DRIVERS OF CUSTOMER LOYALTY TOWARDS BANKING SERVICES. THE CASE OF ISLAMIC BANK IN INDONESIA
DOI:
https://doi.org/10.61841/km4sk014Keywords:
Customer loyalty, Islamic Bank, IndonesiaAbstract
The purpose of this study is to evaluate the relationships between the factors that drive customer loyalty towards Islamic Banking in Indonesia. The study tested six predictors that were recommended by previous research and literature review. Those factors are competitiveness, efficiency, services, competency of managers, accessibility and ranges of services. This research used quantitative method thus data were collected using the questionnaire. 275 questionnaires were distributed at selected banking outlets in 5 major cities and out of that, only 252 are usable. The balance 23 were rejected mainly because not meeting the selection criteria and incomplete data. Results indicates that all factors were significantly influence towards customer loyalty except accessibility and services. Markets’ players should take note on the findings as it is important for their future marketing plan in capturing more customers and strengthen their business strategy towards business growth and sustainability.
Downloads
References
[1] An Analysis of Islamic Banking Performance: Maqashid Index Implementation in Indonesia and Jordania. (2012).
Journal of Islamic Finance.
[2] Ariff, M. S. M., Yun, L. O., Zakuan, N., & Jusoh, A. (2012). Examining Dimensions of Electronic Service Quality
for Internet Banking Services. Procedia - Social and Behavioral Sciences, 65(ICIBSoS), 854–859.
https://doi.org/10.1016/j.sbspro.2012.11.210
[3] Hassan, E. M., & Mahmoud, H. (2019). Full functionality and recovery assessment framework for a hospital
subjected to a scenario earthquake event. Engineering Structures, 188(December 2017), 165–177.
https://doi.org/10.1016/j.engstruct.2019.03.008
[4] Hassan, S., & Shamsudin, M. F. M. F. (2019). Measuring the effect of service quality and corporate image on
student satisfaction and loyalty in higher learning institutes of technical and vocational education and training.
International Journal of Engineering and Advanced Technology, 8(5), 533–538.
https://doi.org/10.35940/ijeat.E1077.0585C19
[5] Hutapea, E. G., & Kasri, R. A. (2010). Bank margin determination: a comparison between Islamic and conventional
banks in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management.
https://doi.org/10.1108/17538391011033870
[6] Iqbal, K., Roy, P. K., & Alam, S. (2019). The impact of banking services on poverty: Evidence from sub-district
level for Bangladesh. Journal of Asian Economics, 66, 101154. https://doi.org/10.1016/j.asieco.2019.101154
[7] Johnes, J., Izzeldin, M., & Pappas, V. (2014). A comparison of performance of Islamic and conventional banks
2004–2009. Journal of Economic Behavior & Organization, 103, S93–S107.
https://doi.org/10.1016/j.jebo.2013.07.016
[8] Kabir, M. N., Worthington, A., & Gupta, R. (2015). Comparative credit risk in Islamic and conventional bank.
Pacific Basin Finance Journal. https://doi.org/10.1016/j.pacfin.2015.06.001
[9] Kadir, B., & Shamsudin, M. F. (2019). A case study analysis of typhidot: An example of market-oriented R &
D commercialization in Malaysia. International Journal of Financial Research, 10(5), 75–81.
https://doi.org/10.5430/ijfr.v10n5p75
[10] Kadir, Baharudin, Shamsudin, M. F., Nurul, I., & Mohd, H. (2020). Relevance of Blank ’ s Customer Development
Model in Selected Cases of Market-Oriented R & D Commercialization in Malaysia. Test Engineering &
Management, (4256), 4256–4259.
