Web viewHowever, Erol and ElBdour (1989) argued that religious factors don’t impact customers’ choices. Moreover, ... 783-808. Gait, A., Worthington, A. (2009)

Religiosity moderates the relationship between service quality and satisfaction? A study in Tunisian Islamic banks

Amal Ben Cheikh *Doctorante

ISG de Tunis

Wafa Essid ThabetAssitante Marketing

FSEG Nabeul

Fatma Ezzahra BakiniMaitre de conférences Marketing

ISG Tunis

* Adresse postale de contact : Institut Supérieur de Gestion 41, Avenue de la Liberté Cité

Bouchoucha, Bardo 2000 

E-mail : [email protected] , Mobile : 20184543.

La religiosité modère la relation entre la qualité de service et la satisfaction ? Une étude dans les banques islamiques Tunisiennes

Résumé :Ce travail de recherche consiste à examiner le rôle modérateur de la religiosité entre la qualité de service et la satisfaction dans les banques islamiques tunisiennes. Une approche quantitative est utilisée pour tester les hypothèses, suivi d’une discussion des résultats et recommandations. Mots-clés : banques islamiques, qualité de service, satisfaction, religiosité, SERVQUAL.

Religiosity moderates the relationship between service quality and satisfaction? A study in Tunisian Islamic banks

Abstract :This research paper attempts to shed light on the moderating effect of religiosity on the relationship between service quality and customer satisfaction in Tunisian Islamic banks. A quantitative approach is used to test hypotheses. Results and recommendations are discussed.Key words: Islamic banks, service quality, satisfaction, religiosity, SERVQUAL.

Religiosity moderates the relationship between service quality and satisfaction? A study in Tunisian Islamic banks

1. IntroductionIn recent years, the banking sector has become integrated; this integration process is justified by the technological progress coupled with the liberalization and deregulation of the financial sector. In this context, banks are confronted to high competitiveness. For this reason, Islamic banking sector attempts to provide high service quality to achieve customers’ satisfaction.Similarly, Islamic banks seek to enhance their marketing plans and develop more effective and efficient strategies to attract their target. based on technological upgrading and skilled human resources. Particularly, it is very important to maintain and improve service quality which is considered as one of the powerful explanatory factor for satisfaction.Despite its importance, consumer satisfaction stills an under investigated concept in Tunisian Islamic banking sector. There are few studies examining the relationship between service quality and satisfaction in Islamic banks. In addition, little is known about the Islamic banking context in Tunisia. In 2015, Muslims represent over 1.7 billion or about 23.4% of the world population. They form the majority of the population in 49 countries around the world (http://www.pewresearch.org). By 2050, the Pew research Center estimates that the number of Muslims worldwide will increase to 2.76 billion, or 29.7% of world’s population. From a national scale, The Tunisian population counts 99 percent Sunni Muslim. Thus, it is an attractive market. Religion is considered as the most influential element to consumers in their decision making process (Ali et al., 2015). Accordingly, Ansari (2014) underlined the crucial role of religiosity in influencing the Muslim consumers' attitudes and behavior. Religiosity is described as a moderator variable in different research contexts such as the linkage between trust and e-commerce (Ali et al., 2015), the relationship between trust and diffusion of innovation (Muhammad and Muhammad, 2013), and the link between perceived values and tourists' satisfaction (Mokhlis, 2009; Eid and ElGohary, 2015). Additionally, It moderates the relationship between income inequality and life satisfaction (Joshanloo and Weijers, 2016). Therefore, it seems interesting to consider the moderating effect of religiosity between service quality in Islamic banks and consumers' satisfaction. Baron and Kenny (1986) argued that a moderator variable is defined as a variable that alters or changes the strength of a relationship between two variables. Therefore, the moderator role of religiosity on the relationship between service quality and satisfaction in Islamic banks will indicate under what conditions this effect can be expected: consumers with high or low level of Islamic religiosity. The use of religiosity as a moderator variable is not only justified by the previous theoretical discussion but also by the definition of moderator variables, which are appropriate to use when the study is interested in the contextual level. This moderator role is relevant when it comes to study religiosity from another point of view. Put it in other words, previous studies are used to consider religiosity as an antecedent of consumers' behavior and consequently satisfaction (Rahman and Shabbir, 2010. Kotler. 2000). In this context, Rahman and Shabbir (2010) emphasized the impact of religiosity on customers' beliefs and attitudes. In addition, Kotler (2000) stated that religion is a component of culture and contribute to form the individuals ‘behavior. Similarly, Musa and Othman (2016) revealed that religiosity moderates the linkage between values and travel decision making.Many research papers have examined satisfaction determinants in the banking sector such as service quality, perceived value, involvement and service performance. Nevertheless, few are studies that have been performed in the area of cultural factors. In that vein, religiosity is an important cultural factor (Kotler, 2000). In light of this, focusing on religiosity is very critical

because it affects attitudes, values and behaviors at both the individual and social levels (Mokhlis, 2009). Some studies have shown the significant role played by religiosity in different shopping behavior (Sood & Nasu, 1995) such as in shopping behavior of Halal food (Jamal and Sharifuddi, 2015), in Islamic financial product purchasing behaviors and intentions (Kaabachi and  Obeid, 2016 ; Obeid and Kaabachi, 2016 ; Souiden & Jabeur, 2015). Research results show that the buying behavior of consumers with high levels of religiosity differs from the buying behavior of those with low levels of religiosity. In banking context, results suggest the significant influence of religiosity on consumers’ attitude toward Islamic banking (Souiden & Marzouki, 2015) and on intention to adopt Islamic banking services (Kaabachi and  Obeid, 2016 ; Obeid and Kaabachi, 2016). Three recent research papers have highlighted the moderating role of religiosity on the relationship between Muslims’ attitudes towards life insurance and purchase intention of this service (Souiden & Jabeur, 2015); perceived value and satisfaction (Eid & El-Gohary, 2015); service recovery and satisfaction (Rashid & Ahmad, 2015). The world counts 23.4 % of Muslim population in 2015 and it is growing rapidly ((http://www.pewresearch.org). This population seems to be an attractive market. Marketers shed light on the relevance of understanding the Muslim consumers' needs with respect to banking services. This research paper aims to examine the moderating role of Islamic religiosity on the relationship between the Islamic banking service quality and satisfaction in Tunisia.

