Service Quality in the Jordanian Banking - Research Proposal Example

Role Demographic Factors have on service quality within the Jordanian Banking System] Abstract Purpose: The study looks to determine whether the six demographic factors experiences mean differences between the perceptions of service quality in the banking sector. Methodology: Data was collected from the distribution of questionnaires based on which ANOVA and post-hoc Tukey tests were performed on six demographic variables (gender, age, occupation, income, education and religion) so that perception of service quality on the banking sector can be identified. Findings: There exist no differences based on gender, income or education but difference in perception exist based on religion, age and occupation. Limitations: Several demographic groups were under-represented in the research Practical Implications: The research will help to attract and target people from specific demographics Originality and Value: This is the first studies which will looks to examine the manner in which demographic factors have an impact on the perception of quality service within the Jordanian banking system. Keywords: Service quality, Jordan, banks Introduction The quality of service within the banking sector has proliferated over the last decade (Titko et al., 2012; Chaker and Jabnoun, 2010). While there is no predetermined definition of service as it varied from one person to another but aims towards an overall assessment of a particular service by a customer and determines the extent to which the customer expectation and satisfaction is met (Saghier and Nathan, 2013). This thereby looks to encompass both the perception and expectation of people. The banking sector which works in the service industry has been confronted with the task of understanding the different perception and expectations of customer so that service standard can be developed accordingly (Titko et al., 2012; Saghier and Nathan, 2013). Different multi-dimensional measures have been used previously to understand the service quality needs, attitudes and perceptions, including SERVQUAL, Carter and BSQ (Saghier and Nathan, 2013). The different measures has its applicability in the Islamic banking industry and can be applied in the Jordanian banking system so that the different demographic factors and the impact it has on the service perception can be understood (Askari, Iqbal, & Mirakhor, 2009; Miani & Daradkah, 2008) Jordan has witnessed a growth in the banking sector which has intensified competition and understanding the different service quality perceptions which has an impact on the banking sector needs to be understood. This requires that banks need to identify the different parameters and develop their strategies so that customers can be attracted and retained in the competitive environment (Mualla, 2011). Studies in the same direction bring forward the fact that demographic factors such as gender, marital status, income, age, occupation, and education have an impact on service quality measures with respect to banking (Balaji and Baabu, 2012; Gupta and Bansal, 2011). The research thereby concentrates and looks at evaluating the manner in which the different demographic factors have an impact on customers using the banking services in Jordan. To evaluate the manner in which demographics have an impact on service perception the research will specifically look at factors like age, gender, religion, income, education, and employment status so that the impact it has on the banking sector can be identified. Literature Review Service quality is an aspect which determines customer satisfaction and expectations. Different authors have discussed service quality differently but aims towards maximizing the customer satisfaction and expectations which is based on perception and differs from one person to the other (Hoffman & Bateson, 2002). Banks look to achieve the service standards by focusing on different features and attributes which helps to meet the different customer needs and wants so that better satisfaction can be achieved (Galloway & Ho, 1996) Parasuraman, Zeithaml, & Berry, (1988) has defined service quality as the evaluation of service which determines the gap which is present between the expectations of the customers and the service standard which has been delivered. It has been further supported by Gefen, (2002) that differences exist between customer expectations and performance which is subjective and differs from one person to another. Sultan and Wong (2010a) states service quality as a perception which differs from one factor to another based on the different needs and requirements of the customers. Grönroos, (1984) and Lehtinen & Lehtinen, (1982) identifies two major perspective in service quality which focuses on European and American model. The European model deals with the functional and technical aspect of service quality whereas American model considers the functional quality used for measuring service performance. Kang & James, (2004); Parasuraman, Berry, & Zeithaml, (1991); Parasuraman, Zeithaml, & Berry, (1985); Parasuraman et al., (1988) states that the American model identifies the differences between the service quality based on what the customer perceives to receives and what the customer actually receives. Parasuraman et al. (1985) identifies service quality as the degree of discrepancy which is present between the normative expectation of customers and the perception of service quality. This can further be extended to include different dimensions like tangibles, reliability, responsiveness, competence, courtesy, credibility, security, access, communication and understanding/knowing the customer. Parasuraman, Zeithaml, and Berry (1988) has refined the above stated ten dimensions to five so that perceived service quality standards can be better identified through the process of SERVQUAL Cronin & Taylor, (1992) & (1994) has moved a step forward and states that the five perceived service quality standards can also be identified through the use of SERVPERF model. Zhou, (2004) has built on the same and identifies that using the SERVQUAL and SERVPERF model in the banking industry will reflect the manner in which different dimensions have