Service Loyalty Primacy Over Quality and Satisfaction in Islamic Banking Services

Abstract

Abstract

This study aims to investigate the mediating role of customer satisfaction in the nexus between service quality and service loyalty within the context of Islamic banks. Motivated by the unique dynamics of Islamic banking, where customers engage with a belief in Shariah compliance, the study explores the intricate relationship from service quality to satisfaction judgments and, ultimately, to loyalty. Utilizing a convenience sampling method, 218 responses were collected through a self-administered questionnaire distributed at a prominent Islamic bank service counter in Karachi. The study employs Structural Equation Modeling (SEM) to analyze the gathered data. The findings reveal a nuanced and partial mediation of customer satisfaction in the relationship between service quality and service loyalty among Islamic banking customers. This partial mediation suggests a distinctive loyalty pattern influenced by both the inherent quality of services and customers' satisfaction judgments. The results underscore the complex interplay in the Islamic banking landscape, shaped by the deeply rooted religiosity assumed within this context.

         Keywords: service loyalty primacy and quality, satisfaction, Islamic banking services