Assessing the Influence of Islamic Banks' Products' Quality Features on Customer Satisfaction in Nigeria

• Authors: Baba Bashir , Zabri Shafie Mohamed , Kaseri Ahmad
• Languages of publication: EN

Abstracts

EN

Islamic banking is essential in today’s competitive banking markets. Research in Islamic banking worldwide is focussed mainly on how distinct is Islamic banking from the conventional banking. This research aims at investigating the factors responsible for the satisfaction of Islamic banking customers. The study seeks to identify the Islamic banking products’ quality features as they relate to customer satisfaction, to examine the level of customer satisfaction on Islamic banking products’ in Nigeria. Three research questions and four hypotheses are formulated to guide the study. The methodology employed was a quantitative approach using a questionnaire as a tool for the collection of data. The respondents for this study are customers of Ja’iz bank Nigeria plc, the major Islamic bank in Nigeria. A convenient sampling technique was adopted to select the sample from the population (customers) of the Ja’iz bank plc. in Northern Nigeria. Hence self-administered questionnaire was chosen to gather the data. The data analysis was done using Statistical Package for Social Sciences (SPSS) version 23.0 and PLS-SEM 3. The results show that perceived quality of the products significantly influences customers satisfaction. It also indicates that there is a higher correlation between the cost of using the products and the level of customer satisfaction, that is to say, customers are very cost conscious as they would like to use the products at a lower cost than the current obtainable one. The customers also showed a higher level of convenience in using the Islamic banking products, and compliance score indicated that the customers are satisfied that Islamic bank in Nigeria is Shari’ah compliant. This result serves as a signal to service providers in knowing what type of the products customers enjoyed using, and which of the products needed improvement so as to provide customers with what they want most, in order for the banks to keep the existing customers intact and lure more potential customers, and to the policymakers, regulators and other relevant stakeholders to play their respective roles toward sustaining Islamic banking industry in Nigeria.

Keywords

EN

Islamic banking; products quality features; customer satisfaction; Nigeria

• Publisher: Altezoro s.r.o. (Slovak Republic) and Publishing Center "Dialog" (Ukraine)
• Journal: Path of Science
• Year: 2018
• Volume: 4
• Issue: 6
• Pages: 4001-4015

