The mediating effect of customer satisfaction on customer loyalty: a study of islamic banks in Indonesia

This study aims at analysing the influence of customer perceived value (CPV) and Islamic bank service quality (IBSQ) on customer satisfaction and customer loyalty, while considering the effect of customer satisfaction as an intervening variable. The population in this study is the customers of Islamic banks in Jambi province. Adopting the quantitative research approach, a survey was conducted on 280 customers of Islamic bank in Jambi. The sampling method applied is the non-probability method with purposive sampling technique. This study used SEM analysis method with Amos 21 and Sobel test. The findings of this study show that CPV and IBSQ influence customer satisfaction and CPV also influences customer loyalty. On the other hand, IBSQ and customer satisfaction do not influence customer loyalty. With the intervening variable, CPV and IBSQ do not influence customer loyalty at Islamic banks. This research suggests that the management team of Islamic banks in the Jambi province to improve on the service quality in responding to customer demand, customer needs and customer value in order to provide customer satisfaction which in the end, affect the customer loyalty to the Islamic banks in Jamb