Determinant For Customer Loyalty in Islamic Banking Products and Services in Kota Bharu, Kelantan

Abstract

The two (2) basic principles governed by the Islamic banking system are forbidden payments and collections of interest as well as mutual profit or loss sharing. All activities, such as gambling, interest, and speculation, are strictly prohibited in Islamic law. Due to the fierce competition between the Islamic banking industry and foreign and conventional banks, the offering of various products and services is much needed by the Islamic banking industry to attract customers who comply with Islamic law. Therefore, this study aims to determine the determinants for customer loyalty in Islamic banking products and services in Kota Bharu, Kelantan. The independent variables in this study are customer satisfaction, product quality, perceived value, and trust and commitment. This study uses online questionnaires with a target of 384 respondents of residents aged 18 ears and above in Kota Bharu, Kelantan. The Statistical Package for Social Sciences (SPSS) version 27 was used for data analysis. The result concluded that there are significant correlations between customer satisfaction, product quality, perceived value and trust and commitment with customer loyalty in Islamic banking products and services. This study can help the industry improve and create better products and services to meet customers' needs. This study adds significant value by contributing to the body of knowledge in this field.