Customer satisfaction and loyalty in Malaysian Islamic banks: A PAKSERV investigation

• Published in: International Journal of Bank Marketing
• Main Author: Kashif M.; Shukran S.S.W.; Rehman M.A.; Sarifuddin S.
• Format: Article
• Language: English
• Published: Emerald Group Publishing Ltd. 2015
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84947074215&doi=10.1108%2fIJBM-08-2013-0084&partnerID=40&md5=0862c372e7fa887f9be4f42d521a9df0

Purpose: The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context.; Design/methodology/approach: The dimensionality of the PAKSERV scale is examined with confirmatory factor analysis. A survey approach is adopted to collect data from 300 Islamic banking customers in Kuching, Malaysia.; Findings: Results reveal an excellent model fit for the PAKSERV scale in collectivist cultural context of Malaysia. All dimensions of PAKSERV are validated except reliability. The issue of non-validity of the reliability dimension in an Islamic banking context is explained by extant literature.; Practical implications: Islamic banks are recommended to focus on all the PAKSERV scale dimensions to impart service quality. Given a collectivist cultural setting, a “network marketing” approach is recommended to maintain a desirable level of customer satisfaction and loyalty.; Originality/value: The PAKSERV scale has been employed for the first time to investigate the service quality-loyalty path in a collectivist cultural context. The validity of the PAKSERV scale has been operationalized for the first time in a collectivist cultural context. © Emerald Group Publishing Limited.