Commercial-Customer's satisfaction in Islamic Banking scheme: a case study in Kedah (original) (raw)
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Customers'Satisfaction Towards Islamic Banking: Pakistan's Perspective
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The purpose of this study was to identify those factors which are linked with customers' satisfaction and find out relationship between customer satisfaction and identified factors. A structured questionnaire was developed to attain the responses of Islamic ...
The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. A tremendous progress was observed in Islamic banking system during last couple of decades with several international financial giants launching Islamic banking windows that function in consonance with principles of shariah. Resultantly, Islamic banks are to confront staunch resistance not only from fellow Islamic banks but also from reputed conventional banks presenting similar Islamic services and products. This study aims to evaluate the level /degree of consumer satisfaction and awareness related to one of the Islamic bank of Pakistan (Al-Meezan Bank). Data was collected from the visiting customers of Islamic bank revealing various satisfaction levels related to services and products of Islamic bank, however, dissatisfaction regarding some of the services of Islamic banks was also observed. Study identifies that though consumers were somewhat aware of several Islamic banks products but they did not tend to deal with those.
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Purpose -The purpose of this paper is to clarify and extend the conceptualization and measurement of customer satisfaction in the Islamic banking sector in Iran. Design/methodology/approach -The authors perform a review of the set of attributes which are capable of being incorporated in the measure of customer satisfaction for Islamic banks. Later, the possibility is posed of grouping these attributes into dimensions of quality, proceeding to value various alternative structures by means of confirmatory factor analysis methodology and testing their reliability and validity. Findings -The findings from this study reveal that service quality in Iranian banking adopting the commercial format of Islamic services has a two-factor structure: Value proposition quality and Service delivery quality. Originality/value -The paper contributes to the literature on Islamic Banking in a Middle Eastern economy.
Customer Satisfaction between Islamic and Conventional Banks: Case of Pakistan
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The development of the Islamic banks in Malaysia is increasingly challenging with more conventional banks participating and offering banking products and services based on Islamic principles after two decades of its establishment. Thus, it is very important for the players in the Islamic banking industry to better position themselves in order to confront and respond vigorously to the robustness of the global financial environment. This study is embarked on to identify the relative significance assigned to selection criteria in deciding a bank that has an Islamic banking system. More importantly, it would evaluate customer preference of the choices of a bank that is adapted from CARTER model. Secondly, it would investigate service quality and customer satisfaction between the full-pledged Islamic banks and the conventional banks offering Islamic banking products and services. It is hoped that the study would facilitate the management of the banks in developing their marketing strategies which is very important for the survival of the bank specifically due to intense competition arising from the foreign banks.
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This paper examines customer satisfaction in Islamic banks in Qatar in comparison with their conventional counterpart. It is an attempt to investigate whether Islamic banks have overcome the obstacle of being relatively new; whether they have started providing satisfying services to their customers or whether they act as taking advantage of their customers’ needs for Islamic finance products and treat them as captive clients who resort to Islamic banks for religious reasons. The research queries needed to be answered by the bank’s customers themselves to test their view of the services they get. A comprehensive comparative questionnaire was formulated. Responses from the questionnaire and other data collected from banks’ websites, personal interviews, etc., were analyzed. The paper conducted cross-sector comparisons of Islamic and conventional banking as well as individual comparisons between banks. Analysis of these results, computing averages and comparing them at the level of eac...
THE IMPACT OF ISLAMIC BANKING TOWARDS CUSTOMER SATISFACTION IN HYDERABAD, SINDH, PAKISTAN
Muhmmad Hassam, 2022
The purpose of this study is to figure out those factors which are linked with customer’s satisfaction towards Islamic banking and find out relationship between customer satisfaction and identified factors. The respondents were taken from Meezan bank and from the city of Hyderabad, Sindh, Pakistan. The method used to conduct the research was quantitative approach. Structured Questionnaires with closed-ended questions were distributed to 100 people in Meezan Bank in the city of Hyderabad. The dependent variable selected by the authors is “Customer Satisfaction”, and independent variables selected are “Service Quality”, “Product Quality”, and, “Awareness”. The task was to see the impact of independent variables on dependent variable. Statistical Package for Social Science (SPSS) was used for conducting the analysis. Descriptive test, reliability test, correlation and multiple regression test were conducted. The results conclude that there is significant impact of service quality, product quality and awareness on customer satisfaction towards Islamic banking in Hyderabad, Sindh, Pakistan. People are more inclined towards conventional banking although Islamic banks are providing Islamic banking services under separate windows. This study will provide Islamic bankers to bring diversification to be more innovative regarding their services in competition to conventional banks. The recommendations of this study are that customer satisfaction could be analyzed using other factors as well, as this research is limited to only service quality, product quality and awareness. Another recommendation could be that the research could be conducted other geographical area as well.
Islamic banking: a study of customer satisfaction and preferences in Jordan
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The Islamic banking system is gaining momentum. Many international conventional banks have started to open branches which operate in accordance with the Islamic Shariah principles in some Islamic countries. The Islamic banking system is expected to face strong competition not only from the Islamic banks but also from well‐established conventional banks offering Islamic products and services. In this study, an attempt is made to assess the degree of customer awareness and satisfaction towards an Islamic bank in Jordan. A sample 206 respondents took part in this study. The analysis of their responses revealed a certain degree of satisfaction of many of the Islamic banks facilities and products. The respondents expressed their dissatisfaction with some of the Islamic banks services. Although the respondents indicated that they are aware of a number of specific Islamic financial products like Murabaha Musharaka and Mudaraba, they show that they do not deal with them.
Customer Satisfaction in Full-Fledged Islamic Banks and Islamic Banking Windows: A Comparative Study
ERN: Other Emerging Markets Economics: Macroeconomic Issues & Challenges (Topic), 2017
As the aftermath of globalization and banking technology advancements, service quality has sought the intense value from the competing banks to ensure customers’ loyalty and avoid customers’ run-off risk. Of course, Islamic Banks seek no exceptions here. Islamic Banking exists either in the form of full-fledged Islamic banks or as Islamic Banking windows in the conventional banks. With an on-going discussion among policy makers to determine which type of these is better to be implemented, scarce literature is available in terms of the comparative studies between the two and also with regard to comparative service quality. Hence our study is the first one to compare these two types of Islamic banks with reference to their service quality. SERVQUAL model has been employed to analyze the service quality of these two types of Islamic Banks in Pakistan. Results yields a better image about full fledge Islamic banks, as perceived by their customers. Nonlinear classification techniques reve...