Hybrid Rationality behind Customers’ Choices of the Islamic Banks : An Experience of Bengkulu, Indonesia

Hardivizon Hardivizon,Muhammad Sholihin

doi:10.32350/jitc.111.10

Hardivizon Hardivizon, Muhammad Sholihin

Open Access

https://doi.org/10.32350/jitc.111.10

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Abstract

The article aims to reveal the rationality behind the customers’ choices of Islamic banks in Bengkulu province. For this purpose through exploring the possibility of unification between instrumental rationality and Islamic rationality, it will be identified empirically the essence of the customers’ choices of Islamic banks in Bengkulu, Indonesia. The analysis deployed a grounded theory approach. The data obtained was qualitative by involving at least 15 (fifteen) participants who volunteered and spread across several Islamic banks in Bengkulu Province. Therefore, an in-depth interview was conducted as a strategy to collect data related to the rationality behind customers’ choices for the product of Islamic banks in Bengkulu province. The main findings of this study is: “hybrid rationality was successfully identified behind the customers’ choices of Islamic banks in Bengkulu province. This rationality is a unification between instrumental rationality and Islamic rationality based on religiosity values—Sharī‘ah compliance. It is an evidence for categorizing the consumers’ choices of Islamic banks in Bengkulu as “the hybrid rationality.”

Highlights

Customer’s choice is a popular term in social sciences, especially in economics, because every choice made by someone who wants to consume something necessarily considers self-interest i.e., cost-benefit.1 The choice as such experiences dynamics and differentiation according to the context in which the individual carries out economic transactions
The research questions of this study are formulated into a couple of points: First, how do the Islamic bank customers in Bengkulu rationalize their choices toward Islamic Bank? Second, what are the categories in which the rationalization can be identified? From these research questions, it can be emphasized that the objective of the research is the customers and the rationalization behind their choices of the Islamic Bank in Bengkulu
Rationality cannot be just categorized as instrumental rationality as perceived by Weberian, but it indicates the irrational reasoning based on cultural argumentation and religious reasons

Summary

Introduction

Customer’s choice is a popular term in social sciences, especially in economics, because every choice made by someone who wants to consume something necessarily considers self-interest i.e., cost-benefit. The choice as such experiences dynamics and differentiation according to the context in which the individual carries out economic transactions. Customer’s choice is a popular term in social sciences, especially in economics, because every choice made by someone who wants to consume something necessarily considers self-interest i.e., cost-benefit.. Customer’s choice is a popular term in social sciences, especially in economics, because every choice made by someone who wants to consume something necessarily considers self-interest i.e., cost-benefit.1 The choice as such experiences dynamics and differentiation according to the context in which the individual carries out economic transactions. There is a determination of the context and other social, cultural, and demographic structures that effectively impacts individual choices In this case, Marcus (2002) offers a theory that a decision based on economic choices will always be influenced by rational, irrational and even psychological reasoning that involves emotional aspect as.

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