Dates

published

2018-06-17

Contributors

author

Baba Bashir

• Universiti Tun Hussein Onn Malaysia

author

Zabri Shafie Mohamed

• Universiti Tun Hussein Onn Malaysia

author

Kaseri Ahmad

• Universiti Tun Hussein Onn Malaysia

References

• Rahman, Z. A. (2010). Contracts & the products of Islamic banking. Malaysia: CERT Publications Sdn. Bhd.
• Abdulsalam, A. (2011). Is Islamic banking relevant to Nigeria’s economic development? Retrieved May 1, 2018, from http://www.wealthcity.in/is-islamic-banking-relevant-to-nigerias-economic-development
• Ahmad, A., Rehman, K, & Safwan, N. (2011). Comparative study of Islamic and conventional banking in Pakistan based on customer satisfaction. African Journal of Business Management, 5(5), 1768–1773.
• Ahmad, A., Malik, M. I., & Humayoun, A. A. (2010). Banking Developments in Pakistan: A Journey from Conventional to Islamic Banking. European Journal of Social Sciences, 17(1), 12–17.
• Ahmad, N., & Haron, S. (2002). Perceptions of Malaysian corporate customers towards Islamic banking products and services. International Journal of Islamic Financial Services, 3(4), 13–29.
• Ajzen, I. (1991). The theory of planned behaviour. Organizational behavior and human decision processes, 50(2), 179–211.
• Al-Deehani, T., EL-Sadi, H., & Al-Deehani, M. (2015). The performance of Islamic banks and conventional banks before and during the economic downturn. Investment Management and Financial Innovation, 12(2), 238–250.
• Amin, H., Abdul Rahman, A. R., Abdul Razak, D., & Rizal, H. (2017). Consumer attitude and preference in the Islamic mortgage sector: a study of Malaysian consumers. Management Research Review, 40(1), 95–115. doi: 10.1108/mrr-07-2015-0159
• Aquilani, B., Silvestri, C., Ruggieri, A., & Gatti, C. (2017). A systematic literature review on total quality management critical success factors and the identification of new avenues of research. The TQM Journal, 29(1), 184–213. doi: 10.1108/TQM-01-2016-0003
• Awan, H. M., & Shahzad Bukhari, K. (2011). Customer's criteria for selecting an Islamic bank: evidence from Pakistan. Journal of Islamic Marketing, 2(1), 14–27. doi: 10.1108/17590831111115213
• Bansal, H. S., & Taylor, S. (2014). Investigating the Relationship Between Service Quality, Satisfaction and Switching Intentions. Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference, 304–313. doi: 10.1007/978-3-319-13141-2_107
• Abubakar, M., & Bello, A. (2014). Challenges and Solutions to Islamic Banking System in a Pluralistic – Secular Country Like Nigeria. Journal of Islamic Economics Banking and Finance, 10(3), 184–202. doi: 10.12816/0029048
• Ben Selma Mokni, R., & Rachdi, H. (2014). Assessing the bank profitability in the MENA region. International Journal of Islamic and Middle Eastern Finance and Management, 7(3), 305–332. doi: 10.1108/imefm-03-2013-0031
• Boohene, R., Agyapong, G. K. Q., & Gonu, E. (2013). Factors Influencing the Retention of Customers of Ghana Commercial Bank within the Agona Swedru Municipality. International Journal of Marketing Studies, 5(4). doi: 10.5539/ijms.v5n4p82
• Bouranta, N., Psomas, E. L., & Pantouvakis, A. (2017). Identifying the critical determinants of TQM and their impact on company performance. The TQM Journal, 29(1), 147–166. doi: 10.1108/tqm-11-2015-0142
• Bryman, A., Bell, E., Mills A. J., & Yue A. R. (2015). Business research methods. New York: Oxford University Press.
• Castro, C. (2013). Islamic Banking. Procesos de Mercado, 10(1), 275.
• CBN. (2017). Central Bank Supervision Annual Report, CBN yearly publication. Nigeria: (n. d.).
• Chang, C.-S., Chen, S.-Y., & Lan, Y.-T. (2013). Service quality, trust, and patient satisfaction in interpersonal-based medical service encounters. BMC Health Services Research, 13(1). doi: 10.1186/1472-6963-13-22
• Chatzoglou, P., Chatzoudes, D., & Kipraios, N. (2015). The impact of ISO 9000 certification on firms’ financial performance. International Journal of Operations & Production Management, 35(1), 145–174. doi: 10.1108/ijopm-07-2012-0387
