Factors affecting customer loyalty in Islamic banking sector of Hargeisa, Somalia
According to Central Bank of Somaliland report, the number of Islamic commercial bank offices reduced from 203 offices in 2018 to 182 offices in 2019. This phenomenon is due to lack of customer’s confident towards services provided by Islamic banks. Therefore, the purpose of this study is to determi...
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| Format: | Thesis |
| Language: | eng eng |
| Published: |
2021
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/9997/1/s826978_01.pdf https://etd.uum.edu.my/9997/2/s826978_02.pdf |
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| Summary: | According to Central Bank of Somaliland report, the number of Islamic commercial bank offices reduced from 203 offices in 2018 to 182 offices in 2019. This phenomenon is due to lack of customer’s confident towards services provided by Islamic banks. Therefore, the purpose of this study is to determine the factors affecting customer loyalty in Islamic banking sector in Hargeisa, Somalia. There are two Islamic banks operating in Hargeisa City namely Salam Bank and Premier Bank. Four factors have been identified affecting the customer loyalty that is customer expectation, customer trust, service encounter and service experience. Primary data was utilized to conduct this study. The study was carried out survey which involved 250 respondents for both Islamic banks. The SPSS software was utilized in this study for both descriptive and inferential statistics. Based on the multiple regression analysis, the study found that service experience, service encounter and customer trust are the most affecting variables in customer loyalty in Islamic banks of Hargeisa City. Thus, the present study provides additional empirical evidence to improve the body of knowledge especially in Islamic banking system in Somalia. |
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