Roles of service quality and religiosity in determining customers’ retention in Islamic banks: empirical evidence from southwestern Afghanistan

Abdullah, Ziarmal and Kassim, Salina and Shams, Shamsullah and Sharofiddin, Ashurov (2024) Roles of service quality and religiosity in determining customers’ retention in Islamic banks: empirical evidence from southwestern Afghanistan. Turkish Journal of Islamic Economics (TUJISE), 11 (2). pp. 106-136. ISSN 2147-9054 E-ISSN 2587-232X

Preview	PDF - Published Version Download (369kB) | Preview
Preview	PDF - Supplemental Material Download (339kB) | Preview

Abstract

To retain customers, a high level of service quality is an essential factor in the banking industry. In contrast to the previous government, Afghans are now more driven to follow religion in their daily lives following the Taliban’s 2021 August 15 takeover in the country,while questions about the extent of service quality and religious factors that the Islamic banking sector will provide, as well as how to gain customer retention with the needed quality service provision that customers demand or perceive from banks, remain unanswered. Hence, this article aims to determine how religious variables together with service quality factors affect customer retention of Islamic banks in the southwestern region of the country. The data was collected using a heterogeneous purposive sampling (HPS) strategy for all the Islamic banks in the region. To investigate these relationships, the study used factor analysis, and multiple regression with SPSS version 26.00. The study finds that all Islamic banking service quality and religiosity determinants are positively significant in influencing customer retention in the southwestern zone of Afghanistan. Each SERVQUAL dimension had varying degrees of influence on customer retention, with empathy, reliability, responsiveness, assurance, and tangibility having the most significant influence. Religious motivation was the most influential element of customer retention concerning religious determinants. This indicates the importance of emphasizing religious motivation and employee-customer connection by Islamic banks. In addition, the findings revealed that a high level of service quality plays a significant role in customer retention in the Islamic banking system.This study combines a cross-sectional analysis with a case study of a particular national zone. As a result, the outcomes might not be generalizable to the entire nation. It would be good to perform these studies because they are conducted similarly in other nations (such as the ASEAN countries). Future research may look into other antecedents of customer retention that were ignored in this study (such as trust and commitment). The findings of the study therefore may assist policymakers in improving the current banking industry by focusing on the Islamic banking system, which would be able to restore service quality and religious motivation among customers as they believe in the Islamic banking system, which will contribute positively to economic growth.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic Banking, Customer Retention, Religiosity, Southwestern Afghanistan
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	23 Dec 2024 10:40
Last Modified:	23 Dec 2024 10:41
URI:	http://irep.iium.edu.my/id/eprint/116841

Actions (login required)

View Item