Islamic influence on customer satisfaction: evidence from Takaful and conventional insurance industry

Waheed Akhter, Hassan Jamil and Kim-Shyan Fam

Journal of Islamic Accounting and Business Research, 2021, vol. 12, issue 4, 524-543

Abstract: Purpose - This paper aims to identify Islamic influence on customer satisfaction in Pakistan Takaful and conventional insurance industry. Specifically, it analyses the vital role of Shari’ah perception in achieving higher customer satisfaction. Design/methodology/approach - The data from 400 customers of both the family Takāful and life insurance (200 each) were collected. Further, the regression-based bootstrapping approach was applied through process macro developed by Hayes (2013). Findings - The results indicate that a higher Shari’ah perception positively affects the customer satisfaction in the Takaful industry with improved service and relationship quality; whereas, it negatively affects customer satisfaction in case of the conventional insurance. Further, it has been found that customer satisfaction partially mediates the customer switching intentions in both the Takaful and conventional insurance industry in the presence of service quality and relationship quality. Practical implications - This research will enable the practitioners to understand the factors that affect customer satisfaction in Pakistan. It has the essential policy and managerial implications for the growth of the Takaful and conventional insurance industry. Originality/value - This is one of the pioneer studies investigating the impact of Islamic influence (specifically Shari’ah perception) on customer satisfaction in both the Takaful and conventional insurance industry in Pakistan.

Keywords: Service quality; Relationship quality; Customer satisfaction; Life insurance; Family Takaful; Shari’ah perception (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:jiabr-05-2020-0148

DOI: 10.1108/JIABR-05-2020-0148

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