• Cohen, D. A., Gan, C., Hwa, A., & Chong, E. Y. (2006). Customer satisfaction: a study of bank customer retention in New Zealand. California: Lincoln University
• Creswell, J. W. (2013). Research design: Qualitative, Quantitative, and Mixed Methods Approaches (4th ed.). London: Sage Publications, Incorporated.
• Crosby, L. A., & Stephens, N. (1987). Effects of Relationship Marketing on Satisfaction, Retention, and Prices in the Life Insurance Industry. Journal of Marketing Research, 24(4), 404. doi: 10.2307/3151388
• Dabholkar, P. A., Shepherd, C. D., & Thorpe, D. I. (2000). A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing, 76(2), 139–173. doi: 10.1016/s0022-4359(00)00029-4
• Dey, P. K., Bhattacharya, A., Ho, W., & Clegg, B. (2015). Strategic supplier performance evaluation: A case-based action research of a UK manufacturing organisation. International Journal of Production Economics, 166, 192–214. doi: 10.1016/j.ijpe.2014.09.021
• East, R. (1997). Consumer behavior: Advances and applications in marketing. London: Prentice Hall.
• Field, A., Miles, J., & Field, Z. (2012). Discovering statistics using R. London: Sage publications.
• Flynn, B. B., & Flynn, E. J. (2005). Synergies between supply chain management and quality management: emerging implications. International Journal of Production Research, 43(16), 3421–3436. doi: 10.1080/0020754050011807
• Ganesan, S. (1994). Determinants of Long-Term Orientation in Buyer-Seller Relationships. Journal of Marketing, 58(2), 1. doi: 10.2307/1252265
• Garbarino, E., & Johnson, M. S. (1999). The Different Roles of Satisfaction, Trust, and Commitment in Customer Relationships. Journal of Marketing, 63(2), 70. doi: 10.2307/1251946
• Garvin, D. A. (1993). Manufacturing Strategic Planning. California Management Review, 35(4), 85–106. doi: 10.2307/41166756
• Gerrard, P., Barton Cunningham, J., & Devlin, J. F. (2006). Why consumers are not using internet banking: a qualitative study. Journal of Services Marketing, 20(3), 160–168. doi: 10.1108/08876040610665616
• Chen Goh, P. (2005). Intellectual capital performance of commercial banks in Malaysia. Journal of Intellectual Capital, 6(3), 385–396. doi: 10.1108/14691930510611120
• Haron, S., & Nursofiza Wan Azmi, W. (2008). Determinants of Islamic and conventional deposits in the Malaysian banking system. Managerial Finance, 34(9), 618–643. doi: 10.1108/03074350810890976
• Hussain, R., Al Nasser, A., & Hussain, Y. K. (2015). Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42, 167–175. doi: 10.1016/j.jairtraman.2014.10.001
• Iqbal, M., & Molyneux, P. (2006). Thirty years of Islamic banking: History, performance and prospects. London, UK: Palgrave Macmillan.
• Jamal, A., & Naser, K. (2003). Factors influencing customer satisfaction in the retail banking sector in Pakistan. International Journal of Commerce and Management, 13(2), 29–53. doi: 10.1108/eb047465
• Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), 379–414. doi: 10.1108/ijchm-03-2014-0151
• Karim, R., & Chowdhury, A. T. (2014). Customer satisfaction on service quality in private commercial banking sector in Bangladesh. British Journal of Marketing Studies, 2(2), 1–11.
• Kassim, N., & Asiah Abdullah, N. (2010). The effect of perceived service quality dimensions on customer satisfaction, trust, and loyalty in e‐commerce settings. Asia Pacific Journal of Marketing and Logistics, 22(3), 351–371. doi: 10.1108/13555851011062269
• Keiningham, T., Gupta, S., Aksoy, L., & Buoye, A. (2014). The high price of customer satisfaction. MIT Sloan Management Review, 55(3), 37–46.
• Keller, S., Korkmaz, G., Orr, M., Schroeder, A., & Shipp, S. (2017). The Evolution of Data Quality: Understanding the Transdisciplinary Origins of Data Quality Concepts and Approaches. Annual Review of Statistics and Its Application, 4(1), 85–108. doi: 10.1146/annurev-statistics-060116-054114
• Kenyon, G. N., & Sen, K. C. (2015). The Perception of Quality. doi: 10.1007/978-1-4471-6627-6
