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Islamic Banking And Loyalty: Service Quality, Intimacy Or Religious Driven?

Author

Listed:
  • YUSFIARTO Rizaldi

    (Sharia Finance Management Department, UIN Sunan Kalijaga Yogyakarta, Indonesia)

  • NUGRAHA Septy Setia

    (Graduated from Master Management Department, Diponegoro University, Indonesia)

  • PAMBUDI Dwi Santosa

    (Sharia Banking Department, Ahmad Dahlan University, Indonesia)

  • PAMBEKTI Galuh Tri

    (Sharia Accounting Department, UIN Sunan Kalijaga Yogyakarta, Indonesia)

Abstract

Islamic banking is an essential element in the development and establishment of Indonesia's economy, for that it is crucial for management to have a good marketing strategy to be sustainable. Thus, this research aims to explore the route of consumer loyalty by emphasizing religiosity, intimacy, and service quality as the factors of consumer satisfaction of Indonesian Islamic banking. This study applies a structural equation model (SEM) to analyze data collected from 308 Islamic bank consumers in Indonesian Islamic communities and Islamic institutions. The empirical results show that the service quality dimensions (PAKSERV scale); tangibility, reliability, assurance, sincerity, personalization, and formality play an essential role in increasing consumer satisfaction and consumer loyalty. There is no direct relationship between consumer religiosity and consumer loyalty, whereas consumer intimacy and service quality have a direct positive impact on consumer satisfaction and consumer loyalty. Furthermore, consumer satisfaction act as fully mediating role between service quality and consumer loyalty. Practically, the findings of this study can be used by Islamic banking management to focus on modifying service quality by emphasizing the dimensions of sincerity, personalization, and formality. And stay focused on the customer relationship with the company

Suggested Citation

  • YUSFIARTO Rizaldi & NUGRAHA Septy Setia & PAMBUDI Dwi Santosa & PAMBEKTI Galuh Tri, 2022. "Islamic Banking And Loyalty: Service Quality, Intimacy Or Religious Driven?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 300-318, August.
    • Handle: RePEc:blg:journl:v:17:y:2022:i:2:p:300-318
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    References listed on IDEAS

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