The Role of Satisfaction in Mediating Trust, Commitment and Loyalty in family Takaful

  • Juliana Arifin Faculty of Business and Management, UniSZA
  • Norhidayah Abu Bakar Faculty of Business and Management, UniSZA
  • Puspa Liza Ghazali Faculty of Business and Management, UniSZA
  • Norizan Remli Faculty of Business and Management, UniSZA
  • Hamizah Muhammad Academy of Islamic Contemporary Studies (ACIS), Universiti Teknologi Mara (UiTM) Cawangan Terengganu, Kampus Dungun, 23000 Dungun, Terengganu, Malaysia
Keywords: Trust, Commitment, Satisfaction, Loyalty, Family Takaful


Bank Negara Malaysia reports revealed that the Takaful market performance was shown to have contributed significantly to the family Takaful business compared to the general Takaful business, which remained the primary income generator in Malaysia for the Takaful industry. Yet, family Takaful's market penetration rate is still relatively low and does not reach the potential market. It also confirmed that the range of family Takaful participants surrendered their certificates every year. This can be argued that the Takaful industry faces a challenge in maintaining its current family Takaful participants. It is critical for the Takaful industry to focus on participants’ retention by know-how loyalty tendencies. This research aims at providing more information and knowledge on how to manage their loyalty based on its antecedents. Hence the main purpose of this research is to examine the effect of trust, commitment, and satisfaction on participants’ loyalty in family Takaful. This research also aims to examine the mediating role of satisfaction which can help extend the current understanding of loyalty. Quantitative research was put in place to achieve the research objectives. Stratified random sampling and simple random sampling were selected in which the questionnaires were distributed to 400 samples of family Takaful participants in the East Coast of Peninsular Malaysia. The data collected were processed via appropriate computer software such as the Statistical Package for Social Sciences version 22 (SPSS 22.0) and the AMOS program version 22 (AMOS 22.0). These findings contributed to the existing literature as a guide to better understand consumer behavior cycles, particularly in the context of Takaful industry.


Download data is not yet available.


Abtin, A. & Pouramiri, M. (2016). The impact of relationship marketing on customer loyalty enhancement (Case study: Kerman Iran insurance company). Marketing and Branding Research, 3(1), 41-49.

Abu-ELSamen, A. A., Akroush, M. N., Al-Khawaldeh, F. M., & Al-Shibly, M. S. (2011). Towards an integrated model of customer service skills and customer loyalty: The mediating role of customer satisfaction. International Journal of Commerce and Management, 21(4), 349-380.

Ahmad, H., & Helmi, A. (2017). A Consumers’ Trust as the Mediating Factor for Insurance Buying Intention in Indonesia. International Journal of Economics, Commerce and Management, 5(2), 329-343.

Al-Msallam, S., & Alhaddad, A. (2016). Customer Satisfaction and Loyalty in the Hotel Industry: the Mediating Role of Relationship Marketing (PLS Approach). Journal of Research in Business and Management, 4(5), 32-42.

Amani, Z. (2015). Commitment as a Mediator of the Relationship between Trust and Relationship Loyalty to Retailer. Journal of Business Studies Quarterly, 6(3), 144.

Amin, M., Isa, Z., & Fontaine, R. (2013). Islamic banks: Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia. International Journal of Bank Marketing, 31(2), 79-97.

Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share, and profitability: Findings from Sweden. Journal of marketing, 58(3), 53-66.

Awang, Z. (2012). Research methodology and data analysis. Penerbit Universiti Teknologi MARA Press.

Aziz, S., Husin, M. M., & Hussin, N. (2017). Intention to family Takaful adoption: A review theory and empirical work. International Journal of Organizational Leadership, 6(3), 373.

Aziz, S., Md Husin, M., Hussin, N., & Afaq, Z. (2019). Factors that influence individuals’ intentions to purchase family takaful mediating role of perceived trust. Asia Pacific Journal of Marketing and Logistics.

