Service Quality on Customers’ Satisfaction towards Customers’ Loyalty in Malaysian Islamic Banking: Structural Equation Modeling Approach

Abstract

The purpose of this study is to investigate the relationship between customer satisfaction and six dimensions of service quality (CARTER model) in Islamic banks of Malaysia. This study uses 772 samples of Islamic banks customers. Structured questionnaire technique has been used to collect data. Findings of the study revealed that Malaysian Islamic banking customers consider responsiveness, reliability and empathy as significant factors for customer satisfaction, on the other hand, the factors of the service quality as the tangible is not positively significance as a dimension of satisfaction. The drawback of this study is to generalise of the sample size of the respondents. For the academic point of view, there is a great significance as well as practitioners, managers and policymakers can find out the patterns of customer satisfaction regarding service quality for Islamic banks in Malaysia. The value of the current study is particular because it is a measuring study of customer satisfaction and service quality dimensions (CARTER model) of Islamic banks in Malaysia.