• Kidwell, D. S., Blackwell, D. W., Sias, R. W., & Whidbee, D. A. (2016). Financial institutions, markets, and money. Hoboken, NJ: John Wiley & Sons.
• Klyuvak, O., & Skrynkovskyy, R. (2018). Diagnostics and Minimization of Business Risks and the State Customer in the System of Public e-Procurement. Path of Science, 4(1), 1022–1032. doi: 10.22178/pos.30-4
• Kumar, V., & Shehryar, M. (2017). An Evaluation of Islamic Banking at Bank Muscat, Oman. Review of Integrative Business and Economics Research, 6(3), 254–262.
• Lee, H. L., & Chin, K. S. (2017). Development of a Systematic Model for Improving Software Quality in the Financial Service Organization. In Management Challenges in a Network Economy: Proceedings of the MakeLearn and TIIM International Conference 2017. Poland: ToKnowPress.
• Leroi-Werelds, S., Streukens, S., Brady, M. K., & Swinnen, G. (2013). Assessing the value of commonly used methods for measuring customer value: a multi-setting empirical study. Journal of the Academy of Marketing Science, 42(4), 430–451. doi: 10.1007/s11747-013-0363-4
• Liljander, V., & Mattsson, J. (2002). Impact of customer preconsumption mood on the evaluation of employee behavior in service encounters. Psychology and Marketing, 19(10), 837–860. doi: 10.1002/mar.10040
• Lin, J., Hsiao, C.-T., Glen, R., Pai, J.-Y., & Zeng, S.-H. (2012). Perceived service quality, perceived value, overall satisfaction and happiness of outlook for long-term care institution residents. Health Expectations, 17(3), 311–320. doi: 10.1111/j.1369-7625.2012.00769.x
• Lopez, J., Kozloski Hart, L., & Rampersad, A. (2007). Ethnicity and customer satisfaction in the financial services sector. Managing Service Quality: An International Journal, 17(3), 259–274. doi: 10.1108/09604520710744290
• Malik, B. A., & Khaki, G. N. (2015). Scope and Feasibility of Islamic Banking and Finance Model Kazakhstan & Indian Perspective. The Journal of Central Asian Studies, 22(1), 83–98.
• Massad, N., Heckman, R., & Crowston, K. (2006). Customer Satisfaction with Electronic Service Encounters. International Journal of Electronic Commerce, 10(4), 73–104. doi: 10.2753/jec1086-4415100403
• Metawa, S. A., & Almossawi, M. (1998). Banking behavior of Islamic bank customers: perspectives and implications. International Journal of Bank Marketing, 16(7), 299–313. doi: 10.1108/02652329810246028
• Mews, C. J., & Abraham, I. (2006). Usury and Just Compensation: Religious and Financial Ethics in Historical Perspective. Journal of Business Ethics, 72(1), 1–15. doi: 10.1007/s10551-006-9151-0
• Mittal, S., Gera, R., & Batra, D. K. (2015). An evaluation of an integrated perspective of perceived service quality for retail banking services in India. International Journal of Bank Marketing, 33(3), 330–350. doi: 10.1108/ijbm-02-2014-0020
• Moak, K. (2017). Developed Nations and the Economic Impact of Globalization. doi: 10.1007/978-3-319-57903-0
• Muhammad, A. U., & Gulani, M. G. (2013). Challenges facing the Acceptability of Islamic Banking in Nigeria. International Journal of Economic Development Research and Investment, 4(3), 31–41.
• Mohammed, M. I., Sulaiman, N., & Adamu, D. (2018). Dimensionality and Reliability of the Determinants of Reverse Mortgage Use Intention. Path of Science, 4(2), 1013–1023. doi: 10.22178/pos.31-4
• Naor, M., Goldstein, S. M., Linderman, K. W., & Schroeder, R. G. (2008). The Role of Culture as Driver of Quality Management and Performance: Infrastructure Versus Core Quality Practices*. Decision Sciences, 39(4), 671–702. doi: 10.1111/j.1540-5915.2008.00208.x
• Naser, K., Jamal, A., & Al‐Khatib, K. (1999). Islamic banking: a study of customer satisfaction and preferences in Jordan. International Journal of Bank Marketing, 17(3), 135–151. doi: 10.1108/02652329910269275
