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.
N1 - Funding Information:
Interestingly, assurance was found to be a highly significant predictor of reputation (t-value=4.00, p<0.01), service offered (t-value=4.26, p<0.01), security (t-value=6.67, p<0.01), access (t-value=6.12, p<0.01) supporting all image factors of Islamic bank (H4a-H4d). It does, however, only support the security (t-value=1.95, p<0.05) of conventional bank. This means that H4d is fully supported. By contrast, none of the service image factors is supported by the empathy of either of the banks context, rejecting H5a-H5d completely. Further, among the image factors, reputation (t-value=13.59, p<0.01), service offered (t-value=8.12, p<0.01) and security (t-value=3.63, p<0.01) were found to be highly significant predictors of Islamic banks’ client satisfaction. Reputation (t-value = 2.35, p<0.01) and service offerings (t-value=9.82, p<0.01) were found to be highly significant factors for a conventional bank’s client satisfaction. This means that H6a and H6b are fully supported and H6c is partially supported while H6d is fully rejected. Finally the impact of customers’ satisfaction on customer loyalty is highly significant in both contexts, fully supporting H7. Overall, Islamic banking services found support for 14 hypotheses and only four hypotheses support the assertions concerning conventional banks in Bangladesh.
Publisher Copyright:
© 2017, © Emerald Publishing Limited.
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
AN - SCOPUS:85028578335
SN - 0265-2323
VL - 35
SP - 878
EP - 902
JO - International Journal of Bank Marketing
JF - International Journal of Bank Marketing
IS - 6
ER -