IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v6y2016i3p17-36.html
   My bibliography  Save this article

Service Quality and Customer Loyalty in Malaysian Islamic Insurance Sector Exploring the mediating effects of Customer Satisfaction

Author

Listed:
  • Ariff Syah Juhari
  • Muhammad Awais Bhatti
  • Shishi Kumar Piaralal

Abstract

The purpose of this study is to explore the mediating role of customer satisfaction between service quality dimensions and customer loyalty in Malaysian Islamic insurance sector. Based on the literature, six service quality dimensions were used to develop theoretical understanding about customer satisfaction and loyalty. This study proposes and tests a framework via structural equation modeling (Amos-16). The results of the analysis indicated that four of six service quality dimensions (tangible, responsiveness, fairness, and reliability) positively influence customer satisfaction which further influences customer loyalty. In other words, customer satisfaction mediates the relationship between four of six service quality dimensions (tangible, responsiveness, fairness, and reliability) and customer loyalty. Only two service quality dimensions (assurance and empathy) were not significantly related with customer satisfaction and loyalty. The findings further suggest that fairness have strongest effect on customer satisfaction and loyalty. The result of the study will help the managers and professionals to better understand how customer perceive service quality dimension and how these service quality dimensions are important for customers as well as for the organization. The study tested the impact of service quality dimensions on customer satisfaction and customer loyalty and found that tangibility, responsiveness, reliability, and fairness positively influence customer satisfaction. Therefore, the result of the study will help managers and professionals about how to deal with the customers to maximize the organizational profit. The result of the study suggested that fairness have strong influence on customer satisfactions and managers should pay attention on the fairness to improve service quality and maximize the customer satisfaction. As per our best knowledge, the suggested model and Islamic insurance sector have never been investigated before.

Suggested Citation

  • Ariff Syah Juhari & Muhammad Awais Bhatti & Shishi Kumar Piaralal, 2016. "Service Quality and Customer Loyalty in Malaysian Islamic Insurance Sector Exploring the mediating effects of Customer Satisfaction," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(3), pages 17-36, March.
  • Handle: RePEc:hur:ijarbs:v:6:y:2016:i:3:p:17-36
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Service_Quality_and_Customer_Loyalty_in_Malaysian_Islamic_Insurance_Sector.pdf
    Download Restriction: no

