Open Conference Systems, INTERNATIONAL MULTIDISCIPLINARY CONFERENCE (IMC 2017) PROGRAM

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SERVICE QUALITY AND PATRONAGE INTENTION IN ISLAMIC BANKING AMONG GEN-Y
Suria Abu Basar, Halim Ahmad, Dasima Nordin, Hasnita Halim

Last modified: 2017-01-02

Abstract


The goal of this study is to identify the interrelationships between service quality, customer satisfaction, service attitude, and patronage intention among Gen-Y customers in Islamic banking sector. The study also aims to identify the most important attributes of service quality in Islamic Banking, which can be used to evaluate the characteristics of banking service quality as perceived by customers. A sample of 351 Gen-Y Islamic banking customers was identified particularly in Klang Valley. The service quality model tested in this study is based on SERVQUAL model by Parasuraman et al. (1985) based on five dimensions (i.e. tangibility, responsibility, reliability, assurance, and empathy). The results of this study signify that the SERVQUAL dimensions (except responsiveness) show positive relationships with patronage intention. Empathy is key success factor in the Malaysian Islamic banking sector. In addition, the establishment of higher levels of service quality Islamic banking will lead customer to have a high level of service attitudes and satisfaction, and these subsequently lead to loyalty of Gen-Y customers to Islamic banks. Therefore, this study validates the applicability of the SERVQUAL model for measuring service quality of Islamic banking sectors in Malaysia. Hence, Islamic banking industry practitioners can consider this instrument as a tool to assess and help improve their service quality especially among Gen-Y customers.


Keywords


Service Quality, Customer Satisfaction, Service Attitude, Patronage Intention, Gen Y, Islamic Banking Industry

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