a role in service quality through which banks are able to distinguish their services from others. Zhou, (2004) through the use of SERVQUAL measures identified the four primary factors which contribute towards service quality. The research was carried over a sample of 316 sample and highlighted that willingness to correct errors, thoroughness and accuracy of service, consistency as well as reliability, and knowledge capability has a role in determining the service quality standards. Karatepe et al. (2005) used the model on 20 item survey instruments and found out that service environment, empathy, interaction quality, and reliability are the main service quality factors which impact service quality in Northern Cyprus’s banking industry. Guo et al.’s (2008) used the SERVQUAL measure to find out the gap which is present in servie quality and found out that communication, technology, reliability, and human capital are the main facets which results in difference between perception and actual service standard. Avkiran’s (1994) used the BANKSERV evaluation which is based on the SERVQUAL model shows that the four dimension which impacts banks personnel service are presentation, credibility which relates to trust between the bank’s staff and clients, communication which relates to verbal as well as written interactions between bank staff and clients, and customer accessibility that relates to the adequacy of staff to serve clients. Avkiran (1999) worked on the same model BANKSERV and found out the manner in which dimensions like communication, conduct of staff and customer accessibility to teller has an impact on the level of service quality being provided in the banking sector. Tsoukatos and Mastrojianni (2010) found out a 27 item index which impacts service quality perception in the banking sector which falls under five dimensions like empathy, assurance, effectiveness, reliability and confidence. The index which was developed based on it was BANQUAL-R measure. Abdullah et al.’s (2011) used the Bank Service Quality (BSQ) index model in Malaysia to find out three dimensions of reliable communication, systemization, and responsiveness which has a direct relation to the perception of service quality standard in the banking sector. Ebrahimi& Moghadam, (2012) showed that assurance and reliability are the most important factors which impacts service quality standard in the banking industry in Iran. Young, (2012) to identify the dimensions which impact service quality standard in the Islamic banking industry used CARTER measure was developed for the Kuwait Finance House and provided deeper insights into the SERVQUAL and SERVPERF model and the manner in which different dimensions impacts service quality in the banking sector. The review of the different quality measures provided deep insight into the multi dimensional nature of service quality in the banking sector. This thereby helps to understand the manner in which banks look to develop their service quality so that customer expectations and perceptions are met at the highest level. The different researches has thereby helped to find out the different dimensions which impacts service quality and culture along with other barriers are perceived to act as a hindrance towards service quality. Studies directed towards culture based models highlights that satisfaction, perceived quality, and customer retention are some of the demographic differences which impacts service quality and results in differentiation in the banking services. Raven & Welsh, (2004) identifies gender as one specific demographic factor which results in difference between service qualities in the banking sector. It was seen through the study that men expects a higher level of service quality as compared to women with reference to expectations, assurance and reliability. Gagliano and Hathcote (1994) identified different demographic characteristics like race, marital status, and income results in difference in the perception of people regarding the service quality and standards. Stoffard (1996) identified the different elements of service quality and highlighted the manner in which demographic has a role in shaping service standards. This was supported by Caruana (2002) who identified service loyalty, service quality and customer satisfaction as the main dimensions which impacts service quality in the banking sector. Havinal, Sirigere and Banu (2013) analyzed the service quality dimensions through the use of SERVPERF scale where discriminant analysis was used to find out the impact demographic variables like gender, age, nativity, level of education, annual income and the occupation have an impact on service quality. It was seen that differences exist based on place like rural and urban population experiences different factors impacting service quality differently where as age and gender don’t impacts service quality. Education, income and occupation impacts the service quality but to a limited level. Seiler, Rudolf, and Krume (2013) carried out a research to find out the manner in which customer demographics impacts service value, customer satisfaction, and customer loyalty in the private banking industry. It was analysed that customer satisfaction impacts customer loyalty directly whereas service value doesn’t have and direct impact on customer loyalty. Erol & El-Bdour, (1989) carried out a research to find out the manner in which service quality is examined in the Jordanian banking system identified that people look to differentiate between the services of the different banking system based on the different services which are provided by the banking system. Since, people look to differentiate between the different facilities which conventional and Islamic banking system like foreign exchange, safety deposit boxes, night depository and travellers’ cheques so it thereby results in having different service quality standards based on which people look to select banks. Naser, Jamal & Al-Khatib, (1999) identified that people perception towards Islamic banks was high due to strong brand name and confidentiality which people had on Islamic banks. People banked with Islamic bank due to strong brand image and reputation they had and despite having fewer facilities in