Economic Annals-ХХI: Volume 187, Issue 1-2, Pages: 189-196
Citation information: Nasuka, M., Wijaya, T., & Hidayat, A. (2021). The role of Islamic marketing ethics for customer loyalty in Islamic banking through customer satisfaction. Economic Annals-XXI, 187(1-2), 189-196. doi: https://doi.org/10.21003/ea.V187-18
PhD (Islamic Economics), Associate Professor,
Department of Sharia Economy,
Local Government Faculty of Sharia Economy,
Nahdlatul Ulama Islamic University
Jalan Taman Siswa, Pekeng, Jl. Kauman, Kec. Tahunan, Kabupaten Jepara, Jawa Tengah, 59451, Indonesia
ORCID ID: https://orcid.org/0000-0003-0145-092X
PhD (Economics), Associate Professor,
Department of Management,
Faculty of Economy,
Yogyakarta State University
1 Jl. Colombo Yogyakarta, Karang Malang, Caturtunggal, Kec. Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta, 55281, Indonesia
ORCID ID: https://orcid.org/0000-0002-9666-9766
PhD (Economics), Associate Professor,
Department of Management,
Faculty of Business and Economics,
Islamic University of Indonesia
Ace Partadiredja Building, Ring Road Utara, Condongcatur, Sleman, Yogyakarta, 55283, Indonesia
ORCID ID: https://orcid.org/0000-0002-4180-5767
The role of Islamic marketing ethics for customer loyalty in Islamic banking through customer satisfaction
Abstract. This study aims to build a conceptual and empirical model of Islamic marketing ethics’ influence on Islamic banks’ customer loyalty through customer satisfaction on salesperson services and customer satisfaction to Islamic banks over the year 2020. This study develops a new theoretical model, namely the ethical behaviour of Islamic marketing which is predicted to influence customer loyalty in Islamic banks by integrating customer satisfaction variables. The marketing ethics measurement model in the current research was built employing the Islamic marketing concept approach. The research paradigm used in this study is post-positivistic. The data were collected from 217 customers of Islamic banks in Central Java utilizing the purposive sampling technique. The results showed that Islamic ethical behaviour has a significant impact on customer loyalty directly or indirectly through customer satisfaction. Customer satisfaction with core services has a direct impact on customer loyalty at Islamic banks.
Keywords: Customer Loyalty; Islamic Ethics; Islamic Bank; Marketing; Customer Satisfaction
JEL Classifications: M31; G24
Acknowledgements and Funding: The authors received no direct funding for this research.
Contribution: The authors contributed equally to this work.
- Abul Hassan, A. C., & Abdul Latiff, S. (2014). Islamic Marketing Ethics and Its Impact on Customer Satisfaction in the Islamic Banking Industry. Journal of Islamic Business and Management, 4(1), 143-161.
- Agostinelli, A. V., & McQuillan, P. (2020). How Preservice Content Teacher Background Qualities Influence Their Attitude and Commitment to Supporting Multilingual Learners. Journal of Curriculum Studies Research, 2(2), 98-121.
- Bekele, W. B., & Ago, F. Y. (2020). Good Governance Practices and Challenges in Local Government of Ethiopia: The Case of Bonga Town Administration. Research in Educational Policy and Management, 2(2), 97-128.
- Chen, M. F., & Mau, L. H. (2009). The impacts of ethical sales behaviour on customer loyalty in the life insurance industry. The Service Industries Journal, 29(1), 59-74.
- Cronin, J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioural intentions in service environments. Journal of Retailing, 76(2), 193-218.
- Crosby, L. A., Evans, K. R., & Cowles, D. (1990). Relationship Quality in Services Selling: An Interpersonal Influence Perspective. Journal of Marketing, 54(3), 68-81.
- Crosby, L. A., & Stephens, N. (1987). Effects of Relationship Marketing on Satisfaction, Retention, and Prices in the Life Insurance Industry. Journal of Marketing Research, 24(4), 404-411.
- Czepiel, J. A. (1990). Service encounters and service relationships: Implications for research. Journal of Business Research, 20(1), 13-21.
- Drake, C., Waite, N., & Gwynne, A. (1998). Barclays Life customer satisfaction and loyalty tracking survey: A demonstration of customer loyalty research in practice. International Journal of Bank Marketing, 16(7), 287-292.
- Etherington, M. (2019). The Challenge with Educational Transformation. Journal of Culture and Values in Education, 2(1), 96-112.
- Fahlevi, M., Irma, D., Maemunah, S., & Mahfud, I. (2019). The Effect of Financial Performance, External Factors, and Operational Ratio on Car Ratio of Sharia Commercial Banks in Indonesia. Journal of Research in Business, Economics and Management, 12(2), 2348-2355.
- Ganesh, J., Arnold, M. J., & Reymolds, K. E. (2000). Understanding the Customer Base of Service Providers: An Examination of the Differences between Switchers and Stayers. Journal of Marketing, 64(3), 65-87.
- Goff, B. G., Boles, J. S., Bellenger, D. N., & Stojack, C. (1997). The influence of salesperson selling behaviours on customer satisfaction with products. Journal of Retailing, 73(2), 171-183.
