Migration (Hijra) to Islamic bank based on push–pull–mooring theory: a services marketing mix perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Rahayu Hijrah Hati ◽  
Gita Gayatri ◽  
Kenny Devita Indraswari
Keyword(s):  
Online Survey ◽  
Interactive Effect ◽  
Services Marketing ◽  
Marketing Mix ◽  
Switching Behavior ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Bank Account ◽  
Content Type ◽  
Islamic Bank

Purpose This study aims to examine the interactive effect of the push factor from the conventional bank, the pull factor from the Islamic bank and the internal mooring factor of the customers in influencing the switching behavior of two types of customer account holders, the conventional only and the mixed (conventional and Islamic bank) account holders, from the services marketing mix perspective. Design/methodology/approach This study applied an explanatory research design. The data were collected via an online survey from 1,171 Muslim participants; participants consisted of conventional only account holders, Islamic bank only account holders and mixed (conventional and Islamic bank) account holders. The data were mainly analyzed using structural equation modeling. Findings Based on the account, the results showed that the three types of customers differ significantly in terms of the effect of the push, pull and mooring factors. The study also showed that the mooring factor, which is internal to the customer, is the most significant factor that inhibits customers from migrating to Islamic banks. The effect was observed for both conventional customers and those who hold mixed accounts. Research limitations/implications The study was conducted via an online survey, which reduces the representativeness of the sample. In addition, most respondents were urban dwellers and well educated, which might not represent the banking behaviour of Indonesian Muslim customers in general. Practical implications The study implies that to attract the conventional only account holder, Islamic banks should first weaken the mooring factors (the internal characteristics of the customers) that inhibit customers from switching to an Islamic bank. Originality/value The main contribution of the study is that it simultaneously identifies the push, pull and mooring factors that have the most significant impacts on Muslim customers' switching behavior from a conventional to an Islamic bank.

scholarly journals The antecedents of Muslim customers’ intention to invest in an Islamic bank’s term deposits: evidence from a Muslim majority country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Rahayu Hijrah Hati ◽  
Sigit Sulistiyo Wibowo ◽  
Anya Safira
Keyword(s):  
Perceived Risk ◽  
Online Survey ◽  
Perceived Value ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Product Knowledge ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this study is to examine the impacts of product knowledge, perceived quality, perceived risk and perceived value on customers’ intention to invest in Islamic Banks. This study specifically examines an Islamic bank’s term deposits. Design/methodology/approach Structural equation modeling was used to analyze the data collected from 217 customers of an Islamic bank in Indonesia using an online survey. Findings This study highlights the central and dual roles of perceived risk as both the independent and the intervening variable that mediates the relationship between product knowledge and Muslim customer intention to invest in an Islamic bank’s term deposits. Research limitations/implications This study only investigates term deposits as one type of investment in Islamic banks. This study contributes to the literature by examining the role of product knowledge, perceived quality, perceived risk and perceived value on Muslim customer intention to invest in Islamic term deposits. Practical implications The results of this study highlight the requirement for Islamic banks to educate customers to improve the depositors’ product knowledge because Muslim customers’ risk and value perception and intention are strongly influenced by product knowledge. Originality/value The investigation of perceived risk is particularly relevant for Islamic financial products because of the inherent nature of risk sharing in Islamic finance. This study investigates the role of product knowledge in influencing the Muslim customers’ perception of risk, quality, value and their intention to invest in Islamic bank term deposits. Ideally, the profit loss sharing concept (PLS) should be applied; however, in this context, revenue sharing is applied because of Indonesia’s central bank regulation.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

scholarly journals Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty

2019 ◽  
Vol 11 (6) ◽  
pp. 1691-1705 ◽  
Author(s):  
Abror Abror ◽  
Dina Patrisia ◽  
Yunita Engriani ◽  
Susi Evanita ◽  
Yasri Yasri ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Moderating Role

Purpose The purpose of this study is to investigate the influential factors of customer loyalty to Islamic banks, namely, service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approach This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia. This research deployed purposive sampling and analyzed the data by using covariance-based structural equation modeling. Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality–customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implications This study is a combination of cross-sectional and a single-country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection are conducted in other countries (e.g. ASEAN countries), which would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g. customer value co-creation and customer commitment); hence, the future study may investigate those factors. Practical implications By considering these Islamic banks’ antecedents, the Islamic banks might enhance their customer loyalty. Also, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision-making. Originality/value This study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic banks, which is, to the authors’ knowledge, neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationships between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole, which have been limited previously.