comparison to other private banks the preference towards Islamic banks was high. Saleh & Zeitun (2006) used the performance evaluation methodology to assess the concepts of profit maximization, capital structure, and liquidity test to monitor the performance of Jordan Islamic Bank for Finance and Investment (JIBFI), and Islamic International Arab Bank (IIAB) in Jordan It was identified that banks focused on improving the service quality and short term investments were given priority which helped them to improve their profitability and ensured that the overall level of service quality was highly dependent on the different service parameters. Need for the Study The banking industry is witnessing strong competition from different players working in the local and international arena. To ensure that banks are able to maintain and improve their customer base focus has to be given on service quality so that customer expectations and perceptions can be met. With the increase in the banking services and people having a preference for banks service quality and customer satisfaction is an aspect which needs to be stressed on so that all the parameters which are developed helps to maximize the level of satisfaction. This requires that bankers understand the manner in which demographic variables have an impact on service quality. Hence, the study has been developed to find out the manner in which demographic variables have an impact on banking service quality. Objectives The research looks to accomplish the following objectives through the research To find out the demographic profile of customer who looks towards banks and dealing with the different banking activities To find out the manner in which demographic variables have an impact on service quality standards in the banking sector in Jordan. Methodology The research is descriptive and uses both primary and secondary sources for the study. The study was carried out in cities with a population of over 10000 people and was conducted in shopping malls. The different cities where the survey was carried out are total six in number and includes Amman, AzZarqa, Irbid, Al Karak, Ar-Ramtha, and Jerash. The research was carried through a form of questionnaires which were delivered at the doorsteps of people. The research was carried over a total of 2000 people whom were distributed questionnaires and had a return rate of 48% and had a total of 963 valid entries. The questionnaire has fifty four items measuring service quality standard and were developed in the form of a structured questionnaire where a seven point Likert scale was developed which has different options from strongly agree to strongly disagree. The 54 items were derived from the Carter measure (Othman and Owen, 2011) and the BSQ measure (Abdullah et al. 2010). The entire survey was carried from September 2013 through January 2014. To identify the different dimensions which have an impact on service quality ANOVA test was carried for the different demographic factors like Age, Religion, Gender, Occupation, and Income. Any variable which showed a significant difference was further put to test through a post-hoc Tukey test to find out if significant differences existed due to groupings of the items. The prime reason for choosing post-hoc Tukey test was that it is the best possible pair wise test available for sample size which is unequal. The analysis was then carried out through SPSS v.22 so that concrete results regarding the different dimensions and its impact on service quality standards can be identified. Profile of the Respondents Descriptive analysis was used for discussing the profile of the respondents. The research was carried over a total of 2000 people whom were distributed questionnaires and had a return rate of 48% making the total no of entries replied back to be 974. Out of the 974 response which was received 11 was found to be faulty which was removed and the rest of 963 valid entries were used for the research. The breakdown of the profile of people who went through primary research based on age is as Age n % 18-19 8 0.90% 20-24 183 19.60% 25-29 223 23.80% 30-34 232 24.80% 35-39 166 17.70% 40-44 95 10.10% 45-49 14 1.50% 50-54 6 0.60% 55-59 4 0.40% 60-64 1 0.10% 65-69 4 0.40% It was clearly identifiable that the majority of people taking part in the research ere young people from the age of 20 years to 39 years highlighting that the people who participated in the survey were people using different banking services in some form or the other. The breakdown of the profile of people who went through primary research based on gender, religion and nationality is as Gender n % Male 508 54.30% Female 428 45.70% Religion Islam 867 92.60% Christianity 69 7.40% Nationality Jordanian 888 94.90% Arabian 47 5.00% Asian 1 0.10% It is clearly seen that 54% male, 93% Islamic, 7% Christian, 95% Jordanian. This highlights that equal representation of the sample was ensured and most people participating in the were people belonging to Jordan itself. The breakdown of the profile of people who went through primary research based on marital status and number of members in the family is as Marital status n % Single 219 23.40% Married 230 24.60% Married w/ Infants age 0-2 200 21.40% Married w/ Children age 3-10 192 20.50% Married w/ Children age 11 and older 52 5.60% Widowed/Separated 43 4.60% No. Family Members One Person 19 2.00% 2-3 people 280 29.90% 4-5 people 376 40.20% More than six people 261 27.90% The varied group of people participating in the research from different backgrounds clearly brings forward the fact that all section of the society were adequately represented. The breakdown of the profile of people who went through primary research based on income is as Monthly income n % Below-JD400 203 21.70% JD500-JD999 234 25.00% JD1000-JD1499 162 17.30% JD1500-JD1999 112 12.00% JD2000-JD2499 140 15.00% JD2500-JD2999 14 1.50% JD3000-JD3499 2 0.20% JD3500-JD3999 1 0.10% JD4000-JD4499 1 0.10% JD5000-JD5499 67 7.20% The monthly household income of the respondents ranged from below JD400 to JD5499. Of the useable responses, 21.7 % have monthly household incomes of below-JD400, 25 % having JD500-JD999, 17.3 % having JD1000-JD1499, 12 % having JD1500-JD1999, 15 % having JD2000-JD2499, 