ENHANCING CONSUMER LOYALTY IN ISLAMIC BANKING THROUGH THE APPLICATION OF CARTER
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Date
2012-01-25
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Journal ISSN
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Publisher
International Conference on Business, Entrepreneurship and Management 2012, San Beda College
Abstract
The Islamic banks development in Indonesia experienced very remarkable growth.
Central Bank of Indonesia revealed that assets of the Indonesia Islamic banking industry
has risen more than 35 times from $1.79 billion in 2000 to $100.8 billion in 2010, with an
average of 53.32% growth per year over the past eight years. In spite of this phenomenal
growth, Islamic banks only gain 3.2% of banking industry market share. In order to
increase its market share in the modern customer centric competitive arena'the bank have
to satisfl its customers. There has been evidence that when customers are satisfied they
will become loyal customers of the bank. The purpose of this paper was to examine major
factors that reflected customers' perception and satisfaction on Islamic Bank.This
research was conducted through the application of CARTER for evaluating service
quality and its influence on customers' satisfaction levels and customers' loyalty in
Islamic bank. Research was conducted in Bandung (Indonesia) with 300 customers as
respondents. The survey questions were organized based on CARTER attributes. The
collected data was analyzed by using SPSS software. The research findings indicated that
service quality and customers' satisfaction has\d a significant and positive relationship
with customers' loyalty.
Description
Keywords
Islamic Banking, CARTER, customers' satisfaction, customers' loyalty