PERCEIVED SERVICE QUALITY AND ITS IMPACT ON CUSTOMER SATISFACTION IN ISLAMIC AND CONVENTIONAL BANKS IN KUWAIT

Tahani S. Al-adwani
Durham University
Rashed. S. Al-Ajmi
Hosny. I. Hamdy
Galal.M. Elhagrasey
Kuwait University
ABSTRACT
This study compares the customer perception of the service quality dimensions (reliability, assurance, tangibility, financial competitiveness, and quality competitiveness-relevant to products & services), bank’s social responsibility, and customer satisfaction in the relatively newly launched Islamic banks in Kuwait to the service quality dimensions, banks’ social responsibility, and customer satisfaction of the well-established conventional banks in Kuwait. That is, this study intends to find out whether there are differences in the customer perception of the service quality dimensions, customer satisfaction, and bank’s social responsibility in both Islamic and conventional banks in Kuwait. In addition, this study examines the impact of the five service quality dimensions on the bank’s social responsibility and customer satisfaction in both Islamic and conventional banks.
Utilizing a sample of customers dealing with both Islamic and conventional bank in Kuwait, and controlling for certain demographic variables, the results of this study concluded that there were no significant differences between the Islamic and Conventional banks in their perceptions towards the service quality dimensions. The study also attested that the service quality dimensions (reliability, assurance, and quality have significant and positive effects on the customer satisfaction. Contrary to the authors’ prediction, tangibility and financial competitiveness have no positive and significant effect on customer satisfaction.