2. Literature review2.1. The context of Islamic banking in Tunisia

Islamic finance is not a recent phenomenon, it has emerged since 1970, and with the crisis proliferation supported by conventional banks, the advantages of this finance, which is based on well-determined principles related to “Sharia” called Islamic principles, became apparent. Some countries have opted for a clear sepation between Islamic banking and conventional banking. Tunisia is among these countries. In Tunisia, the Islamic finance sector - banking and insurance (or Takaful) - is characterized by a very low penetration rate, with the market share not exceeding 2 percent of the total assets (Standard & Poor’s, 2012).As it is pointed by Ayari (2001), one of the main obstacles to the activity of this sector is that the 3 main Islamic banks offer very few Islamic banking products to their customers. These products are : ijarah, murabahah, istisna’, mudharabah, and musharakah. In addition, these Islamic banks finance many projects particularly in the fields of energy and infrastructure (Echabi et al., 2016). If Islamic finance has struggled to develop our country, this sector is experiencing continued global growth. In fact, over the period 2006-2011, Islamic finance achieved annual growth of 28%. The funds put into circulation by the various Islamic banking institutions around the world reached a total of 1.3 trillion dollars (Chedi, 2011). A lot of effort is therefore required from different stakeholders (government, financial sector, etc.) in order to better promote this sector and to enhance it in Tunisia (AFDB, 2011). In addition, a new legislative and fiscal framework is needed for Islamic finance in Tunisia in order to attract foreign investment (Chedi, 2011, Boulila Taktak and Ben Slama Zouari, 2014).The Tunisian Islamic banking sector is governed by the law n° 2001-65 of July 10 th 2001. Article 7 of this law ascertains that “everyone who intends to constitute a company, to have an activity of a bank or a financial establishment, must previously to the exercise of his activity in Tunisia get the agreement in compliance with the conditions that are determined by the present law”. According to this law, the existing agreement is a universal one that requires the Islamic bank to submit a petition to the Tunisian central bank, and then this bank proceeds to

its study in order to give the agreement. In Tunisia, there are four Islamic banks: The Best Bank or Al Baraka Bank, Zitouna Bank, Nour Islamic Bank and Wifack International Bank.Widely debated by scholars and practitioners of the field, the development of the Islamic banking sector is well recognized in emerging economies. In fact, the Islamic banking industry is gaining an increasing interest in the Tunisian financial sector. Besides, the Islamic finance is a developing sector in Tunisia. Nonetheless, the lack of human capital is a key constraint that hampers the development of Islamic finance. Then, the need of qualified skilled managers in the Islamic banking techniques seems essential.Guided by Islamic laws in its operations, Islamic banking is defined as non interest based financial institutions (Haque et al., 2009). According to Ebrahimi and Moghadam (2012), three grounds permit the distinction between Islamic and non-Islamic banking:- No earning for extra interest.- Interest rates should be calculated on the basis of Islamic principles- Banking facilities should be controlled to be spent based on Islamic principles.Bhatti et al. (2011) noted that the Islamic banking sector is one of the fastest growing sectors receiving recognition from both Muslims and not Muslims. The difference between Islamic and conventional banks is that Islamic banks follow Islamic law “Sharia” principles in which interest is strictly prohibited (Dusuki and Abdullah, 2007; Akhtar and Zaheer, 2014). Islamic banking, and more generally Islamic finance, is based on a major principle: all forms of interest are riba and therefore prohibited. Riba can be defined as usury, i.e. unjust gains resulting from trade or business.In this research paper, the focus is set on the service provided by the three banks Al Baraka Bank, Zitouna Bank, Nour Islamic Bank, and its impact on customer satisfaction taking into consideration the moderator role of religiosity between these two concepts. Mittelstaedl (2002) argue that religion has an impact on consumers’ habits, perceptions and consumption patterns. This is to say that Islamic banking comes in response to Muslims needs in Tunisia for banking services which are compatible with the Islamic principles.Islamic banks are confronted with high competitiveness not only from Islamic banks but also from conventional banks (Naser et al., 1999). This is to emphasize the crucial role of bank service quality, a powerful explanatory factor of satisfaction and relational loyalty of consumers visiting Islamic banks.Al Zoubi (2013) noted that service quality is considered as a key element or an essential driver to customer satisfaction and loyalty. In the context of Tunisian Islamic banks, gaining the customer satisfaction is the central interest of managers. The attempt to build and maintain a good and long-term relationship with clients is a priority for the banking sector in a turbulent environment characterized by a strong competition between Islamic banks and conventional banks. As such, it seems very interesting to investigate how to satisfy Tunisian consumers based on service quality and their level of religiosity.

2.2. Service qualityBased on the works of Parasuraman et al. (1988) and Zeithmal et al.( 1996) , service quality is a key factor ensuring the survival and success of financial institutions. Furthermore, Newman and Cowling (1996) demonstrates that high service quality is vital and strategic to business success and competitiveness. Then, Islamic banks are concerned with this determinant. In this research context, although the Islamic banking sector is based on Islamic law which is called Sharia, their banking activities are similar to conventional banks. Therefore, Tunisian Islamic banks have to improve the way their services are offered to their clients. In their research paper, Othman and Owen (2001) argue that there is a need to enhance Islamic banks service quality, researchers further concluded that service quality can be a differentiating factor that permits Islamic banks to realize high profits and to boost up their market shares.

