Title: The distinction as an innovative dimension of SERVQUAL model for Islamic banks

Authors: Safdar Husain Tahir; Waseem Ullah; Mubarak Hussain Haider; Muhammad Rizwan Ullah; Mamoona Majeed

Addresses: Lyallpur Business School, Government College University Faisalabad, 38000, Pakistan ' Department of Management Sciences, University of Gujrat, Gujrat – 50700, Pakistan ' Department of Management Sciences, National University of Modern Languages, Islamabad – 44310, Pakistan ' Lyallpur Business School, Government College University Faisalabad, 38000, Pakistan ' Department of Commerce and Finance, Superior University Lahore, 54000, Pakistan

Abstract: Past studies indicate positive link between service qualities (SQs), customer satisfaction (CS). These studies also provide evidence regarding successful mediation of CS to the link of SQ and CL. Our study contributes by developing understandings of theoretical framework first time by adding a new variable namely 'distinction' to the SERVQUAL model. We collect primary data from 184 customers of Islamic banks (IBs) situated in the Faisalabad region. Using AMOS, we apply structural equation model to analyse the dimensions of modified SERVQUAL model. The results reveal that 'distinction' enhances CS (0.739) that leads to direct effect (0.120) and indirect effect (0.807) on CL. In addition, responsiveness, reliability and tangibility show considerable direct and indirect effects on CS and CL. The converse is true for assurance and empathy. Overall, results show customer satisfaction improves loyalty. The study suggests the inclusion of 'distinction' as sixth dimension of modified SERVQUAL model for IBs.

Keywords: service qualities; customer loyalty; distinction; Islamic banks; modified SERVQUAL model; Faisalabad.

DOI: 10.1504/IJBIR.2022.123260

International Journal of Business Innovation and Research, 2022 Vol.28 No.2, pp.246 - 262

Received: 23 Mar 2020
Accepted: 01 Jul 2020
Published online: 07 Jun 2022 *

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