The Effect of Sharia Compliance, Service Quality, Customer Trust, and Customer Satisfaction on Customer Loyalty of Islamic Rural Bank Customers in Indonesia

Edi Santoso; Rashidah Binti Mohamad Ibrahim

doi:10.37231/jmtp.2022.3.2.218

Edi Santoso Universitas Muhammadiyah Ponorogo
Rashidah Binti Mohamad Ibrahim Faculty of Business Management Universiti Sultan Zainal Abidin, Gong Badak Trengganu, Malaysia

DOI: https://doi.org/10.37231/jmtp.2022.3.2.218

Keywords: sharia compliance, service quality, trust, satisfaction, loyalty

Abstract

This study examines the effect of sharia compliance, service quality, customer trust and customer satisfaction towards customer loyalty on the customers of the Islamic People's Financing Bank in Central and East Java provinces in Indonesia. A total of 390 financing customers of Islamic Rural Banks (IRBs) were taken as samples using the cluster random sampling method. The analysis was performed using a factor-based structural equation model. The findings of this study have revealed that sharia compliance, service quality, customer trust and customer satisfaction have significant and direct effects on customer loyalty. The management of IRBs must take proactive actions in managing the Islamic banking transactions since sharia compliance, service quality, customer trust and customer satisfaction are vital determinants of the loyalty of IRBs customers in Indonesia.

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