Indonesian Islamic Bank Credibility and Customer Loyalty: Does Customer Satisfaction Really Serve as a Mediator Variable?
DOI:
https://doi.org/10.33736/ijbs.5196.2022Keywords:
Credibility, Satisfaction, Loyalty, Islamic bankAbstract
This research examined the influence of credibility on customer satisfaction and loyalty and to know whether the satisfaction mediated the credibility effects on customer loyalty of Islamic Banks in Indonesia or not. This study used primary data taken by distributing questionnaires to 280 respondents using a purposive sampling technique. The method of data analysis was Structural Equation Modelling (SEM) using Amos. The results indicated that the credibility of Indonesian Islamic banks significantly influenced customer satisfaction, Customer satisfaction significantly influenced customer loyalty, and Customer satisfaction could mediate the effect of credibility on customer loyalty. Then, credibility did not directly affect customer loyalty at Islamic banks but indirectly influenced customer loyalty. This research can be meaningful for universities to develop curricula, lecturers to develop teaching materials, students as references, Islamic banks to improve policies to increase customer loyalty, and central banks to develop regulations related to customers. Besides, in this research, the models of Islamic bank credibility, customer satisfaction, and loyalty were presented comprehensively and completely.
References
Abror, A., Patrisia, D., Engriani, Y., Evanita, S., Yasri, Y. & Dastgir, S. (2020), Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank's customer loyalty. Journal of Islamic Marketing, 11(6), 1691-1705. https://doi.org/10.1108/JIMA-03-2019-0044
Adams, R. B., & Mehran, H. (2008). Corporate performance, board structure, and their determinants in the banking industry (FRB of New York Staff Report No. 330). Federal Reserve Bank. https://doi.org/10.2139/ssrn.1150266
Akarapanich, S. (2006). Comparing customer loyalty intentions using trust, satisfaction, and commitment of online MBA students versus traditional MBA students [Unpublished doctoral dissertation]. Nova Southeastern University.
Alavijeh, M. R. K., Esmaeili, A., Sepahvand, A., & Davidaviciene, V. (2018). The effect of customer equity drivers on word-of-mouth behavior with mediating role of customer loyalty and purchase intention. Engineering Economics, 29(2), 236-246. https://doi.org/10.5755/j01.ee.29.2.17718
Ali, W., Danni, Y., Latif, B., Kouser, R., & Baqader, S. (2021). Corporate social responsibility and customer loyalty in food chains-Mediating role of customer satisfaction and corporate reputation. Sustainability, 13(16), 8681. https://doi.org/10.3390/su13168681
Ali, H. Y., Danish, R. Q., & Asrar‐ul‐Haq, M. (2020). How corporate social responsibility boosts firm financial performance: The mediating role of corporate image and customer satisfaction. Corporate Social Responsibility and Environmental Management, 27(1), 166-177. https://doi.org/10.1002/csr.1781
Alketbi, S., Alshurideh, M., & Al Kurdi, B. (2020). The influence of service quality on customers' retention and loyalty in the UAE Hotel sector with respect to the impact of customer' satisfaction, trust, and commitment: A qualitative study. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(4), 541-561.
Alonso, S. (2000). The antecedents and consequences of customer loyalty:The roles of customer satisfaction and consumer trust-commitment (Order No. 9994774) [Doctoral dissertation, The University of Texas-Pan American]. ProQuest Dissertations & Theses Global. https://www.proquest.com/dissertations-theses/antecedents-consequences-customer-loyalty-roles/docview/304681262/se-2
Amin, M., Isa, Z., & Fontaine, R. (2013). Islamic banks: Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia. International Journal of Bank Marketing, 31(2), 79-97. https:// doi.org/10.1108/02652321311298627
Anderson, E., & Weitz, B. (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29(1), 18-34. https://doi.org/10.1177/002224379202900103
Arum, Y. (2019). Hipertensi pada penduduk usia produktif (15-64 tahun). HIGEIA (Journal of Public Health Research and Development), 3(3), 345-356.
