Conventional Bank Customers Research Articles

The Role of E-Satisfaction in Mediating Relationship Marketing (RM) on Banking E-Customer Loyalty

The research objective is to analyze the relationship between relationship marketing (RM) and e-customer loyalty, which is mediated by e-customer satisfaction in the banking industry in Banjarmasin. The increasingly rapid challenges of the banking world require organizations to improve their efforts to provide world-class services in order to attract and retain loyal customers. RM is the key answer to retaining loyal customers. The research was conducted in Banjarmasin with a population of 200 conventional government bank customers using a simple random sampling technique. Data were obtained from interviews with customers using a questionnaire distributed via Google Forms, and data analysis techniques using SEM AMOS 24. The research results prove that RM which consists of trust, commitment, communication, and conflict handling has a positive and significant effect on e-customer loyalty through e-customer satisfaction. This means that to further increase customer satisfaction for them to be loyal, the repair company must be able to maintain good relationships by providing a good level of trust, commitment, communication, and resolve conflicts that occur. Keywords: banking industry, commitment, communication, conflict handling, relationship marketing (RM), trust

Determinants of Consumption Value on Intention to Use Shariah Mobile Banking: Exploring the Role of Consumer Preference

This study analyzes the use of mobile banking by both Islamic and conventional bank customers using the theory of consumption value. The aim of this research is to evaluate the factors influencing customers' decisions to use dual mobile banking services. The proposed hypothesis is that the intention to use Islamic mobile banking services is influenced by functional, conditional, social, emotional, and epistemic values mediated by consumer preferences. The method used is structural equation modeling with partial least squares (SEM-PLS) with a sample of 191 people, all of whom use both conventional and Islamic mobile banking. The results show that the theory of consumption value does not directly affect the interest in using mobile banking, either conventional or Islamic, except for the emotional value variable. Consumer preferences mediate the effect of functional, conditional, emotional, and epistemic values on the intention to use conventional mobile banking. Meanwhile, conditional, emotional, and epistemic values influence the interest in using Islamic mobile banking, which is mediated by consumer preferences. These findings indicate that the consumer's intention to use mobile banking is influenced by the theory of consumption value regardless of whether the service is Islamic or not. The implication of this research is that Islamic mobile banking services need to improve their service quality by considering consumer preferences and the theory of consumption value, thereby enhancing the usage of services by both conventional and Islamic bank customers.

Perceived Financial Transparency and Loyalty in the Islamic Banking Sector of Pakistan: Exploring the Role of Trust and Age

The banking sector is the backbone of the global economic system. Islamic banking has emerged as crucial for the economic sector of all developing as well as developed countries. Investment in Islamic avenues is based on the trust and perception of local consumers. This study examines the relationship between the Perceived Financial Transparency of Islamic Banks (PFT) and Loyalty with Islamic Banks (LB). Furthermore, the study examines the mediating role of perceived trust and the moderating role of age. Moreover, the moderated mediation role of age is examined between PFT and perceived value. Data was collected from the 424 consumers of Islamic banks working in Pakistan and was analyzed through PLS-SEM. Results of the study reported a significant and positive relationship between PFT and perceived trust. Similarly, results reported that perceived trust leads to loyalty. Moreover, in terms of mediation analysis results reported that perceived trust significantly mediates between PFT and brand loyalty. Additionally, the moderation results reported that age significantly moderates between PFT and perceived trust. This study will benefit the banks and policymakers to devise policies according to the changing demands of the customers. Moreover, it will encourage conventional bank customers to invest in Islamic banks and other Islamic investment avenues.

Switching intention of conventional bank customers to Sharia bank based on push-pull-mooring theory

PurposeThis study aims to see the variables of customer satisfaction level, attractiveness of alternatives, subjective norms and level of religiosity of conventional bank customers in West Java and their effect on switching intentions.Design/methodology/approachA causality description technique with a quantitative approach is used in this research. The analytical technique used is partial least square-structural equation modeling with a sample of 320 respondents from conventional bank customers in West Java.FindingsThe results revealed that the level of customer satisfaction and subjective norms were in the medium category, whereas the level of alternative attractiveness, religiosity and switching intentions was in high level. The level of customer satisfaction harms switching intentions, whereas the level of alternative attractiveness and religiosity variables have a positive effect on switching intentions. In contrast, the subjective norm variable does not affect switching intentions. Therefore, customer satisfaction, the attractiveness of alternatives and religiosity are essential points to cause someone to have the intention to switch.Practical implicationsFor stakeholders, especially the government or the Islamic banking industry, to improve the climate of the Islamic finance industry in Indonesia, in particular, to increase knowledge and insight from the public regarding the intention to switch conventional bank customers to Islamic banks.Originality/valueThe use of the religiosity variable as an independent variable on switching intentions is still rarely done. Hence, the authors combine this variable with customer satisfaction, alternative attractiveness and subjective norms. The update in this study also places conventional bank customers included in the millennial generation and generation Z categories who live in the province of West Java as research subjects.

