THE INFLUENCE OF PERCEIVED SERVICES QUALITY, CUSTOMERS’ TRUST, AND THEIR RELIGIOUS AND EMOTIONAL ATTACHMENTS ON CUSTOMER LOYALTY IN THE ISLAMIC BANKING SYSTEM OF PAKISTAN

Abstract

Islamic banking has growing attention around the globe, especially in Islamic countries such as Pakistan. The situation of the Islamic banking industry in Pakistan has also grown and needs to respond to the issues that are connected with the Islamic banking. Thus, the prime goal of the present study is to investigate the impact of four loyalty indicators such as customer trust, their religious and emotional attachments along with services quality on the customer loyalty of Islamic banks in Pakistan. The data has been obtained from the customers of the Islamic banks by distributing the questionnaires while PLS-SEM has been employed to test the hypotheses. The findings exposed that all four loyalty indicators, such as customer trust, their religious and emotional attachments and services quality, have significant and positive impact on the customer loyalty of Islamic banks in Pakistan. These results provided the guidelines to the regulators that they should develop the policies that enhance the customer loyalty that ultimately improves the situation of Islamic banking in the country.