Looking into the Islamic banking sector in Palestine: do religious values influence active social media engagement behavior?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Yasin ◽  
Lucia Porcu ◽  
Francisco Liébana-Cabanillas
Keyword(s):  
Social Media ◽  
Online Survey ◽  
Banking Sector ◽  
Equation Modeling ◽  
Religious Values ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Engagement Behavior ◽  
Social Media Engagement

Purpose The purpose of this paper is to investigate how religious values of Islamic banking users influence their active social media engagement behavior (SMEB), when exposed to online brand related-content. Design/methodology/approach The method used for data collection was an online self-administered questionnaire. A total of 448 valid responses were obtained from Islamic banks customers, who are members of at least one online brand community (OBC) on Facebook. Responses were analyzed and processed by means of structural equation modeling. Findings The results of the online survey reveal that religious values have a positive influence on the active SMEB in terms of contributing (like and/or share) and creating (posting positive comments) of brand related-contents via Facebook OBC. Religious values play a key role in encouraging Islamic banks’ customers to share and forward posts, advertisements and/or contents. Furthermore, religious values encourage customers to forward contents that comply with their religious values and beliefs and are also compatible with the Islamic rules of Shari’ah. Originality/value The findings of this study suggest that religious values are likely to impact customer behavior when consuming, liking, sharing and commenting on the online contents generated by Islamic banks. Given the fact that Islamic religious values are universal and persistent, there is a potential for long-term benefits for those Islamic banks that identify profitable religious consumer segments within the domestic and global markets as well as to promote and enhance active SMEB in terms of number of positive comments, likes and shares of brand-related contents.

Predictors of Islamic bank adoption: Nigerian perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Precious Chikezie Ezeh ◽  
Anayo Nkamnebe
Keyword(s):  
Social Influence ◽  
Emerging Market ◽  
Partial Least Square ◽  
Least Square ◽  
Government Support ◽  
Relative Advantage ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank

Purpose The 2008 financial crisis that hit conventional banks provides a market opportunity for special types of banks. Furthermore, given the current financial reform for financial inclusion and economic concern of the Nigerian Government, there is a need for research on the adoption of Islamic banks. Accordingly, the purpose of this study is to determine the predictors of Islamic bank adoption in Nigeria. Design/methodology/approach Data is collected from 385 Islamic bank customers in northern Nigeria and is analyzed using the partial least square structural equation modeling technique. Findings The result reveals that trust, social influence, knowledge and government support have a significant positive relationship with the adoption of Islamic banks, while relative advantage and compatibility do not. The model (trust, social influence, knowledge, government support, relative advantage and compatibility) explained 50% of the variance in the adoption of Islamic bank. Practical implications These findings are very important to scholars, the policymakers and Islamic bank operators in designing their marketing strategies. It shows that trust, social influence, government support and knowledge are predictors of Islamic bank adoption. Originality/value This study extended the diffusion of innovation (DOI) theory by combining relative advantage, compatibility with trust, social influence, knowledge and government support to the model. The developed model is validated for the study of Islamic bank adoption in an emerging market, Nigeria. Arguably, it is the only study that test effect sizes (f2) and predictive relevance (Q2) of extended DOI on Islamic banks.

Contrasting the drivers of customer loyalty; financing and depositor customer, single and dual customer, in Indonesian Islamic bank

2019 ◽  
Vol 11 (4) ◽  
pp. 933-959 ◽  
Author(s):  
Tika Kartika ◽  
Achmad Firdaus ◽  
Mukhamad Najib
Keyword(s):  
Customer Satisfaction ◽  
Marketing Strategy ◽  
Corporate Culture ◽  
Significant Relationship ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Customer Trust

