The Role of Religious Norms, Trust, Importance of Attributes, and Information

Journal of Islamic Marketing
The role of religious norms, trust, importance of attributes, and information sources in the relationship
between religiosity and selection of the Islamic bank
Hardius Usman, Prijono Tjiptoherijanto, Tengku Ezni Balqiah, I Gusti Ngurah Agung,
Article information:
To cite this document:
Hardius Usman, Prijono Tjiptoherijanto, Tengku Ezni Balqiah, I Gusti Ngurah Agung, (2017) "The role of religious norms,
trust, importance of attributes, and information sources in the relationship between religiosity and selection of the Islamic
bank", Journal of Islamic Marketing, Vol. 8 Issue: 2, doi: 10.1108/JIMA-01-2015-0004
Permanent link to this document:
http://dx.doi.org/10.1108/JIMA-01-2015-0004
Downloaded on: 01 May 2017, At: 19:21 (PT)
References: this document contains references to 0 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 3 times since 2017*
Downloaded by Australian Catholic University At 19:21 01 May 2017 (PT)
Access to this document was granted through an Emerald subscription provided by emerald-srm:401304 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please
visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication
Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
*Related content and download information correct at time of download.

The role of religious norms, trust, importance of attributes, and information
sources in the relationship between religiosity and selection of the Islamic
bank
Abstract
Purpose This paper aims to examine the assumption used in previous studies that all Muslims
adopt and believe the same law on the prohibition of bank interest, and to investigate the indirect
effect of religiosity on customers decision for using the Islamic banking services.
Design/methodology/approach It employs an exploratory approach and the natural
experimental design with Seemingly Causal Models. A total 363 questionnaires were distributed
to the three groups of bank customers, i.e. Islamic banks customers, conventional banks
customers, and customers of both banks (121 respondents in each group).
Findings The results show that the role of religiosity in the customers decision for using the
Islamic banking services depends on religious norms variable. Religiosity affects the decision of
customers in the traditional group, but it does not have some effect for the contemporary group.
Other findings suggest that religiosity indirectly affects the decision for using the Islamic banks
through intervening variables of trust and information source.
Originality/Value This is the first paper to investigate the relationship between religiosity and
customers decision for using the Islamic banking services by considering the religious norm
variable. This paper is also examining indirect affects of religiosity to the Islamic banks choice
through intervening variables of trust and information source.
Keywords: Religiosity, Islamic Bank Selection, Religious Norms, Trust, Information Source,
Importance of Attributes
INTRODUCTION
Hirschman (1981) and LaBarbera and Gurhan (1997) state that religion is a sacred value
having strong influence on the emotions, experiences, thoughts, behavior and psychology of a
person as a consumer. Therefore, some literature recommends that the study of marketing should
include religious factor, because it deals with many aspects of life and consumer behavior
(Bailey and Sood, 1993; McDaniel and Burnett, 1990; Wilkes, Burnet and Howell, 1986).
Although many previous empirical studies (Hirschman, 1981; 1982a; 1982b; 1982c;
1983; 1985; Bailey and Sood, 1993; Kamaruddin, 2007) found the existence of influence of
religion on consumer behavior, several other studies (Heiman, Just, McWilliams and Ziberman,
2004; McDaniel and Burnett, 1990) showed that, in some areas of buyer behavior, religion does
not have significant effect. These findings indicate the insufficiency of religion in explaining the
influence of religiosity on consumer behavior (Heiman, et al, 2004).
Reality shows that, even among individuals in the same religion, there is heterogeneity in
their faith and commitment to practice religious teachings. Johnson, Jang, Larson, and Li (2001)
stated that the impact of religion on consumer behavior depending on the level of commitment to
religion or known as religiosity, which reflect the attitudes and behavior of individuals.
Furthermore, Delener (1994) stressed that religiosity is an important value that can influence the
behavior of individuals. Thus, consumer behavior will depend on religiosity itself (Sood and
Nasu, 1995).
Although religiosity has been suggested to be strongly associated with specific aspects of
consumer behavior (Mc Daniel and Burnett, 1990; Hirschman, 1983; Wilkes, Burnett, and
Howell, 1986), very little attention has been paid to this relationship (Cutler, 1991; Delener,
1994). Nevertheless, since late 1990s, there has been a growing number of research on religiosity
in the consumer behavior discipline, particularly in the Islamic banking context (e.g. Butt,
Saleem, Ahmed, Altaf, Jaffer and Mahmood, 2011; Idris, Naziman and Januri, 2011).
The market for Islamic banking services has been growing rapidly over the past few
years, and this robust growth is expected to continue for the foreseeable future (Vayanos,
Wackerbeck, Golder, and Haimari, 2008). The Islamic Bank is a banking system that operates
under Islamic law, or known as 'sharia' (Haque, Jamil and Ahmad, 2007; Hassan, Chachi and
Latiff, 2008; Marimuthu, Jing, Gie, Mun, and Ping, 2010; Manzoor, Aqeel and Sattar, 2010;
Idris, et al, 2011). Thus, it is reasonable for researchers to use religiosity as one of the key
variables that might explain why consumers choose Islamic bank over conventional bank.
