Factors propelling the use of Islamic banking services: the moderating role of customer intimacy

Abstract: This study investigates factors propelling use of Islamic banking
products and services. The present study develops an amalgamated model with
the help of cognitive and emotional factors to investigate customer satisfaction
and loyalty towards use of Islamic banking services. Data was collected from
Islamic banking customers and empirically tested using structural equation
modelling (SEM). Findings reveal that customer satisfaction was jointly
predicted by awareness, reputation, compatibility, complexity, trust and
commitment and explained R2
78.7% variance in Islamic banking customer
satisfaction. On the flipside customer loyalty was predicted by customer
satisfaction and customer intimacy and depicted R2
20.6% variance in customer
loyalty. Extending to this, the present study confirmed the moderating role of
customer intimacy wherein positive relationship between customer satisfaction
and customer loyalty will be stronger when customer intimacy is higher.
Finally, research limitations and future research direction are discussed.