1.5 % having JD2500-JD2999, 7.2 % having JD5000-JD5499, and less than one % from each of the following: JD3000-JD3499, JD3500-JD3999, and JD4000-JD4499. This showed that most people were part of the research and belonged to different income level ensuring that different banking services were used by them based on their needs and requirements. The breakdown of the profile of people who went through primary research based on employment is as Employment n % Full-time 684 73.10% Part time 137 14.60% Student 35 3.70% unemployed 4 0.40% Retired 8 0.90% Freelancers 64 6.80% Irregular 4 0.40% The sample further represented people mostly working full time thereby helping to ensure that most banking services were used. In addition to it other people also represented the survey ensuring that all people were part of the research. The breakdown of the profile of people who went through primary research based on occupation is as Occupation Professional 162 17.30% Executive/Administrative 90 9.60% Defense Force 389 41.60% Academic 172 18.40% Fieldworker 0 0.00% House Wife 3 0.30% Business 63 6.70% Student 37 4.00% Unemployed 1 0.10% Retired 9 1.00% Community work 10 1.10% For the occupation of the respondents, 41.6% were in the defence force, 18.4 % work in the academic field, 17.3% were professionals, 9.6 % were in the executive/administrative sector, 6.7% had their own businesses, 4% were students, 1.1% were in community work, 1% were retired, and less than 1% were housewives of unemployed. This helped to ensure that the research represented people from all backgrounds and areas and ensured that all people were adequately represented. A breakdown of the entire sample space based on the different banking services which were used by them is as follows n % Type of bank Islamic Banking 180 19.20% Conventional Banking 451 48.20% Both 305 32.60% Frequency of visits Rarely: once in a month 138 14.70% Occasionally: 2 to 3 times in a month 217 23.20% Regularly: at least 4 times in a month 474 50.60% Frequently: more than 5 times in a month 107 11.40% Years with bank Less than 1 year 146 15.60% One year 242 25.90% Two years 72 7.70% 3 years 170 18.20% More than 3 years 305 32.60% Transaction Types Business transaction 133 14.20% personal transaction 152 16.20% Both 647 69.10% Mode of Banking Service Online banking 66 7.10% ATMs 139 14.90% Personal visits 125 13.40% All of the above 606 64.70% Mode of banking service access self 350 37.40% husband 7 0.70% wife 6 0.60% parent 11 1.20% friend 9 1.00% relatives 17 1.80% siblings 17 1.80% community 137 14.60% religion 112 12.00% national/country policy 0 0.00% varied banking services 109 11.60% benefits of banking services 69 7.40% advertisements 10 1.10% word-of-mouth 5 0.50% None 77 8.20% The respondents were either banking with Islamic banks, conventional banks, or both is shown above. The study found that 48.2% were banking with conventional banks only, 32.6% were banking with both Islamic and conventional banks, and 19.2% were banking with Islamic banks only. Around half of the respondents (50.6%) visited their bank regularly at least four times in a month, 23.2% occasionally (2-3 time/month), 14.7% rarely (once/month), and 11.4 % frequently (>5 times in a month). More than half of the respondents (69.1%) transact for both business and personal purposes, while 16.2% had personal transactions only, and 14.2 % had business transactions only. The modes of banking service access identified by the respondents were online banking, ATMs, personal visits, and all three. More than half of the respondents access all three modes for banking service, 14.9% access through ATMs only, 13.4% access through personal visit, and 7.1% through online banking. The different dimensions which were used as variables for the banking sector highlighted the manner in which different variables were considered and will form part of the further research to highlight the manner in which different variables impacts service quality in the banking sector. Influence of Demographic Variables on Service Quality Six different variables were identified to have a role in service quality in the banking sector and will look at carrying out the test through ANOVA so that the results can be found out. This will help to identify the manner in which the different variables have an impact on service quality dimensions of the banking industry. The breakdown of the result based on different dimensions and use of ANOVA table is as Age The analysis of the demographic factor related to age highlighted significant difference as shown in the appendix It was evident that certain dimensions like I can depend on the employees of this bank”, “The staff of this bank communicates in an understandable way”, “I am satisfied with the employees of this bank”, “Overall, I am satisfied with the bank’s products”, “This bank is conveniently located”, and “The bank is well known” showed significant difference. To ensure the same the post-hoc Tukey test did not identify any differences between specific groups for these 6 items, which could be due to the small sample size in the upper income ranges highlighting that no significant difference existed due to age as one of the demographic factor. Gender The analysis of the demographic factor related to gender highlighted no significant difference as shown in the appendix No significant difference was observed between males and females signifying similar perception and expectations and no impact it has on the service quality of banks. Education The analysis of the demographic factor related to education highlighted no significant difference as shown in the appendix It is clearly evident that no significant difference in performance perception existed between people from different educational grounds highlighting similar perception in service quality from the banking sector. Religion The analysis of the demographic factor related to education highlighted significant difference as shown in the appendix The analysis of religion as a factor showed significant difference for “The bank provides easy access to account information”. To ensure the same the post-hoc Tukey test did not identify any differences between specific groups highlighting no difference in