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ISSN: 2047-2528
Asian Journal of Business and Management Sciences
Vol. 2 No. 10 [38-50]
Analysis of Customer Satisfaction with the Islamic Banking Sector:
Case of Brunei Darussalam
Mohamed Sharif Bashir
Imam Centre for Banking and Finance
Al-Imam Muhammad Ibn Saud Islamic University
Riyadh 11432, Kingdom of Saudi Arabia
E-mail: mbelsharif@imamu.edu.sa.
ABSTRACT
During the last decade, the Islamic banking sector in Brunei Darussalam experienced remarkable and increasingly challenging development in the face of strong competition from conventional banks. The main objective of this paper is to examine the effects of both service quality and product quality, and of satisfaction awareness of Islamic banking in Brunei Darussalam. This study also examines the reasons that consumers select Islamic banking. A questionnaire survey was conducted among Islamic banks’ customers. The findings show that the indirect effects of service quality and product quality on satisfaction awareness were positive and significant. They also revealed that consumers were aware of Islamic banking products and services to a certain degree; and the reasons for preferring them were profitability and religious principles. As a result, these findings provide the Islamic banking industry with helpful guidelines in its efforts to formulate suitable promotional policies to attract more banking customers.
Keywords: Islamic banking, Islamic finance, customer awareness, customer satisfaction, service quality, Brunei Darussalam.
1. INTRODUCTION
Customer satisfaction has been perceived as a key factor in finding out why customers leave or stay with a bank. Generally, any bank needs to know how to keep their customers, even if they seem to be satisfied. As competition within the financial services industry is more intense than ever, and as banking companies’ service menus are becoming increasingly comparable, the need to understand bank customer satisfaction
ISSN: 2047-2528
Asian Journal of Business and Management Sciences
Vol. 2 No. 10 [38-50]
Analysis of Customer Satisfaction with the Islamic Banking Sector:
Case of Brunei Darussalam
Mohamed Sharif Bashir
Imam Centre for Banking and Finance
Al-Imam Muhammad Ibn Saud Islamic University
Riyadh 11432, Kingdom of Saudi Arabia
E-mail: mbelsharif@imamu.edu.sa.
ABSTRACT
During the last decade, the Islamic banking sector in Brunei Darussalam experienced remarkable and increasingly challenging development in the face of strong competition from conventional banks. The main objective of this paper is to examine the effects of both service quality and product quality, and of satisfaction awareness of Islamic banking in Brunei Darussalam. This study also examines the reasons that consumers select Islamic banking. A questionnaire survey was conducted among Islamic banks’ customers. The findings show that the indirect effects of service quality and product quality on satisfaction awareness were positive and significant. They also revealed that consumers were aware of Islamic banking products and services to a certain degree; and the reasons for preferring them were profitability and religious principles. As a result, these findings provide the Islamic banking industry with helpful guidelines in its efforts to formulate suitable promotional policies to attract more banking customers.
Keywords: Islamic banking, Islamic finance, customer awareness, customer satisfaction, service quality, Brunei Darussalam.
1. INTRODUCTION
Customer satisfaction has been perceived as a key factor in finding out why customers leave or stay with a bank. Generally, any bank needs to know how to keep their customers, even if they seem to be satisfied. As competition within the financial services industry is more intense than ever, and as banking companies’ service menus are becoming increasingly comparable, the need to understand bank customer satisfaction
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