- Gundlach, G. T., & Murphy, P. E. (1993). Ethical and Legal Foundations of Relational Marketing Exchanges. Journal of Marketing, 57(4), 35-46.
- Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106-121.
- Haron, S., Ahmad, N., & Planisek, S. L. (1994). Bank patronage factors of muslim and non-muslim customers. International Journal of Bank Marketing, 12(1), 32-40. https://doi.org/10.1108/02652329410049599
- Hassan, M. T., Ahmed, B., Ahmed, S., Habib, U., Riaz, S., Maqbool, N., & Anwar, A. (2012). Measuring Customers Loyalty of Islamic Banking in Bahawalpur Region. International Journal of Learning and Development, 2(2), 101-111.
- Jamal, A., & Naser, K. (2003). Factors Infleuncing Customers Satisfaction in the Retail Banking Sector in Pakistan. International Journal of Commerce and Management, 13(2), 29-53.
- Khan, M. S., Wang, H., Wang, Q., Khan, W., & Javed, T. (2021). Examining the relationship between the level of logistics service quality, relationship quality and repurchase intention in e-retail sector of Pakistan. International Journal of Research in Business and Social Science, 10(1), 189-204.
- Korableva, O. N., Gorelov, N., & Kalimullina, O. (2020). Contemporary Issues of Intellectual Capital: Bibliographic Analysis. In J. Liyanage, J. Amadi-Echendu, & J. Mathew (Ed.), Engineering Assets and Public Infrastructures in the Age of Digitalization. Lecture Notes in Mechanical Engineering. Springer, Cham.
- Lamb, R. B. (1999). Ethics in Financial Services. Business and Society Review, 104(1), 13-17.
- Ledhem, M. A., & Mekidiche, M. (2020). Economic growth and financial performance of Islamic banks: a CAMELS approach. Islamic Economic Studies, 28(1), 47-62.
- Mansour, W., Ben Jedidia, K., & Majdoub, J. (2015). How ethical is islamic banking in the light of the objectives of islamic law? Journal of Religious Ethics, 43(1), 51-77.
- Mansour, W., & Bhatti, M. I. (2018). The new paradigm of Islamic corporate governance. Managerial Finance, 44(5), 513-523.
- Metawa, S. A., & Almossawi, M. (1998). Banking behaviour of Islamic bank customers: Perspectives and implications. International Journal of Bank Marketing, 16(7), 299-313.
- Moutinho, L., & Smith, A. (2000). Modelling bank customer satisfaction through mediation of attitudes towards human and automated banking. International Journal of Bank Marketing, 18(3), 124-134.
- Oliver, R. L., & Swan, J. E. (1989). Consumer perceptions of interpersonal equity and satisfaction in transactions: a field survey approach. Journal of Marketing, 53(2), 21-35.
- Plank, R. E., Reid, D. A., Pullins, E. B., & Comer, J. M. (2013). Methods in sales research: Perceived trust in business-to-business sales: A new measure. Journal of Personal Selling and Sales Management, 19(3), 61-71.
- Qurrata, V. A., Murdiono, A., Hussain, N. E. B., & Purnamasari, V. (2021, January 22). Social Media and Islamic Marketing Towards Customer Satisfaction and Loyalty Impacts in Indonesia [Paper presentation]. Conference on International Issues in Business and Economics Research (CIIBER 2019). Atlantis Press.
- Román, S. (2003). The Impact of Ethical Sales Behaviour on Customer Satisfaction, Trust and Loyalty to the Company: An Empirical Study in the Financial Services Industry. Journal of Marketing Management, 19(9-10), 915-939.
- Saeed, M., Ahmed, Z. U., & Mukhtar, S. M. (2001). International Marketing Ethics from an Islamic Perspective: A Value-Maximization Approach. Journal of Business Ethics, 32, 127-142.
- Saeed, T., Almas, S., & Anis-ul-Haq, M. (2014). Leadership styles: relationship with conflict management styles. International Journal of Conflict Management, 25(3), 214-225.
- Sandikci, O. (2011). Researching Islamic marketing: Past and future perspectives. Journal of Islamic Marketing, 2(3), 246-258.
- Silalahi, R., & Yuwono, U. (2018). The Sustainability of Pancasila in Indonesian Education System. Research in Social Sciences and Technology, 3(2), 58-78.
- Trawick, I. F., Swan, J. E., McGee, G. W., & Rink, D. R. (1991). Influence of buyer ethics and salesperson behaviour on intention to choose a supplier. Journal of the Academy of Marketing Science, 19, 17-23.
- Whalen, J., Pitts, R. E., & Wong, J. K. (1991). Exploring the structure of ethical attributions as a component of the consumer decision model: The vicarious versus personal perspective. Journal of Business Ethics, 10, 285-293.
- Wray, B., Palmer, A., & Bejou, D. (1994). Using Neural Network Analysis to Evaluate Buyer-Seller Relationships. European Journal of Marketing, 28(10), 32-48.
Received in revised form 18.12.2020
Available online 28.02.2021