Quality Services From Customer Perception: Comparative Analysis Between Islamic & Conventional Bank

Abstract

The primary objective of this study is to analyse service quality perception of Brunei’s Islamic and conventional bank customers through a comparative approach. The Carter service quality model was deployed as a measurement instrument to analyse, measure and compare the perception of both bank customers. The quantitative data was collected from 255 Islamic and conventional bank customers through purposive snowball sampling using self-administrated questionnaire. The data analysis revealed that Islamic bank customers perceived tangibility as the first, assurance second, empathy third, social responsibility fourth, innovation fifth, Shariah compliance as sixth, reliability as seventh and responsiveness as the eighth dimension of service quality. Whereas, conventional bank customers perceived assurance as first, innovation second, tangibility third, social responsibility as fourth, reliability fifth, responsiveness sixth and empathy as seventh based on their service quality perception. The comparison of mean analysis predicted that Islamic bank customers had better service quality perception compared to conventional bank customers. Similarly, satisfaction analysis found that Islamic bank customers are more satisfied with the provided services compared to conventional bank customers. The findings further predicted that modified Carter model is the most suitable instrument to determine service quality perception of the dual banking system in Brunei. There are certain limitations associated with this study such as small sample size and data collection from specific geographical locations. This study has various practical implications for professional bankers, financiers, regulators and policymakers. The regulators and policymakers of Islamic and conventional banks may implement the findings of this study to improve customer perception through better quality assurance. The study has significantly contributed towards the knowledge on service quality and customer perception particularly in the context of Brunei Darussalam.