Customer Satisfaction and Loyalty in Pakistani Islamic Banks: A PAKSERVE Investigation

The objective of this research is to explore the relationship between customer satisfaction and service quality with moderators like perceived risk, switching cost, knowledge and expertise in Islamic banks of Asian countries by using the PAKSERVE scale. A survey questionnaire was developed and data was collected through this questionnaire by personal visits to the customers. The five points Likert scale used to assess the construct of the present study. The respondents were from cities of Pakistan. SPSS structure equation model and factor analysis was used to validate the relationship among variables. It has been observed that satisfaction of the customers strongly predicts the loyalty of the customers in Islamic banking industry of Pakistan. It is therefore recommended that customers should primarily focus upon personalization and sincerity dimensions, as these two dimensions show the higher co-efficiency value among all. This study also shows that customers of Pakistani Islamic banks focus on attaining a sincere and highly personalized behavior from the staff of the banks. These results also acknowledge the role of national culture in delineating the service quality conduct. The SERVEQUAL dimensions of tangibility, assurance and reliability have very low co efficient values as compared with three new dimensions of PAKSERVE. On the basis of above discussion, we can conclude that customer satisfaction and loyalty is purely a cultural phenomenon.