Author(s): Hussein M. A. Abed, Muhmmad I. Nofal, Feras Alnasr, Ghaith Abdulraheem Ali Alsheikh, Enas Ali Theeb Alnawafleh
This study was conducted to investigate the influence of Palestine Service Quality dimensions (PAKSERV), subjective norms, customer satisfaction and bank image on customer loyalty of Palestine Islamic banking customers. The respondents for this study were Islamic banks customers in Palestine. A total of 500 questionnaires were distributed in three cities: Nablus, Ramallah and Hebron using convenience sampling method. Therefore, 357 completed questionnaires were retrieved, giving a response rate of 71% of the original sample. The data was collected in six weeks beginning of September 2017. The research model was empirically tested using Structural Equation Modeling (SEM) technique. Results of SEM depicted that tangibility, reliability, assurance, sincerity, personalization, formality and subjective norms explained 80% variance in customer satisfaction. Additionally, customer satisfaction was found positively impact on customer loyalty. Customer satisfaction was found to mediate the relationship between service quality dimensions (tangibility, reliability, assurance, sincerity, personalization, formality and subjective norms) and customer loyalty. Moreover, the study also confirmed that bank image moderates the relationship between customer satisfaction and customer loyalty. The results of this study have provided several implications for practitioners and researchers. The findings of this study provided insights to top managements of banking industry with regard to the importance of delivering good service quality and establishing a good image.