Quality and image of banking services

a comparative study of conventional and Islamic banks

Md Abu Saleh, Ali Quazi, Byron Keating, Sanjaya S. Gaur

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

Purpose: Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the differing perceptions of customers of Islamic and conventional banking systems in an emerging market, which has rarely been addressed and adds to the body of knowledge on this topic. This study also re-examines the SERVQUAL model of customer banking services to measure their impact on customer satisfaction and loyalty. Design/methodology/approach: The study uses responses from a randomly drawn sample of 229 customers from conventional banks and 225 customers from Islamic banks operating in Bangladesh using a structured questionnaire. SPSS and structural equation modeling techniques were employed as statistical tools for data analysis. Findings: Overall, the examined service quality dimensions wield varying effects on client satisfaction mediated through the perceived image of banking services. Islamic bank customers’ perceptions of the level of reliability, responsiveness, security and reputation were significantly higher than those of conventional banks. Research limitations/implications: This study enhances our understanding of how Islamic banking practices differ from those of conventional banking in terms of service quality and image-related factors. More specifically, the findings of this research explain consumers’ perceived assessment of satisfaction and loyalty in a comparative research setting. Originality/value: No prior studies have addressed the impact of the individual service quality dimensions on image factors in the context of conventional and Islamic banking in an emerging market, Bangladesh.

Original languageEnglish
Pages (from-to)878-902
Number of pages25
JournalInternational Journal of Bank Marketing
Volume35
Issue number6
DOIs
Publication statusPublished - 2017

Fingerprint

Islamic financial institutions
Comparative study
Banking services
Customer perception
Quality of service
Emerging markets
Service quality
Islamic banking
Factors
Bangladesh
Consumer research
Responsiveness
Questionnaire
Customer loyalty
Customer satisfaction
Comparative research
Design methodology
Loyalty
Body of knowledge
Banking

Cite this

@article{9ee5090b14074e40a51c5633d22c5033,
title = "Quality and image of banking services: a comparative study of conventional and Islamic banks",
abstract = "Purpose: Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the differing perceptions of customers of Islamic and conventional banking systems in an emerging market, which has rarely been addressed and adds to the body of knowledge on this topic. This study also re-examines the SERVQUAL model of customer banking services to measure their impact on customer satisfaction and loyalty. Design/methodology/approach: The study uses responses from a randomly drawn sample of 229 customers from conventional banks and 225 customers from Islamic banks operating in Bangladesh using a structured questionnaire. SPSS and structural equation modeling techniques were employed as statistical tools for data analysis. Findings: Overall, the examined service quality dimensions wield varying effects on client satisfaction mediated through the perceived image of banking services. Islamic bank customers’ perceptions of the level of reliability, responsiveness, security and reputation were significantly higher than those of conventional banks. Research limitations/implications: This study enhances our understanding of how Islamic banking practices differ from those of conventional banking in terms of service quality and image-related factors. More specifically, the findings of this research explain consumers’ perceived assessment of satisfaction and loyalty in a comparative research setting. Originality/value: No prior studies have addressed the impact of the individual service quality dimensions on image factors in the context of conventional and Islamic banking in an emerging market, Bangladesh.",
keywords = "Banks, Image, Islam, Quantitative techniques, Service quality",
author = "Saleh, {Md Abu} and Ali Quazi and Byron Keating and Gaur, {Sanjaya S.}",
year = "2017",
doi = "10.1108/IJBM-08-2016-0111",
language = "English",
volume = "35",
pages = "878--902",
journal = "International Journal of Bank Marketing",
issn = "0265-2323",
publisher = "Emerald Group Publishing Ltd.",
number = "6",

}

Quality and image of banking services : a comparative study of conventional and Islamic banks. / Saleh, Md Abu; Quazi, Ali; Keating, Byron; Gaur, Sanjaya S.

In: International Journal of Bank Marketing, Vol. 35, No. 6, 2017, p. 878-902.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Quality and image of banking services

T2 - a comparative study of conventional and Islamic banks

AU - Saleh, Md Abu

AU - Quazi, Ali

AU - Keating, Byron

AU - Gaur, Sanjaya S.

PY - 2017

Y1 - 2017

N2 - Purpose: Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the differing perceptions of customers of Islamic and conventional banking systems in an emerging market, which has rarely been addressed and adds to the body of knowledge on this topic. This study also re-examines the SERVQUAL model of customer banking services to measure their impact on customer satisfaction and loyalty. Design/methodology/approach: The study uses responses from a randomly drawn sample of 229 customers from conventional banks and 225 customers from Islamic banks operating in Bangladesh using a structured questionnaire. SPSS and structural equation modeling techniques were employed as statistical tools for data analysis. Findings: Overall, the examined service quality dimensions wield varying effects on client satisfaction mediated through the perceived image of banking services. Islamic bank customers’ perceptions of the level of reliability, responsiveness, security and reputation were significantly higher than those of conventional banks. Research limitations/implications: This study enhances our understanding of how Islamic banking practices differ from those of conventional banking in terms of service quality and image-related factors. More specifically, the findings of this research explain consumers’ perceived assessment of satisfaction and loyalty in a comparative research setting. Originality/value: No prior studies have addressed the impact of the individual service quality dimensions on image factors in the context of conventional and Islamic banking in an emerging market, Bangladesh.

AB - Purpose: Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the differing perceptions of customers of Islamic and conventional banking systems in an emerging market, which has rarely been addressed and adds to the body of knowledge on this topic. This study also re-examines the SERVQUAL model of customer banking services to measure their impact on customer satisfaction and loyalty. Design/methodology/approach: The study uses responses from a randomly drawn sample of 229 customers from conventional banks and 225 customers from Islamic banks operating in Bangladesh using a structured questionnaire. SPSS and structural equation modeling techniques were employed as statistical tools for data analysis. Findings: Overall, the examined service quality dimensions wield varying effects on client satisfaction mediated through the perceived image of banking services. Islamic bank customers’ perceptions of the level of reliability, responsiveness, security and reputation were significantly higher than those of conventional banks. Research limitations/implications: This study enhances our understanding of how Islamic banking practices differ from those of conventional banking in terms of service quality and image-related factors. More specifically, the findings of this research explain consumers’ perceived assessment of satisfaction and loyalty in a comparative research setting. Originality/value: No prior studies have addressed the impact of the individual service quality dimensions on image factors in the context of conventional and Islamic banking in an emerging market, Bangladesh.

KW - Banks

KW - Image

KW - Islam

KW - Quantitative techniques

KW - Service quality

UR - http://www.scopus.com/inward/record.url?scp=85028578335&partnerID=8YFLogxK

U2 - 10.1108/IJBM-08-2016-0111

DO - 10.1108/IJBM-08-2016-0111

M3 - Article

VL - 35

SP - 878

EP - 902

JO - International Journal of Bank Marketing

JF - International Journal of Bank Marketing

SN - 0265-2323

IS - 6

ER -