There is an abundant of research examining service quality in the service. However, rare are researches about Islamic banking sector in Tunisia. Gronroos (1982) was the first who introduced the concept of perceived service quality. The focus was set on the customer expectations of a service and their perceptions of the quality provision. Table 1 (Appendix 1) presented the pioneers of perceived service quality.SERVQUAL is the measurement scale of service quality which is developed by Parasuraman et al (1988) and was later refined in 1991. This measurement scale is based in five dimensions which are tangibles, reliability, responsiveness, empathy and assurance. Many studies in various service industries are undertaken based on the works of Parasuraman et al. (e.g. see Blanchard, 1994; Donnelly et al., 1995; Angur, 1999; Lassar, 2000, Brysland and Curry, 2001; Wisniewski, 2001; Kang et al., 2002).In marketing studies a service is defined as “originally intangible and relatively quickly perishable activities whose buying takes place in an interaction process aimed at creating consumer satisfaction but during this interactive consumption this does not always lead to material possession” (Kasper et al. 1999). Hernon & Nitecki (2001) proposed the following definition of service quality “Meeting and or exceeding expectations”. In the banking sector, it is important to offer superior service quality in order to improve consumers’ retention and satisfaction. Consequently, it contributes to enhance the profitability of the service provider, improve consumer’s loyalty, and develop positive word-of-mouth communications. In this context and in an industry that shows increasing growth in the international scale, such as Islamic banking services. It is interesting to understand and analyze the cross-cultural consumers’ satisfaction based on service quality. According to Newman (2001), the increasing competition in the market of banking services leads to propose more in depth studies about the drivers of high levels of consumers’ satisfaction.Lopez et al.,(2007) outlined that cultural differences influence the consumers’ satisfaction. Therefore, Muslim consumers have their own distinctive characteristics with regard to their religion. Thus, this factor is a powerful determinant on the analysis of the relationship between service quality and satisfaction. After developing the CARTER defined as a theoretical model for Islamic banks, the researchers Othman and Owen (2002) stated that there were cultural differences between countries, groups, regions, religions and ethnic groups. Therefore, they developed CARTER based on the SERVQUAL and the cultural aspects.From this angle, Islamic banks are characterized by a culture that guides them. Then, a new dimension that describes these guidelines for Islamic banks is added to the SERVQUAL model. This dimension is called “Compliance with Islamic law “In order to measure Islamic banking service quality, Othman (2003) designed CARTER. It is based on the company’s cultural aspects and its environment. Additionally, Othman (2003) revealed that service quality in Islamic banks is considered as a determinant of consumers’ satisfaction and loyalty. As mentioned above, CARTER is a model based on the five SERVQUAL dimensions and enriched by the dimension “Compliance with Islamic law” which is an adequate and appropriate measure for service quality in the field of Islamic banking industry. The CARTER involves six dimensions, which are Compliance, Assurance, Reliability, Tangibles, Empathy, and Responsiveness. This model has been used in many studies regarding the Islamic banking services in different countries (Shafie et al, 2004, Ciptono and Soviyanti, 2007). The majority of these studies on service quality in Islamic banks have however tended to be conducted in eastern and predominantly, Muslim-based countries.In order to describe the studies related to service quality in Islamic banking sector, the following table presents some research papers in this sense.

Table2: Quality dimensions in Islamic banking sector

Year Method

Haque, Osman and Ismail

(2009)

A Logit model was used for hypotheses testing. Confirm positive relationship of service quality, availability of service, religious perspective and confidence in bank with customers’ perceptions about Islamic banks.about Islamic banks.

AAhmad, Rehman, Saif and Safwan

(2010)

Descriptive statistics for demographic characteristics and T-test to examine the difference in perception. Service quality Perception of Islamic banks customers is higher than the Conventional banks

Omar Siddiqi

(2011)

A research model was developed to know the interrelationship servicequality and customer loyalty. Positive correlation between servicequality attributes and customer satisfaction.

Abdneya and Zaeim (2011)

CARTER instrument and disconfirmation model for measuring perceivedservice quality and gap between the customer expectation and customerperception of service quality dimension

Butt and Aftab (2013)

Structural equation modeling procedure. Attitude towards Halal banking haspositive influences on e-service quality

Ijaz and Ali

(2013)

SERVQUAL instrument of service quality containing five dimensions ofservice quality. Islamic banks managers showed greater satisfaction than customers

Source: literature reviewIn the banking sector, high service quality is an important factor that shapes the service providers performance. It enables companies to enhance customers’ relational loyalty and then improve their competitiveness. The question of high service quality is at the heart of marketing studies. Parasuraman et al. (1988) developed the SERVQUAL as a measurement scale for service quality. Based on the works of Parasuraman et al. (1988), service quality is a construct that is composed of five dimensions. The next table (table 3 Appendix 1) defines the five dimensions of service quality according to Parasuraman et al. (1988). The Islamic banking sector depends on many principles and rules due to the Islamic law Sharia. Islamic banking operations prohibit giving or taking interest and Sharia considered interest as an unfair procedure. This sector is conducted on the basis of profit sharing. According to Siddiqui (1992), Islamic banks are not allowed to invest in some activities such as alcohol selling and gambling.According to Haque et al. (2009), service quality is the main determinant that has an impact on consumers ‘preferences to choose Islamic bank. Nevertheless, customers of Islamic banking services showed different levels of satisfaction. Customers are aware of specific Islamic banking services such as murabaha, musharakah and mudarabah. However, they have indicated that they do not choose them (Okumuş and Şaduman, 2005). Accordingly, service quality dimensions are explained differently based on the country in which the study is made. In UAE and Qatar, Hossain et al.(2009) and Al-Tamimi et al. (2003) underlined that tangibles and empathy are the most important dimensions that influence consumers ‘behavior. In Iran,

the dimension reliability is found to be the most important and tangible is the least important dimension for customers (Jahandideh, 2010).

Islamic banking sector is guided by Islamic principles, laws called Sharia. As such, Othman and Owen (2001) developed CARTER, which is an instrument based on the SERVQUAL scale added to another dimension called “compliance with Islamic law”. This is the first time a new dimension was added to SERVQUAL five dimensions called “compliance with Islamic law”. CARTER is considered as the first approach taking into account consumers religious beliefs and cultural values. The dimension “compliance with Islamic law” is defined as the ability of Islamic banks to operate in compliance with Islamic economy (Abedniya and Zaeim, 2011). This dimension includes the following items: run on Islamic law and principles, no interest, neither paid nor taken on savings and loans; provision of free interest loans and provision of profit sharing products. The studies of Othman and Owen (2001) and Shafie (2004) prove the validity of CARTER model to operationalize the service quality in Islamic banking sector. The CARTER’s six dimensions are presented by Othmen and Owen (2001) as follow:Table 4. The CARTER’S dimensions Service quality dimensions Definition

Compliance Related to the ability to comply with Islamic law Sharia and to operate under the Islamic economy

Assurance Related to the ability of employees to convey trust and confidence based on their knowledge and courtesy. This dimension includes also the verbal and written communication between employees and consumers.

Reliability Related to the ability of service provider to offer/or perform the promised service accurately and dependability

Tangibles Associated to the appearance of physical facilities and the bank staff.

Empathy Related to caring and the individualized attention Islamic banks provide to its consumers.

Responsiveness Related to the willing to help consumers and providing prompt service.

