Customer Satisfaction, Customer Loyalty, and Market Orientation Through Service Quality: a case study of  Islamic Banking in Indonesia

Rizkya Yunita Anggraini; Muhammad Iqbal Fasa; Suharto suharto

doi:10.46899/jeps.v10i2.372

Customer Satisfaction, Customer Loyalty, and Market Orientation Through Service Quality: a case study of Islamic Banking in Indonesia

Rizkya Yunita Anggraini, Muhammad Iqbal Fasa, Suharto suharto

Abstract

This study aims to examine: 1) the impact of marketplace orientation on client pleasure. 2) The impact of the carrier is great on patron pride. 3) the effect of marketplace orientation on customer loyalty. 4) the impact of provider satisfaction on patron loyalty. 5) the effect of consumer satisfaction on patron loyalty. 6) the effect of marketplace orientation on consumer loyalty via customer pleasure. 7) service great towards purchaser loyalty via client satisfaction. The sample of this examination is a hundred and seventy respondents; records series use on-line-survey. The evaluation approach used is Structural Equation Modeling with AMOS. The result is: 1) market orientation has a tremendous and sizable impact on purchaser satisfaction. 2) service best has a superb giant impact on client pleasure. 3) marketplace orientation has a trifling impact on customer loyalty. 4) carrier pleasantness has a tremendous-tremendous effect on consumer loyalty. 5) Customer delight has a superb-large effect on client loyalty. 6) marketplace orientation has an effective and extensive effect on consumer loyalty via purchaser satisfaction. 7) service satisfaction affects loyalty via patron pleasure. improve market orientation so that patron loyalty is stated through consumer satisfaction. further, enhance marketplace orientation through customer satisfaction to offer improved constancy to customers.

Keywords

Customer Satisfaction; Customer Loyalty; Market Orientation; Service Quality

Full Text:

PDF

References

Anouze, A. L. M., Alamro, A. S., & Awwad, A. S. (2019). Customer satisfaction and its measurement in Islamic banking sector: a revisit and update. Journal of Islamic Marketing, 10(2), 565–588. https://doi.org/10.1108/JIMA-07-2017-0080

Bacile, T. J., Wolter, J. S., Allen, A. M., & Xu, P. (2018). The Effects of Online Incivility and Consumer-toConsumer Interactional Justice on Complainants, Observers, and Service Providers During Social Media Service Recovery. Journal of Interactive Marketing, 44, 60–81. https://doi.org/https://doi.org /10.1016/j.intmar.2018.04.002

Bharadwaj, N., & Shipley, G. M. (2020). Salesperson communication effectiveness in a digital sales interaction 11The authors benefited from helpful comments from: our anonymous reviewers, session participants at the 3rd Annual Industrial Marketing Management Summit at the Fox School of Business. Industrial Marketing Management, 90, 106–112. https://doi.org/https://doi.org/10.1016/j.indmarman.2020.07.002

Biswas, A., Jaiswal, D., & Kant, R. (2021). Augmenting bank service quality dimensions: moderation of perceived trust and perceived risk. International Journal of Productivity and Performance Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/IJPPM-04-2021-0196

Chan, J., & Gao, Y. L. (2021). Measuring the up-to-date quality of online food delivery: formative index construction. International Journal of Contemporary Hospitality Management, 33(12), 4550–4568. https://doi.org/10.1108/IJCHM-06-2021-0739

Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2010). Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International Journal of Information Management, 30(4), 289–300.

Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences. https://doi.org/https://doi.org/10.1016/j.kjss.2018.07.009

Duffy, J. A. M., Miller, J. M., & Bexley, J. B. (2006). Banking customers’ varied reactions to service recovery strategies. International Journal of Bank Marketing, 24(2), 112–132. https://doi.org/10.1108/02652320610649923

Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2021.101889

González-Cruz, T. F., Botella-Carrubi, D., & Martínez-Fuentes, C. M. (2019). Supervisor leadership style, employee regulatory focus, and leadership performance: A perspectivism approach. Journal of Business Research. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.01.065

Gross, H. P., Inderfurth, S., & Willems, J. (2021). Employees as reputation advocates: Dimensions of employee job satisfaction explaining employees’ recommendation intention. Journal of Business Research, 134, 405–413. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.05.021

Hayati, K., & Caniago, I. (2012). Islamic Work Ethic: The Role of Intrinsic Motivation, Job Satisfaction, Organizational Commitment and Job Performance. Procedia - Social and BehavioraSciences,65,272–277.https://doi.org/https://doi.org/10.1016/j.sbspro.2012.11.12

Ho, K. L. P., Nguyen, C. N., Adhikari, R., Miles, M. P., & Bonney, L. (2017). Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies. Journal of Innovation & Knowledge, 3(3), 154–163. https://doi.org/10.1016/j.jik.2017.03.008

Hossain, M. A., Jahan, N., & Kim, M. (2021). A multidimensional and hierarchical model of banking services and behavioral intentions of customers. International Journal of Emerging Markets, ahead-of-print(ahead-of print). https://doi.org/10.1108/IJOEM-07-2020-0831

