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Measurement of Service Quality Perception and Customer Satisfaction in Islamic Banks of Pakistan: Evidence from Modified SERVQUAL Model

Author

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  • Ali, Muhammad
  • Raza, Syed Ali

Abstract

The aim of this study is to measure the relationship between the service quality and customer satisfaction among the customers of Pakistan Islamic bank customers. This study employed a modified SERVQUAL model by introducing a unique dimension of compliance in the context of service industry. Data were gathered from 450 walk-in customers of Islamic bank from the largest city of Pakistan. Results from regression analysis revealed that the multi-dimensional service quality scale is positively and significantly associated with the unidimensional scale of customer satisfaction. The results signify and validate the importance of service quality aspects in maintaining the customer satisfaction in Islamic bank of Pakistan. In addition, the compliance dimension of the SERVQUAL model proved its importance by showing the highest contributing factor in the overall model. This study has practical implications for the policy makers of Islamic banks to better understand the behavioral intentions of Islamic bank customers.

Suggested Citation

  • Ali, Muhammad & Raza, Syed Ali, 2015. "Measurement of Service Quality Perception and Customer Satisfaction in Islamic Banks of Pakistan: Evidence from Modified SERVQUAL Model," MPRA Paper 64039, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64039
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    References listed on IDEAS

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    Cited by:

    1. Beth Ann Fiedler & Thomas T. H. Wan & Stephen S. Sivo & Reid M. Oetjen & Roger A. Bowles, 2016. "Modeling the Biomedical Engineering Technicians’ Contribution to Hospital Quality with Donabedian’s Triad," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 2(2), pages 104-116.
    2. Francis Aniefiok Bassey & John Nsikan Efiok & Okon & Saviour Sylvester & Inegbedion Daniel Osemudiamen, 2015. "Opinion Leadership and Marketing of Life Assurance in Selected Insurance Firms in Nigeria," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(3), pages 131-141.
    3. Najat Abdullrahim & Julie Robson, 2017. "The importance of service quality in British Muslim’s choice of an Islamic or non-Islamic bank account," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(2), pages 54-63, June.
    4. Imtiaz Arif, Sahar Afshan, Arshian Sharif, 2016. "Resistance to Adopt Mobile Banking in a Developing Country: Evidence from Modified TAM," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 23-40, March.
    5. Ng’ang’a Mercy Wairimu & Waiganjo Esther, 2015. "Effect of Customer Relationship Management Strategy on Customer Behaviour in the Hotel Industry in Kenya: A Case Study of the Nairobi Safari Club," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 5(7), pages 522-530.
    6. Mirza A. Haq, Salman Abbasi, 2016. "Indirect Impact of Hedonic Consumption and Emotions on Impulse Purchase Behavior: A Double Mediation Model," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 108-122, October.
    7. Tayo Onijigin & Hale Özgit & Shiva Ilkhanizadeh, 2023. "The Nexus between Organisational Identification and Employees’ Behavioural Outcomes: Evidence from Ecotourism Businesses," Sustainability, MDPI, vol. 15(11), pages 1-14, May.
    8. Shabnam Hamdi & Abu Daud Silong & Roziah Mohd Rasdi & Zoharah Binti Omar, 2015. "Moderating effect of Technology Uncertainty on Relationship between Innovation Speed and Product Success: A Survey in Malaysian Biotechnology Industry," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 6(8), pages 375-383.
    9. Muhammad Zulfaris Mohd Salleh & Azwan Abdullah & Noorshella Che Nawi & Mohd Zulkifli Muhammad, 2019. "Assessing the Service Quality and Customer Satisfaction on Islamic Banking by Using SERVQUAL Model," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 79-83, July.
    10. Salihah Khairawati, 2020. "Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 15-23, January.
    11. Mohd Hamran Mohamad & Khulida Kirana Yahya & Zulkiflee Daud, 2015. "The Effect of Perceived Human Resources Management Practices on Employees’ Good Governance: A Pilot Study in Malaysian Local Government Authorities," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 5(12), pages 785-794.
    12. Ali, Muhammad & Syed ali, Raza & Chin-Hong, Puah, 2015. "Factors affecting intention to use Islamic personal financing in Pakistan: Evidence from the modified TRA model," MPRA Paper 66023, University Library of Munich, Germany.
    13. Abdulaziz M. Abdulsaleh, 2016. "Factors Affecting Libyan SMEs’ Selection of Banks as Business Partners," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 2(4), pages 201-210.
    14. Miroslav Kneževic & Slobodan Cerovic & Vladimir Džamic & Tijana Radojevic, 2017. "Total Quality Management Implementation and Guest Satisfaction in Hospitality," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 124-124, February.
    15. Haidery, Jamshed & Mandozai, Sayed Wali Shah & Amin, Hafizullahmeen, 2021. "Investigating Structural Relationship Between Service Quality, Satisfaction and Loyalty in Banking Sector of Afghanistan," OSF Preprints ew7f4, Center for Open Science.
    16. P. O. Oladele & K. K . Arogundade & A. M. Awolaja, 2016. "Influence of Demographic Factors on Mobile Phone Purchasing among University Students in Nigeria," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 2(4), pages 174-180.
    17. Qaisar Ali, 2018. "Service Quality from Customer Perception: Evidence from Carter Model on Bank Islam Brunei Darussalam (BIBD)," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(2), pages 138-138, January.
    18. Ali, Muhammad & Chin-Hong, Puah & Arif, Imtiaz, 2015. "Determinants of e-banking adoption: A non-users perspective in Pakistan," MPRA Paper 67878, University Library of Munich, Germany, revised 02 Oct 2015.
    19. Muhammad Shahnawaz Adil, Kamal bin Ab Hamid, 2017. "Impact of Individual Feelings of Energy on Creative Work Involvement: A Mediating Role of Leader-Member Exchange," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 4(1), pages 82-105, March.
    20. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Mohd Zaini Abd Karim, 2017. "Islamic home financing in Pakistan: a SEM-based approach using modified TPB model," Housing Studies, Taylor & Francis Journals, vol. 32(8), pages 1156-1177, November.
    21. Ameenullah Shaikh, Saqib Sharif, Imtiaz Arif, 2016. "Comparison of Islamic Banks with Conventional Banks: Evidence from an Emerging Market," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 22-38, March.
    22. Hadia Iftikhar & Zeb Jan & Shah Muhammad Najmi, 2015. "Gaining Organizational Competitiveness through Employee Retention: A Cost Cutting Strategy," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 6(9), pages 412-429.
    23. Hazwati Hashim & Noor Mashitah Rusli & Nur Hazimah Nor Hashim & Adam Chong Chin Hua, 2015. "The Readiness of ESL Teachers in Implementation of School-Based Assessment in Malaysian Secondary Schools," Studies in Social Sciences and Humanities, Research Academy of Social Sciences, vol. 3(5), pages 280-294.
    24. repec:gei:journl:v:4:y:2017:i:1:p:102-125 is not listed on IDEAS

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    More about this item

    Keywords

    Service quality; Customer satisfaction; Islamic bank; Pakistan;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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