Measurement of Service Quality Perception and Customer Satisfaction in Islamic Banks of Pakistan: Evidence from Modified SERVQUAL Model

The aim of this study is to measure the relationship between the service quality and customer satisfaction among the customers of Pakistan Islamic bank customers. This study employed a modified SERVQUAL model by introducing a unique dimension of compliance in the context of service industry. Data were gathered from 450 walk-in customers of Islamic bank from the largest city of Pakistan. Results from regression analysis revealed that the multi-dimensional service quality scale is positively and significantly associated with the unidimensional scale of customer satisfaction. The results signify and validate the importance of service quality aspects in maintaining the customer satisfaction in Islamic bank of Pakistan. In addition, the compliance dimension of the SERVQUAL model proved its importance by showing the highest contributing factor in the overall model. This study has practical implications for the policy makers of Islamic banks to better understand the behavioral intentions of Islamic bank customers.