The Effect of Trust, Customer Satisfaction and Image on Customers’ Loyalty in Islamic Banking Sector

This study attempts to investigate the role of customer trust, satisfaction and image in enhancing Malaysian Islamic bank customers’ loyalty. This study was carried out using data from Islamic banks and dual-window Islamic banks in Malaysia, with respect to two different customer segments (i.e., Muslim and non-Muslim). Two leading fully fledged Islamic banks (Bank Islam Malaysia Berhad and Bank Muamalat Malaysia Berhad), and two dualwindow Islamic banks (Maybank and Public Bank) were involved in this study. A multiple group data analysis was used to test the significant differences between Muslim and non- Muslim customers. The results show that there were not significant differences between Muslim and non-Muslim customers on customer satisfaction, image, trust, and customer loyalty in Islamic banks. The study revealed that image was found to be positively significant to trust, and the highest level of trust leads to enhanced customer loyalty. The results of this study explain that both Muslim and non-Muslim customers trust Islamic banks. However, the possibility of customers’ distrust of their banks always exists.