perception of service quality existed. Income The analysis of the demographic factor related to income highlighted significant difference as shown in the appendix The analysis conducted showed significant difference existed on six item differences where there were performance perceptions differences between income groups. These were: “I can depend on the employees of this bank”, “The staff of this bank communicates in an understandable way”, “I am satisfied with the employees of this bank”, “Overall, I am satisfied with the bank’s products”,“ This bank is conveniently located”, and “The bank is well known”. However, the post-hoc Tukey test did not identify any differences between specific groups for these 6 items, which could be due to the small sample size in the upper income ranges. This highlights no significant difference exist and perception as a service quality standard has an impact on the manner different services are provided by the banking sector. Occupation The analysis of the demographic factor related to occupation highlighted significant difference as shown in the appendix The analysis highlights there were two significant item differences between occupational groups. These were “The staff of this bank keep accurate records” and “The bank provides quality services across its all branches”. For the item “The bank provides quality services across all its branches” there were no significant differences between the individual groups within the occupational dimensions. This clearly highlights the manner in which difference exists between perceptions of quality standard in the service banking industry. Findings of the Study The findings from the study are as No difference in perception existed for service quality standard in the banking industry based on gender, income or education Difference in perception existed for service quality standard based religion, age and occupation of people Customers within the age group of 20 – 39 demand more and more facilities and services from the banking sector People look at assurance, brand name and other additional features as one of the important point based on which the decision of banking with a particular banking sector is taken Educated and learned people having middle and higher income have a higher demand for better services and facilities so that the different needs and expectations are easily met Limitations of the Study The research carried out has certain limitations which are as There is unequal distribution of groups within the demographic factor which has thereby made the result to be skewed slightly. Several groups of people were under represented in the study like old age groups, les educated people, Christian, higher income subjects and unemployed subjects The low response rate which the questionnaire got could result in biasness towards the research study. This could result in diluting the results as generalized results won’t be available and the true opinion of the person won’t be highlighted Future Implication of the Study The result obtained from the study can be used by banks to develop their marketing strategies so that they are able to attract the target customers. This will provide the banking industry with the demographics through they will be able to direct their resources towards attracting people from the correct target group. This study unlike other study doesn’t analyze the gender difference which exists in perception of people but instead corroborate the occupational and income level difference and the manner in which perception differs among people while choosing a banking service. The manner in which the Jordan banking industry is growing will provide useful insights into the different dimensions of demographic which impacts service quality in the banking sector. Future studies can be developed to find out the factorial service which impacts service quality in the banking sector. Future analysis will require adjusting for the demographic factors so that comparable outcome through which customer satisfaction can be maximized is found out. The overall phenomenon will thereby help to bring forward the manner in which different aspect and facets will help to improve the overall quality dimensions for the banking industry. Conclusion The study which examined the manner in which demographic factors have an impact on service quality in the banking sector showed difference existed between the perception of people. The findings suggested that customers of Jordanian banks found difference in perception existed due to age, occupation and income level along with religion and employment status. This will help the banks to identify the difference which is present in the banking sector regarding perception of people and will help to develop strategies based on it. Banks through the identification of factors which have an impact on the demographic variables will be able to target the correct customer base and ensure that they are able to provide different services which will help to meet the needs and requirements of the different section of the society. Reference Abdullah, F., Andrew, J. V., & Ho, V. B. (2010). Identifying And Validating Dimensions Of Service Quality For The Banking Industry In Malaysia. Journal of Global Business and Economics, 1(1), 79-98. Abedifar, P., Molyneux, P., &Tarazi, A. (2011). Risk and Stability in Islamic Banking. Bangor: Bangor Business School, University of Wales. Abedniya, A., Zaeim, M., &Hakimi, B. (2011). Investigating the relationship between customers’ perceived service quality and satisfaction: Islamic Bank in Malaysia. European J SocSci, 21(4), 603-624. Aldlaigan, A. H., &Buttle, F. A. (2002). SYSTRA-SQ: a new measure of bank service quality. International Journal of Service Industry Management, 13(4), 362-381. Al-Smadi, A. A.