Do product offering and service quality affect customer satisfaction in Islamic and conventional banks? Evidence from an oil-based economy

Purpose This paper aims to investigate the effect of product offering and other service quality (SQ) dimensions on the satisfaction of the customers of both Islamic and conventional banks, using evidence from an oil-based economy that is based on a prolonged SERVQUAL model with 11 dimensions and other statistical analysis methods. Design/methodology/approach The data were collected from 461 Islamic and conventional bank customers in Qatar via a survey and several tests were used to test certain hypotheses. Component analysis, factor analysis and gap and ascendency analysis were used in this study. Afterward, a correlation analysis and regression model were used to examine the hypotheses and validate the instruments used. Findings The results show that regardless of the type of bank, customers always have greater expectations of the services than they had perceived. A customer’s expectation of the product on offer is the only dimension that is significantly different in relation to the two types of banks. However, reliability, competence, responsiveness, credibility and empathy dimensions are significantly different of the two types of banks in customers’ perception of quality. In addition, the results suggest that both types of banks need to concentrate their efforts on the product offering, competence and courtesy dimensions. Research limitations/implications The size of our sample of Islamic and conventional banks is unequally balanced. Future studies might therefore choose an equally balanced sample. Practical implications Bank managers in both types of banks need to continue improving the quality of their service including product offering and to adopt advanced methods to enhance customer satisfaction (CS) and reduce the gaps in quality in the dimensions used. Furthermore, managers in both types of banks need to put more emphasis on product offering, competence, courtesy and communication if they wish to improve SQ. Moreover, Islamic banks must guarantee that they possess competent, highly trained personnel who are familiar with Islamic finance products, so as to enhance the quality of service and attract customers. Originality/value To the best of the author’s knowledge, this is the first study to investigate the effect of product offering and other dimensions of SQ on CS in both Islamic and conventional banks by using 11 dimensions of SQ. In addition, it provides evidence of gaps in SQ, at the dimensions level, for both types of banks in an oil-based economy. The results of this study are valuable in helping decision-makers and bank managers who wish to raise the level of SQ and improve CS and in validating the results from other countries with a dual financial system.

Pengaruh Pengetahuan, Tingkat Pendidikan, dan Pendapatan Terhadap Preferensi Nasabah Dalam Mengambil Keputusan Menjadi Nasabah Bank Konvensional

The purpose of this study is to analyze the influence of knowledge, education level, and income on customer preferences in making decisions to become Conventional Bank customers. The sample used was 50 customer respondents from PT. Bank Central Asia, Tbk. The data used in this study was obtained from the results of filling out questionnaires by respondents. The research method used in this study is quantitative. The results showed that: (1) there was an influence between knowledge and preferences with a significant value of 0.000 < 0.05; (2) there is an influence between education level and preference with a significant value of 0.044 < 0.05; (3) there is an effect between income and preference with a significant value of 0.016 < 0.05; and the results of the submission of the coefficient of determination showed an R square value of 0.708 which means that as many as 70.8% of variables are bound to preferences for independent variables, namely knowledge, education level, and income while other factors 29.2% are influenced by other factors that are not studied.

The Customer’s Perception Towards Islamic and Conventional Banks in Algeria

This study aims to know the perception of customers towards Islamic and conventional banks in Algeria, and to help banks operating in Algeria focus on the most important factors for customers, improve their ways of dealing with customers, and focus on these standards in its promotional program to reach the target segment. In order to achieve this, the researcher has chosen a random sample of (203) size from customers of Islamic and conventional banks in Algeria, the questionnaire was approved to collect data, and it was subject to honesty and reliability standards. The researcher used one approach to analyze the results of the research; the first is the descriptive analytical approach to answer the research question. The study reached several results, the most important of which are the following: 1. The majority of customers are fully aware of the principle of Islamic and conventional banking in Algeria. They were able to answer all the questions related to customer perception, which indicates their good understanding of the Islamic and conventional banking principle. In other words, the higher the awareness, the more effective the customer awareness of Islamic and conventional banks.