[11] Mattila, A. S., & Ro, H. (2008). Customer satisfaction, service failure, and service recovery. In Handbook of
Hospitality Marketing Management (Sixth Edit). https://doi.org/10.1016/b978-0-08-045080-3.50014-7
[12] Mohd-Any, A. A., Mutum, D. S., Ghazali, E. M., & Mohamed-Zulkifli, L. (2019). To fly or not to fly? An
empirical study of trust, post-recovery satisfaction and loyalty of Malaysia Airlines passengers. Journal of Service
Theory and Practice, 29(5), 661–690. https://doi.org/10.1108/JSTP-10-2018-0223
[13] Odoom, R., Agbemabiese, G. C., & Hinson, R. E. (2019). Service recovery satisfaction in offline and online
experiences. Marketing Intelligence and Planning, 38(1), 1–14. https://doi.org/10.1108/MIP-09-2018-0422
[14] Osman, ’Ismah, Ali, H., Zainuddin, A., Rashid, W. E. W., & Jusoff, K. (2009). Customers Satisfaction in Malaysian
Islamic Banking. International Journal of Economics and Finance. https://doi.org/10.5539/ijef.v1n1p197
[15] Ramlan, H., & Adnan, M. S. (2016). The Profitability of Islamic and Conventional Bank: Case Study in Malaysia. Procedia Economics and Finance. https://doi.org/10.1016/s2212-5671(16)00044-7
[16] Razak, A. A. A. A., & Shamsudin, M. F. M. F. (2019). The influence of atmospheric experience on Theme Park Tourist’s satisfaction and loyalty in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 10–20.
[17] Reis, J., Amorim, M., & Melão, N. (2019). Service failure and recovery in technology-based business networks.
International Journal of Quality and Service Sciences, 11(1), 2–15. https://doi.org/10.1108/IJQSS-10-2017-0094
[18] Salem, M. A., Shawtari, F. A., Shamsudin, M. F., & Hussain, H. I. (2016). The relation between stakeholders’
integration and environmental competitiveness. Social Responsibility Journal, 12(4), 755–769.
https://doi.org/10.1108/SRJ-12-2015-0189
[19] Seth, A., Momaya, K., & Gupta, H. M. (2008). Managing the customer perceived service quality for cellular mobile
telephony: An empirical investigation. Vikalpa, 33(1), 19–34. https://doi.org/10.1177/0256090920080102
[20] Shamsudin, M. F. M. F., Esa, S. A. S. A., & Ali, A. M. A. M. (2019). Determinants of customer loyalty towards the
hotel industry in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 21–29.
[21] Shamsudin, M. F., Nurana, N., Aesya, A., & Nabi, M. A. (2018). Role of university reputation towards student
choice to private universities. Opcion, 34(Special Issue 16), 285–294.
[22] Shamsudin, M. F., Razak, A. A., & Salem, M. A. (2018). The role of customer interactions towards customer
satisfaction in theme parks experience. Opcion, 34(Special Issue 16), 546–558.
[23] Shamsudin, M. F., Shabi, K. S., & Salem, M. A. (2018). Role of perceived credibility towards intention to use of mcommerce. Opcion, 34(Special Issue 16), 276–284.
[24] Shamsudin, M., Mohd Noor, N., Abu Hassim, A., Hussain, H., Salem, M., & Hasim, M. (2015). Factors lead to
customer loyalty in prepaid mobile services. Caspian Journal of Applied Sciences Research, 4(10).
[25] Shamsudin, M.F., Ali, A. M., Ali, A. M., & Shabi, K. S. (2019). Exploratory study of students’ decision for
enrolment at Universiti Kuala Lumpur business school campus. Humanities and Social Sciences Reviews, 7(2),
526–530. https://doi.org/10.18510/hssr.2019.7262
[26] Shamsudin, M.F., Razak, A. A., & Salem, M. A. (2018). The role of customer interactions towards customer
satisfaction in theme parks experience | El papel de las interacciones del cliente hacia la satisfacción del cliente en
la experiencia de los parques temáticos. Opcion, 34(Special Is), 546–558.
[27] Shankar, A., & Jebarajakirthy, C. (2019). The influence of e-banking service quality on customer loyalty: A
moderated mediation approach. International Journal of Bank Marketing, 37(5), 1119–1142.
https://doi.org/10.1108/IJBM-03-2018-0063
[28] Shareef, M. A., Baabdullah, A., Dutta, S., Kumar, V., & Dwivedi, Y. K. (2018). Consumer adoption of mobile banking services: An empirical examination of factors according to adoption stages. Journal of Retailing and Consumer Services, 43(February), 54–67. https://doi.org/10.1016/j.jretconser.2018.03.003
[29] Zhang, M., & Geng, R. (2019). Empowerment in service recovery: the role of self-regulation process of frontline employee. Management Decision, (71702099). https://doi.org/10.1108/MD-10-2018-1073
[30] Zulkifli, N. A., Faizun, M., & Yazid, M. (2020). How Reciprocity Theory Drives Customer Satisfaction and
Customer Loyalty. Journal of Undergraduate Social Science and Technology, 2(2).
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR

This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.