EXTENDING THE ROLE OF SERVQUAL MODEL IN ISLAMIC BANKS WITH SUBJECTIVE NORMS, CUSTOMER SATISFACTION AND CUSTOMER LOYALTY

In last few decades, service quality has received a great attention from both academic and practitioners. Despite the existing literature on service quality, fewer studies have been conducted on service quality that examine the customer satisfaction and customer loyalty in Palestinian banking sector. This study extended the SERVQUAL model with subjective norms to investigate the customer satisfaction and customer loyalty in Islamic Banks. Structural equation model (SEM) is applied to check the hypotheses relationship between proposed constructs. Finding revealed that the extended model has significant impact on customer satisfaction and customer loyalty in Islamic banks of Palestine. The findings of this study will be helpful for policy makers to improve the service quality in Islamic Banks of Palestine. Furthermore, this study unearths certain areas that were not previously discussed in Arab cultural context such as studying subjective norms.