Barati, M., Jafari, D., & Moghaddam, S. S. (2016). Investigating the Effect of Types of Relationship Marketing in Customer Loyalty by using Structural Equation Modelling (SEM) (Case Study Mellat Bank Branches of Tehran. International Journal of Humanities and Cultural Studies (IJHCS), 2(2), 632-650.

Barsky, J. D. (1992). Customer satisfaction in the hotel industry: meaning and measurement. Hospitality Research Journal, 16(1), 51-73.

Berry, L. L. (1995). Relationship marketing of services—growing interest, emerging perspectives. Journal of the Academy of marketing science, 23(4), 236-245.

Bowen, J. T., & Shoemaker, S. (2003). Loyalty: A strategic commitment. The Cornell Hotel and Restaurant Administration Quarterly, 44(5-6), 31-46.

Chakiso, C. B. (2015). The effect of relationship marketing on customers’ loyalty (Evidence from Zemen Bank). Emerging Markets Journal, 5(2), 58-70. DOI 10.5195/emaj.2015.84.

Chu, K. M., & Shiu, C. (2009). The construction model of customer trust, perceived value and customer loyalty. Journal of American Academy Business, Cambridge, 14(2), 98-103.

Damtew, K., & Pagidimarri, V. (2013). The role of trust in building customer loyalty in insurance sector: A study. IOSR Journal of Business and Management, 14(4), 82-93.

Dimyati, M. (2011). Theoretical Testing on Service Quality and Product Innovation of Small-Micro Credit Banks (A case Study). Journal of Economics, Business & Accountancy Ventura, 14(3), 225-238.

Financial Stability and Payment Systems Report (2016). Insurance and Takaful Sector. Bank Negara Malaysia.

Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. Journal of marketing, 56(1), 6-21.

Gera, R. (2011). Modelling the Service Antecedents of Favourable and Unfavourable Behaviour Intentions in Life Insurance Services in India: An SEM Study. International Journal of Quality and Service Sciences,3(2),225–242.doi:10.1108/17566691111146113

Ghani, H. (2017). Takaful Participation Readiness Model (TPRM): The Influence of Takaful Knowledge, Religious Commitment and Materialism with the Moderating Effect of Switching Costs. PhD Thesis, Universiti Teknologi Mara. Unpublished Thesis.

Global Takaful Report (2017). Market Trends in Family and General Takaful. Milliman Research Report.

Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2010). Multivariate Data Analysis. (7th ed.). Pearson, New York.

Hamilton, R. W., Rust, R. T., & Dev, C. S. (2016). Which Features Increase Customer Retention? MIT Sloan Management Review, 58(2) 79-84.

Hasandoust, R. F., & Saravi, M. M. (2017). Identifying the Effect of Successful e-Banking on Customers’ Satisfaction, Trust, Commitment and Loyalty. Revista QUID, 1(1), 1716-1726.

Hassan, L. F. A., Jusoh, W. J. W., & Hamid, Z. (2012). Customer Knowledge, Trust, Purchase Intention and Loyalty Among Policyholders in Takaful Industry.

Hassan, L. F. A., Jusoh, W. J. W., &d Hamid, Z. (2014). Determinant of Customer Loyalty in Malaysian Takaful Industry. Procedia - Social and Behavioral Sciences, 130, 362 – 370.

Hassan, L. F. A., Jusoh, W. J. W., &d Hamid, Z. (2014). Determinant of Customer Loyalty in Malaysian Takaful Industry. Procedia - Social and Behavioural Sciences, 130, 362 – 370.

Hassan, R., Salman, S. A., Kassim, S., & Majdi, H. (2018). Firms’ characteristics: A preliminary study of family Takaful demand in Malaysia. International Journal of Business and Social Science, 9(11), 45-53.

Hassanudin, N. A., Muda, N., & Karim, Z. A. (2016). Employees' Intentions to Participate in Family Takaful Plan. Journal of Applied Environmental and Biological Sciences, 6(8S),64-68.

