ANALYSIS ON THE EFFECT OF EDUCATING CUSTOMER, SERVICE FAIRNESS, CUSTOMER SATISFACTION AND LOYALTY: A STUDY ON ISLAMIC BANK IN INDONESIA
Keywords:educating customer, service fairness, satisfaction, loyalty, Islamic banking
The low level of market share of Islamic banks continues in Indonesia despite having a large potential customer base as the most populated Muslim country in the world. . This study analyses two factors related to marketing of Islamic banking in Indonesia, namely educating customers and service fairness. This research was conducted in Jakarta with a sample of 200 people. This study employs Structural Equation Model (SEM) using AMOS software. The study found that service quality has a significant and positive impact on customer satisfaction but does not have a significant impact on customer loyalty. The study also found that educating the customer has a negative significant impact on customer satisfaction, which means that as more customers learn about Islamic banking, the higher their dissatisfaction. Furthermore, educating the customer also has no significant effect on customer loyalty. This study shows that Islamic banks in Indonesia have not been able to build the loyalty of its customers.. Based on the findings of this study, it is recommended that Islamic banks in Indonesia should re-evaluate and improve their marketing strategies primarily in terms of educating their customers.
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