Roles of service quality and religiosity in determining customers’ retention in Islamic banks: empirical evidence from southwestern Afghanistan
To retain customers, a high level of service quality is an essential factor in the banking industry. In contrast to the previous government, Afghans are now more driven to follow religion in their daily lives following the Taliban’s 2021 August 15 takeover in the country,while questions about the...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English English |
| Published: |
Research Center for Islamic Economics (IKAM), Turkiye
2024
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/116841/1/2004%20TUJISE%20Ziarmal%20Service%20Quality.pdf http://irep.iium.edu.my/116841/7/Roles%20Of%20Service%20Quality%20And%20Religiosity%20in%20Determining%20Customers%27%20Retention%20In%20Islamic%20Banks_%20Empirical%20Evidence%20From%20Southwestern%20Afghanistan-Web%20of%20Science%20Core%20Collection.pdf http://irep.iium.edu.my/116841/ https://tujise.org/issues/11-2/a4134 |
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| Summary: | To retain customers, a high level of service quality is an essential factor in the banking industry. In contrast
to the previous government, Afghans are now more driven to follow religion in their daily lives following the Taliban’s
2021 August 15 takeover in the country,while questions about the extent of service quality and religious factors that the
Islamic banking sector will provide, as well as how to gain customer retention with the needed quality service provision
that customers demand or perceive from banks, remain unanswered. Hence, this article aims to determine how religious
variables together with service quality factors affect customer retention of Islamic banks in the southwestern region of
the country. The data was collected using a heterogeneous purposive sampling (HPS) strategy for all the Islamic banks in
the region. To investigate these relationships, the study used factor analysis, and multiple regression with SPSS version
26.00. The study finds that all Islamic banking service quality and religiosity determinants are positively significant
in influencing customer retention in the southwestern zone of Afghanistan. Each SERVQUAL dimension had varying
degrees of influence on customer retention, with empathy, reliability, responsiveness, assurance, and tangibility having
the most significant influence. Religious motivation was the most influential element of customer retention concerning
religious determinants. This indicates the importance of emphasizing religious motivation and employee-customer
connection by Islamic banks. In addition, the findings revealed that a high level of service quality plays a significant role
in customer retention in the Islamic banking system.This study combines a cross-sectional analysis with a case study of
a particular national zone. As a result, the outcomes might not be generalizable to the entire nation. It would be good
to perform these studies because they are conducted similarly in other nations (such as the ASEAN countries). Future
research may look into other antecedents of customer retention that were ignored in this study (such as trust and commitment).
The findings of the study therefore may assist policymakers in improving the current banking industry by
focusing on the Islamic banking system, which would be able to restore service quality and religious motivation among
customers as they believe in the Islamic banking system, which will contribute positively to economic growth. |
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