An examination of the relationship between service quality perception and customer satisfaction A SEM approach towards Malaysian Islamic banking

Journal Article

Amin, Muslim . 2008

• Publication Work Type: Research Paper
• Publication Online URL: http://www.emeraldinsight.com/toc/imefm/1/3
• Issue Number: 3
• Volume Number: 1
• Pages: 191-209

Publication Abstract

Abstract
Purpose – This study attempts to examine the relationship between service quality perception and
customers’ satisfaction in Malaysian Islamic banking using the SEM approach.
Design/methodology/approach – This model starts with SERVQUAL measurement scales
consisting of six dimensional structures: tangibles, reliability, responsiveness, assurance, and
empathy, and plus the compliance dimensions to measure Malaysian Islamic banking service quality.
Respondents are the customers (Muslim and non-Muslim) who visit the bank counters. They must
have an account with one of the full-fledged Islamic banking and dual-banking systems.
Findings – The results showed that the proportion of Malaysian Muslims’ awareness of the Islamic
banking products and services were high compared to non-Muslim customers. The majority of
the Islamic banking customers were satisfied with the overall service quality provided by their banks.
The findings suggest that the standard model of Islamic banking service quality dimensions should
consist of the six dimensions and good determinants of satisfaction. The relationship between service
quality and customer satisfaction was significant.
Research limitations/implications – Further research should be considered in order to gather
more information regarding service quality and customer satisfaction dimensions in the context of
Malaysian Islamic banking industry.
Practical implications – The six dimensions of SERVQUAL represent a valid instrument to measure
service quality inMalaysian Islamic banking. Providing financial counseling to attract Muslimcustomers
to use more Islamic banking products and services is critical, where 60 percent of the Malaysian
population is Muslim. There is a potential target market for Islamic banking that needs be concerned.
Originality/value – This research is important in line with the obvious cross-cultural and religious
differences between these two key customer segments; Muslims and non-Muslims. In the Malaysian
context, there is a strategic dimension that needs to be understood.
Keywords Customer services quality, Customer satisfaction, Banking, Islam, Malaysia
Paper type Research paper