The role of CSR practices in generating consumer perceived value: empirical evidence from Moroccan banking sector

PurposeCorporate social responsibility (CSR) has a positive impact on consumer behavior; however, how CSR affects consumer perceived value (CPV) has been neglected. The purpose of this paper is to examine the effect of CSR on CPV. More specifically, this paper investigates how the dimensions of CSR can generate the three types of CPV.Design/methodology/approachThis research is confirmatory and therefore quantitative. Thus, the choice fell on the questionnaire survey of 108 customers of conventional banks in Morocco. The partial least square method was chosen for the data analysis.FindingsThe results show that the link between CSR and customer perceived value can vary according to the CSR dimension. This study finds that the economic dimension is the only one to contribute the three types of CPV (functional value, emotional value and social value). The environmental dimension affects only the functional value. The social dimension does not generate any value.Research limitations/implicationsCSR is not the only variable that generates CPV. The consideration of other constructs seems to be considered. Restricting this study to a single category of banking customers and to a single sector is another limitation. Future research might replicate this study on a sample of clients from participatory banks as well as from other sectors.Practical implicationsThe results can help Moroccan banks identify the dimensions of CSR that can meaningfully generate CPV. This will help them to increase customer loyalty, develop a competitive advantage and improve their performance by prioritizing CSR initiatives capable of creating value for consumers.Originality/valueNo previous research in Morocco, to the best of the author’s knowledge, has explored the effect of CSR on CPV. This paper therefore provides the first empirical evidence in North Africa on the link between CSR and CPV in Morocco. This study also extends previous studies by considering CSR as a multidimensional construct covering three dimensions (social, environmental and economic).

The impact of electronic banking services on the use of technology by customers of conventional and Islamic banks in Jordan

The aim of this study was to examine and determine the impact of electronic banking services on the use of technology by customers of conventional and Islamic banks in Jordan. For the current study, a random sample of 580 customers in Jordanian conventional and Islamic banks was selected using the quantitative research methodology, and in order to gather the necessary data, the study employed a survey questionnaire instrument that was developed based on the earlier relevant literature and studies. The results of this study showed that perceived ease of use (PEU), perceived utility (PU), simplicity of use (SU), and social influence (SI) all significantly affected the use of technology in Jordanian conventional and Islamic banks.

COMPETITION IN BUSINESS: ANALYSIS OF FACTORS AFFECTING CUSTOMERS SWITCHING INTENTION OF CONVENTIONAL BANKS TO ISLAMIC BANKS IN CENTRAL JAVA

This study uses a combination of two theories, namely Theory Reasoned Action (TRA) and Theory Push-Pull-Mooring (PPM). This study aims to determine the effect of religious attitude, alternative attractiveness and subjective norm on customers switching intention. The research method used is quantitative. This study uses primary data distributed to respondents with purposive sampling technique. The population in this study are Islamic bank customers who have previously been customers of conventional banks in Central Java who are Muslim. The sample used is 100 respondents obtained through distributing questionnaires. This research uses multiple regression analysis technique with Smart-PLS software. The results of hypothesis testing indicate that religious attitude, alternative attractiveness and subjective norm have a positive and significant effect on customers switching intentions on Islamic bank customers. The result of the highest influence is shown by the subjective norm variable with a regression coefficient value of 0,375 with a significance value of 0,000. This means that a person's intention to perform a behavior can be built through their social environment. The greater the support from the social environment such as family, friends, neighbors and religious leaders can influence the intention of conventional customers to immediately switch to Islamic bank.

Exploring the level of Awareness, Understanding and Willingness of Non-Muslims in Patronizing Islamic Banking in Nigeria

The study explored the level of awareness, understanding and willingness to patronize Islamic banking products and services among non-Muslims in Nigeria. The study adopted purposive sampling technique while primary data were collected using structured questionnaire to elicit information from 65 respondents who are customers of conventional banks that have branches in the University of Benin. Data was analyzed using descriptive analysis (simple percentage). The results show that 67.7% of the respondents were not aware of the existence of Islamic banking in Nigeria. Findings from the study also showed that majority of the respondents have little or no understanding about Islamic banking system and operation. Furthermore, the willingness level of using Islamic banking products and services is low among the non-Muslim. Furthermore, one of the demographic variables considered in the study (i.e., age) significantly affects the respondents’ level of awareness regarding Islamic banking products and services. The study recommended among others that religious bodies should take part in the campaign to clear the various misconceptions and fears of the non-Muslims regarding Islamic banking in Nigeria. Also, more publication on Islamic banking subject should be made publicly available in order to raise the level of understanding and awareness as well as to improve their knowledge regardless of age and level of education amongst Non-Muslims on Islamic banking concept and operations.

