Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks

Providing quality services is one strategy to achieve business success in the service sector, especially regarding customer satisfaction and loyalty. This study aims to understand the empirical model and analyze the impact of service quality on customer loyalty, mediated by customer satisfaction. T...

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Main Authors: Bakti Setyadi, Sulaiman Helmi, Syed Ismail bin Syed Mohamad
Format: Article
Language:English
Published: Faculty of Islamic Economics and Business - Universitas Islam Negeri K.H. Abdurrahman Wahid Pekalongan 2023-06-01
Series:International Journal of Islamic Business and Economics (IJIBEC)
Subjects:
Online Access:https://e-journal.uingusdur.ac.id/index.php/IJIBEC/article/view/6924
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author Bakti Setyadi
Sulaiman Helmi
Syed Ismail bin Syed Mohamad
author_facet Bakti Setyadi
Sulaiman Helmi
Syed Ismail bin Syed Mohamad
author_sort Bakti Setyadi
collection DOAJ
description Providing quality services is one strategy to achieve business success in the service sector, especially regarding customer satisfaction and loyalty. This study aims to understand the empirical model and analyze the impact of service quality on customer loyalty, mediated by customer satisfaction. To achieve this, an explanatory research design was used, and a sample of 150 customers from the Palembang branch of Islamic Banks was selected using a simple random sampling technique. A questionnaire was used as the research instrument, and its validity and reliability were tested using CFA analysis. A complex causality model was then used, which was pushed through the PLS-SEM technique. The results revealed that service quality has a significant direct effect on customer loyalty, with a substantial immediate impact on customer satisfaction. Additionally, customer satisfaction partially mediates the effects of service quality on customer loyalty. These findings have significant implications for businesses in the service sector, indicating that providing quality services is a critical strategy for achieving success, particularly in customer satisfaction and loyalty. Based on these results, it is suggested that businesses focus on improving the quality of their services by regularly monitoring and assessing the quality of services offered to customers and investing in employee training to enhance the quality of their services.
format Article
id doaj-art-5bcb981e5eda4950b3d975e203e00055
institution OA Journals
issn 2599-3216
2615-420X
language English
publishDate 2023-06-01
publisher Faculty of Islamic Economics and Business - Universitas Islam Negeri K.H. Abdurrahman Wahid Pekalongan
record_format Article
series International Journal of Islamic Business and Economics (IJIBEC)
spelling doaj-art-5bcb981e5eda4950b3d975e203e000552025-08-20T02:23:11ZengFaculty of Islamic Economics and Business - Universitas Islam Negeri K.H. Abdurrahman Wahid PekalonganInternational Journal of Islamic Business and Economics (IJIBEC)2599-32162615-420X2023-06-017110.28918/ijibec.v7i1.6924Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic BanksBakti SetyadiSulaiman Helmi0Syed Ismail bin Syed Mohamad 1Bina Darma UniversityUniversiti Pendidikan Sultan Idris Providing quality services is one strategy to achieve business success in the service sector, especially regarding customer satisfaction and loyalty. This study aims to understand the empirical model and analyze the impact of service quality on customer loyalty, mediated by customer satisfaction. To achieve this, an explanatory research design was used, and a sample of 150 customers from the Palembang branch of Islamic Banks was selected using a simple random sampling technique. A questionnaire was used as the research instrument, and its validity and reliability were tested using CFA analysis. A complex causality model was then used, which was pushed through the PLS-SEM technique. The results revealed that service quality has a significant direct effect on customer loyalty, with a substantial immediate impact on customer satisfaction. Additionally, customer satisfaction partially mediates the effects of service quality on customer loyalty. These findings have significant implications for businesses in the service sector, indicating that providing quality services is a critical strategy for achieving success, particularly in customer satisfaction and loyalty. Based on these results, it is suggested that businesses focus on improving the quality of their services by regularly monitoring and assessing the quality of services offered to customers and investing in employee training to enhance the quality of their services. https://e-journal.uingusdur.ac.id/index.php/IJIBEC/article/view/6924Service QualityCustomer LoyaltyCustomer SatisfactionIslamic Bank
spellingShingle Bakti Setyadi
Sulaiman Helmi
Syed Ismail bin Syed Mohamad
Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks
International Journal of Islamic Business and Economics (IJIBEC)
Service Quality
Customer Loyalty
Customer Satisfaction
Islamic Bank
title Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks
title_full Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks
title_fullStr Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks
title_full_unstemmed Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks
title_short Customer Satisfaction Mediates the Influence of Service Quality on Customer Loyalty in Islamic Banks
title_sort customer satisfaction mediates the influence of service quality on customer loyalty in islamic banks
topic Service Quality
Customer Loyalty
Customer Satisfaction
Islamic Bank
url https://e-journal.uingusdur.ac.id/index.php/IJIBEC/article/view/6924
work_keys_str_mv AT baktisetyadi customersatisfactionmediatestheinfluenceofservicequalityoncustomerloyaltyinislamicbanks
AT sulaimanhelmi customersatisfactionmediatestheinfluenceofservicequalityoncustomerloyaltyinislamicbanks
AT syedismailbinsyedmohamad customersatisfactionmediatestheinfluenceofservicequalityoncustomerloyaltyinislamicbanks