CUSTOMER SATISFACTION DETERMINANTS FOR ISLAMIC BANKS IN PAKISTAN

Abstract

Purpose- The main purpose of this research is to find out customer satisfaction level in Islamic banks based on different factors including Product and services, Cost and benefits, financial security and stability, Service quality, and Convenience. In addition to this, the research would also find out the position of different Islamic banks operating in Pakistan according to the key determinants. Methodology- In this research data was mainly collected with the help of structured questionnaire having convenient sample size of no more than 50 respondents form selected areas of Karachi which was convenient for the researcher. The researcher selected all the five full- fledged Islamic banks which are operating in Karachi and selected at least three branches of each Islamic bank to conduct the research. The data was then analyzed using Microsoft Excel as a tool and it is supposed to be more appropriate for the analysis of the study. Findings From the research analysis by applying an instrument, questionnaire, it is concluded that there is a positive relationship between factors like service quality at the top and then financial stability and convenience/attractiveness with the customer satisfaction in Islamic banking in Pakistan. Although there is less relationship with other factors but can have a big opportunity for Islamic banking consultant to capture more market share and positioning by implementing new strategies and by making more awareness towards Islamic products. Another useful finding is that Meezan bank leads other banks in terms of almost all the key factors. Limitations- Limitation of this study is that data is mainly collected from Islamic banks customer and the researcher have not included Islamic banking branches of conventional banks. Apart from that, the data is collected from fewer numbers of respondents which are convenient for the researcher and only in selected areas of Karachi. Practical Implications- This study will help most of the bankers to understand the satisfaction level of different Islamic bank customers and after that they can make such strategies in order to retain valuable customer for them. One of the important key for success which each and every banker should keep with them is that success of banking organization lies with the success in customer loyalty and retention. Therefore, customer satisfaction is very much important issue that is being addressed by banking organizations.