Impact of Customer Satisfaction on Leasing in Interest-Free Banking System

Attaining customer satisfaction becomes the target of every organisation, but the way of achieving customer satisfaction seems too complicated or not possible as a result of many overarching factors. This research investigates the effect Ijarah product’s quality characteristics on customer satisfaction. The study aims to identify the Islamic banking product’s characteristics and to determine their impact on customer satisfaction using an Islamic bank as a case study. Three research questions and four hypotheses were formulated to guide the study. The methodology employed was a quantitative approach using a questionnaire as an instrument for data collection. The study has the customers of Ja’iz bank Nigeria Plc as its targeted population from which the sample of the study was drawn. A convenient sampling method was adopted to draw the respondents from the customers of the Ja’iz bank Plc. in Northern Nigeria. Hence self-administered questionnaire was used to gather the data. The survey findings were analyzed using the Statistical Package for Social Sciences (SPSS) version 23.0 and Partial Least Square-Structural Equation Modeling (PLS-SEM-3). The findings show that the constructs (Perceived quality, Cost, Convenience and Compliance) of Ijarah product were strong in determining the satisfaction of customers as they produced R2 of 0.35 which means the constructs were moderate in determining customer satisfaction. Overall, the research found that customer satisfaction was affected by the products quality features as the model shown 46.8 per cent (R2 =0.468) of the variance. Thus, customers were moderately satisfied with the cost, perceived quality, convenience, and compliance with this product (Ijarah).