Effects of corporate image and service quality on customer satisfaction in the Malaysian takaful industry: trust as a moderator

The purpose of this study is to explore the effects of two independent variables (corporate image and service quality) on the customer satisfaction in Takaful industry in Malaysia. Customer satisfaction is one of the secret of success in any business, it is one of a known strategies in the business world and it has become a key element in a business survival. However, customer satisfaction is more complicated in reality than verbally define. The interpretation of customer satisfaction also varies from one person to another person and from one industry to other industry. This is why there is no agreement on one definition that can be best in describing the meaning of customer satisfaction and to accurately fit in every context and measurement. In addition, most Takaful markets in the world is still in infancy stage and it is still being consider as a new industry. Studies on the customer satisfaction in this industry are still limited. Therefore, this study focused on the relationship between corporate image (firm communication, brand familiarity and word of mouth), service quality (functional service quality, technical service quality and ethical service quality) and customer satisfaction. Trust was a moderator variable to test the effect of significant relationships between the independent variable (corporate image, service quality) and the dependent variables (customer satisfaction). A total of 275 response were collected through a survey whilst analysis through SPSS 21 and Smart PLS 3.0 was carried out to examine the relationship between all the variables in this study. The result of the empirical study showed that there was a significant relationship between corporate image (firm communication), service quality (functional service quality and ethical service quality) towards customer satisfaction in Takaful industry in Malaysia. However, trust indicated a non-significant relationship as moderator on the main independent variable. The research framework of this study contributes to the existing Takaful industry fields and literature especially in the customer satisfaction. The findings also offer theoretical and practical implications for the Takaful practitioner as well as for the development of the Takaful industry in the country. Finally, some limitations provide room and direction for future research.