The role of religiosity on customer engagement, trust, and loyalty: An investigating on customers of Islamic banks in Indonesia

Abstract

Purpose

Religiosity is closely related to the beliefs that form the principles of Muslim customers in determining the choice to use a product or service, so that various literatures link religiosity to customer engagement, trust, and loyalty. This study aims to investigate the influence of the role of religiosity on customer engagement, trust and loyalty to customers of Islamic banks in Indonesia.

Design/methodology/approach

A quantitative approach was used in this study with a total of 204 respondents who are customers of Islamic banks in Indonesia, as the observable population. Furthermore, the structural equation modeling-partial least squares approach was used in this study in processing data analysis.

Findings

This study found that the role of the direct relationship of Religiosity to Customer Engagement, Trust, and Loyalty has a positive and significant effect. Meanwhile, on Customer Engagement and Trust on Customer Loyalty, it was found that only Customer Engagement had a positive and significant effect on Customer Loyalty. Furthermore, on the indirect relationship between Religiosity and Customer Loyalty which is mediated by Customer Engagement and Trust, it was also found that only Customer Engagement mediates positively and significantly.

Originality/value

Religiosity has been widely discussed in various literatures in various industrial sectors, but there is still not much discussion about its relation to Religiosity on Customer Engagement, Trust, and Loyalty. This research has discussed and proven empirically for the context of customers from Islamic banks in Indonesia.