Auka, D. O. (2012). Service quality , satisfaction , perceived value and loyalty among customers in commercial banking in Nakuru municipality, Kenya. African Journal of Marketing Management, 4(5), 185-203.
Bachri, N., Lubis, A. R., Nurdasila, & Majid, M. S. A. (2016). Credibility and consumer behavior of Islamic bank in Indonesia: A literature review. Expert Journal of Marketing, 4(1), 20-23.
Bachri, N. (2018). Credibility-profit chain in Indonesian Islamic banking industry. Indian Journal of Public Health Research & Development, 9(12), 321-326. https://doi.org/10.5958/0976-5506.2018.02275.1
Ballentine, A. J. (2006). Measuring organizational sponsorship credibility: The application of source credibility theory in determining the most effective advocacy advertisement sponsor (Order No. 3228679) [Doctoral dissertation, University of Florida]. ProQuest Dissertations & Theses Global. https://www.proquest.com/dissertations-theses/measuring-organizational-sponsorship-credibility/docview/305327006/se-2
Bhattacharya, A., Morgan, N. A., & Rego, L. L. (2021). Customer satisfaction and firm profits in monopolies: A study of utilities. Journal of Marketing Research, 58(1), 202-222. https://doi.org/10.1177/0022243720962405
Butt, M. M., & Aftab, M. (2013). Incorporating attitude towards Halal banking in an integrated service quality, satisfaction, trust and loyalty model in online Islamic banking context. International Journal of Bank Marketing, 31(1), 6-23. https://doi.org/10.1108/02652321311292029
Belch, G. E., & Belch, M. A. (2012). Advertising and promotion. An integrated marketing communication perspective (6th ed.). McGraw-Hill.
Cangara, H. (2007). Pengantar ilmu komunikasi (Revised ed.). Raja Grafindo Persada.
Careras, E., Alloza A., & Careras, A. (2013). Corporate reputation. LID Publishing Ltd.
Chae, H. C. (2009). The impact of IT capability on employee capability, customer value, customer satisfaction, and business performance (Order No. 3399399) [Doctoral dissertation, University of North Texas]. ProQuest Dissertations & Theses Global. https://www.proquest.com/dissertations-theses/impact-capability-on-employee-customer-value/docview/304962236/se-2
Cheng, C. C., Chiu, S. I., Hu, H. Y., & Chang, Y. Y. (2011). A study on exploring the relationship between customer and loyalty in the fast food industry: With relationship inertia as a mediator. African Journal of Business Management, 5(13), 5118-5126.
Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2010). Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International Journal of Information Management, 30(4), 289-300. https://doi.org/10.1016/j.ijinfomgt.2009.10.001
Esmaeili, A., Haghgoo, I., Davidavičienė, V., & Meidutė-Kavaliauskienė, I. (2021). Customer loyalty in mobile banking: Evaluation of perceived risk, relative advantages, and usability factors. Engineering Economics, 32(1), 70-81. https://doi.org/10.5755/j01.ee.32.1.25286
Ernst & Young. (2016). World Islamic Banking Competitiveness Report 2016. Ernst & Young Global Limited. https://ceif.iba.edu.pk/pdf/EY-WorldIslamicBankingCompetitivenessReport2016.pdf
Filieri, R., Acikgoz, F., Ndou, V., & Dwivedi, Y. (2021). Is TripAdvisor still relevant? The influence of review credibility, review usefulness, and ease of use on consumers' continuance intention. International Journal of Contemporary Hospitality Management, 33(1), 199-223. https://doi.org/10.1108/IJCHM-05-2020-0402
Fombrun, C. J., & van Riel, C. B. M. (1997). The reputational landscape. Corporate Reputation Review, 1, 5-13. https://doi.org/10.1057/palgrave.crr.1540008
Ghorban, Z. S. (2012). The relationship between brand credibility and customers' behavioral intentions. With reference to Iranian service market. IOSR Journal of Business and Management (IOSR-JBM), 1(6), 34-38. https://doi.org/10.9790/487X-0163438
Ghorban, Z. S., & Tahernejad, H. (2012). A study on effect of brand credibility on word of mouth: With reference to internet service providers in Malaysia. International Journal of Marketing Studies, 4(1), 26-38. https://doi.org/10.5539/ijms.v4n1p26
Goldsmith, R. E., Lafferty, B. A., & Newell, S. J. (2000). The impact of corporate credibility and celebrity credibility on consumer reaction to advertisements and brands. Corporate Reputation Review, 3(3), 304-318. https://doi.org/10.1080/00913367.2000.10673616
Goutam, D., & Gopalakrishna, B. (2018). Customer loyalty development in online shopping: An integration of e-service quality model and commitment-trust theory. Management Science Letters, 8(11), 1149-1158. https://doi.org/10.5267/j.msl.2018.8.009
Haghkhah, A., Hamid, A. B. B. A., & Ebrahimpour, A. (2013). Commitment and customer loyalty in business-to-business context. European Journal of Business and Management, 5(19), 156-164.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis (7th ed.). Prentice Hall.
