How Customers Loyalty Response to Service Quality, Bank Image and Religious Satisfaction?: An Evidence from Islamic Banking

Islamic banking offers services and goods in accordance with sharia (Islamic law), which rigorously forbids other unethical behaviours like gambling and speculation. Customer loyalty is assurance of customer that he will make repeat purchase of product or service in near future. The study impact of service quality, bank image and religious satisfaction on customer loyalty has some considerations in past. The objective of the present study is to find the impact of service quality, bank image and religious satisfaction on the loyalty of Islamic banking customers. Customer satisfaction was used as a mediator. The study uses a convenient sampling technique is applied for sample selection in this study. Data was gathered from 200 respondents which were customers of different Islamic banks located in Jhang, Faisalabad and Karachi. SPSS and Smart PLS were used for the analysis of data. The findings of the study reveal that service quality has a positive effect on customer loyalty. Bank image does not have a positive impact on loyalty of customer. Religious satisfaction has positive impact on loyalty of customer. Customer satisfaction mediates the relation of service quality, religious satisfaction with customer loyalty but doesnt mediate the relation of bank image and customer loyalty. The study will provide direction for Islamic banks to promote Islamic banking in order to foster its growth which will results in increase in customers.