Abstract:
This study assessed the effect of service quality dimensions on customer patronage of Islamic
Banking in South Western Nigeria. It investigates the relationship between service quality
dimensions of compliance with Islamic principles, assurance, reliability, tangibles, empathy,
responsiveness and customers’ patronage. The survey research design was adopted and
questionnaire used as an instrument of data collection. Convenience sampling method was used to
select 120 customers of JAIZ bank. The data collected were analysed using descriptive statistics
methods of frequency and simple percentages while Partial Least Square Structural Equation
Modelling (PLS-SEM) with the aid of Smart PLS version 3.were used to test the hypotheses
formulated whether significant relationship exist between service quality dimensions and customers’
patronage. Result of the findings revealed that there were positive relationships between the six
service quality dimensions measured with compliance with Islamic principles, assurance, reliability,
tangibles, empathy and responsiveness, with co-efficients of 0.473, 0.541, 0.335, 0.465, 0.697 and
0.878 respectively at 1% level of significance. Out of the six independent variables used for
measuring service quality dimensions, only two namely, responsiveness (0.878) and
empathy(0.697) have strong significant relationships , assurance (0.541) shows moderate
significant relationship ,whereas compliance with Islamic principles,( 0.473) tangibles (0.465) and
reliability (0.335) reveals weaker significant relationships with customers’ patronage. The study
concluded that overall, service quality has a significant relationship on customer patronage and
therefore, recommended that the management of the bank should pay urgent attention and develop
strategies to explore CARTER service quality dimensions such as compliance with Islamic
principles, tangibles and reliability, and focus essentially on responsiveness, empathy and assurance
constructs in order to attract more potential customers, retain old ones in order avoid high level of
customer dissatisfaction.
The bank managers are also recommended to increase patronage of their customers by opening more
branches especially in commercial cities, deplore more ATM and P.O.S machines in strategic
locations such as markets, higher institutions, and religious centers, improve their network
interconnectivity, engages in aggressive advertisement and marketing in print and media houses, cooperative societies, labour and trade unions. |
Keywords:
Islamic principles, Patronage, Customer, Assurance, Reliability, Tangibles,
Empathy, Satisfaction |