Source: Othmen and Owen (2001)The compliance with Islamic law indicates that Islamic banks should follow rules designed by the Islamic religion to shape Islamic transactions. Islamic finance is known for its prohibition of Riba (interest) and using Sharia in islamic banking activities which is different from the conventional western perspective of finance. The Sharia details the Islamic concepts of using money and managing capital, the link between risk and profit, and the social responsibilities of financial institutions and individuals. Based on this approach, Sharia-compliant tools and techniques have been developed and used in the Islamic banking sector. The payment of Riba is strictly forbidden by the Quran, as well as gambling and uncertainty. Therefore, all types of interest payments used by conventional banking fall under the category of Riba.The compliance dimension indicates that Muslims customers follow Islamic principals in relation to their financial activities. In Quran, interest is considered as a major sin, thus Islamic banking sector develops instruments that are in line with Islamic law or principles. In this sector, we distinguish five main services: profit sharing (Mudharabah), safe keeping (Wadiah), joint venture (Musyarah), cost plus (Murabahah) and leasing (Ijarah). According to Othman and Owen, (2001, 2002), the compliance with Islamic principles plays a crucial

role in the muslims’ decision to choose their banks. However, Erol and ElBdour (1989) argued that religious factors don’t impact customers’ choices. Moreover, to date, researchers argue that there have been few empirical studies regarding service quality dimensions in Islamic banking and researches related to Islamic banking sector don’t propose new service quality dimensions in adaptation to the Arab culture (Jabnoun and Khalifa, 2005). Yet, some researchers such as Chaker and Jabnoun (2010) argue that service quality dimensions may vary in different industries, countries as well as cultures.

2.3. Customer satisfaction Satisfaction is defined as the customer’s feelings of pleasure or disappointment; these feelings are the consequence of comparing the product/service’s perceived outcome and his/her expectations. This is to say an assessment of what is provided/performed and what is expected leads to a satisfied or dissatisfied customer (Schiffman et al., 2010), and when the service’s performance exceeds expectations, the consumer is highly satisfied (Kotler and Kella, 2006).Much evidence has been gathered in relation to satisfaction advantages, in fact customer satisfaction is a linchpin for customer loyalty, company’s reputation and employee’s efficiency (Awwad, 2012). Therefore, satisfaction is probably the most under researched angle of the Islamic banking sector, and is considered as a strategic driver to keep a long term relationship with consumers.Widely debated in the literature, customer satisfaction is considered as a sign of quality in companies. Customer satisfaction in Islamic banking sector represents the consequences of service quality, bank reputation, availability of credits, competitive interest rates, and skills of the bank staff (Erol et al., 1990). Additionally, Mihelis et al., (2001) distinguish four groups of customer’s satisfaction dimensions: personnel of the bank, accessibility, image of the bank, and services offered by the bank.

2.4. Service quality and customer satisfactionIslamic banks are not only competing with each other but also with conventional banks. Thus, to achieve organizations success, service quality is a strategic factor and banks are realizing the importance of service quality as a determinant of customers’ satisfaction.The relationship between service quality and satisfaction is at the heart of marketing studies, and has been addressed by many researchers in different contexts and sectors. Some authors agree that satisfaction is an antecedent of service quality (Parasuraman et al., 1985, 1988, 1991, 1994; Carman, 1990; Bitner, 1990; Siddiqi, 2001; Hernon and Nitecki, 2001; Beerli et al., 2004; Drew, 1991). However, others noted the opposite relationship between service quality and satisfaction (Cronin and Taylor, 1992; 1994; Bolton and Drew, 1991; Anderson and Sullivan, 1994; Misbach et al., 2013). The causal linkage between service quality and satisfaction is widely debated in the literature yet no consensus has been reached (Bahia et al., 2000).Service quality and customer satisfaction are considered as vital determinants of the organizations’ success. Accordingly, Haque et al. (2009) argued that the strong Islamic movements contribute to the progress and development of Islamic interest free banking. However, Islamic banks are faced with strong competition from conventional banks. Therefore, the services differentiation and high service quality are key determinants for customers’ attraction (Naser et al., 1999). Thus, Islamic banking sector needs to continuously enhance service quality. One of the main objectives of this study is to investigate the relationship between service quality and satisfaction in Islamic banks in Tunisia.

2.5. The moderating effect of religiosityReligiosity and religion are two different concepts. Religion reflects “religious affiliation based on parental views or heritage” (Kahle et al., 2005), and means a particular faith or

creed, such as Islam, Christianity, Judaism, Hinduism or Buddhism. In other words, religious affiliation denotes belonging to a major religious group. Whereas religiosity is a more extended concept. Many researches propose different definitions for religiosity (Ellisson et al, 1989; Swyniard et al., 2001; Cukur et al, 2004). However, many researchers agree that religiosity depicts “the focus of religion in directing a person’s life in accordance with religious role expectations” (Weaver and Agle, 2002; cited by Eid and El-Gohary, 2015, p. 480). Kahle et al. (2005, p. 250) noticed that “For some people, commitment and involvement in religion are high, and for others, religion is not central to life”. Thus, religiosity describes an involvement and a commitment in religious activities, especially belief salience, attendance to a place of prayer such as a mosque or a church, and frequency of prayer. Religiosity also represents the extent to which the members of a religion accept the major beliefs and practices of their religion (Sood and Nasu, 1995). Consequently, religiosity is often conceptualized as a one dimensional construct reflecting the strength of religious faith and the centrality of religion in someone’s life, or a two-dimensional construct describing religious belief and religious practice. On this basis, in the present research, the items of customer religiosity were drawn from Lewis et al. (2001) which propose a unidimensional construct of religiosity: the Santa Clara Strenght of religious faith. This scale has several advantages: it’s easy to administer, has been used in several contexts including Muslim contexts, and studies using this scale report high levels of internal consistency and nomological validity (e.g. see Cleveland and Chang, 2009; Cleveland et al., 2013). Religiosity can affect consumer behavior depending on a person’s level of religious commitment, which means the importance of religion in someone’s life (Mokhlis, 2009). However the majority of studies on religiosity effects on consumer behavior have been conducted in Western cultures, and particularly in the United States where Christians (Catholics and Protestants) and Jews are predominant. Consequently, these past studies provide limited support on the generalizability of their research results (Mokhlis, 2009). Investigating the effects of religiosity in other social-cultural contexts, such as in a Muslim context, seems to be a very promising avenue of research. The literature review allowed us to list the scarcity of studies undertaken in Muslim contexts which examined the effects of religiosity on customer satisfaction, service quality or on consumer choices. As such, we propose in Table 3 a brief summarize of some relevant studies contributions undertaken on religious influences on customer choice, customer satisfaction and/or on service quality.In the present research, we propose that religiosity moderates the link between service quality and satisfaction. In fact, we believe that Islamic banks customers with high level of religiosity will be more satisfied of the products and services proposed by Islamic banks, because they believe that God blesses their actions when they put religion at the core of their lives and at the core of all their choices. In other words, high level of religious commitment of the customer will reinforce the relationship between service quality and satisfaction.Table 5: determinants of Islamic banks choice based on religion and its outcomeAuthor(s) Country Sample Findings

