Transforming Banking Experiences

The Effectiveness of Sharia Management in Boosting Customer Satisfaction in Makassar

Bibliographic Data

ID22358735
AuthorsAwaluddin Awaluddin, Awaluddin, Haeruddin Saleh (0000-0003-3060-5185, Universitas Bosowa)
Year2024
Volume3
Issue4
Pages1794-1810
Publication date2024-08-16
Open AccessYes
TypeARTICLE
VenueJournal of Ecohumanism (JOURNAL)
Journal identifiersISSN: 2752-6798 • E-ISSN: 2752-6801
PublisherCreative Publishing House (PUBLISHER • GB)
DOI10.62754/joe.v3i4.3711
OpenAlexW4401634427
LanguageEN
Citations received1
References cited10

The growth of the Islamic banking industry in Makassar has shown significant progress; however, a thorough analysis of the factors influencing customer loyalty is still needed. This study aims to analyze the impact of product innovation, service quality, and transaction security on customer satisfaction and loyalty in Islamic banks in Makassar. Structural Equation Modeling (SEM) using AMOS was applied to data collected from 400 Islamic bank customers. The results indicate that service quality (estimate 0.253, C.R. 3.229) and transaction security (estimate 1.581, C.R. 3.216) have a significant impact on customer satisfaction. Product innovation also significantly affects customer satisfaction (estimate 0.723, C.R. 6.484) but does not significantly influence loyalty (estimate 0.130, C.R. 0.545, P 0.693). Conversely, customer satisfaction significantly affects loyalty (estimate 0.234, C.R. 2.534, P 0.027). The implications of this study highlight the importance of improving service quality and transaction security to enhance customer satisfaction and loyalty. Islamic banks should continue to develop innovative products and provide ongoing education to customers to maintain and boost their loyalty. The growth of the Islamic banking industry in Makassar has shown significant progress; however, a thorough analysis of the factors influencing customer loyalty is still needed. This study aims to analyze the impact of product innovation, service quality, and transaction security on customer satisfaction and loyalty in Islamic banks in Makassar. Structural Equation Modeling (SEM) using AMOS was applied to data collected from 400 Islamic bank customers. The results indicate that service quality (estimate 0.253, C.R. 3.229) and transaction security (estimate 1.581, C.R. 3.216) have a significant impact on customer satisfaction. Product innovation also significantly affects customer satisfaction (estimate 0.723, C.R. 6.484) but does not significantly influence loyalty (estimate 0.130, C.R. 0.545, P 0.693). Conversely, customer satisfaction significantly affects loyalty (estimate 0.234, C.R. 2.534, P 0.027). The implications of this study highlight the importance of improving service quality and transaction security to enhance customer satisfaction and loyalty. Islamic banks should continue to develop innovative products and provide ongoing education to customers to maintain and boost their loyalty

Business · Business administration · Customer retention · Customer satisfaction · Database transaction · Loyalty · Loyalty business model · Service quality · Statistics · Structural equation modeling · Computer Science · Consumer Behavior and Marketing Influence · Halal products and consumer behavior · Islamic Finance and Banking Studies · Mathematics · Marketing

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