IDEAS home Printed from https://ideas.repec.org/a/nwe/eajour/y2025i3p863-883.html

Determining the Factors that Affect Customer Loyalty Under the Moderating Role of Trust in Islamic Financing

Author

Listed:
  • Reem Abdulrahman Alfaisaly

    (College of Business Administration, Taif University, Taif, Saudi Arabia)

Abstract

The concept of customer loyalty has changed significantly in the age of digital transformation, with a greater focus on developing cooperative customer-firm co production relationships. However, a paucity of empirical research on this concept has been found. To fill this void, the aim of this research is to examine the direct effects of different factors on attitudinal customer loyalty, as well as their indirect effects mediated by the role of co-production in Malaysian Islamic banks. Based on the service-dominant (S D) logic, a research framework has been developed. Data were collected from the customers of Malaysian Islamic banks using survey questionnaires. The collected data are analyzed through the Partial Least Squares Structural Equational Model (PLS-SEM). Data reliability and construct correlations were thoroughly examined. Resultantly, communication, client expertise, commitment, and interactional justice were positively associated with co-production, while co production positively affected customer loyalty to Malaysian Islamic Bank financial services. The findings also revealed that trust positively moderated co-production and customer loyalty. The results could guide policymaking regarding customer loyalty attainment via effective communication, client expertise, trust, commitment, and interactional justice.

Suggested Citation

  • Reem Abdulrahman Alfaisaly, 2025. "Determining the Factors that Affect Customer Loyalty Under the Moderating Role of Trust in Islamic Financing," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 863-883, September.
    • Handle: RePEc:nwe:eajour:y:2025:i:3:p:863-883
    as

