Products Excellence From Customer Perception: Comparative Analysis Between Islamic and Conventional Bank

The primary purpose of this study was to articulate the literature of Islamic banking in Muzaffarabad, AJK by investigating the influence of the level of perception, understanding, and usage of Islamic banking products and services on the satisfaction level of its account holders. The present study targets to highlight the relationship between products excellence and customer perception. Products excellence and customer perception of prominent Islamic and conventional banks in Muzaffarabad are analyzed through comparative analysis. The quantitative data were collected from different Islamic and conventional bank customers through random sampling using self-administrated questionnaire. A sample of 267 respondents from different regions of Muzaffarabad was selected. For the analysis, the descriptive statistics was adopted to check the relationship between demographic variables and perception. The findings of the study exposed that Islamic bank customers had better products excellence perception and were more satisfied towards the provided services compared to conventional bank customers. Islamic bank customers supposed tangibles and assurance as the most significant components of an exceptional products excellence whereas conventional bank customers perceived assurance and modernization as the most significant components of products. There are certain limitations accompanying with this study such as small sample size and data collection in specific geographical locations. This study has various concrete suggestions for professional bankers, financers, regulators, and policy makers. The regulators and policy makers of Islamic and conventional banks may contrivance the findings of this study to improve customer perception through better excellence declaration. The study has significantly contributed towards the knowledge on service quality and customer perception particularly in context of Muzaffarabad.