The Effect of Religiosity on the Improvement of Customer Loyalty Towards Islamic Banks
Purpose: The main objective of this research was to analyze the effect of religiosity as a moderator on the relationship between service quality, customer trust, satisfaction, and loyalty towards Islamic banks in Jakarta. Design/Approach/Methodology: The research sample was 240 respondents (Islamic bank customers) taken by purposive sampling. The data were analyzed using Partial Least Square (PLS), a covariance-based SEM with WarpPLS 6.0 software. In general, the structural model fit carried out in this research was adequate, and the measurement model met the validity of internal consistency reliability. Findings: The results showed that the variables of service quality, customer satisfaction, and religiosity had a positive and significant direct effect on customer loyalty. However, the direct effect of customer trust on customer loyalty was not significant. Meanwhile, religiosity had a positive and significant effect on the relationship between service quality and trust in customer loyalty. Also, religiosity failed to moderate the effect of customer satisfaction on customer loyalty. Practical Implications: This research is expected to contribute not only to the development of literature but also to the banking industry, especially Islamic banks, in developing marketing strategies related to the impact of religiosity so that the promotion of religious activities that are meticulous and sensitive to customers can help spread and strengthen moral norms of ethical behavior in understanding Islamic banks. Originality/Value: This study is original research that provides references to the factors that influence customer loyalty in Islamic banks, especially in Islamic countries, where the role of culture is powerful.