    File URL: http://hrmars.com/hrmars_papers/Service_Quality_and_Customer_Loyalty_in_Malaysian_Islamic_Insurance_Sector.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. מחקר - ביטוח לאומי, 1994. "Volume 3," Working Papers 60, National Insurance Institute of Israel.
    2. Andaleeb, Syed Saad, 2001. "Service quality perceptions and patient satisfaction: a study of hospitals in a developing country," Social Science & Medicine, Elsevier, vol. 52(9), pages 1359-1370, May.
    3. Greenberg, Jerald, 1993. "Stealing in the Name of Justice: Informational and Interpersonal Moderators of Theft Reactions to Underpayment Inequity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(1), pages 81-103, February.
    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. Dezső, Linda & Loewenstein, George, 2019. "Self-serving invocations of shared and asymmetric history in negotiations," European Economic Review, Elsevier, vol. 120(C).
    2. Kim, Jungkeun, 2019. "The impact of different price promotions on customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 95-102.
    3. Runtang Meng & Jingjing Li & Yunquan Zhang & Yong Yu & Yi Luo & Xiaohan Liu & Yanxia Zhao & Yuantao Hao & Ying Hu & Chuanhua Yu, 2018. "Evaluation of Patient and Medical Staff Satisfaction regarding Healthcare Services in Wuhan Public Hospitals," IJERPH, MDPI, vol. 15(4), pages 1-17, April.
    4. Christian Koch, 2021. "Can reference points explain wage rigidity? Experimental evidence," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-17, December.
    5. Hayat Belaid & Ahmed bouchenafa & Abd Elkader Barich & Karima Maazouzi, 2014. "The Quality of Health Services in Bechar Public Hospital Institution," Proceedings of International Academic Conferences 0101005, International Institute of Social and Economic Sciences.
    6. Sushma Rajbanshi & Mohd Noor Norhayati & Nik Hussain Nik Hazlina, 2021. "Perceptions of Good-Quality Antenatal Care and Birthing Services among Postpartum Women in Nepal," IJERPH, MDPI, vol. 18(13), pages 1-13, June.
    7. Galeotti, Fabio & Kline, Reuben & Orsini, Raimondello, 2017. "When foul play seems fair: Exploring the link between just deserts and honesty," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 451-467.
    8. Bereket Yakob & Busisiwe Purity Ncama, 2016. "Correlates of perceived access and implications for health system strengthening – lessons from HIV/AIDS treatment and care services in Ethiopia," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-19, August.
    9. Ajimon George & Jobin Sahadevan, 2019. "A Conceptual Framework of Antecedents of Service Loyalty in Health Care: Patients’ Perspective," IIM Kozhikode Society & Management Review, , vol. 8(1), pages 50-59, January.
    10. Kim, Andrea & Moon, Jinhee & Shin, Jiseon, 2019. "Justice perceptions, perceived insider status, and gossip at work: A social exchange perspective," Journal of Business Research, Elsevier, vol. 97(C), pages 30-42.
    11. Eric A. Fong, 2010. "Relative CEO Underpayment and CEO Behaviour Towards R&D Spending," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1095-1122, September.
    12. James J. Lavelle & Robert Folger & Jennifer G. Manegold, 2016. "Delivering Bad News: How Procedural Unfairness Affects Messengers’ Distancing and Refusals," Journal of Business Ethics, Springer, vol. 136(1), pages 43-55, June.
    13. Khan Eijaz Ahmed & Quaddus Mohammed, 2015. "Development and Validation of a Scale for Measuring Sustainability Factors of Informal Microenterprises – A Qualitative and Quantitative Approach," Entrepreneurship Research Journal, De Gruyter, vol. 5(4), pages 347-372, October.
    14. Aalberts, Robert J. & Hames, David S. & Thistle, Paul D., 2009. "Detours and frolics on the Internet: Employer liability and management control of cybertorts," Journal of Business Research, Elsevier, vol. 62(12), pages 1335-1341, December.
    15. Shiju Liao & Xiaoyun Du & Liyin Shen & Minghe Lv, 2021. "Evaluation Method for Urban Public Service Carrying Capacity (UPSCC): A Qualitative–Quantitative Bi-Dimensional Perspective," IJERPH, MDPI, vol. 18(23), pages 1-18, November.
    16. Michele Williams & Evan Polman, 2015. "Is It Me or Her? How Gender Composition Evokes Interpersonally Sensitive Behavior on Collaborative Cross-Boundary Projects," Organization Science, INFORMS, vol. 26(2), pages 334-355, April.
    17. Elisaveta Sardžoska & Thomas Tang, 2012. "Work-Related Behavioral Intentions in Macedonia: Coping Strategies, Work Environment, Love of Money, Job Satisfaction, and Demographic Variables," Journal of Business Ethics, Springer, vol. 108(3), pages 373-391, July.
    18. Ángel Fernández Pérez & Ángeles Sánchez Domínguez, 2017. "Los factores no clínicos como determinantes de la satisfacción con el sistema sanitario público en España," FEG Working Paper Series 01/17, Faculty of Economics and Business (University of Granada).
    19. Faiza Manzoor & Longbao Wei & Abid Hussain & Muhammad Asif & Syed Irshad Ali Shah, 2019. "Patient Satisfaction with Health Care Services; An Application of Physician’s Behavior as a Moderator," IJERPH, MDPI, vol. 16(18), pages 1-16, September.
    20. Elizabeth Umphress & Lily Ren & John Bingham & Celile Gogus, 2009. "The Influence of Distributive Justice on Lying for and Stealing from a Supervisor," Journal of Business Ethics, Springer, vol. 86(4), pages 507-518, June.

    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:hur:ijarbs:v:6:y:2016:i:3:p:17-36. 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: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    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.