Comparison of Risk Tolerances and Investment Decisions of Participation Bank Customers and Conventional Bank Customers

This study investigates the structure of financial risk tolerances and risk perceptions of participation and conventional bank customers. Our results show that conventional bank clients have a higher average in both overall risk tolerance and financial risk tolerance. This means that participation bank clients are more risk-averse. However, the basis of the participation account includes profit-loss sharing, namely, risk sharing. Therefore, participation account holders were expected to be more risk-taking investors. The results show the opposite and support the managers and employees of participation banks who claim that their customer portfolios are not ready to invest in riskier products such as mudaraba and musharakah.

A Comparative Study between Islamic Banks and Conventional Banks in Bangladesh Based on Satisfaction of Debit Card Users

This study is about the measuring of customer satisfaction on debit card use where little attention has been paid to this issue in Bangladesh. Previous studies on Islamic banks and conventional banks were focused on different determinants of customer satisfaction but very few studies on debit card user. The research aim is to identify the level of debit card user satisfaction and its determinants between Islamic banks and conventional banks. For this purpose, a well-planned questionnaire was developed to ensure success and also by providing questionnaires to 300 debit cards holder from Islamic banks and traditional banks using the convenience sampling technique. In this study, bi-variate and regression model were employed to identify the important predictors that affected customer satisfaction regarding debit cards of both types of banks. The study discovered that the customers of conventional banks were more pleased with the overall quality of service than that of Islamic banks were providing. More importantly, traditional banks had security and responsiveness as the driving forces, whereas Islamic banks, as an exception, availability of money and transaction cost were considered less important in customer satisfaction. The most important measures represent the procedures banks may use to tailor their services to individual consumers' needs.

The function of the attitude of Islamic banks in coastal societies in mediating the effect of emotional attachment on the continuance intention of Islamic banks

This study aims to analyse the factors that cause the reluctance of Islamic bank customers in coastal areas to be loyal to the particular banks. The population in this study are conventional bank customers who live in Aceh, North Sumatra and Riau. The sample size in this study was 350 respondents. Sampling was carried out using a stratified random sampling method with the following proportions: Aceh 25%, North Sumatra 50% and Riau 25%. In this study, the sampling method used the census technique. Data analysis used SEM (Structural Equation Modelling) to verify the path of the relationship between variables. The results showed that of the 3 direct hypotheses tested, the effect of Emotional Attachment on Attitude. The effect of emotional attachment on continuance intention, the effect of Attitude on continuance intention, all of which show a significant effect. The significance that occurs in this direct test indicates that there is a match between the research model developed and the facts in which this research was conducted. On the indirect effect tested, although it showed significant results, the role of attitude in mediating the effect of emotional attachment on continuance intention through attitude is partial.

Investigating Structural Relationships among Service Quality Dimensions, Customer Satisfaction, and Customer Loyalty for Conventional Bank Customers: Evidence from Bangladesh

Customers of the banks are highly servicing sensitive in Bangladesh. The quality of service has become an integral part of customer satisfaction. Day by day, It has been demonstrated that customer satisfaction and loyalty are linked to service quality. There is also a link between service quality and customer satisfaction, and customer loyalty in banks. Therefore, this paper investigated the effect of service quality factors on customer satisfaction and the relationship between customer satisfaction and customer loyalty in conventional banks in Bangladesh. A survey was conducted on 13 different conventional banks in Bangladesh. Using simple random sampling, 220 customers were selected as a sample from selected conventional banks for this study. The research was carried out using a structured questionnaire. The SPSS software was used to analyze the demographic data. Multivariate analysis technique like Factor Analysis and Structural Equation Modeling (SEM) was used to identify the influential factors for the bank's customer loyalty by using SmartPLS3 software. The study found that all service quality factors such as assurance, reliability, responsiveness, and tangibility are the influential factors except empathy.

Selection Criteria for Conventional and Islamic Banks: An Empirical Analysis

The current study investigates the bank selection criteria used by the customers of both the conventional and Islamic banks of Pakistan. From six different cities, a sample of 1000 customers was selected in order to find out the factors influencing their selection of a bank. The results showed that “Security of Money” was considered as the most important factor in the selection of banks, both by the customers of conventional and Islamic banks. The results also revealed that the customers of Islamic banks ranked “Competence of Staff”, “Online Banking Facility”, and “Confidentiality of Information” as the second, third and fourth most important factors in the selection of their respective banks. On the other hand, the customers of conventional banks emphasized “Availability of ATM Machines”, “Quick Service”, and “Friendly Behavior of Staff” as the second, third and fourth most important factors in bank selection. Further, the customers of Islamic banks ranked “Shari’ah Compliance” as the seventh most important factor, while the customers of conventional banks ranked it as the twentieth important factor out of the total twenty-five factors. Thus, to retain the existing customers and to attract new ones, both Islamic and conventional banks need to focus on customer preferences when offering their products.

