Survey study reveals that trust and lack of alternatives drive customer loyalty in regulated Islamic banking, suggesting relational and structural forces operate independently.
Key Points
To examine how regulatory pressure, bank trust, and perceived lack of alternatives collectively drive customer loyalty in a mandatory Islamic banking system.
Conducted a cross-sectional survey of 355 Islamic banking customers in Aceh, Indonesia.
Applied partial least squares structural equation modeling to analyze direct, mediating, and moderating relationships derived from institutional theory and relationship marketing.
Regulatory pressure exerts significant positive associations with both bank trust and customer loyalty.
Bank trust and perceived lack of alternatives both directly enhance customer loyalty, functioning as distinct relational and structural pathways.
Perceived lack of alternatives does not moderate the trust-loyalty relationship, indicating structural lock-in does not alter how trust fosters retention.