Influence between banking service quality and brand image against customer relationship and loyalty in Sharia bank

Abstract

Purpose: The study aims to analyze the influence of bank service quality, brand image and bank image in relation to its priority customer and the implications of a Sharia bank. Design/Methodology/Approach: The study used a combination of quantitative and qualitative research methodology. Quantitative research is a systematic study of the parts and phenomena and their relationships while qualitative research is known as a research method that aims to develop new ideas and study the phenomenon in detail, like the Structural Equation Modeling (SEM). Findings: Based on the SEM estimation conducted on banking service quality variables, brand image, bank image, customer relationship and customer loyalty, it is found that not all the exogenous variables affect the endogenous variables. Banking service quality and bank image significantly influence customer relationship, while brand image has no significant effect on customer relationship. Bank image, brand image and customer relationship significantly influence customer loyalty, while banking service quality has no significant effect on customer loyalty. Practical Implication: Future researches in breaking down of this construct, into sub-categories of DSR will be interesting and could provide valuable knowledge to the understanding more in-depth view of DSR. Moreover, future research can aim to investigate the impact of DSR on other customers’ perceptions and factors such as corporate image, customer satisfaction, and so on. Lastly, since DSR can affect customer trust and brand equity differently, potential researches could analyze how a firm’s DSR initiative can impact on customer trust and brand equity for the different cultural contexts of global markets.