Purpose This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer. Design/methodology/approach The objectives of this study were the seven major commercial Indonesian Islamic banks using the purposive sampling technique. In total, 105 questionnaires were processed, consisting of questions regarding depositors, financing, single and dual customer. Structural equation modeling using partial least squares were the analysis methods used to test the hypothesis, while in-depth interviews were conducted with Islamic bank managers to validate the findings. Findings Image has a significant relationship with customer satisfaction, as well as trust. Similarly, customer satisfaction has a significant relationship with trust. Trust has a significant relationship with loyalty. For a financing customer, the image is very influential on customer trust. For a depositor customer, customer satisfaction is very influential on customer trust. For single customer, customer satisfaction has a stronger influence on the image, compared to dual customer. Practical implications Islamic banks need to maintain good image and service quality to create strong, reliable and long-term relationships with customers, more specifically, in terms of improvement and product innovation. A bank focuses on the micro or macro segment, as well as financing. Financing products should be referred to customers’ needs. Bank reputation can be done by strengthening branding and corporate culture in marketing strategy. Shariah compliance has the highest loading factor to trust customers. Indonesian Islamic banks need to maintain customer trust by sticking to Islamic principles and continuing to ensure that its products and services are in accordance with Islamic principles. In Indonesian Islamic banks, it is very important to keep the legal aspects in all of products and services. Deposit products and services of Islamic banks should be in line with the rules of the financial services authority and Bank of Indonesia culture. Bank efforts to strengthen reputation can be done by strengthening branding and corporate culture in marketing strategy, while increasing the attractiveness of the products by way of research and development (R&D) must endeavor to make products and services attractive in terms of both product characteristics and price. Furthermore, it is necessary to support a good marketing strategy to market their products. Social implications Research can be used more widely in determining public policy, by strengthening the marketing strategy and public education. Islamic banks can work together with local religious departments to maximize marketing strategies to educate and convince people to be active economically under Islamic sharia guidance. Islamic banks need to maintain customer trust by sticking to the principles of sharia and continuing to ensure that products and services conform to sharia principles. Islamic bank management can strengthen customer trust by having a good risk management system, so that customers feel secure with Islamic bank transactions. In addition, sharia banks as companies must demonstrate social responsibility by distributing ZIS managed from customers and implementing CSR as a form of awareness of the surrounding community. Originality/value The study revealed the factors that lead to loyalty on the financing, depositor and the single and dual customers. The study found that improvement and innovation, strategic and sustainability are new indicators used to build images of Islamic banks.

Factors influencing customer switching behavior in Islamic banks: evidence from Kuwait

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sherif Ghamry ◽  
Hamed M. Shamma
Keyword(s):  
Cost Effective ◽  
Switching Behavior ◽  
Service Reliability ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Factors Influencing ◽  
Customer Switching ◽  
Bank Managers ◽  
Significant Factors

Purpose With increasing competition, Islamic banks in Kuwait are currently facing difficulties in retaining their customers as customers now have the option to switch from one bank to another. As the banking industry offers almost identical products and services, customers are more likely to change their bank when they get a better offer from another bank, especially if the customer is dissatisfied with the current bank. Thus, this study aims at identifying the most significant factors that make Islamic bank customers switch their bank. Design/methodology/approach The data for this study was collected through a survey with a response rate of 25.5%. Logistic regression was used to analyze the collected data and examine the effect of each factor on the customer switching behavior. Findings The results of empirical analysis reveal that the service convenience, service reliability, level of technology and Sharia compliance are the most significant factors influencing the customer switching behavior in Kuwaiti Islamic banks. Thus, Islamic bank managers should focus on these factors when building their strategies to increase their customer’s satisfaction and loyalty. Loyal customers are more profitable than new customers as they are more likely to use more services, spread a positive word of mouth and, more importantly, they are more likely to resist competitors’ offers. Practical implications Identifying and understanding these factors will enable Islamic bank managers to direct their efforts and resources to the most cost-effective ways that help them to retain their customers, and accordingly, increase bank profits. Originality/value To the best of the authors’ knowledge, this is the first study to examine the customer switching behavior in Kuwait, and one of the few to present a model that explains the stages through which customers pass until they reach the switching decision.

