Internal marketing, service quality and customer satisfaction : an Islamic banking perspective

Abstract

Abstract: Purpose – The study explores the extent to which internal marketing influences employees’ perceived ability to deliver service quality in the Islamic banking industry in Oman. Additionally, the influence of perceived service quality on customer satisfaction is established. Design/methodology/approach – Data was obtained from retail banking branch employees at the customer front line of Islamic banks in Oman using electronic and person-administered surveys, and 272 responses were deemed suitable for data analysis. The measurement and structural models were measured through Structural Equation Modelling. Findings – The findings show that internal promotion, internal process and internal purpose are enablers of employees’ perceived ability to deliver service quality in the Islamic banking industry of Oman. In addition, service quality was found to have a strong positive influence on customer satisfaction in Islamic banks. Research implications – This study demonstrates that internal product, internal price, internal promotion, internal process and internal purpose are influencers of service quality, and the latter has a direct relationship with customer satisfaction in Islamic banking. Managerial implications – The findings can guide the Islamic banking sector in Oman on how internal marketing can foster service quality, ultimately leading to positive customer satisfaction experiences. Originality/value – The internal marketing mix model is predominately a western model, which has been tested primarily in mature western markets. This study reflects on 10 internal marketing mix elements, which have been tested for the enablement of service quality and customer satisfaction in Oman