Jawaid, S. T., Siddiqui, A. H., Kanwal, R., & Fatima, H. (2021). Islamic banking and customer satisfaction in Pakistan: evidence from internal and external customers. Journal of Islamic Marketing, ahead-of-print(ahead of-print). https://doi.org/10.1108/JIMA-09-2020-0297

Kim, K., Hong, E., & Rho, S. (2013). The study of defined buying factors affecting trust building and service performance in financial management systems. Mathematical and Computer Modelling, 58(1), 38–48.https://doi.org/https://doi.org/10.1016/j.mcm.2012.06.006

Lu, Y., & Chen, Y. (2021). Is China’s agricultural enterprise growing steadily? Evidence from listed agricultural companies. Chinese Journal of Population, Resources and Environment, 19(2), 203–212. https://doi.org/https://doi.org/10.1016/j.cjpre.2021.12.022

Marinkovic, V., & Obradovic, V. (2015). Customers’ emotional reactions in the banking industry. International Journal of Bank Marketing, 33(3), 243–260. https://doi.org/10.1108/IJBM-09-2013-0107

Marques, C. S., Santos, G., Marques, V., & Ramos, E. (2018). The impact of knowledge creation, acquisition and transfer on innovation in the healthcare sector. Proceedings of the European Conference on Knowledge Management, ECKM, 1, 494–502.

Mashur, R., Gunawan, B. I., Ashoer, M., Hidayat, M., Perdana, H., & Putra, K. (2019). Moving From Traditional to Society 5 . 0 : Case study by Online Transportation Business. Journal Distribution Science, 9, 93–102. https://doi.org/http://dx.doi.org/10.15722/jds.17.09.201909.93

Mihajat, M. I. S. (2019). Governance Framework in IFIs in Oman: Issues and Challenges. In T. Azid, A. A. Alnodel, & M. A. Qureshi (Eds.), Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice (pp. 249–260). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78973-007-420191022

Mittal, D., & Agrawal, S. R. (2022). Determining banking service attributes from online reviews: text mining and sentiment analysis. International Journal of Bank Marketing, 40(3), 558–577. https://doi.org/10.1108/IJBM-08-2021-0380

Narver, J. C., & Slater, S. F. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4), 20–35. https://doi.org/10.2307/1251757

Nor, N. M., Bahari, N. A. S., Adnan, N. A., Kamal, S.M.Q.S., & Ali, I. M. (2016). The Effects of Environmental Disclosure on Financial Performance in Malaysia. Procedia Economics and Finance, 35, 117–126. https://doi.org/https://doi.org/10.1016/S2212-5671(16)00016-2

Nurhilalia, Rahman Kadir, A., Mahlia, M., Jusni, & Aditya, H. P. K. P. (2019). Determinant of market orientation on SME performance: RBV and SCP perspective. In Journal of Distribution Science (Vol. 17, Issue 9, pp. 35–45). https://doi.org/10.15722/jds.17.09.201909.35

Padlet, S. F., Reimers, V., Mokhlis, S., Anuar, M. M., & Ahmad, A. (2020). Keep up the good work in research universities: An importance-performance analysis. Australasian Marketing Journal (AMJ), 28(2), 128–138. https://doi.org/https://doi.org/10.1016/j.ausmj.2019.10.002

Rammal, H. G., & Parker, L. D. (2013). Islamic banking in Pakistan: A history of emergent accountability and regulation. Accounting History, 18(1), 5–29.

Roberts-Lombard, M. (2020). Antecedents and outcome of commitment in Islamic banking relationships – an emerging African market perspective. Journal of Islamic Marketing, 11(6), 1851–1871. https://doi.org/10.1108/JIMA-09-2018-0164

Sari, M. D., Bahari, Z., & Hamat, Z. (2016). History of Islamic banks in Indonesia: Issues behind its establishment. International Journal of Finance and Banking Research, 2(5), 178–184.

Sharma, A., Sharma, S., & Chaudhary, M. (2020). Are small travel agencies ready for digital marketing? Views of travel agency managers. Tourism Management, 79, 104078. https://doi.org/https://doi.org/10.1016/j.tourman.2020.104078

Shulga, L. V. (2021). Front-line employee self-determination in value Co-Creation: Generational profiles. Journal of Hospitality and Tourism Management, 48, 479–491. https://doi.org/https://doi.org/10.1016/j.jhtm.2021.08.004

Sikdar, P., & Makkad, M. (2015). Online banking adoption. International Journal of Bank Marketing, 33(6), 760–785. https://doi.org/10.1108/IJBM-11-2014-0161

Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The role of strategic management accounting. International Journal of Hospitality Management, 63, 33–43. https://doi.org/https://doi.org/10.1016/j.ijhm.2017.02.001

Utama, A. S. (2018). History and development of Islamic banking regulations in the national legal system of Indonesia. Al-’Adalah, 15(1), 37–50.

Zebal, M., Ferdous, A., & Chambers, C. (2019). An integrated model of marketing knowledge – a tacit knowledge perspective. Journal of Research in Marketing and Entrepreneurship, 21(1), 2–18. https://doi.org/10.1108/JRME-03-2018-0018

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46.

DOI: https://doi.org/10.46899/jeps.v10i2.372