Promoting Customer Loyalty and Satisfaction in Financial Institutions through Technology Integration: The Roles of Service Quality, Awareness, and Perceptions

Kamran Iqbal,Hafiz Suliman Munawar,Hina Inam,Siddra Qayyum

doi:10.3390/su132312951

Kamran Iqbal, Hafiz Suliman Munawar + Show 2 more

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https://doi.org/10.3390/su132312951

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Abstract

This study examines the effects of quality of service, product awareness, and perceptions among customers of Islamic financial institutions (IFIs) on customer loyalty through technology integration using customer satisfaction as a mediator. A well-structured, comprehensive questionnaire was developed and data were collected from 203 respondents who were customers of six IFIs in Pakistan and had at least 2 years of experience in dealing confiorm this is correct with these IFIs. A total of 171 accurate responses were received from the respondents. Ten hypotheses were developed and statistically verified using regression and correlation analytical techniques. The results reveal that the quality of customer services and awareness of IFIs had a direct and positive relationship with customer loyalty, which in turn was mediated by customer satisfaction. Perceptions about IFIs had a direct positive relation with customer satisfaction. However, the relation of perceptions and quality of service with customer loyalty and satisfaction in financial institutions through technology integration was found to be insignificant, even in the presence of customer satisfaction as a mediator.

Highlights

This study explores the concepts of product awareness, customer loyalty, customer satisfaction, and industry performance
Based on an extensive literature review, this study proposes and subsequently explores 10 hypotheses related to the three key assessment variables and their relation to the customer loyalty of Islamic financial institutions (IFIs)
This study aims to address the gaps in literature pertaining to the global outreach of IFIs and ways in which Islamic banking and financial technology solutions can attract leaders, decision makers, and practitioners to investigate the core issue of customer loyalty

Summary

Introduction

Received: 15 October 2021Accepted: 18 November 2021Published: 23 November 2021Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.Licensee MDPI, Basel, Switzerland.Attribution (CC BY) license (https://creativecommons.org/licenses/by/ 4.0/).The Islamic financial industry is one of the fastest-growing industries in the world.To date, this industry has mainly focused on Muslim countries [1]. Although the Islamic financial industry has a high growth rate, there is a considerable margin for improvement, as it has greater potential than what is reflected by its current state. The word “Islamic”

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