ABSTRACT
This chapter focuses on how service quality and customer satisfaction affect customers’ behavioural loyalty in Islamic banks and the service quality policies required for banks to succeed in managing their customers well.
The results show that compliance, tangibility, responsiveness, assurance and empathy significantly and positively impact behavioural loyalty, with compliance and assurance appearing the most influential factors leading to customer behavioural loyalty.
The study’s recommendations to Islamic banks include a focus on continuous improvement of service quality due to the direct effect on customer behavioural loyalty.
It is essential for Islamic banks to review and endorse all policies and procedures to ensure that their documents and investments are undertaken in line with Islamic law requirements.
