Antecedents of customer loyalty in Islamic banking: evidence from Tanzania

Abstract

Purpose

This study aims to examine the association between relationship quality, service quality, customer satisfaction, switching barriers and Islamic banking customer loyalty using evidence from Tanzania.

Design/methodology/approach

This study used correlational research design to test the hypotheses. Completed questionnaires were received from 572 Islamic bank customers in three major cities of Tanzania (Dar es Salaam, Dodoma and Zanzibar).

Findings

There is a significant positive relationship between relationship quality, service quality, customer satisfaction and customer loyalty. Switching barriers have an insignificant effect on customer loyalty. Further, the four antecedents contribute differentially to customer loyalty, with service quality having the most significant contribution.

Practical implications

The findings of the study can help managers of Islamic banks build and maintain customer loyalty through high service quality, high customer satisfaction and high-quality bank–customer relationships and attain a competitive advantage that would enable Islamic banks to grow and succeed in a competitive banking environment.

Originality/value

This study provides new insights on Islamic banking consumer loyalty by comparing the levels of contributions of the customer loyalty antecedents in a single study. This knowledge would enable Islamic banks to identify antecedents that have the highest contribution to customer loyalty and where best to target marketing attention and limited corporate resources.

Citation

Tegambwage, A.G. and Kasoga, P.S. (2022), "Antecedents of customer loyalty in Islamic banking: evidence from Tanzania", Journal of Islamic Accounting and Business Research, Vol. 13 No. 4, pp. 701-713. https://doi.org/10.1108/JIABR-10-2021-0288