The Influence of Service Quality and Customer Satisfaction on Customer Attitude: A Case of Al-Rajhi Bank in Saudi Arabia

Abstract

This study aims to empirically investigate the influence of perceived service quality and customer satisfaction on customer attitude towards Islamic banking using Al Rajhi Bank, the world’s largest Islamic bank, as a case study. A survey questionnaire was used as the research instrument to collect the data for this study. A total of 140 questionnaires were distributed to Al-Rajhi Bank’s customers, 86 were received and 2 were discarded leaving 84 questionnaires that can be used for data analysis. Linear regression analysis was performed to test the causal relationship between the variables. This study found both perceived customer satisfaction and service quality have a significant positive relationship with customer attitude towards Islamic banking. The results indicate that the positive relation between variables means increasing the quality of the services offered by bank for its customers will enhance and improve the customer attitude towards the bank’s services. The same conclusion applies to customer satisfaction. This study can be used as an input for Al-Rajhi Bank’s management and other Islamic banks’ management in setting up strategies and policies to improve their service quality and customer satisfaction. It is important to note that a good understanding of customer attitude toward bank services leads to a better understanding of customer behavior. This study also adds value to the relatively limited number of literature on customer attitude towards Islamic banking services.