Gait and Worthington

(2009)Libya

Libyan business firms using Islamic

Finance

72,3% of Libyan business firms are interested to use Islamic finance for 4 main reasons: religion,

followed by profitability, business support and unique services

Osman et al. (2009) Malaysia

Malaysian Muslims

customers of Islamic

financing

The choice of Islamic financing by Malaysian Muslims customers is due to the fact that it suits

their religious values and principles, and not due to the products offered by the company

Ayesha and Omar (2011) Pakistan

Pakistani customers of

Islamic financing

The choice of Islamic banking is guided by 5 main criteria: Shariah principle, efficient services, price,

Bank reputation and product flexibility

Hayat and Khuram (2011)

Pakistan

Pakistani customers of

Islamic banking

Religious belief has little importance in choosing an Islamic bank

Abdelghani and

Oladokun (2012)

Malaysia

Malaysian Muslims

consumers for Islamic banking

The choice of Islamic banking stems from religious motivation rather than other factors

Shariff et al. (2014) Malaysia

Malaysian Muslims

customers of Islamic

financing

Religious belief has a significant positive effect on customer satisfaction

Eid et El-Gohary (2015)

30 different

countries1

Muslim respondents

from 30 different

Islamic religiosity has a moderating effect on the relationship between two dimensions of Muslim

customer perceived value (Islamic physical attributes value and Islamic non-physical attributes

value) and Muslim customer satisfaction.

Source: literature review

Mokhlis (2006) argued that studies about the concept of religiosity in relation to consumer behaviour is not abundant despite the fact that religions have an impact on consumers’ attitudes and behaviors in different countries in the world. In the same vein, religion is described as a tool providing differences in the consumption patterns of consumers. This difference depends on the choice of consumers to take or not into consideration standards and rules of their religion. Thus, the degree of consumers’ commitment to comply with Islamic law called Sharia, will influence the decision making process and consequently their behavior. The next table presents several definitions of religiosity in two different contexts, which are psychology and Marketing.Table 6: theoretical fundamentals of religiosity

Author/year Definition

McDaniel andBurnett (1990)

Religiosity is someone’s commitment to follow principles believed to be set forth by God.

Johnson et al.,(2001)

The extent to which an individual has committed to the religion he or she professes and its teachings, such as the individual’s attitudes and behaviors reflecting this commitment.

1 Algeria, Bangladesh, Egypt, France, India, Indonesia, Iran, Iraq, Ireland, Jordan, KSA, Kuwait, Lebanon, Libya, Malaysia, Morocco, Oman, Pakistan, Palestine, Qatar, Singapore, Spain, Sudan, Syria, Tunisia, Turkey, UAE, UK , USA and Yemen.

Bloodgood et al. (2008)

Religiosity as understanding, committing to, and following a set of religious doctrines or principles.

Kashyap and Iyer

(2009)

Religiosity is the degree to which an individual is committed to a set of religious beliefs and the degree to which they influence her/his attitudes and behaviours.

Muhammad(2009)

Intensity of commitment to a religion belief system

Source: Literature review

Based on the previous table, religiosity can be considered as the level of consumers’ commitment towards their religious principles, rules, norms, values, and beliefs that influence attitudes and behaviors.Religiosity is different from one individual to another in terms of using religious values and principles in daily activities. The previous table highlights that marketing studies about religiosity and consumer behaviour offers interesting links with the issue studied in this research paper, which is Islamic banking services and consumers’ satisfaction taking into account the moderator effect of religiosity.According to Moschis and Ong (2011), Islamic Religiosity is an interesting factor in consumers’ decision-making process because researchers can predict consumer behaviour through commitment to the Islamic rules and norms. Mokhlis (2006) argued that religiosity in different contexts has a significant impact on consumers shopping orientation. From an Islamic standpoint, The Islamic rules and principles are involved in different aspects of business and consumption activities. “The Beginning of Guidance” is a book written by Imam Al-Ghazzali in which he stated that Islamic religiosity is originated from the Muslims’ heart, after that it changes to actions (al-Ghazzali et al. 2010). Wan-Ahmad et al. (2008) examined the impact of Islamic religiosity on Muslim consumers’ behavior when they choose an Islamic bank. The research concludes with the significant effect of Islamic religiosity.Nevertheless, the consumers’ level of religiosity might be different from one person to another based on their cultural and educational background. Therefore, the consumers’ commitment to Islamic religiosity can influence their behavior. Consumers can be characterized by high or law commitment to Islamic rules and consequently their behavior depends on this degree of commitment. Individuals can be divided into groups: highly, moderately and less committed to Islamic regulations. Others can be not committed at all or choose to be non-believers.In the same context, Islamic religiosity can moderate consumer behavior in Islamic banking sector. Put it in other words, the degree of Islamic religiosity will have an influence on the Muslim’s activities in his/her daily life. Consumers with high level of Islamic religiosity will use this factor to assess the relationship between service quality and consumers’ satisfaction. For them, Islamic religiosity will strengthen the relationship between Islamic banking service quality and satisfaction.The impact of Islamic religiosity on the relationship between service quality and customer satisfaction is not the same for all consumers. Therefore, the proposed conceptual model emphasizes the distinction between different levels of Islamic religiosity.

3. Research model and hypotheses developmentBased on the preceding literature review, the research model and hypotheses for this paper, shown in figure 1, investigate the effect of service quality on satisfaction in Tunisian Islamic

banks, and the moderating effect of religiosity on the relationship between these two variables. Therefore as an extension to the above conceptualizations, it is postulated that service quality is a determinant of satisfaction, and that the relationship between service quality and satisfaction is moderated by one variable: customer’s religiosity.

Figure 1: Conceptual model of the moderator role of religiosity on the relationship between service quality and satisfaction in Islamic banks in Tunsia.

The proposed conceptual model defines the relationship between the five dimensions of service quality and the Muslim‘s consumers satisfaction. The variable religiosity is supposed to moderate the relationship between service quality and satisfaction: it will strengthen or reduce the impact of service quality on consumers’ satisfaction of Islamic banking services.