Under the Islamic law, the Islamic banks are prohibited to trade based on interest (Haron,
1997; Manzoor, et al, 2010; Idris, et al, 2011), which is the basic distinction between Islamic
banks and conventional banks (Hassan, et al, 2008; Manzoor, et al, 2010). In other words, the
Islamic banks adopt sharia compliant finance system, prohibiting acceptance of specific
interest for loans, known as riba. Thus, religiosity should have encouraged individuals to use
Islamic banks, and prevent individuals from using conventional banks.
However, previous studies on the relationship between religiosity and Islamic banks
show inconclusive finding. Some researchers (Metawa and Almossawi, 1998; Almossawi, 2001;
Othman and Owen 2001; Khoirunissa, 2003; Bley and Kuehn, 2004; Zainuddin, Jahyd and
Ramayah, 2004; Okumus, 2005; Dusuki and Abdullah, 2007; Ahmad, Rahman, Ali and Seman,
2008; Haque, Osman, Zaki, and Hj, Ismais, 2009; Manzoor, et.al., 2010; Sheikh, Taseen,
Haider, and Naeem, 2010; Butt, Saleem, Ahmed, Altaf, Jaffer, and Mahmood, 2011; Idris, et al,
2011) argued that religiosity is an important factor in influencing customers to use Islamic banks
for various banking services. On the contrary, other studies (Erol and El-Bdour, 1989; Erol,
Kaynak, and El-Bdour, 1990; Haron, Ahmad, and Planisek, 1994; Gerrard and Cunningham,
1997; Naser, Jamal, and Al-Khatib, 1999; Jalaluddin and Metwally, 1999; Zaher and Hassan,
2001; Awan and Bukhari 2010; Marimuthu, et al, 2010) suggested opposite opinion that there is
no relationship between customers religiosity and their decision of using Islamic banking.
It is of importance to note that in Indonesia, the Islamic banking has also been growing
rapidly. Based on the Indonesian Banking Statistics, number of accounts in Islamic banks
increased significantly, from 1,964,438 accounts in 2006 to 13,430,904 accounts in June 2014. In
addition, Third Party Funds (TPF) has experienced a relatively high increase, from 11,862 billion
dollars in 2004 to 183,534 billion in 2013.
Although Islamic banks in Indonesia have undergone a rapid growth in terms of the
number of accounts and TPF, this phenomenon did not bring about a negative impact for
conventional banks. In fact, deposits of conventional banks increased from 963,106 billion
dollars in 2004 to 3,663,968 billion dollars in 2013 (Bank Indonesia, 2014). This condition raises
a question: "Are the majority of Indonesian Muslims are not religious?"
Adopting the statement by Delener (1994), previous studies showed that the role of
religiosity on the selection of Islamic banks could be characterized as unclear or fuzzy. One of
the fundamental problems in examining the relationship between the religiosity and the
consumer choice, particularly the selection of Islamic banks, is the assumption that everyone in a
religion adopts and believes the same law. Since the law on the prohibition of interest is not
explicitly written in the Koran, the Islamic Leaders, known as ulamas, make consensus to
address this critical issue that newly turns up in our modern life. At this point, sometimes there
are different views among the ulamas about the meaning ofsharia compliant finance in the
Islamic banking practices.
All Muslims agree that riba is forbidden, because it is explicitly written in the Koran (Ar-
Rum: 39; An-Nisa: 161; Al-Imran: 130, and Al-Baqarah: 275, 276, 278). However, when the
riba is associated with the bank interest, the debates over the concept of riba in Koran are
inevitable. Although, in Pakistan in 1970, the Organization of the Islamic Conference (OCI)
agreed that the interest charged by the conventional banks is against the Islamic law, some
ulamas believe that the bank interest is not necessarily unlawful.
Rahman (1982), for instance, argued that according to scholars under the Islamic
Modernist School of Thoughts, the expenses incurred due to the extra costs or bank interest,
especially in the borrowing and lending of money is permitted if: (1) the loan does not aim to
exploit the weak; (2) the loan does not follow practices of the pre-Islamic era; (3) the interest
rates is reasonable; (4) the loan is for investment not consumption; (5) the interest is to
compensate losses to creditors due to inflation ; and (6) the loan is for credit institutions.
Religious norms are principles held by individuals in line with the beliefs perceived by
their religious leaders (Stephenson, Morgan, Roberts-Perez, Harrison, Afifi, and Long, 2008).
Individuals who believe that the interest is prohibited tend to choose Islamic banks. On the
contrary, individuals who believe that the bank interest is not (always) prohibited would choose
any bank.
It is important to note that religious norms have never been taken into account in the
study of religiosity, particularly in the context of the Islamic banks. It might be argued that the
inconclusive result of previous studies is very likely caused by these factors. Thus, the main
purpose of this research is to study the role of religious norms in the relationship between the
religiosity and the selection of Islamic banks.