-M., Hamdan, F., &Almsafir, M. K. (2013). Islamic banking vs conventional banking, during the global financial crisis: malaysia as a case. Journal of Islamic and Human Advanced Research 3(1), 27-40. Askari, H., Iqbal, Z., &Mirakhor, A. (2009). Globalization and islamic finance: convergence, prospects and challenges (Vol. 778): John Wiley & Sons. Avkiran, N. K. (1994). Developing an instrument to measure customer service quality in branch banking. International Journal of Bank Marketing, 12(6), 10-18. Avkiran, N. K. (1999). Quality customer service demands human contact. International Journal of Bank Marketing, 17(2), 61-74. Babakus, E., &Boller, G. W. (1992). An empirical assessment of the SERVQUAL scale. Journal of Business research, 24(3), 253-268. Bahia, K., &Nantel, J. (2000). A reliable and valid measurement scale for the perceived service quality of banks. International Journal of Bank Marketing, 18(2), 84-91. Baker, M. J. (2003). Data Collection - Questionnaire Design. Marketing Review, 3(3), 343-370. Benamraoui, A. (2008). Islamic banking: the case of Algeria. International Journal of Islamic and Middle Eastern Finance and Management, 1(2), 113-131. Bentler, P., & Chou, C. (1987). Practical Issues in Structural Modeling. Sociological Methods & Research, 16(1), 78-117. Brady, M. K., Cronin Jr, J. J., & Brand, R. R. (2002). Performance-only measurement of service quality: a replication and extension. Journal of Business Research, 55(1), 17-31. Buttle, F. (1996). SERVQUAL: review, critique, research agenda. European Journal of Marketing, 30(1), 8-32. Carrillat, F. A., Jaramillo, F., &Mulki, J. P. (2007). The validity of the SERVQUAL and SERVPERF scales: a meta-analytic view of 17 years of research across five continents. International Journal of Service Industry Management, 18(5), 472-490. Caruana, A>, (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, (36) 7/8, 811 - 828 CBJ. (2013). Directory of Banks, Central Bank of Jordan Retrieved 1/6/2013, from http://www.cbj.gov.jo/pages.php?menu_id=34&local_type=0&local_id=0&local_details=0&local_details1=0&localsite_branchname=CBJ Chong, B. S., & Liu, M.-H. (2009). Islamic banking: interest-free or interest-based? Pacific-Basin Finance Journal, 17(1), 125-144. Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing, 16(2), 64-73. Churchill, G. A., &Surprenant, C. (1982). An investigation into the determinants of consumer satisfaction. Journal of Marketing Research, 19(4), 491-504. Cronin, J., & Taylor, S. (1992). Measuring service quality: a reexamination and extension. The journal of marketing, 55-68. Cronin, J., & Taylor, S. (1994). SERVPERF versus SERVQUAL: reconciling performance-based and perceptions-minus-expectations measurement of service quality. The Journal of Marketing, 125-131. Cronin, J., Brady, K., &Hult, M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of retailing, 76(2), 193-218. Day, R. W., and G. P. Quinn (1989) “Comparisons of treatments after an analysis of variance in ecology,” Ecological Monographs, 59: 433-463. DeVellis, R. F. (2003). Scale Development: Theory and Applications. Thousand Oaks: Sage. Dillman, D. A., Phelps, G., Tortora, R., Swift, K., Kohrell, J., Berck, J., & Messer, B. L. (2009). Response rate and measurement differences in mixed-mode surveys using mail, telephone, interactive voice response (IVR) and the Internet. Social Science Research, 38(1), 1-18. doi: http://dx.doi.org/10.1016/j.ssresearch.2008.03.007 Dillman, D. A., Smyth, J. D., & Christian, L. M. (2009). Internet, Mail and Mixed-mode Surveys: The Tailored Design Method. New Jersey: John Wiley & Sons Inc. Erol, C., & El-Bdour, R. (1989). Attitudes, behaviour, and patronage factors of bank customers towards Islamic banks. International Journal of Bank Marketing, 7(6), 31-37. Gagliano, K. B., &Hathcote, J. (1994). Customer expectations and perceptions of service quality in retail apparel specialty stores. Journal of Services Marketing, 8(1), 60-69. Galloway, L., & Ho, S. (1996). A model of service quality for training. Training for Quality, 4(1), 20-26. GatehouseBank. (2008). Development of Islamic banking Retrieved 28/5/2013, from www.gatehousebank.com Gefen, D. (2002). Reflections on the dimensions of trust and trustworthiness among online consumers. ACM Sigmis Database, 33(3), 38-53. Gorsuch, R. L. (1983). Factor Analysis. California: Lawrence Erlbaum Associates. Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of marketing, 18(4), 36-44. Guo, X., Duff, A., & Hair, M. (2008). Service quality measurement in the Chinese corporate banking market. International Journal of Bank Marketing, 26(5), 305-327. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective. New York: Pearson Prentice Hall. Hanif, M. (2010). Differences and Similarities in Islamic and Conventional Banking. International Journal of Business and Social Sciences, 2(2). Haron, S., &Azmi, W. N. W. (2008). Determinants of Islamic and conventional deposits in the Malaysian banking system. Managerial Finance, 34(9), 618-643. Ho, R. (2006). Handbook of Univariate and Multivariate Data Analysis and Interpretation with SPSS. New York: Taylor & Francis. Hoelter, J. W. (1983). The analysis of covariance structures: Goodness-of-fit indices. Sociological Methods and Research, 11, 325-344. Hoffman, K. D., & Bateson, J. E. (2002). Fundamentos de marketing de servicios: conceptos, estrategias y casos: Thomson. Hung, Y., Huang, M., & Chen, K. (2003). Service quality evaluation by service quality performance matrix. Total Quality Management and Business Excellence, 14(1), 79-89. IBFJ. (2013a). Islamic Mortgage Loans - How Do They Work? Islamic Banking and Finance Journal, Retrieved 28/5/2013, from http://islamicbanking.info/islamic-mortgage-loans/ Iqbal, M. (2001). Islamic and conventional banking in the nineties: a comparative study. Islamic Economic Studies, 8(2), 1-27. IslamicMortgages. (2011). Islamic Credit Cards Retrieved 28/5/2013, from http://www.islamicmortgages.co.uk/index.php?id=76 Jain, S. K., & Gupta, G. (2004). Measuring service quality: SERVQUAL vs. SERVPERF scales. Vikalpa, 29(2), 25-37. JDIB. (2013). Jordan Dubai Islamic Bank Recognised as Fastest Growing Bank in Jordan in 2011, 31/5/2013, from http://www.jdib.jo/ViewPR.aspx?PRID=52 JIB. (2005). Finance and Banking, Jordan Investment Bank 9/24/2005. from http://www.jordaninvestment.com/2c.htm, JIR. (2005). Banking and Finance, Jordanian Information Resource Retrieved 28/5/2013, from http://reference.allrefer.com/country-guide-study/jordan/ Kang, G.