Hasan, A. (2009). Marketing. Penerbit Media Presindo.
Hassan, L. F. A., Jusoh, W. J. W., & Hamid, Z. (2014). Determinant of customer loyalty in Malaysian takaful industry. Procedia - Social and Behavioral Sciences, 130, 362-370. https://doi.org/10.1016/j.sbspro.2014.04.043
Iglesias, O., Markovic, S., & Rialp, J. (2019). How does sensory brand experience influence brand equity? Considering the roles of customer satisfaction, customer affective commitment, and employee empathy. Journal of Business Research, 96, 343-354. https://doi.org/10.1016/j.jbusres.2018.05.043
Illahi, A. P. (2019). Pengaruh pengalaman kerja, pendidikan dan motivasi kerja terhadap kinerja karyawan bank syariah: Studi kasus di BTN Syariah KCS Semarang [Doctoral dissertation, Universitas Islam Negeri Walisongo Semarang]. UIN Walisongo. https://eprints.walisongo.ac.id/id/eprint/10153/1/SKRIPSI%20FULL.pdf
Inglis, R., Morley, C., & Sammut, P. (2006). Corporate reputation and organisational performance: An Australian study. Managerial Auditing Journal, 21(9), 934-947. https://doi.org/10.1108/02686900610705028
Islam, R., Ahmed, S., Rahman, M., & Al Asheq, A. (2020). Determinants of service quality and its effect on customer satisfaction and loyalty: An empirical study of private banking sector. The TQM Journal, 33(6), 1163-1182. https://doi.org/10.1108/TQM-05-2020-0119
Karim, F. (2012). Customer satisfaction and awareness of Islamic banking product and services in Pakistan. Journal of Contemporary Research in Business, 4(4), 384-401.
Keisidou, E., Sarigiannidis, L., Maditinos, D. I., & Thalassinos, E. I. (2013). Customer satisfaction, loyalty and financial performance. International Journal of Bank Marketing, 31(4), 259-288. https://doi.org/10.1108/IJBM-11-2012-0114
Keller, K. L., & Aaker, D. A. (1998). The impact of corporate marketing on a company's brand extensions. Corporate Reputation Review, 1(4), 356-378. https://doi.org/10.1057/palgrave.crr.1540057
Kemp, E., & Bui, M. (2011). Healthy brands: Establishing brand credibility, commitment and connection among consumers. Journal of Consumer Marketing, 28(6), 429-437. https://doi.org/10.1108/07363761111165949
Khan, G. M., Amine, L. S., Uddin, S. J., & Zaman, M. (2011). The internationalization of an Arab bank: The case of Ahli United Bank of Bahrain. Thunderbird International Business Review, 53(5), 581-600. https://doi.org/10.1002/tie.20436
Kumar, P., & Polonsky, M. J. (2019). In-store experience quality and perceived credibility: A green retailer context. Journal of Retailing and Consumer Services, 49, 23-34. https://doi.org/10.1016/j.jretconser.2019.02.022
Lariviere, B., Keiningham, T. L., Cooil, B., Aksoy, L., & C. Malthouse, E. (2014). A longitudinal examination of customer commitment and loyalty. Journal of Service Management, 25(1), 75-100. https://doi.org/10.1108/JOSM-01-2013-0025
Lam, R., & Burton, S. (2006). SME banking loyalty (and disloyalty): A qualitative study in Hong Kong. International Journal of Bank Marketing, 24(1), 37-52. https://doi.org/10.1108/02652320610642335
Maliyah, S. (2015). Pengaruh citra merek, kepercayaan (trust) dan komitmen terhadap loyalitas nasabah pada Pt. Henan Putihrai asset management?. Jurnal Ilmiah Manajemen dan Bisnis, 1(1), 9-21.