Hellier, P. K., Geursen, G. M., Carr, R. A., & Rickard, J. A. (2003). Customer Repurchase Intention: A General Structural Equation Model. European Journal of Marketing,37(11/12), 1762–1800. doi:10.1108/03090560310495456

Homburg, C., & Giering, A. (2001). Personal characteristics as moderators of the relationship between customer satisfaction and loyalty—an empirical analysis. Psychology & Marketing, 18(1), 43-66.

Husin, M., Ismail, N., & Ab Rahman, A. (2016). The roles of mass media, word of mouth and subjective norm in family takaful purchase intention. Journal of Islamic Marketing, 7(1), 59-73.

John, L. K., Emrich, O., Gupta, S., & Norton, M. I. (2017). Does liking lead to loving? The impact of joining a brand’s social network on marketing outcomes. Journal of Marketing Research, 54(1), 144–155.

Juhari, A. S., Bhatti, M. A., & Piaralal. (2016). Determinant of Customer Loyalty in Malaysian Takaful Industry. International Journal of Academic Research in Business and Social Sciences, 6(3), 17-36.

Kassim, N. M., & Abdulla, A. K. M. A. (2006). The influence of attraction on internet banking: an extension to the trust-relationship commitment model. International Journal of Bank Marketing, 24(6), 424-442.

Kerin, RA, Hartley, SW, & Rudelius, W (2009). Marketing (9th ed.). Boston, Massachusetts: McGraw-Hill Higher Education.

Khalifa, A. H., & Saad, M. (2017). The determinants of trust in the customer–service provider relationship: The case of Tunisian small and medium-sized enterprises (SMEs). International Journal of Technology Management & Sustainable Development, 16(3), 295-310.

Lombardi, L. J. (2005). The importance of client retention. LIMRA’s MarketFacts Quarterly, 24(2), 31-2.

Magasi, C. (2016). Determinants of customer loyalty in Sub Saharan African banking industry: an empirical review. International Journal of Economics, Commerce and Management, IV (2), 574-588.

Mahardika, I. M. N. O., Suardhika, I. N., & Landra, I. N. (2018). Determination Loyalty Based on Service Quality, Customer Satisfaction and Trust at Pt. Bpr Bukit Tanjung Badung. International Journal of Contemporary Research and Review, 9(02), 20473-20484.

Mlaker Kac, S., Gorenak, I., & Potocan, V. (2015). Influence of relationship commitment and trust on collaborative behaviour in supply chains. Promet-Traffic&Transportation, 27(1), 77-84.

Monthly Highlights & Statistic Report (2020). Takaful Business Performance. Bank Negara Malaysia.

Monthly Statistical Bulletin (2018). No. of Certificates of Termination. Bank Negara Malaysia.

Ningsih, S. M., & Segoro, W. (2014). The influence of customer satisfaction, switching cost and trusts in a brand on customer loyalty–The survey on student as IM3 users in Depok, Indonesia. Procedia-Social and Behavioural Sciences, 143, 1015-1019.

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17, 460-469.

Patterson, P. G., & Spreng, R. A. (1997b). Modelling the Relationship Between Perceived Value, Satisfaction and Repurchase Intentions in a Business-To-Business, Services Context: An Empirical Examination. International Journal of Service Industry Management, 8(5), 414–434. doi:10.1108/09564239710189835

Ramlan, M. H. (2015). The Influence of Relationship Marketing on Customer Loyalty: A Study of Prudential BSN Takaful’s Customers in kedah. Master Thesis.Universiti Utara Malaysia. Unpublished Thesis.

Reichheld, F. F., & Sasser, J. W. (1990). Zero defections: Quality comes to services. Harvard business review, 68(5), 105-111.

Remli, N., Muda, M., & Rosman, R. (2018). Firms’ Characteristics: A Preliminary Study of Family Takaful Demand in Malaysia. International Journal of Accounting, Finance and Business, 3(14).

Roberts-Lombard, M., Van Tonder, E., Pelser, T. G., & Prinsloo, J. J. (2014). The relationship between key variables and customer loyalty within the independent financial advisor environment. The Retail and Marketing Review, 10(1), 25-42.

Rorio, E. C. (2015). Factors Influencing Customer Loyalty in The Banking Sector A Case of Commercial Banks in Mombasa Kenya. Management, 2(1).