4. Methodology4.1. Sampling and data collection

The questionnaire is found to be the most appropriate instrument for this research paper. The questionnaire offers a rich library of tools; in fact it is a useful method to examine patterns in management, marketing and consumer research (Easterby-Smith et al., 1991).In this research paper, the questionnaire is composed of questions that are adopted from the literature review. A total of 263 questionnaires are distributed to clients visiting Tunisian Islamic banks. Then, the majority of questionnaires are administrated face to face with the help of Islamic banks’ employees. Besides, we contacted some clients via Facebook and LinkedIn. 250 questionnaires are used to the data analysis. The first part of the survey was a cover letter elucidating the information of the researcher and the confidentiality and purpose of the survey. The second part contains service quality dimensions. In the third part of the questionnaire, customer satisfaction dimensions are used. The fourth part of the questionnaire deals with Islamic religiosity construct. The final part contains some general information about respondents. Because of confidential reasons due to competitive strategy, the three Islamic banks in Tunisia did not provide their consumers’ databases but they help authors in providing some details regarding some clients to faster the data collection. A convenience sample is used.

The convenience sampling is characterized by the simplicity and ease of data collection. In addition, it is not an expensive research method to implement and it requires a short duration of time. However, this sampling method presents the risk that the sample might not represent the population as a whole, and it might be biased with respect to selection of respondents. Due to time and financial constraints, this sampling approach will be used in this study and we count improve and change it in future research suggestions. Based on the works of Hair et al. (2004), the sample size is sufficient to analyze data using structural equation modeling. SEM is one of the statistical tools that needs an appropriate sample size in order to find reliable estimates (Hair et al., 2008). According to Gorsuch (1983) stated that the required sample for SEM should be equal to 100 individuals. On the other hand, Harris and Schaubroeck (1990) suggested a sample size of 200 respondents at least to ensure robust structural equation modelling. However, Kline (2010) proposed that a very complicated model seeks a sample size of 200 or larger. In the same vein, Bagozzi and Yi (2012) proposed the number above 100 respondents for the sample size. Furthermore, Hair, et al (2008) suggested a sample size between 200 and 400 respondents. Hair, et al (2008) highlighted that a sample size that is superior to 400 leads to sensitive SEM and poor fit of goodness of fit measures. Therefore, it can be argued that the sample size to use SEM approach should respect the interval between 200 and 400 respondents. This research paper analyzes data based on a sample of 250 clients of Islamic banks in Tunisia.The questionnaire items were translated into Arabic language and three experts from the university 9 Avril in Tunis checked their content validity. Seven-point Likert scale was used to measure service quality “1=strongly disagree” to “7=strongly agree”. The researcher incorporates the compliance dimension to the SERVQUAL scale, and four items are adopted for this dimension (Othman and Owen, 2001). Besides, and according to Fornell et al. (1996), customer satisfaction was measured with multi item measures. Seven-point Likert scale is adopted from “1= very unsatisfied” to “7= very satisfied”. Lewis et al.’s (2001) scale was used to measure customer’s religiosity, and a seven-point Likert scale is adopted.

4.2. Sample characteristicsThe respondents’ profile show 65% of the research sample are males and 35% are females. 55% of the Tunisian Islamic banks are young customers within the age category of [25, 45] years, this is consistent with the Tunisian population which is young. Researcher noted that 75% of the sample has an income higher than 260.90 USD. Besides, the respondents profile indicates that the majority of the sample are well educated, 80% have obtained a diploma from a university.

5. Findings and discussionBefore testing the global model, it is important to deal with the individualized analyses. Then, a prior refinement of different items related to each dimension was conducted based on the confirmatory factor analysis.The psychometric properties were assessed by the Cronbach’s alpha: the reliability coefficient. Another condition to assess is the convergent and discriminant validity. According to Hair et al (2006), the convergent validity is defined as the extent to which items associated to a construct share a high proportion of variance; the average variance extracted shows an acceptable convergent validity when it is greater than 0.5. Based on the table 6, all measures have an acceptable level of convergent validity. On the other side, the discriminant validity is considered as the distinctiveness of 2 similar constructs. On other words, each construct should share more variance with its items than its shares with other constructs. In this context, table 6 shows that the average variance extracted is higher than the square of the correlations, which demonstrates that different constructs were empirically distinct.

Accordingly, the standardized item loadings were statistically significant and associated to their constructs. The reliability of service quality scales (tangibles=0.655, reliability=0.633, responsiveness=0.782, assurance=0.768, empathy=0.892, compliance=0.874), Islamic religiosity=0.754, and satisfaction=0.765 were all acceptable. To sum up, the measurement model including convergent and discriminant validity measures, was satisfactory and acceptable.Structural model testing:Table 7 provides a description of values that are related to Alpha of Cronbach, bivariate correlations, and average variances extracted A detailed analysis of the results and measures for model fit is described in table 8. In addition, table 9 provides more details about the fit measure indices.

Table 7: Alpha of Cronbach, bivariate correlations, and average variances extracted

  Tangibles Reliability Rspsv Assurance Empathy Compliance Is.Rlg StfctTangibles 0,834Reliability 0,589** 0,788Responsiveness 0,675** 0,622** 0,882Assurance 0,623** 0,542** 0,372** 0,865Empathy 0,628** 0,426** 0,432** 0,445** 0,875Compliance 0,428** 0,657** 0,634** 0,431** 0,623** 0,902Islamic Religiosity 0,309** 0,589** 0,651** 0,485** 0,415** 0,503** 0,915Satisfaction 0,685** 0,429** 0,524** 0,517** 0,214** 0,755** 0,255** 0,863Coefficient Alpha 0,655 0,633 0,782 0,768 0,892 0,874 0,754 0,765** Correlation is significant at the 0,01 level.The lower cells are the squared correlation among different constructs and the diagonals represent the average variance extracted (AVE).