-D., & James, J. (2004). Service quality dimensions: an examination of Grönroos’s service quality model. Managing Service Quality, 14(4), 266-277. Karatepe, O. M., Yavas, U., &Babakus, E. (2005). Measuring service quality of banks: scale development and validation. Journal of Retailing and Consumer Services, 12(5), 373-383. Khammash, T. (2012). Jordan Banking Sector Report. Amman, Jordan Jordinvest Company. Khan, M. M., & Bhatti, M. I. (2008). Islamic banking and finance: on its way to globalization. Managerial Finance, 34(10), 708-725. Kumar, M., Kee, F. T., & Charles, V. (2010). Comparative evaluation of critical factors in delivering service quality of banks: an application of dominance analysis in modified SERVQUAL model. International Journal of Quality & Reliability Management, 27(3), 351-377. Lehtinen, U., &Lehtinen, J. R. (1982). Service quality: a study of quality dimensions: Service Management Institute. Linda, D. G., &Wikke, W. (1987). Questionnaire development: 1. Formulation. . Canadian Medical Association Journal, 136(6), 583-585. Loehlin, J. C. (1992). Latent variable models: An introduction of factor, path and structural analysis (2nd ed.). Hillsdale, N.J.: Lawrence Drlbaum. Marsh, H. W., Balla, J. R., & McDonald, R. P. (1988). Goodness-of-fit indexes in confirmatory factor analysis: the effect of sample size. Psychological Bulletin, 103(3), 391-410. Miani, S., &Daradkah, D. (2008). The banking industry in Jordan. Transition Studies Review, 15(1), 171-191. Nunnally, J. C. (1978). Psychometric Theory. New York: McGraw-Hill. Othman, A., & Owen, L. (2001). Adopting and measuring customer service quality (SQ) in Islamic banks: a case study in Kuwait finance house. International Journal of Islamic Financial Services, 3(1), 1-26. Pallant, J. (2007). SPSS: Survival Manual. Sydney: Allen & Unwin. Parasuraman, A., Berry, L. L., &Zeithaml, V. A. (1991). Perceived service quality as a customer‐based performance measure: An empirical examination of organizational barriers using an extended service quality model. Human Resource Management, 30(3), 335-364. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. The Journal of Marketing, 41-50. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item sales for measuring customer perception of service quality. Journal of Retailing, 64(1), 12-40. Saleh, A. S., &Zeitun, R. (2006). Islamic Banking Performance in the Middle East: A Case Study of Jordan. Faculty of Commerce-Economics Working Papers, 157. Samad, A. (2004). Performance of interest-free Islamic banks vis-à-vis interest-based conventional banks of Bahrain. International Journal of Economics, Management and Accounting, 12(2). Seiler, V., Rudolf, M., &Krume, T. (2013). The influence of socio-demographic variables on customer satisfaction and loyalty in the private banking industry.International Journal of Bank Marketing, 31(4), 235-258. Stafford, M. R. (1996). Demographic discriminators of service quality in the banking industry. journal of services marketing, 10(4), 6-22. StandardChartered-Pakistan. (2012). Saadiq VISA credit cards Retrieved 28/5/2013, from http://www.standardchartered.com.pk/islamic/credit-debit-cards/en/saadiq-visa-credit-cards.html Sultan, P. (2011). Antecedents and consequences of service quality in a higher education context. (Doctor of Philosophy ), Central Queensland University, Australia, Rockhampton. Retrieved from http://acquire.cqu.edu.au:8080/vital/access/manager/Repository/cqu:8119 Sultan, P., & Wong, H. Y. (2010a). Performance-based service quality model: an empirical study on Japanese universities. Quality Assurance in Education, 18(2), 126-143. Sultan, P., & Wong, H. Y. (2010b). Service quality in higher education–a review and research agenda. International Journal of Quality and Service Sciences, 2(2), 259-272. Sultan, P., & Wong, H. Y. (2010c). Perspectives of Service Quality in a Higher Education Context: A Qualitative Research Approach. Paper presented at the 24th Annual Australian and New Zealand Academy of Management Conference, Adelaide. Sultan, P., & Wong, H. Y. (2011). Service quality in a higher education context: antecedents and dimensions. International Review of Business Research Papers, 7(2), 11-20. Sultan, P., & Wong, H. Y. (2012a). Cultures’ Consequences in the assessment of Higher Education Service Quality: The Case of CQU, Australia. Paper presented at the Australia and New Zealand Marketing Academy Conference (ANZMAC), University of South Australia, Hilton Adelaide, Australia. Sultan, P., & Wong, H. Y. (2012b). Service quality in a higher education context: an integrated model. Asia Pacific Journal of Marketing and Logistics, 24(5), 755-784. Sultan, P., & Wong, H. Y. (2013). Antecedents and consequences of service quality in a higher education context: A qualitative research approach. Quality Assurance in Education, 21(1), 70-95. Taap, M. A., Chong, S. C., Kumar, M., & Fong, T. K. (2011). Measuring service quality of conventional and Islamic banks: a comparative analysis. International Journal of Quality & Reliability Management, 28(8), 822-840. Tabachnick, B. G., &Fidell, L. S. (2000). Using Multivariate Statistics. New York: HarperCollins Titko, J., Lace, N., and Kozlovskis K., (2013) Service quality in banking developing and testing measurement instrument with Latvian sample data. ACTA UNIVERSITATIS AGRICULTURAE ET SILVICULTURAE MENDELIANAE BRUNENSIS. LXI(2): 58-68. Tsoukatos, E., &Mastrojianni, E. (2010). Key determinants of service quality in retail banking. EuroMed Journal of Business, 5(1), 85-100. Tsoukatos, E., &Mastrojianni, E. (2010). Key determinants of service quality in retail banking. EuroMed Journal of Business, 5(1), 85-100. Walfried M. Lassar, Chris Manolis, Robert D. Winsor, (2000) "Service quality perspectives and satisfaction in private banking", Journal of Services Marketing, Vol. 14 Iss: 3, pp.244 – 271 WorldBank. (2013). Jordan Overview Retrieved 28/5/2013, from http://www.worldbank.org/en/country/jordan/overview WorldBank. (2013). Data by Country: Jordan Retrieved 28/5/2013, from http://data.worldbank.org/country/jordan Whittaker, G., Ledden, L., &Kalafatis, S. P. (2007). A re-examination of the relationship between value, satisfaction and intention in business services. Journal of Services Marketing, 21(5), 345-357. Young, E. ( (2012)). the World Islamic Banking Competitiveness Report 2011-2012. Zeithaml, V. A. (2000). Service quality, profitability, and the