The effect of switching barrier factor towards customer loyalty / Nur Syafikah Mohamad Shari
Due to fast development in Islamic banking, the industry comprise with large participants. As a result, each bank faces strong competitions not only among Islamic banks but also from conventional and international players. According to Abduha (2013) in this challenging environment, customer satisfac...
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| Main Author: | |
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| Format: | Student Project |
| Language: | English |
| Published: |
2017
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/92430/1/92430.pdf https://ir.uitm.edu.my/id/eprint/92430/ |
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| Summary: | Due to fast development in Islamic banking, the industry comprise with large participants. As a result, each bank faces strong competitions not only among Islamic banks but also from conventional and international players. According to Abduha (2013) in this challenging environment, customer satisfaction became highly critical as it became a deciding factor for the customer whether to retain or switch to competitors. The purpose of this study is to examine the influence of switching barrier factor on relationship with customer loyalty. The data were collected from 100 islamic banking customer who have at least one banking product with their main bank and 100% responses were received. Variable used for the analysis include customer loyalty as the dependent variable (DV), whereas the service recovery (SR), lack of attractive alternative (LOAA), and switching cost (SC) as the independent variables (IV). The data were analyzed by using SPSS version 22. Analysis tested in this study such as reliability testing, correlation and regression. The finding indicates, among three independent variable stated, switching cost give biggest effect towards customer loyalty, followed by service recovery and lack of attractive alternatives. Both switching cost and service recovery is significant and has positive relationship with customer loyalty. While another independent variable (lack of attractive alternative) was found to be is insignificant. |
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