Loyalty In Banking

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2.1 Loyalty In businessdictionaries.com elucidates loyalty as a likelihood of previous customers to continue to buy from a specific organization. In business industry customer’s loyalty is one the most essential value to maintain because the half part of business’ success depends on the customers. Banking institution needs to improvise its system and services to gain more loyal customers. Loyal customers are defined as customers who portray good attitudes towards that particular organization, suggest the bank to other people and also show signs in repurchase behaviour (Dimitriades,2006). A reason that makes customers stick to the same brand is because of the other brand is as bad as current brand they are using or even worse that make them…show more content…
In Longman Dictionary for English Language and culture, service means attention to customers in a shop or also means a business or organization doing useful work or supplying a need. Quality on the other hand means a degree to which something is excellent; standard of goodness. Even though the researchers are in the midst of studying the service quality within the company, the outcome of the issues regarding to Islamic banks are still insufficient (Shafie et al., 2004) but still customers have higher perceptions toward Islamic banks rather than conventional banks when it comes to service quality (Ashfaq.A, Kashif-ur-Rehman, Iqbal.S, Nadeem.S. ,2010). Due to that, service providers need to provide high level of service quality in order to compete among them (Yoo and Park, 2007; Bharati and Berg, 2005; Kemp,…show more content…
According to Rahim Mosahab (2010), customer satisfaction works as an integral part for customers with the bank for a long term commitment due to customers’ own observation of the bank’s performance and the transactions’ experience. Greater customer satisfaction achieved if customers’ experience in line with the perceived service quality and benefits. There two concepts of customer satisfaction which are transaction satisfaction and overall satisfaction that means there is possibility of one time satisfaction is low but overall satisfaction is recorded high (Abed Abedniya,2011). It is important in Islamic banking to gain customer satisfaction as it will lead to their loyalty towards the bank. The behaviour of banking staff with customers, low rates in banking charges, banks reputation in general public are the main factors that lead to the tendency of customer satisfaction. Other than that, documentary evidence by the bank, environment and minimum time taking in dealing with bank also perceived as the factor of customer satisfaction

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