Date of Award

12-27-2016

Thesis Type

phd

Document Type

Thesis

Divisions

fac_eng

Department

Academy of Islamic Studies

Institution

University of Malaya

Abstract

Islamic banking institutions in Malaysia has developed rapidly and globally. Therefore, a competition exists among Islamic banks and conventional banking institutions in offering products and services to the customers. Customer nowadays are very wise to assess and compares the services offered and not just use the service based on the image and profit only. It is necessary for an organization to improve their service quality to meet customers’ needs and requirements. The main objective of this study was to analyze the level of customer satisfaction as well as to analyze the qualities of the services offered by Islamic banking institutions in Kuching, Sarawak. This study used CARTER instruments introduced by Othman and Owen (2001) where six dimensions adopted such as compliance, security, reliability, tangibility, empathy and responsiveness. A total of 486 respondents were selected through convenience sampling method approached from seven Islamic banks in Kuching, Sarawak. Overall, this study found that the respondents were satisfied with service quality of Islamic banking institutions. The findings of regression analysis found that the dimensions of security, reliability, responsiveness and empathy are significant in influencing customer satisfaction. In addition, the dimensions of reliability, security, responsiveness and empathy also show a strong and significant correlation with customer satisfaction. This study also showed that there were significant differences between demographic factors such as age, race, occupation and income in determining customer satisfaction in Islamic banking institutions. Thus, this study proved the customers’ needs are constantly changing over time, background, economy and culture. Islamic banks should play a very important role in meeting the needs and requirements of customers to retain customers and attract new customers.

Note

Thesis (PhD) – Academy of Islamic Studies, University of Malaya, 2016.

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