Staff View: The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)

The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)

The robust growth of Islamic banking alongside conventional banking in Malaysia has provided consumers with greater choices of financial products and services. In Malaysia’s dual-window banking system, a conventional bank is allowed to offer both Islamic and conventional banking products under the s...

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Main Authors:	Abdul Rahman, Maria, Ramli, Mona Fairuz
Format:	Monograph
Language:	English
Published:	UUM 2021
Subjects:	HG Finance
Online Access:	https://repo.uum.edu.my/id/eprint/31503/1/12698.pdf https://repo.uum.edu.my/id/eprint/31503/
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id	my.uum.repo.31503
record_format	eprints
spelling	my.uum.repo.315032024-11-18T08:44:32Z https://repo.uum.edu.my/id/eprint/31503/ The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698) Abdul Rahman, Maria Ramli, Mona Fairuz HG Finance The robust growth of Islamic banking alongside conventional banking in Malaysia has provided consumers with greater choices of financial products and services. In Malaysia’s dual-window banking system, a conventional bank is allowed to offer both Islamic and conventional banking products under the same roof. Dual window Islamic banks are now one of the nation’s largest economic contributors. In the face of intense market competition and highly similar financial products, the need to build close relationships with customers has gained increased prominence in the business strategy of dual window Islamic banks. The importance of relationship marketing stems from the economic advantages of retaining existing customers as opposed to acquiring new ones. A loyal customer contributes towards an organization’s profitability by lowering its customer acquisition costs and increasing revenue per customer. Various studies have shown that relationship quality is one of the most important antecedents of customer loyalty. While relationship quality has been identified as an important predictor of customer loyalty, perceived value, relational norms, and switching costs are also likely to influence relationship quality and customer loyalty. However, little is known on the inter-relationships between these variables especially in the context of dual-window banks. Therefore, this study aimed to investigate the relationships between perceived value, relational norms, switching costs, relationship quality, and customer loyalty. In addition the mediating effects of relationship quality on the links between perceived value, relational norms, and switching costs and customer loyalty, respectively have also been investiagted. Data collected from 139 Islamic bank customers of the dual-window banks in the Northern region of Malaysia was analyzed using Partial Least Squares. Results of this study showed that except for switching costs other variables (perceived value and relational norms) have significant influenced on relationship quality and customer loyalty. Relationship quality also mediated the relationships between perceived value and relational norms on customer loyalty, respectively. Outcome of this research can assist the Islamic banks in the dual-banking system to formulate and strengthened strategies to increase the customer loyalty base UUM 2021 Monograph NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/31503/1/12698.pdf Abdul Rahman, Maria and Ramli, Mona Fairuz (2021) The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698). Technical Report. UUM. (Submitted)
institution	Universiti Utara Malaysia
building	UUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Utara Malaysia
content_source	UUM Institutional Repository
url_provider	http://repo.uum.edu.my/
language	English
topic	HG Finance
spellingShingle	HG Finance Abdul Rahman, Maria Ramli, Mona Fairuz The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)
description	The robust growth of Islamic banking alongside conventional banking in Malaysia has provided consumers with greater choices of financial products and services. In Malaysia’s dual-window banking system, a conventional bank is allowed to offer both Islamic and conventional banking products under the same roof. Dual window Islamic banks are now one of the nation’s largest economic contributors. In the face of intense market competition and highly similar financial products, the need to build close relationships with customers has gained increased prominence in the business strategy of dual window Islamic banks. The importance of relationship marketing stems from the economic advantages of retaining existing customers as opposed to acquiring new ones. A loyal customer contributes towards an organization’s profitability by lowering its customer acquisition costs and increasing revenue per customer. Various studies have shown that relationship quality is one of the most important antecedents of customer loyalty. While relationship quality has been identified as an important predictor of customer loyalty, perceived value, relational norms, and switching costs are also likely to influence relationship quality and customer loyalty. However, little is known on the inter-relationships between these variables especially in the context of dual-window banks. Therefore, this study aimed to investigate the relationships between perceived value, relational norms, switching costs, relationship quality, and customer loyalty. In addition the mediating effects of relationship quality on the links between perceived value, relational norms, and switching costs and customer loyalty, respectively have also been investiagted. Data collected from 139 Islamic bank customers of the dual-window banks in the Northern region of Malaysia was analyzed using Partial Least Squares. Results of this study showed that except for switching costs other variables (perceived value and relational norms) have significant influenced on relationship quality and customer loyalty. Relationship quality also mediated the relationships between perceived value and relational norms on customer loyalty, respectively. Outcome of this research can assist the Islamic banks in the dual-banking system to formulate and strengthened strategies to increase the customer loyalty base
format	Monograph
author	Abdul Rahman, Maria Ramli, Mona Fairuz
author_facet	Abdul Rahman, Maria Ramli, Mona Fairuz
author_sort	Abdul Rahman, Maria
title	The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)
title_short	The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)
title_full	The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)
title_fullStr	The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)
title_full_unstemmed	The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)
title_sort	role perceived customer value, relational norms, and switching costs in determining islamic banking customes' loyalty in dual banking environment settings (s/o 12698)
publisher	UUM
publishDate	2021
url	https://repo.uum.edu.my/id/eprint/31503/1/12698.pdf https://repo.uum.edu.my/id/eprint/31503/
_version_	1816134263155720192
score	13.223943

The Role Perceived Customer Value, Relational Norms, and Switching Costs in Determining Islamic Banking Customes' Loyalty in Dual Banking Environment Settings (S/O 12698)

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