The effect of service quality to customer satisfaction and loyalty in Sharia Bank

摘要

Products and prices competition within sharia and conventional banks have an impact on commoditization. To gain market share, sharia banks use halal product as differentiation and service strategy to retain customer through satisfaction to increase loyalty. Customer loyalty expected to increase share from existing customers through up and cross selling, and attract new customers through word of mouth and recommendations. This research aims to analyze the relationship among those variables: service quality with CARTER model, customer satisfaction and customer loyalty. Primary data from 300 respondents analyzed using SEM to proof the hypotheses after the validity and reliability testing was performed. All hypotheses were positive and significant. Theoretical and practical implications were also discussed.