Moderating Role of Muslim Religiosity and Collectivism among Sight Cues, CSR and Costumer Loyalty through Corporate Image in Islamic Banks

Abstract

Loyalty among the customers is a key especially for the companies operating in the service sector. Recently, the Islamic banking is emerging in Pakistan but the customers of Islamic banking are not very much aware about how to shift from conventional banks to Islamic banks and this is the hurdle for Islamic banks’ customer loyalty. Therefore, the prime objective of the present study is to examine the impact of sight cues and CSR activities of the Islamic banks on the loyalty by improving the corporate image of the Islamic bank. Moreover, mediating role of corporate image along with moderating impact of religion and collectivism is examined as well. The data of the present study was collected from the customers of Islamic banks in Pakistan. Current study employed quantitative research approach while utilizing cross sectional research design. For the data collection, systematic random sampling technique was adopted. Out of the 450 respondents, 346 questionnaires were received completely from Islamic Bank’s customers. To ascertain the significant effect of study variables, the multiple regression technique through PLS-SEM was used. The results of the study reflected that Sight cues and CSR activities have significant impact over corporate image and keeping the customers loyal. Additionally, religion and Collectivism also moderate the relationship between corporate image and loyalty. The findings of the study will be helpful for the academicians and policy makers of Islamic banking to develop the policies by which they can keep the customers loyal.