Table8 : Standardized regression weights

Hypotheses

Predictor variable

Criterion variables Standardized Coefficient

H1.1 Tangibles Satisfaction 0,211

H1.2 Reliability Satisfaction 0,172

H1.3 Responsiveness Satisfaction 0,108

H1.4 Assurance Satisfaction 0,018

H1.5 Empathy Satisfaction 0,387

H1.6 Compliance Satisfaction 0,418

Statictic Suggested Obtained values

Chi square significance ≥0,05 6,327

GFI ≥0,90 0,986AGFI ≥0,80 0,957CFI ≥0,90 0,919

NFI ≥0,90 0,994

RMSEA ≤0,08 0,01The χ2 test was not statistically significant, which led to an adequate fit. The other fit indices show a good overall fit with the collected data (GFI=0.986, AGFI=0.957, CFI=0.919, NFI=0.994, RMSEA=0.01). The overall fit of the conceptual model to the data was acceptable. Then, the structural model was considered as an appropriate basis to test the hypothesis.Additionally, findings support the proposed conceptual model. Most of the hypotheses are supported. Table 7 highlights the estimated standardized parameters for the causal paths. The suggested dimensions of service quality affects positively and significantly customer satisfaction (p < 0.01; p < 0.05).However, the estimated standardized parameter of the causal path assurance-satisfaction is equal to p=0.018 < 0.05, which is not significant. Moderating effects of Islamic religiosity:In order to assess the moderator role of Islamic religiosity, the researcher used the methodology of Zhao and Cavusgil (2006). A two-group model was used. The sample was divided into 2 groups based on the mean score of Islamic religiosity of the sample. The collected data, which is above the mean, is defined as high Islamic religiosity, whereas the second group, which is below the mean, is described as the low Islamic religiosity group. Furthermore, two group AMOS models to know about the differences between the high Islamic religiosity group and the low Islamic religiosity group. Differences in the Chi Square values between the two models revealed whether the level of Islamic religiosity had a moderating effect on the relationship between service quality and satisfaction.Table 10: test the moderating effect

Hypothesis Moderator Coefficient

H1a High islamic religiosity 0,402Low islamic religiosity 0,281

H1b High islamic religiosity 0,451Low islamic religiosity 0,321

H1c High islamic religiosity 0,397Low islamic religiosity 0,291

H1d High islamic religiosity 0,567Low islamic religiosity 0,439

H1e High islamic religiosity 0,558Low islamic religiosity 0,187

H1fHigh islamic religiosity 0,486Low islamic religiosity 0,218

The coefficient of the high Islamic religiosity group was higher than that of the law Islamic religiosity group. Therefore, findings emphasized the moderating effect of religiosity between the two constructs service quality and satisfaction. Supporting H1.a, H1.b, H1.c, H1.d, H1.e, H1.f. Moreover, the significant path coefficient shows that compliance and empathy are the most important factors influencing customers’ satisfaction. Followed by tangibles and reliability respectively. The standardized path was 0.172 for reliability and 0.211 for tangibles, the fifth dimension responsiveness is also significant with the standardized path which is equal to 0.108.The positive and significant relationship between reliability and customer satisfaction is consistent with the research results of AlTamimi and AlAmiri (2003). Thus, customers in the Islamic banking sector are satisfied with the provided services, which are delivered accurately and rapidly.

Analyses show that empathy impacts positively and significantly Tunisian Islamic banks’ customer satisfaction. This result is consistent with previous studies such as Osman et al. (2009). Therefore, Tunisian Islamic banks’ clients appreciate the individualized attention given by employees when providing a service.Responsiveness is considered as a predictor of customer satisfaction. This result is consistent with the research of Misbach and Hadiwidjojo (2013). This is to say that customers are very satisfied when the staff of Islamic Tunisian bank is able to help clients and to provide them with the prompt service.The SEM output confirms the positive and significant linkage between tangibles and satisfaction. This finding is consistent with previous studies such Osman et al.’s (2009) study. This is to say that the Tunisian Islamic bank’s clients often look to any tangible indicating the service quality delivery such as equipment, materials related with the service, Islamic appearance such as the staff wear and prayer room.Assurance and customer satisfaction are not correlated significantly and positively, this finding is not consistent with the results of previous studies (Lai, 2004; Amin et al., 2013). Besides, compliance in the service delivery process is very important, in fact employees inspire confidence and trust by dealing transactions based on Sharia which means Islamic principles and handle courteously with clients of Tunisian Islamic banks.The results show that Islamic religiosity plays a moderating role in the relationship between service quality and satisfaction. Findings revealed that religiosity is part of the Muslim consumers’ decision-making process. Tunisian consumers with a high degree of religious commitment consider different dimensions of service quality as being of great importance in their satisfaction.The results support the previous studies of Rice and Al-Mossawi (2002) who argued that although one of the main specificities that differentiate Muslims from followers of some other faiths is the impact of religion in different aspects of their lives.

6. Conclusion and recommendations

The aim of this research paper is to examine the impact of service quality on consumers’ satisfaction in Tunisian Islamic banks, and the moderating role of religiosity on the relationship between these two constructs. The SEM approach was used to test the constructs framework.The results show that service quality has appropriate reliability and each dimension of this construct has positive and significant effect on satisfaction a part of assurance. According to the Tunisian clients of Islamic banks, compliance is the key determinants of service quality followed by empathy, reliability, and responsiveness. This is to say, Tunisian customers are interested in banks that provide services at the right time and able to solve problems accurately and dependably based on Islamic principles. Tunisian customers are more concerned about the compliance and empathy of services; in other words, they tend to establish relationship with their bank based on this criterion. Results also highlight that in Tunisian Islamic banks, service quality is positively and significantly associated to satisfaction. The high service quality leads to satisfied consumers with the banks services. This result supports the findings of Othman and Owen (2001) who noted the positive and significant linkage between service quality and satisfaction. Similar results were found by Arasly et al. (2005) who stated that service quality is a strong predictor of customer satisfaction in Islamic banks in Turkey. Meanwhile, Karatape et al. (2005) indicated that a positive and significant linkage exists between service quality and satisfaction. Then, the higher the service quality is, the better is customer satisfaction. Additional attention is called to the religiosity which moderates the linkage between service quality and satisfaction.

