The Role of Satisfaction in Mediating Trust, Commitment and Loyalty in family Takaful

Bank Negara Malaysia reports revealed that the Takaful market performance was shown to have contributed significantly to the family Takaful business compared to the general Takaful business, which remained the primary income generator in Malaysia for the Takaful industry. Yet, family Takaful's market penetration rate is still relatively low and does not reach the potential market. It also confirmed that the range of family Takaful participants surrendered their certificates every year. This can be argued that the Takaful industry faces a challenge in maintaining its current family Takaful participants. It is critical for the Takaful industry to focus on participants’ retention by know-how loyalty tendencies. This research aims at providing more information and knowledge on how to manage their loyalty based on its antecedents. Hence the main purpose of this research is to examine the effect of trust, commitment, and satisfaction on participants’ loyalty in family Takaful. This research also aims to examine the mediating role of satisfaction which can help extend the current understanding of loyalty. Quantitative research was put in place to achieve the research objectives. Stratified random sampling and simple random sampling were selected in which the questionnaires were distributed to 400 samples of family Takaful participants in the East Coast of Peninsular Malaysia. The data collected were processed via appropriate computer software such as the Statistical Package for Social Sciences version 22 (SPSS 22.0) and the AMOS program version 22 (AMOS 22.0). These findings contributed to the existing literature as a guide to better understand consumer behavior cycles, particularly in the context of Takaful industry.