalty: A Meta-data Analysis Approach," International Review of Management and Marketing, Econjournals, vol. 7(3), pages 233-237.

    More about this item

    Keywords

    Service quality; customer satisfaction; loyalty; religiosity; Islamic banks.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:132-151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.