Masudin, I., Fernanda, F. W., Zulfikarijah, F., & Restuputri, D. P. (2020). Customer loyalty on Halal meat product: A case study of Indonesian logistics performance perspective. International Journal of Business and Society, 21(1), 433-453. https://doi.org/10.33736/ijbs.3262.2020
Matthews, A. G. (2012). Impact of A High-Involvement Approach to Customer Satisfaction on Employess and Organizational performance [Master thesis, Pepperdine University]. Theses and Dissertation 272. https://digitalcommons.pepperdine.edu/etd/272
Monoarfa, T., Usman, O., & Tausyanah, T. (2020). The implication of AIRQUAL and brand credibility on passengers' satisfaction in airlines industry. Management Science Letters, 10(15), 3655-3662. https://doi.org/10.5267/j.msl.2020.6.028
Myo, Y. N., Khalifa, G. S., & Aye, T. T. (2019). The impact of service quality on customer loyalty of Myanmar hospitality industry: The mediating role of customer satisfaction. International Journal of Management and Human Science (IJMHS), 3(3), 1-11.
Newell, S. J., & Goldsmith, R. E. (2001). The development of a scale to measure perceived corporate credibility. Journal of Business Research, 52(3), 235-247. https://doi.org/10.1016/S0148-2963(99)00104-6
Nicod, L., Llosa, S., & Bowen, D. (2020). Customer proactive training vs customer reactive training in retail store settings: Effects on script proficiency, customer satisfaction, and sales volume. Journal of Retailing and Consumer Services, 55, 102069. https://doi.org/10.1016/j.jretconser.2020.102069
Nobar, H. B. K., & Rostamzadeh, R. (2018). The impact of customer satisfaction, customer experience and customer loyalty on brand power: Empirical evidence from hotel industry. Journal of Business Economics and Management, 19(2), 417-430. https://doi.org/10.3846/jbem.2018.5678
Nor, S. M., Ruzita Abdul Rahim, & Senik, Z. C. (2016). The potentials of internalising social banking among the Malaysian Islamic banks. Environment, Development and Sustainability, 18(2), 347-372. https://doi.org/10.1007/s10668-015-9651-0
Oliver, R. L., Rust, R. T., & Varki, S. (1997). Customer delight: Foundations, findings, and managerial insights. Journal of Retailing, 73(3), 311-336. https://doi.org/10.1016/S0022-4359(97)90021-X
Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer satisfaction and firm performance: Insights from over a quarter century of empirical research. Journal of the Academy of Marketing Science, 48(3), 543-564. https://doi.org/10.1007/s11747-019-00657-7
Osakwe, C. N., & Yusuf, T. O. (2021). CSR: A roadmap towards customer loyalty. Total Quality Management & Business Excellence, 32(13-14), 1424-1440. https://doi.org/10.1080/14783363.2020.1730174
Othman, M., Kamarohim, N., & Nizam, F. M. (2017). Brand credibility, perceived quality and perceived value: A study of customer satisfaction. International Journal of Economics and Management, 11(S3), 763-775.
