IMPACT OF TRUST, COMMITMENT AND CUSTOMER INTIMACY ON LOYALTY OF CUSTOMERS BELONGING TO ISLAMIC BANKING SYSTEM

Abstract

Purpose: The assigned study is devoted to the understanding, evaluating and analyzing of the factors which are responsible for developing customer loyalty in Islamic banking services offered in Karachi, Pakistan. Customer loyalty was checked based on constructs like trust, commitment and customer intimacy which are indicators of the consumer behavior towards a service and are integral part of relationship marketing. Methodology & Design: The data was collected by convenience sampling method from full-fledged Islamic banks and windows based in Karachi. Structured questionnaire was adopted for research which was self-administered. Multiple linear regression has been used to conduct analyses of the obtained data. Findings: The findings were significant for all variables and it was proved via study that Customer loyalty involved in Islamic banking system is dependent upon the variables of Trust, Commitment and Customer intimacy. Limitations: As there is always a room for improvement and it can be done by overcoming the following key limitations. For this study, convenience sampling best suited our requirements, but probabilistic sampling method could’ve been more accurate if population was determined. Another limitation was the shorter span of time. For this kind fast research good time period for collection of data is required. Recommendations: Growing scope ofIslamic banking calls formarketeersto determine more elements involved in relationship marketing and their impact on brand equity of Islamic banks. Also gender and income-based differences and similarities can be determined. Also, a fair comparison of customer loyalty between conventional and Islamic banks can be done in future.