• Nicholson, K. G., Colegate, A. E., Podda, A., Stephenson, I., Wood, J., Ypma, E., & Zambon, M. C. (2001). Safety and antigenicity of non-adjuvanted and MF59-adjuvanted influenza A/Duck/Singapore/97 (H5N3) vaccine: a randomised trial of two potential vaccines against H5N1 influenza. The Lancet, 357(9272), 1937–1943. doi: 10.1016/s0140-6736(00)05066-2
• Oh, H. J., Ozkaya, E., & LaRose, R. (2014). How does online social networking enhance life satisfaction? The relationships among online supportive interaction, affect, perceived social support, sense of community, and life satisfaction. Computers in Human Behavior, 30, 69–78. doi: 10.1016/j.chb.2013.07.053
• Olayemi, A. A. M. (2011). The Legality of Islamic Banking in Nigeria: A Critical Approach. SSRN Electronic Journal. doi: 10.2139/ssrn.1941010
• Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. doi: 10.4324/9781315700892
• Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. New York: John Wiley & Sons.
• P. Y. Lai, K., & Samers, M. (2016). Conceptualizing Islamic banking and finance: a comparison of its development and governance in Malaysia and Singapore. The Pacific Review, 30(3), 405–424. doi: 10.1080/09512748.2016.1264455
• Raza, S. A., Jawaid, S. T., & Hassan, A. (2015). Internet banking and customer satisfaction in Pakistan. Qualitative Research in Financial Markets, 7(1), 24–36. doi: 10.1108/qrfm-09-2013-0027
• Richins, M. L. (1983). Negative Word-of-Mouth by Dissatisfied Consumers: A Pilot Study. Journal of Marketing, 47(1), 68. doi: 10.2307/3203428
• Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH. Retrieved May 1, 2018 from https://www.smartpls.com
• Robinson, C. J., & Malhotra, M. K. (2005). Defining the concept of supply chain quality management and its relevance to academic and industrial practice. International Journal of Production Economics, 96(3), 315–337. doi: 10.1016/j.ijpe.2004.06.055
• Rosmain, T., Aliyu, A. A., Gafar, M., Abubakar, M. A., Lame, S. M., & Takala, J. (2013). An empirical investigation of factors influencing customer service delivery of ATM users in Malaysia: Kano's model approach. Advances in Natural and Applied Sciences, 7(3), 269–276.
• Rotich, H. K., & Magara, E. (2015). Factors Influencing Customer Satisfaction as a Competitive Advantage in Commercial Banks in Kenya: A Case Study of Credit Bank Limited. The International Journal of Business & Management, 3(5), 20.
• Saeidipour, B., Ranjbar, H., & Ranjbar, S. (2013). Adoption of Internetbanking. IOSR Journal of Business and Management, 11(2), 46–51. doi: 10.9790/487x-1124651
• Safeena, R., Date, H. & Kammani, A. (2011). Internet Banking Adoption in an Emerging Economy: Indian Consumer’s Perspective. International Arab Journal of e-Technology, 2(1), 56–64.
• Selnes, F. (1998). Antecedents and consequences of trust and satisfaction in buyer‐seller relationships. European Journal of Marketing, 32(3/4), 305–322. doi: 10.1108/03090569810204580
• Siddiqui, S. A. (2008). An evaluation of research on monetary policy and stability of the Islamic economic system. In The 7th International Conference on Islamic Economics (Conference papers), 235–270.
• Siyanbola, T. T. (2013). Islamic Banking as a Panacea for Economic Instability in Nigeria. Nigerian Chapter of Arabian Journal of Business and Management Review, 1(3), 69–89. doi: 10.12816/0003627
• Souiden, N., & Rani, M. (2015). Consumer attitudes and purchase intentions toward Islamic banks: the influence of religiosity. International Journal of Bank Marketing, 33(2), 143–161. doi: 10.1108/ijbm-10-2013-0115
• Torku, P. (2015). A correlational study of manager leadership styles and service quality in Ghanaian banks (Doctoral dissertation). Phoenix: University of Phoenix.
• Unegbu, V. E., & Onuoha, U. D. (2013). Awareness and Use of Islamic Banking in Nigeria. Oman Chapter of Arabian Journal of Business and Management Review, 3(1), 57–76. doi: 10.12816/0002355
• Yunusa, M., & Nordin, N. B. (2015). Religious Challenges of Islamic Banking in Nigeria. International Journal of Academic Research in Business and Social Sciences, 5(4). doi: 10.6007/ijarbss/v5-i4/1543

Identifiers

DOI

10.22178/pos.35-4