DEPARTMENT OF BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP

BAYERO UNIVERSITY, KANO

M.Sc. MANAGEMENT
MGT 8233: MARKETING MANAGEMENT
SEMESTER, 2021 / 2022 SESSION

Facilitator: Dr. Amina Liman

QUESTION: GET 3 ARTICLES AND GIVE A SUMMARY OF EACH

ARTICLE 1

CUSTOMER SATISFACTION IN THE DIGITAL ERA: EVIDENCE FROM ISLAMIC

BANKING

Ghazi Zouari and Marwa Abdelhed (2021)

(Journal of Innovation and Entrepreneurship 10:9 p 1-18)

1.0 Introduction

This paper looks at the importance of integrating digitization and compliance into consumers’
satisfaction dimensions for the Islamic banking context.

2.0 Design/Methodology/Approach:

A self-reporting questionnaire was designed to take account of previous research. The instrument
contains three sections. The first section was designed to elicit demographic information of
Tunisian Islamic banking customers. In the second one, the theoretical service quality
dimensions as advanced by Parasuraman et al. (1988) were adjusted by integrating
simultaneously two additional dimensions, compliance, and digitalization, to suit the research
context Results are drawn from a self-completed survey of a convenience sample of 145
Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are
used to determine factor structure and determine the impact of service quality dimensions,
especially digitalization, on customer satisfaction in Islamic banking.

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3.0 Findings:

Factor analysis was carried out to establish the factor structure of the service quality model
relative to the industry and service context under study. The factor analysis extracted five
dimensions of service quality, i.e., confidence, compliance, digitalization, tangibles, and human
skills. The paper demonstrates a positive and significant relationship between the main
dimensions of customer service quality and customer satisfaction, except for tangibles.
Therefore, the findings of this study prove that providing the best service quality may result in
higher satisfaction levels among Tunisian Islamic banking customers. This result goes online
with previous research that stated that there was a strong link between service quality and
customer satisfaction in Islamic banking.

4.0 Conclusion and Recommendations

This paper highlights the importance of the service quality-adjusted pattern and its potential
impact on customer satisfaction of Tunisian Islamic banks. The study proposed that the
SERVQUAL dimensions would replicate in the Islamic banking industry but with certain
modifications given the foundation philosophy underlying this banking sector. The findings
reveal that Islamic banks need to pay attention to the way the services are delivered and not take
it for granted that customers are only focusing on compliance. To remain competitive, Islamic
banks must update their service quality set to align with the upcoming digital customer needs.
However, it is important not to neglect the core role of human-based service delivery in driving
engagement, loyalty, and customer satisfaction.

ARTICLE 2

IMPACT OF SERVICE QUALITY ON CUSTOMER LOYALTY AND CUSTOMER

SATISFACTION IN ISLAMIC BANKS IN THE SULTANATE OF OMAN

Bashir Ahmad Fida, Umar Ahmed, Yousuf Al-Balushi, and Dharmendra Singh (2020)
(SAGE Open April-June 2020: 1 –10)

1.0 Introduction

The objective of the study is to evaluate the extent of service quality provided by Islamic banks
to customers and establish the linkage between service quality to other variables such as

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customer loyalty and customer satisfaction. This will help stakeholders to get insight into the
sector and improve the service quality provided by them to potential customers.

2.0 Design/Methodology/Approach:

A quantitative research approach was utilized in this study with the well-structured survey
questionnaire to test the SERVQUAL model. The quantitative approach was applied to assess the
relationship between service quality, customer satisfaction, and customer loyalty. It also
measures the relationship between the service quality variables and customer satisfaction through
regression and correlation analyses. The study involved a structured, self-administered
questionnaire based on a convenience sampling method gathering data from 120 customers of
Islamic banks in Oman. The study data were analyzed using SPSS, and the reliability coefficient
(Cronbach’s alpha) was established.

3.0 Findings:

The key findings of the study revealed that the respondents showed on average an “Agree”
response in the five areas, namely, tangibles, responsiveness, reliability, assurance, and empathy.
The correlation results depicted a significant relationship between the three variables: service
quality, customer satisfaction, and customer loyalty. Similarly, regression results demonstrated
that empathy and responsiveness dimensions have a significant positive impact on customer
satisfaction.

4.0 Conclusion and Recommendations

This study investigated the impacts of service quality on customer satisfaction and customer
loyalty for selected main Islamic banking institutions in Oman using the SERVQUAL model.
Based on the findings, it has been revealed that the application of three important factors, the
service quality, customer satisfaction, and customer loyalty variables, significantly relate to each
other. It is recommended that banks should focus more on empathy and responsiveness
considering the significant relationship of these two variables on customer satisfaction. However,
banks should not neglect the importance of other variables such as reliability, assurance, and
tangibles that are revealed as important by responses of the participants for the bank’s
provisions.

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 ARTICLE 3

EFFECT OF CUSTOMER LOYALTY PROGRAM ON CUSTOMER SATISFACTION AND ITS

IMPACT ON CUSTOMER LOYALTY

Salihah Khairawati (2020)

(International Journal of Research in Business and Social Science 9(1) p 15-23)

1.0 Introduction

The aim of this research is to examine the effect of the customer loyalty program on
customer satisfaction and its impact on customer loyalty. This program is developed by the
company in order to increase customer satisfaction. Optimal customer satisfaction will be able to
create customer loyalty. For a company, customer loyalty will guarantee the company’s income
to be constantly optimal

2.0 Design/Methodology/Approach:

A research is conducted by survey method to the customers of Alfamart as population. The

sample is taken using judgement sampling method, in which the criteria for the respondents is
the customer who has shopped at least three times to Alfamart and has Alfamart member card.
The research involving 110 customers and 100 feasible data used. The sampling technique used
is judgment sampling and data collected through the questionnaire. It uses SEM in examining
hypotheses assisted by software AMOS version 20.0.

3.0 Findings:

The results of the study in showed that the customer loyalty programs offered by Alfamart to
consumers have an effect on customer satisfaction. The results of the first hypotheses evaluation
proves that customer loyalty program through Member card program significantly affects
customer satisfaction. This is due to the provision of benefits, facilities and attractive offers to
the member card holders. The promo price discount as a form of loyalty program does not affect

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customer satisfaction. This is possible, prices are not a major factor for consumers. This study
shows that the role of customer satisfaction as a moderator variable is not significant in
influencing customer loyalty. This research proves that customer loyalty programs through
member cards and discount promo prices directly impact customer loyalty.

4.0 Conclusion

In general, it can be understood that the customer loyalty program applied by Alfamart
either member card or discount promo affects customer satisfaction and has an impact on
customer loyalty. This research gives input to retail business managers in managing
customer satisfaction through the proper development of customer loyalty programs.