The Linkages Effect of Service Quality, Customer Satisfaction and Customer Loyalty of Automobile Financing within the Malaysia Islamic Banking Industry

W Muhammad Zainuddin Wan Abdullah; Muhammad Ridhwan Ab. Aziz; Wan Nur Rahini Aznie Zainuddin

doi:10.33102/jmifr.v16i2.221

Authors

W Muhammad Zainuddin Wan Abdullah Faculty of Business, Economics and Social Development, University of Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia
Muhammad Ridhwan Ab. Aziz Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Bandar Baru Nilai, Malaysia
Wan Nur Rahini Aznie Zainuddin Faculty of Science and Technology, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia

DOI:

https://doi.org/10.33102/jmifr.v16i2.221

Keywords:

Service quality, Customer satisfaction, Customer loyalty, Maybank Islamic Berhad, Bank Islam Malaysia Berhad

Abstract

Nowadays, Islamic banks are facing tough competition among themselves and conventional banks that offer services and banking products based on Islamic principles. Such competition leads to issue involving customer satisfaction regarding the Islamic financing products and the efficiency of the services offered. Thus, the aims of this paper is to investigate the linkage effect of service quality (efficiency) on customer satisfaction and customer loyalty of Islamic automobile financing in Malaysia. Survey data was collected from 584 walk-in customers of selected bank outlets in the state of Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya. The data was then analysed using Pearson Correlation and Multiple Regression technique. Results show that customer satisfaction and customer loyalty were positively affected by quality of service offered by Islamic Banks. Hence, based on the results, Islamic bank should have an effective computerised system, good legal advisory, Islamic compliance, well-trained staff, secure transaction, sufficient bank branches, and as well as sufficient facility and information in order to uplift and improve efficiency of the bank.

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Author Biographies

W Muhammad Zainuddin Wan Abdullah, Faculty of Business, Economics and Social Development, University of Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia

Muhammad Ridhwan Ab. Aziz, Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Bandar Baru Nilai, Malaysia

Wan Nur Rahini Aznie Zainuddin, Faculty of Science and Technology, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia

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