    Download full text from publisher

    File URL: https://www.unwe.bg/doi/eajournal/2025.3/EA.2025.3.12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shivani Saini & Jagwinder Singh, 2020. "A Link Between Attitudinal and Behavioral Loyalty of Service Customers," Business Perspectives and Research, , vol. 8(2), pages 205-215, July.
    2. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    3. Casper Ferm, Lars-Erik & Thaichon, Park, 2021. "Customer pre-participatory social media drivers and their influence on attitudinal loyalty within the retail banking industry: A multi-group analysis utilizing social exchange theory," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    4. Cheung, Millissa F.Y. & To, W.M., 2011. "Customer involvement and perceptions: The moderating role of customer co-production," Journal of Retailing and Consumer Services, Elsevier, vol. 18(4), pages 271-277.
    5. Mohsen Behnam & Mikihiro Sato & Bradley J. Baker, 2021. "The Role of Consumer Engagement in Behavioral Loyalty through Value Co-Creation in Fitness Clubs," Sport Management Review, Taylor & Francis Journals, vol. 24(4), pages 567-593, August.
    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. Qin Yang & Young-Chan Lee, 2022. "What Drives the Digital Customer Experience and Customer Loyalty in Mobile Short-Form Video Shopping? Evidence from Douyin (TikTok)," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    2. Cai Li & Pearl Abredu & Agyemang Kwasi Sampene & Fredrick Oteng Agyeman, 2025. "Does Green Human Resource Management Stimulate Employees’ Green Behavior Through a Green Psychological Climate?," SAGE Open, , vol. 15(1), pages 21582440241, February.
    3. Sadiq, Muhammad & Nawaz, Muhammad Atif & Sharif, Arshian & Hanif, Sobia, 2024. "Bridging green supply chain practices and environmental performance in Chinese semiconductor sector: With the role of energy efficiency and green HRM," International Journal of Production Economics, Elsevier, vol. 277(C).
    4. Hayford Asare Obeng & Richard Arhinful & Leviticus Mensah & Jerry Seth Owusu-Sarfo, 2024. "Assessing the Influence of the Knowledge Management Cycle on Job Satisfaction and Organizational Culture Considering the Interplay of Employee Engagement," Sustainability, MDPI, vol. 16(20), pages 1-28, October.
    5. Morais, Ana Catarina & Ishida, Akira & Matsuda, Ruriko, 2024. "Ethical food consumption drivers in Japan. A S–O-R framework application using PLS-SEM with a MGA assessment based on clustering," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    6. Kautish, Pradeep & Paço, Arminda & Thaichon, Park, 2022. "Sustainable consumption and plastic packaging: Relationships among product involvement, perceived marketplace influence and choice behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    7. Zhikun Ding & Xinyue Huang & Xinrui Wang & Qiaohui Chen & Jiasheng Zhang & Zezhou Wu, 2024. "Investigating the Determinants of Construction Stakeholders’ Intention to Use Construction and Demolition Waste Recycling Products Based on the S-O-R Model in China," Sustainability, MDPI, vol. 16(6), pages 1-17, March.
    8. Juying Wang & Xuelei Lian & Xin Qi, 2025. "Understanding consumers’ willingness to accept digital exhibitions in the metaverse: evidence from China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-17, December.
    9. ul Hassan, Syed Ramiz & Khan, Tariq Iqbal & Mansoor, Mahnaz & Jamil, Raja Ahmed, 2026. "From attraction to aversion and back: examining brand hate, love, and retention," Journal of Retailing and Consumer Services, Elsevier, vol. 88(C).
    10. Trinh Le Tan & Khanh Nguyen Chau Ngoc & Hien Le Thi Thanh & Hoai Nguyen Thi Thu & Uyen Vo Truong Hoang, 2024. "Enhancing Repurchase Intention on Digital Platforms Based on Shopping Well-Being Through Shopping Value, Trust and Impulsive Buying," SAGE Open, , vol. 14(3), pages 21582440241, September.
    11. Tarcia Camily Cavalcante Quezado & Nuno Fortes & William Quezado Figueiredo Cavalcante, 2022. "The Influence of Corporate Social Responsibility and Business Ethics on Brand Fidelity: The Importance of Brand Love and Brand Attitude," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    12. Fayyaz, Muhammad Shahzeb & Abbasi, Amir Zaib & Kumar, Sanjeev & Qureshi, Ammar & Hussain, Khalil & Muhammad, Lakhi, 2025. "Integrating digital influencer persuasion model and theory of planned behavior: The mediating role of consumer involvement in endorsed brands," Journal of Retailing and Consumer Services, Elsevier, vol. 85(C).
    13. Han Xuemei & Sher Ali & Hazrat Bilal, 2025. "Carbon reduction initiatives impact on the employee relocation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-21, December.
    14. Connor Agyere AJEAKOH & Figen YESILADA & Japheth Nuhu Ahmed, 2025. "Cross-cultural negotiation styles in Shandong province, China: the role of cultural and emotional intelligence," Future Business Journal, Springer, vol. 11(1), pages 1-16, December.
    15. Talwar, Shalini & Kaur, Puneet & Escobar, Octavio & Lan, Sai, 2022. "Virtual reality tourism to satisfy wanderlust without wandering: An unconventional innovation to promote sustainability," Journal of Business Research, Elsevier, vol. 152(C), pages 128-143.
    16. Acquah, Innocent Senyo Kwasi & Naude, Micheline Juliana & Oguji, Nnamdi, 2025. "Harnessing the dimensions of supply chain collaboration to promote innovation and flexibility in buyer-supplier relationships: Insights from fsQCA and NCA," Technological Forecasting and Social Change, Elsevier, vol. 221(C).
    17. Pipatpong Fakfare & Walanchalee Wattanacharoensil, 2023. "Low‐carbon tourism for island destinations: A crucial alternative for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 180-197, February.
    18. Kumar, Sachin & Kumar, Vinod & Chaudhuri, Ranjan & Chatterjee, Sheshadri & Vrontis, Demetris, 2025. "AI capability and environmental sustainability performance: Moderating role of green knowledge management," Technology in Society, Elsevier, vol. 81(C).
    19. Yan, Ruihe & Gong, Xiang, 2022. "Peer-to-peer accommodation platform affordance: Scale development and empirical investigation," Journal of Business Research, Elsevier, vol. 144(C), pages 922-938.
    20. Eric De Vera Reynoso & Yogi Tri Prasetyo & Satria Fadil Persada & Klint Allen Mariñas & Omar Paolo Benito & Reny Nadlifatin & Ma. Janice J. Gumasing & Irene Dyah Ayuwati, 2024. "The Effect of the COVID-19 Pandemic on Turnover Intentions among Field Technicians: A Case Study in Philippines," Sustainability, MDPI, vol. 16(15), pages 1-16, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:nwe:eajour:y:2025:i:3:p:863-883. 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: Vanya Lazarova (email available below). General contact details of provider: https://edirc.repec.org/data/unweebg.html .

    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.