Raza, S. A., Umer, A., Qureshi, M. A., & Dahri, A. S. (2020). Internet banking service quality, e-customer satisfaction and loyalty: The modified e-SERVQUAL model. The TQM Journal, 32(6), 1443-1466. https://doi.org/10.1108/TQM-02-2020-0019
Rifi, A., & Mostafa, R. B. (2022). Brand credibility and customer-based brand equity: A service recovery perspective. Journal of Financial Services Marketing, 27, 1-16. https://doi.org/10.1057/s41264-021-00097-x
Rizwan, M., Javed, P. A., Aslam, J., Khan, R., & Bibi, H. (2014). The relationship of brand commitment, brand credibility, perceived quality, customer satisfaction and brand loyalty: An empirical study on Stylo shoes, 5(1), 377-404. https://doi.org/10.5296/jsr.v5i1.6572
Saad, N. M. (2012). Comparative analysis of customer satisfaction on Islamic and conventional banks in Malaysia. Asian Social Science, 8(1), 73-80. https://doi.org/10.5539/ass.v8n1p73
Sallam, M. A. (2014). The effects of brand credibility on customer's WOM communication: The moderator role of brand commitment (A conceptual paper). International Journal of Marketing Studies, 6(5), 112-118. https://doi.org/10.5539/ijms.v6n5p112
Sandada, M. (2013). Strategic Planning and its Relationship with the performance of small and medium sized enterprises in Gauteng [Unpublished doctoral dissertation]. Vaal University of Technology.
Slack, N., Singh, G., & Sharma, S. (2020), The effect of supermarket service quality dimensions and customer satisfaction on customer loyalty and disloyalty dimensions. International Journal of Quality and Service Sciences, 12(3), 297-318. https://doi.org/10.1108/IJQSS-10-2019-0114
Syafrida, Ida., Aminah, Indianik (2015). Faktor Perlambatan Pertumbuhan Bank Syariah Di Indonesia Dan Upaya Penanganannya. Jurnal Ekonomi dan Bisnis. 14 (1), 7-20. https://doi.org/10.32722/eb.v14i1.753
Triansyah, F. (2021). Pengaruh pemberian insentif kerja terhadap kinerja karyawan pada PT Bank Syariah Bukopin Kantor Cabang Sidoarjo. Jurnal Ekonomika dan Bisnis Islam, 4(1), 164-171. https://doi.org/10.26740/jekobi.v4n1.p164-171
Tu, Y. T., Liu, W. C., & Chang, Y. Y. (2014). Customer commitment as a mediating variable between corporate brand image and customer loyalty. Journal of Education and Vocational Research, 5(1), 17-27. https://doi.org/10.22610/jevr.v5i1.148
van Vuuren, T., Robert-Lombar, M., & van Tonder, E. (2012). Customer satisfaction , trust and commitment as predictors of customer loyalty within an optometric practice environment. Southern African Business Review, 16(3), 81-96.
Wei, A. P., Peng, C. L., Huang, H. C., & Yeh, S. P. (2020). Effects of corporate social responsibility on firm performance: Does customer satisfaction matter?. Sustainability, 12(18), 7545. https://doi.org/10.3390/su12187545
Wijaya, T., Nasuka, M., & Hidayat, A. (2021). Salesperson ethics behavior as antecedent of Islamic banking customer loyalty. Journal of Islamic Marketing, 13(7), 1535-1550. https://doi.org/10.1108/JIMA-04-2020-0100
Wills, B. (2009). The business case for environmental sustainability (green): Achieving rapid returns from the practical integration of lean & green [White paper]. Green Enterprise Movement. http://greenenterprise.ca/GEM/wp-content/uploads/2013/04/Green-Business-Case-GEM.pdf
Wu, L. W. (2015). Inertia: Spurious loyalty or action loyalty. Asia Pacific Management Review, 16(1), 31-50.
Wang, Y., Wu, J., Lin, L., & Shafiee, S. (2021) An online community-based dynamic customisation model: The trade-off between customer satisfaction and enterprise profit. International Journal of Production Research, 59(1), 1-29. https://doi.org/10.1080/00207543.2019.1693649
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2009). Service marketing: Integrating customer focus across the Firm. McGraw Hill and Irwin. https://doi.org/10.1002/9781444316568.wiem01055
Zhang, R., & Rezaee, Z. (2009). Do credible firms perform better in emerging markets? Evidence from China. Journal of Business Ethics, 90, 221. https://doi.org/10.1007/s10551-009-0038-8
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.