Abstract
The purpose of this paper is to examine the relationship between culturally-based service quality measure on customer satisfaction and loyalty in the Malaysian Islamic banking context. This study utilises the PAKSERV model, a cultural-based instrument together with additional dimensions compliance from CARTER model. A survey questionnaire was utilised to examine the relationships. Data were analysed using PLS-SEM. The result shows that five of the service quality dimensions have significant relationships with customer satisfaction. Compliance, the additional dimension, had been found to be the most influential. This study also reinforces the relationship between satisfaction and loyalty. The compliance dimension added to the PAKSERV measure that denotes religious belief enhances the cultural elements of service quality measure for Islamic banks.
Highlights
Maintaining a high standard of quality is essential in producing products and delivering services
2.9 Compliance In addition to the six dimensions of PAKSERV, this study proposed the inclusion of compliance as one of the important service quality measurement
The results show that five dimensions have a significant influence on customer satisfaction towards Malaysian Islamic banks
Summary
Maintaining a high standard of quality is essential in producing products and delivering services. In the context of service industry such as banks, providing a distinguished level of service quality leads to a higher competitive edge (Jain & Jain, 2015). This applies to conventional banks and to the Islamic bank. An Islamic bank with a high quality of service will be able to cope with the stiff competition from conventional banks and new arrivals to the market (Othman & Owen, 2001). But a high-quality service performance would lead to satisfaction, loyalty and a higher probability for customers to recommend the bank to someone else (Zeithaml, Berry, & Parasuraman, 1996). In order to achieve this, a high-quality service needs to be delivered as it is proven could contribute to customer satisfaction and retention (Kashif, Shukran, Rehman, & Sarifuddin, 2015; Kashif, Rehman, & Pilelienė, 2016)
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