economic worth of customers: what we know and what we need to learn. Journal of the Academy of Marketing Science, 28(1), 67-85. Zhou, L. (2004). A dimension-specific analysis of performance-only measurement of service quality and satisfaction in China's retail banking. Journal of Services Marketing, 18(7), 534-546. Appendix ANNOVA Table Age Gender Religion Income Occupation Education F Sig. F Sig. F Sig. F Sig. F Sig. F Sig. Banking services are governed by Islamic laws 0.57 0.84 1.12 0.29 0.03 0.88 1.46 0.16 0.85 0.57 1.12 0.29 I do not receive interest for my saved money 1.04 0.41 3.32 0.07 0.02 0.88 1.62 0.10 0.43 0.92 3.32 0.07 The bank offers products that are permitted by Islamic laws 1.02 0.42 0.68 0.41 1.25 0.26 1.72 0.08 0.19 1.00 0.68 0.41 The bank does not charge interest for loans 2.26 0.01 0.00 0.99 1.71 0.19 0.66 0.74 0.53 0.85 0.00 0.99 The bank maintains the provision of profit-loss share in products 0.90 0.53 0.55 0.46 2.18 0.14 1.25 0.26 0.36 0.96 0.55 0.46 The staff of this bank are polite 1.18 0.30 0.38 0.54 0.07 0.79 0.88 0.55 1.31 0.23 0.38 0.54 The staff of this bank are confident 1.22 0.27 0.27 0.60 4.94 0.03 1.70 0.08 1.35 0.21 0.27 0.60 The bank has an effective customer complaint process 0.86 0.57 0.74 0.39 2.48 0.12 0.54 0.85 0.70 0.71 0.74 0.39 The bank uses customer’s feedback to improve its service delivery processes 0.93 0.51 0.10 0.75 4.14 0.04 1.00 0.43 1.02 0.42 0.10 0.75 The bank provides financial advices 1.41 0.17 0.00 0.97 3.89 0.05 1.82 0.06 1.06 0.39 0.00 0.97 The bank has a comfortable interior design 1.78 0.06 0.78 0.38 2.68 0.10 1.31 0.23 1.39 0.19 0.78 0.38 The bank provides easy access to account information 2.70 0.00 1.38 0.24 9.33 0.00 1.96 0.04 1.02 0.42 1.38 0.24 The bank has a skilled management team 1.34 0.20 1.05 0.31 0.06 0.81 1.53 0.13 0.67 0.73 1.05 0.31 Accessing to banking services is easy (e.g. ATMs, Online banking etc.) 2.18 0.02 0.14 0.71 0.82 0.37 1.60 0.11 1.50 0.14 0.14 0.71 The bank is secure 1.98 0.03 0.01 0.93 0.01 0.92 0.79 0.63 1.69 0.09 0.01 0.93 The bank provides efficient services 1.65 0.09 0.02 0.89 0.61 0.43 0.52 0.86 1.38 0.19 0.02 0.89 The staff of this bank keep accurate records 1.82 0.05 0.24 0.63 0.04 0.84 0.49 0.88 2.01 0.04 0.24 0.63 The external appearance of the bank is attractive 1.28 0.24 0.00 0.96 0.04 0.85 0.86 0.56 1.56 0.12 0.00 0.96 The bank provides effective services in shortest possible time 1.42 0.17 0.01 0.93 0.24 0.63 0.83 0.59 0.38 0.95 0.01 0.93 The bank’s opening hour of operation is useful 2.35 0.01 0.03 0.86 0.06 0.80 0.95 0.48 1.07 0.38 0.03 0.86 The bank provides services at time it promised to do so 1.22 0.28 0.00 0.97 0.42 0.52 1.61 0.11 1.15 0.32 0.00 0.97 The bank provides quality services across its all branches 1.35 0.20 0.33 0.57 0.61 0.44 0.87 0.55 2.18 0.02 0.33 0.57 The bank provides services right at the first time 0.98 0.46 0.14 0.71 2.98 0.09 1.80 0.07 1.72 0.08 0.14 0.71 The overdraft privileges on current account is attractive 1.18 0.30 1.62 0.20 0.00 0.98 1.59 0.11 1.18 0.31 1.62 0.20 This bank is conveniently located 1.02 0.43 0.39 0.53 0.00 0.97 2.30 0.02 1.91 0.05 0.39 0.53 The bank is well known 0.81 0.62 3.06 0.08 1.68 0.20 2.35 0.01 1.13 0.34 3.06 0.08 The bank has a greater impact in society in terms of asset management 0.84 0.59 0.00 0.97 0.92 0.34 0.55 0.84 0.41 0.93 0.00 0.97 The bank has a good parking allocation 0.75 0.67 0.01 0.91 1.50 0.22 0.85 0.57 1.91 0.05 0.01 0.91 The bank maintains confidentiality of its customers 1.01 0.44 1.46 0.23 0.17 0.68 1.76 0.07 1.48 0.15 1.46 0.23 I have confidence in Bank’s operations 0.74 0.69 3.96 0.05 0.87 0.35 1.14 0.33 1.15 0.32 3.96 0.05 The bank offers profitable products 0.96 0.48 0.02 0.88 0.01 0.94 0.77 0.64 0.73 0.68 0.02 0.88 The bank promotes ethical activities in society 1.17 0.31 0.57 0.45 1.60 0.21 1.31 0.23 0.15 1.00 0.57 0.45 The bank charges a low service fee 0.65 0.77 0.24 0.63 0.72 0.40 1.02 0.42 1.31 0.23 0.24 0.63 The staff of this bank has knowledge of customer’s needs 0.80 0.63 0.00 0.98 0.10 0.75 0.78 0.63 0.61 0.79 0.00 0.98 The bank offers innovative products 0.83 0.61 1.03 0.31 0.00 0.98 1.56 0.12 1.26 0.26 1.03 0.31 The bank offers a wide range of products 0.96 0.48 1.16 0.28 1.77 0.18 1.43 0.17 1.23 0.27 1.16 0.28 The staff of this bank are competent to answer customer queries 1.54 0.12 0.01 0.92 0.65 0.42 0.85 0.57 0.80 0.61 0.01 0.92 The staff of this bank are helpful 1.33 0.21 0.09 0.77 0.46 0.50 0.94 0.49 1.48 0.15 0.09 0.77 The staff of this bank are pleasant 1.25 0.26 0.20 0.65 2.69 0.10 1.19 0.30 1.18 0.31 0.20 0.65 The staff of this bank are smart 1.37 0.19 0.61 0.43 0.97 0.32 1.13 0.34 1.46 0.16 0.61 0.43 The staff of this bank are supportive 1.26 0.25 0.03 0.87 1.42 0.23 1.05 0.40 0.87 0.55 0.03 0.87 The bank provides credit on favourable terms 1.54 0.12 0.05 0.82 0.00 0.95 0.99 0.45 0.93 0.50 0.05 0.82 The bank has adequate branches in convenient locations 1.21 0.28 0.07 0.79 0.31 0.58 1.41 0.18 0.40 0.93 0.07 0.79 The bank provides excellent counter services 1.19 0.29 0.94 0.33 0.05 0.83 1.23 0.27 1.05 0.40 0.94 0.33 The staff are able to fulfil individual needs 1.59 0.11 1.08 0.30 1.45 0.23 1.41 0.18 1.33 0.22 1.08 0.30 The bank provides caring attention ( 1.14 0.33 1.20 0.27 3.78 0.05 1.34 0.21 1.11 0.35 1.20 0.27 The bank provides highly standardized services 1.39 0.18 0.03 0.86 0.00 0.99 1.20 0.29 0.86 0.56 0.03 0.86 The bank’s technological capability is high 1.34 0.20 0.27 0.60 1.29 0.26 1.19 0.30 1.18 0.30 0.27 0.60 The bank allows customers to realize unexpressed needs 1.53 0.12 0.24 0.63 3.50 0.06 0.75 0.67 0.73 0.68 0.24 0.63 I trust on this bank’s services 1.84 0.05 0.02 0.89 0.08 0.78 0.72 0.70 0.37 0.95 0.02 0.89 My transactions are safe with this bank 1.86 0.05 0.24 0.63 1.48 0.22 1.17 0.31 0.50 0.88 0.24 0.63 I can depend on the employees of this bank 1.88 0.04 0.31 0.58 2.89 0.09 2.08 0.03 0.96 0.47 0.31 0.58 The staff of this bank communicate in an understandable way 1.48 0.14 0.05 0.83 2.26 0.13 2.20 0.02 0.17 1.00 0.05 0.83 I am satisfied with the employees of this bank 1.35 0.20 0.01 0.91 2.28 0.13 1.94 0.04 0.64 0.76 0.01 0.91 Overall, I am satisfied with the bank’s products 1.36 0.20 0.37 0.54 1.96 0.16 2.23 0.02 1.11 0.35 0.37 0.54 Read More