Based on the above conceptualizations and results, the following recommendations are provided in order to develop appropriate marketing strategies for Tunisian Islamic banks. First, managers of Tunisian Islamic banks should improve customer satisfaction through enhancing service quality. In this viewpoint, Tunisian Islamic banks should study the market of banking sector, analyze customers’ needs and call attention to customers’ feedbacks. These actions can be the departure point to provide innovative and better services; it is an opportunity to respond adequately to customers’ needs and wants. And given the actual and potential significance of satisfied customers, it is very important for Tunisian Islamic banks to well understand consumers’ expectations in order to build long term relationships with them. Second, managers of Tunisian Islamic banks should offer the adequate training and education programs in Islamic Knowledge in order to ensure effective service delivery while dealing with Tunisian Islamic banks customers. In this context, Islamic banking employees have a significant role in bank consumer interaction.Islamic banks managers should focus on providing innovative services that ensure long term relationship with customers. The prerequisite of service quality should be taken into account to offer a service that respond to customers’ needs and expectations.Concern, helping customers to solve problems, care and attention to customers in Islamic banks is very important, in fact, customers appreciate that and feel comfortable with that especially when it is the first time to open an account, send money , make a deposit, and withdrawing and saving money. The administrative fee and rewards to customers may constitute two factors influencing service quality perceived by customers. Customers are also influenced by materials associate to the service, thus managers should provide visually appealing materials with efficient and quick transactions. Besides, flexibility of opening hours is very important to attract customers searching for convenient time with their schedules.This research paper shows that higher responsiveness will result in higher customer satisfaction in Islamic banking sector. The responsiveness is justified by the willingness of the Islamic bank employees to help customers. A serious concern, competitiveness is crucial in maintaining satisfied customers. Managers of should provide the adequate training to their staff in order to know how to behave correctly with clients. Employees should help customers who have some problems in filling forms, they should also direct customers quickly and respond rapidly to their complaints and feedbacks. Bank employees should not hesitate to provide assistance to their customers; adopting the picking ball up can increase improve customer satisfaction. The individualized care addressed to customers in the Islamic banking sector is a key determinant of their satisfaction; therefore it is very interesting to ensure this behavior with customers.The bank staff plays a crucial role in the Islamic banking sector; employees’ direct relationship with consumers should be polite, friendly, and knowledgeable and give precise answers to the customers’ inquiries. It is necessary also to provide customers with financial advices when they answer for them.In this research, compliance showed the most significant influence on customer satisfaction. This is due to the consistence and performance of Islamic banks services in terms of respecting the Islamic principles in their transactions. The higher is consistency of services, the better is customer satisfaction. Customers need to have the accurate information in the right time and particularly customers who want to deposit their funds wanted to have clear, specific and accurate information about details of transactions. Thus, Islamic banks employees should be reliable, precise and fast when providing information to customers. So that, it is very important for Islamic banks’ managers to take into consideration providing services accurately based on a good communication, which is reliable, understandable, and trustworthy.

Due to the cultural and religious background of Tunisia, researchers believe that the compliance dimension plays an important role in the customer satisfaction. This research paper indicates that compliance to Islamic principles provided the highest contribution for satisfaction compared to other dimensions. In this concern, many researchers argue that compliance contributes to satisfaction, and consumers appreciate the compliance of bank services with Islamic law (Othman et Owen, 2001; Shafie et al., 2004; Osman et al., 2009).By analyzing the moderator effect of religiosity on the relationship between service quality and satisfaction, this research paper finds that this variable strengthen this linkage. Thus, religiosity in Tunisia plays a crucial role on influencing Tunisians’ assessment of Islamic banks’ service quality and consequently the evaluation of their satisfaction level. Then, the ability Islamic banks in Tunisia to comply with Islamic rules and principles called Sharia strengthen the relationship between service quality and customers’ satisfaction. From a marketing perspective, Islamic banks can design their segmentation and positioning strategies based on the degree of Islamic religiosity of different groups of clients. It is a tool to target specific groups according to the same specificity: Islamic religiosity. This will be an efficient and competitive marketing tool. Islamic banks will take advantage of shaping their marketing plan based on the moderating role of religiosity on the relationship between service quality and consumers’ satisfaction. This opportunity leads to guarantee different outputs of satisfaction such as positive word of mouth communications and loyalty.Islamic banking sector will satisfy consumers’ needs and wants based on the impact of religiosity in their daily activities. A client that follows Islamic rules and principles is interested in finding a financial product that fulfill this need.To enhance their services, Islamic banks should take several steps to improve service quality and maintain their position in a competitive market. We suggest that future studies may broaden up the research area and provide more information about customers’ relational loyalty in the Islamic banking sector. Future research suggestions may enrich the conceptual model by focusing on the direct impact of religiosity on service quality and customers satisfaction. Additionally, a comparative study between conventional and Islamic banks may constitute an interesting path to investigate.It is important to gather more information regarding satisfaction in the Tunisian Islamic banks. Besides, further research may include other crucial variables in the model such as relational loyalty. The conceptual model may be tested in other contexts that are different culturally, socially and geographically. More than that, it seems interesting to call attention Islamic religiosity in the context of political changes after the revolution.

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Table1: Pioneers studies on perceived service quality

Year Author(s) Service quality description1982 Gronroos An evaluation process between services expectations and

perceptions1985 Parasuraman et

al.Customers assessment of overall service quality resulting from

the gap between customers’ expectations and perceptions1988 Zeithaml Customers assessment of the overall excellence of the service1991 Bolton and

DrewAn attitude generated from comparison between expectations and

performance

Table 3. Service quality dimensions (Parasuraman et al., 1988)

Service quality dimensions Definition

Reliability The company’s ability to provide a service dependably and accurately.

Tangibles Related to physical facilities, equipment and materials. associated to communication and the staff in contact.

Responsiveness Concerns personnel ability to help consumers and provide rapid service.

Assurance Defined as the employees’ knowledge and courtesy, and their ability to convey confidence and trust.

Empathy Refers to the degree of caring about consumers and the personalized attention provided to clients in the bank.

Table 9: Fit indices

Fit

measures

Indices Definition Value

Absolute

fit

measures

GFI Compares the tested model to the saturated model. It

evaluates how well the theoretical model fits the

observed data

(>0.9)

χ2

The likelihood ratio test, tests the null hypothesis, it

compares observed data with data we would expect to

obtain (ρ>0.05).

Associat

ed to ρ

AGFI The adjusted form of GFI. It is sensitive to the sample. (>0.8)

RMSEA Represents the square root of the average or mean of the

covariance residuals, called also RMR or RMSE.

(<0.08)

(<0.05)

Increment

al fit

measures

NFI/ Bentler-

Bonett

Indicates the model of interest improves the fit by x%

relative to the null or independence model.

(>0.9)

CFI/ Bentler

CFI

Compares the model of interest with some alternative, such

as the null or independence model. It is not too sensitive to

sample size. It represents the extent to which the model of

interest is better than is the independence model (a model

in which the variables are assumed to be uncorrelated).  

(>0.9)

IFI Compares the model of interest with some alternative, such

as the null or independence model. It is also relatively

insensitive to sample size (Bollen's IFI).

(>0.9)

NNFIIt is relatively independent of sample size. It is similar to

the NFI (Tucker Lewis index).(>0.9)

Parsimoni

ous fit

measures

Relative/

normed χ2

The chi-square divided by the degrees of freedom. This

index might be less sensitive to sample size.(<5)

(<2)

Source: Hair et al. (2010)