Selection Criteria for Conventional and Islamic Banks: An Empirical Analysis

The current study investigates the bank selection criteria used by the customers of both the conventional and Islamic banks of Pakistan. From six different cities, a sample of 1000 customers was selected in order to find out the factors influencing their selection of a bank. The results showed that “Security of Money” was considered as the most important factor in the selection of banks, both by the customers of conventional and Islamic banks. The results also revealed that the customers of Islamic banks ranked “Competence of Staff”, “Online Banking Facility”, and “Confidentiality of Information” as the second, third and fourth most important factors in the selection of their respective banks. On the other hand, the customers of conventional banks emphasized “Availability of ATM Machines”, “Quick Service”, and “Friendly Behavior of Staff” as the second, third and fourth most important factors in bank selection. Further, the customers of Islamic banks ranked “Shari’ah Compliance” as the seventh most important factor, while the customers of conventional banks ranked it as the twentieth important factor out of the total twenty-five factors. Thus, to retain the existing customers and to attract new ones, both Islamic and conventional banks need to focus on customer preferences when offering their products.

BSI COMPETITIVE STRATEGY AFFECT PURCHASING DECISIONS OF CONVENTIONAL BANK CUSTOMERS IN INDONESIA

This study tries to explain and analyze what strategies Bank BSI has in its competitive process, and how it affects the purchasing decisions of conventional bank customers. The study of competitive strategy at BSI bank is very strategic to discuss because it is a study of contemporary issues and is urgently needed at a time when Islamic banking institutions are becoming mainstream for customers in Indonesia. This research is reveal that The cost leadership variable has a positive and significant effect on purchasing decisions at Bank BSI. Variable differentiation has a significant positive effect on purchasing decisions at Bank BSI, which means that the better differentiation at Bank BSI, it will not improve purchasing decisions. customer. variable focus has a positive and significant effect on purchasing decisions on BSI bank products, which means the better the focus at BSI Bank, the better purchasing decisions will be. The limitation of this research is that it has not conducted experimental research related to consumer psychology. In-depth research on consumers needs to be done qualitatively with a phenomenological approach. In addition, the population space is very small so that the sampling technique only makes cluster sampling limited to one area so that it is possible to choose a larger cluster sampling area.

EXPLORING ISLAMIC BANKING SWITCHING INTENTION

Islamic banking is developing quite rapidly, but its market share is still far behind conventional banks. The movement of customers from conventional banks to Islamic banks must be continuously improved. The transfer of conventional bank customers to Islamic banks is determined by the intention to move (Switching intention). Switching intention is an individual's desire or intention to switch services and is described as a signal and opportunity for customers to switch to new services. This study aims to analyze the factors that affect the switching intention of customers of Islamic banks in Malang City with a theory of planned behavior. This study uses a quantitative approach. The number of samples is 100 respondents. Data analysis using confirmatory factor analysis (CFA). The analysis results show that attitude, subjective norm, and perceived behavior control influence the switching intention of Islamic banks in Malang City. The attitude variable is the dominant factor affecting switching intention.

The effect of Muslims’ tendency to regret being customers of conventional banks on their intention to save money in Islamic banks

PurposeThere are some Muslims who only hold conventional bank accounts, regardless that some believe that such banks implement an interest charging system that contradicts Islamic law concerning the prohibition of charging interest. This study aims to investigate the consumers’ tendency to regret (CTR) related to purchasing conventional banking services (CTR-P) and the failure to purchase Islamic banking services (CTR-NP). Then, this study investigates whether CTR-P and CTR-NP translate into regret, which, in turn, leads to the intention to save money in Islamic banks.Design/methodology/approachA survey of Indonesian Muslims who only hold conventional banking accounts was conducted. There were 323 participants. This study then applied a partial least square structural equation modeling (PLS-SEM) to test the hypotheses.FindingsThis study found that a combination of CTR-P and CTR-NP translates into regret, which then drives the intention to save money in Islamic banks as a means of releasing such feelings of regret. The findings suggest that Muslims evaluate their banking decision on an Islamic basis and that making a decision that contradicts the prohibition of charging interest tends to cause regret. Islamic banks have opportunities to penetrate the market by focusing on Muslims who only hold accounts with conventional banks.Originality/valueThe findings of this study help advance understanding of Muslims’ negative emotional experience due to making a decision that they perceive contradicts Islamic law. Also, the findings help predict the strategy that Muslims use to neutralize such a negative emotional experience.