The awareness and attitude of Muslim consumer preference: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Consumer Preference ◽  
Consumer Attitudes ◽  
Survey Study ◽  
Equation Modeling ◽  
Content Type ◽  
Islamic Bank ◽  
Extrinsic Religiosity

Purpose This research investigates how religiosity (e.g. extrinsic and intrinsic) influences consumers’ awareness and attitudes, which subsequently influences consumers’ preferences for Muslims in the context of Islamic bank. Design/methodology/approach A total of 480 Islamic bank consumers were recruited for online survey study. Structural equation modeling was used to test the research hypotheses. Findings Extrinsic religiosity has crucial role on consumers’ awareness and consumer attitudes. However, intrinsic religiosity has less effect on consumer attitudes, whereas consumer awareness plays an important role on consumer attitudes. Furthermore, mediator variables, such as consumers’ awareness and attitudes, have partial role to mediate religiosity and consumers’ preference. Research limitations/implications The recent study was limited to core of one region, therefore, future studies are needed to analyze consumers’ attitude and engagement in religious products and services such as Islamic brands image. Practical implications The stakeholders need to collaborate action to promote Islamic banks and the varying standard between their counterparts from the perspective of business and marketing. Originality/value The result of this study contributes to literature which has correlation with testing religion role toward Islamic bank. It also develops a new views into the determinants factor to influence consumers’ preferences.

Exploring the mechanism of consumer responses to CSR activities of Islamic banks

2016 ◽  
Vol 34 (6) ◽  
pp. 940-962 ◽  
Author(s):  
Rania B. Mostafa ◽  
Farid ElSahn
Keyword(s):  
Social Identity Theory ◽  
Structural Equation ◽  
Equation Modeling ◽  
Future Research ◽  
Islamic Banks ◽  
Islamic Ethics ◽  
Content Type ◽  
Mediating Role ◽  
Islamic Bank ◽  
The Relationship

Purpose Drawing on social identity theory, the purpose of this paper is to propose and test a conceptual framework of the mechanism of customer response toward corporate social responsibility (CSR) initiatives of Islamic banks. Design/methodology/approach A survey was completed by 203 customers of Islamic banks in Bahrain. Structural equation modeling, was used to test the hypotheses. Findings Islamic ethics fit partially mediates the relationship between CSR initiatives and consumer-bank identification (CBI) which in turn contributes positively to customer advocacy. These findings emphasize the importance of CSR practices compliance with Islamic ethics principles for customers to identify with and advocate Islamic bank. Research limitations/implications Understanding the mechanism of customers’ responses toward CSR initiatives of Islamic banks provides insights into the complexities of Islamic bank customers’ perceptions of CSR initiatives. The successful introduction of a mediating variable, namely, Islamic ethics fit suggests future research opportunities. Originality/value Much of the value of the present work is because of the findings regarding the relationship between CSR and customer responses. The originality of this study lies in being the first research examining the mediating role of Islamic ethics fit to the relationship between CSR initiatives and CBI which in turn enhances Islamic banks’ advocacy.

Islamic banking and customer satisfaction in Pakistan: evidence from internal and external customers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Aamir Hussain Siddiqui ◽  
Rabia Kanwal ◽  
Hareem Fatima
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Quality Indicators ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Internal Customers ◽  
External Customer

Purpose This study aims to find the determinants of internal and external customer satisfaction of Islamic banks of Pakistan through service quality indicators that are assurance, reliance, empathy, tangibility, responsiveness. Compliance has also been added as a determinant of customer satisfaction. In this study, customers are divided into two groups, internal customers are those who are an employee in the Islamic bank and also an account holder. While external customers are account holders only in Islamic banks of Pakistan. Design/methodology/approach In this study, a quantitative research approach is used for analyzing the behavior of internal and external customers of Islamic banks in Pakistan. The instrument which is used to analyze the study’s data, is a structured five-point Likert-scale questionnaire. The structural model was analyzed with the help of the partial least squares structural equation modeling approach. Findings This study concluded that internal customers of Islamic banking are well aware and have full information and their level of satisfaction is positive toward the bank’s services. While external customers feel satisfied while using the Islamic banking services in Pakistan. Service quality indicators are positively and significantly related to customer satisfaction in the external customer model. On the other hand, some of the indicators are not showing a significant impact on the internal customer multi-group analysis shows a difference of coefficients are insignificant between internal and external customers. Practical implications This study helps policymakers, to understand the behavior of internal and external customers of Islamic banking in Pakistan for creating favorable policies for an interest-free banking service. Originality/value This research study provides an analysis of the customer satisfaction of Islamic banks in Pakistan by dividing Islamic bank customers into two groups (internal and external customers). The purpose for dividing Islamic bank customers into two groups is that this study wants to highlight that external customer’s perception is the same as internal customers or not? Before this study, it is difficult to find single research on this topic, whereas only one study is find-out on the factors that affect internet banking adoption among internal and external customers.

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