Service quality perception and customer satisfaction in Islamic banks of Pakistan: the modified SERVQUAL model

CITATION

Ali, M. & Raza, S.A. (2017) Service quality perception and customer satisfaction in Islamic banks of Pakistan: the modified SERVQUAL model, Total Quality Management & Business Excellence, 28(5-6), 559-577

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ABSTRACT
The aim of this study is to measure the relationship between service quality and
customer satisfaction among the customers of Pakistani Islamic banks. This study
employed a modified SERVQUAL model by introducing a unique dimension of
compliance in the context of service industry. A self-administered questionnairebased
field survey was conducted with the help of modified SERVQUAL
dimensions. Data were gathered from 450 walk-in customers of Islamic bank. The
sample data were statistically analysed through exploratory factor analysis followed
by confirmatory factor analysis (CFA) and structural equation modelling (SEM)
analysis to determine the service quality perception and customer satisfaction.
Namely, CFA is used in order to test the model validity, while SEM is used for
testing the impact of different service quality dimensions on customer satisfaction.
Results revealed that the multidimensional service quality scale is positively and
significantly associated with the unidimensional scale of customer satisfaction. In
addition, the compliance dimension of the SERVQUAL model proved its
importance by showing the highest contributing factor in the overall model.
Furthermore, this study has practical implications for the policy-makers of Islamic
banks to better understand the behavioural intentions of Islamic bank customers.


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