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Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude

Author

Listed:
  • Mohamed Albaity

    (Department of Finance and Economics, College of Business Administration, University of Sharjah, Sharjah 27272, United Arab Emirates)

  • Mahfuzur Rahman

    (Department of Finance, Faculty of Business and Economics, University of Malaya, Kuala Lumpur 50603, Malaysia)

Abstract

Islamic banks have faced many challenges either from rivals or customers who look for better products and services. This study examined both the direct and mediating effects of selected variables influencing Islamic banks’ customer loyalty. The direct links were satisfaction, attitude towards Islamic banks, customer trust, and religious obligation to customer loyalty. On the other hand, the indirect links were through the mediators’ trust and attitude. A sample of 416 working Muslims in the UAE was collected and analysed. We used PLS-SEM techniques and the SmartPLS 3.0 software package to investigate customers’ loyalty towards Islamic banks. It was found that all the direct links were positive and significant, and were mediating relationships. This result implied that the respondent’s attitude toward Islamic banks and customer trust plays a significant role in understanding the relationship between customer satisfaction, religious obligation, and customer loyalty. In other words, both customer satisfaction and religious obligation indirectly created customer loyalty through the mediators. This study is one of the few studies that incorporate religious obligation as one of the determinants of customer loyalty.

Suggested Citation

  • Mohamed Albaity & Mahfuzur Rahman, 2021. "Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude," Sustainability, MDPI, vol. 13(19), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10758-:d:644938
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    References listed on IDEAS

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    Cited by:

    1. Ibrahim Mutambik, 2023. "Customer Experience in Open Banking and How It Affects Loyalty Intention: A Study from Saudi Arabia," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    2. Luigi Leclercq-Machado & Aldo Alvarez-Risco & Sharon Esquerre-Botton & Camila Almanza-Cruz & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Arcentales & Jaime A. Yáñez, 2022. "Effect of Corporate Social Responsibility on Consumer Satisfaction and Consumer Loyalty of Private Banking Companies in Peru," Sustainability, MDPI, vol. 14(15), pages 1-17, July.
    3. Ha Minh Nguyen & Trinh Kieu Thi Ho & Trung Thanh Ngo, 2024. "The impact of service innovation on customer satisfaction and customer loyalty: a case in Vietnamese retail banks," Future Business Journal, Springer, vol. 10(1), pages 1-15, December.
    4. repec:bcp:journl:v:9:y:2025:i:10:p:9124-9132 is not listed on IDEAS
    5. Nicoleta Valentina FLOREA & Gabriel CROITORU & Ion STEGAROIU & Corina RUSU & Nicoleta POPESCU, 2022. "The Analysis Of Customers' Loyalty Using Bibliometric And Mathematical Analysis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 860-874, November.
    6. Höfling T. Tim A. & Walter Nadine & Kuhlenkasper Torben & Alpers Georg W., 2025. "What I Like! The Joint Impact of Attitude, Perceived Quality, and Experience on Brand Loyalty: Semi-Parametric Additive Mixed Modeling," Review of Marketing Science, De Gruyter, vol. 23(1), pages 27-56.
    7. Daniel K. Maduku & Steven Mbeya, 2024. "Understanding family takaful purchase behaviour: the roles of religious obligation and gender," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 440-458, June.

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