Abstract

The main objective of this study aimed to evaluate the role of customer attitudes towards Islamic banks and corporate image on customer loyalty through mediating customer satisfaction, trust, and switching costs. Data analysis used 283 respondents as a sample using a purposive sampling method. The research used Structural Equation Modeling (SEM) with LISREL 8.0. The findings show that of the ten hypotheses, eight hypotheses proved significant, and two hypotheses were insignificant. The results showed that attitudes towards Islamic banks affect the perception of service quality but do not affect customer satisfaction. Corporate image influences satisfaction but does not affect customer trust. Customer satisfaction affects customer loyalty, both directly and indirectly, through mediating customer trust and switching costs. The most significant total effect of attitude on Islamic banking towards loyalty has a coefficient value of 0.15. The coefficient is the path of attitude, service quality, customer satisfaction, and customer loyalty. The pathway shows that attitudes towards sharia banking affect customer loyalty through the mediating role of service quality and satisfaction. While the most significant total effect of the corporate image through customer satisfaction, customer loyalty with a coefficient value of 0.15. The pathway shows that corporate image influences customer loyalty through the mediation of customer satisfaction and trust. Keywords: attitudes towards Islamic banks, customer satisfaction, service quality, switching costs, trust, customer loyalty DOI: 10.7176/JESD/11-10-09 Publication date: May 31 st 2020

Highlights

  • This research about the Islamic banking industry in Indonesia, which for the last three decades, has become one of the banking industries with rapid growth

  • This study examines the influence of customer loyalty antecedents, namely attitudes towards Islamic banks, corporate image, perceived service quality, satisfaction, trust, and switching costs to customer loyalty in Islamic banks

  • The influence of attitudes towards Islamic banking, service quality, satisfaction, company image, trust, cost of switching to customer loyalty is fit with empirical data in the field

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Summary

Introduction

This research about the Islamic banking industry in Indonesia, which for the last three decades, has become one of the banking industries with rapid growth. The sharia banking business is conducted by purely shariabased banks, but almost all conventional banks are Sharia banking businesses. Competition in the Islamic banking business is drastically increasing. According to Chadha and Kapoor (2009), the emergence of various forms of new technology and high customer expectations creates very competitive market conditions. A person who has a positive attitude will encourage behavior despite pressure from social norms. Three-Component Model and Attitude-behavior Consistency Theory (ABC Theory) to develop a loyalty model that explains the relationship of attitudes and the consequences of social relations that can affect loyalty

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