Salleh, M. C. M. (2016). The Significant Contribution of Islamic Relationship Marketing Practice in Malaysian Takaful Industry Towards Determining Customer Gratitude, Trust, and Commitment. Asian Academy of Management Journal, 21.

Salleh, M. C. M., Abdullah, N. I., & Razali, S. S. (2013). The Relationship of Takaful Agents' Islamic Ethical Behaviour towards Customers' Satisfaction, Trust and Commitment: A Preliminary Analysis. Journal of Islamic Finance and Business Research, 2(1), 77-88.

Setyawati, S. M., & Raharja, M. C. (2018). Trust Dimensions Model in Creating Loyalty Stage for Service Consumers of Sharia Rural Banking. European Research Studies Journal, 21(1), 507-518.

Shabiq, A., & Hassan, Z. (2016). Factors Affecting Adoption of Takaful (Islamic Insurance) in the Maldives. International Journal of Accounting, Business and Management, 4(1), 1-15.

Shahid, A., Saeed, H., & Tirmizi, S. M. A. (2015). Economic development and banking sector growth in Pakistan. Journal of Sustainable Finance & Investment, 5(3), 121-135.

Shukor, S. A. (2018). Exploring Motives of Malaysian Muslims for Participating in Family Takaful. Journal of Wealth Management & Financial Planning, 5, 37-46.

Simbolon, F. P. (2016). The Impact of Relationship Marketing Strategy in Indonesia Retail Industries. Binus Business Review, 7(2), 143-147.

Singh, R. & Imran, A. K. (2012). An Approach to Increase Customer Retention and Loyalty in B2C World. International Journal of Scientific and Research Publications,2(6).

Sivanandamoorthy, S. (2012). Impact of relationship marketing on customer loyalty on banking sectors. South Asian Journal of Marketing & Management Research, 2(3), 179-181.

Skvarciany, V. (2017). Factors Influencing Private Customers′ Trust in Internet Banking: Case of Latvia. Economics and Culture, 14(1), 50-57. DOI: 10.1515/jec-2017-0005.

Sumaedi, S., Juniarti, R. P., & Bakti, I. G. M. Y. (2015). Understanding trust & commitment of individual saving customers in Islamic banking: The role of ego involvement. Journal of Islamic Marketing, 6(3), 406-428.

Sumaedi, S., Juniarti, R. P., & Bakti, I. G. M. Y. (2015). Understanding trust & commitment of individual saving customers in Islamic banking: The role of ego involvement. Journal of Islamic Marketing, 6(3), 406-428.

Ulaga, W., & Eggert, A. (2006). Relationship value and relationship quality. Broadening the nomological network of business-to-business relationships. European Journal of Marketing, 40(3/4), 311-327.

Westbrook, R. A., & Reilly, M. D. (1983). Value-percept disparity: an alternative to the disconfirmation of expectations theory of consumer satisfaction. ACR North American Advances.

Wills, B. (2009). The business case for environmental sustainability: Achieving rapid returns from the practical integration of lean & green, rev. A02-09, HPS Inc., Paulsboro, NJ.

Yap, B. W., Ramayah, T., & Shahidan, W. N. W. (2012). Satisfaction and trust on customer loyalty: A PLS approach. Business strategy series, 13(4), 154 – 167.

Yazid, A. S., Arifin, J., Awang, Z., Daud, W. N.W., Zainol, F. A., Salleh, F., Rashid, N. M. N. N. M., Rasit, Z. A., & Hamid, N. A., (2017). Does education moderate the relationship between decision factors and purchase decision of family Takaful protection in Malaysia. World Applied Sciences Journal, 35(9), 1849-1863.

How to Cite
Arifin, J., Abu Bakar, N., Ghazali, P. L., Norizan Remli, & Hamizah Muhammad. (2020). The Role of Satisfaction in Mediating Trust, Commitment and Loyalty in family Takaful. The Journal of Management Theory and Practice (JMTP), 1(3), 28-34.
Finance & Economics