The effect of religiosity on the consumer behavior can be direct and indirect (Harrell,
1986; Siguaw and Simpson, 1997). In this study, the observed consumer behavior is the selection
of Islamic banks. Therefore, this study, in addition to the direct effect, would also examine the
indirect effect of religiosity on the selection of Islamic banks.
The Shopping Preference Theory (Sheth, 1981) and Patronage Model of Consumer
Behavior (Darden, 1980) show the importance of attribute and the information source as
mediating variables. Previous empirical research (Erol, et al, 1990; Gerrad and Cunningham,
1997; Sultan,1999; Khoirunissa, 2003; Amin, 2008; Manzoor, et al, 2010; Marimuthu, et al,
2010; Idris, et al, 2011; Thambia, Eze, Santhapparaj and Arumugam, 2011; Hamid, Yaakub,
Mujani, Sharizam, and Jusoff, 2011) supports the view of the key role of both variables as
factors behind the selection of Islamic banks.
Furthermore, taking into consideration the Trust and Commitment Theory (Morgan and
Hunt, 1994), this study also uses the trust as one of mediating variables. Indeed, trust is argued to
be a key to building customer relationship (Jones, Wilkens, Morris and Masera, 2000), and it has
an important role in establishing a long-term exchanges (Berry, 1983). Trust is the heart to all
forms of relationships and central to relationship marketing (Morgan and Hunt, 1994).
Unfortunately, although trust is so important, research on Islamic banks have not used this
variable.
LITERATURE REVIEW
RELIGIOUSITY
McDaniel and Burnett (1990: 103) defined religiosity as a degree of belief in God, and
followed by believing and practicing principles set forth. Religiosity is a personal element that is
embedded in the human character (Hunt and Vitell, 1986), and it has an impact on the behavior
and attitudes (Weaver and Agle, 2002; Vitell, Paolillo and Singh, 2005; Abou-Youseff, Kortam,
Abou-Aish and El-Bassiouny, 2011).
A survey of 300 Muslims in the UK was conducted by Omer (1992) to study the factors
concerning patronage and awareness of the Islamic banking method. The main finding of this
study is the lack of knowledge and information about Muslim principles towards the Islamic
finance. Therefore, religious motivation is a significant factor in the context of using the Islamic
banking services. In addition, Omer (1992) also reported that higher religious commitment and
lower public education have brought about more preferences on Islamic banks.
Metwally (1996) examined the attitudes of Muslims towards the Islamic banks in three
Arab countries adopting a dual-banking system, namely: Kuwait, Saudi Arabia and Egypt. This
study indicates that there is no significant difference between the Islamic banks and the
conventional banks in terms of benefits and costs of products and banking services, competence
of staff and speed of service. Thus, the selection of Islamic banks might simply due to religious-
related reasons.
Based on 550 respondents in the Peninsular Malaysia, Haque (2010) revealed that,
compared with the non-Malays, when choosing the banks, the Malays paid more attention to
both religious and profitability reasons. The study by Okumus (2005) in Turkey observed that
the majority of Islamic bank customers viewed the religious factor as the primary motivation in
using the products and services of Islamic banks.
In addition, research among 480 Muslim workers in the Klang Valley of Malaysia found
that workers with higher degree of religiosity tend to choose Islamic banks (Ahmad, Rahman,
Ali and Seman, 2008). Study in Bahrain with a sample of 655 customers of Islamic banks also
showed that religiosity is an important factor for customers decision in choosing the Islamic
banks (Reeves and Bednar, 1996). Finally, Idris, et al (2011) in their study of 250 Islamic bank
customers on the East Coast of the Peninsular Malaysia also indicated that the religious values
are the most important factor.
Although the above studies confirmed the role of religious factors in the selection of the
Islamic banks, some other studies, however, showed different results. Haron, et al (1994), for
instance, argued that only 38.7 percent of respondents indicated the religion as the main reason
for using Islamic banks. Erol and El-Bdour (1989) conducted a study on the attitude of customers
towards Islamic banks in Jordan, and discovered that the bank customers were generally profit-
motivated. Erol, et al (1990) replicated the survey to explain the behavior of bank's customers in
Jordan. The results of this study were not different from previous studies (Erol and El-Bdour,
1989), suggesting that the religiously motivated attitude did not have significant impacts on the
use of the entire the Islamic banking services. This conclusion is supported by Awan and
Bukhari (2011), who conducted a field survey with a sample of 250 customers of Islamic banks
in four major cities of Pakistan.
Another study conducted by Marimuthu, et al (2010) examined the reasons for selecting
the Islamic banks, using a questionnaire with 450 respondents in the Klang Valley. It showed
that the cost-benefit, the services provided, the convenience and the influence of friends were the
major determinant in using the Islamic banks. Thus, religious background did not seem to have
any significant impact on the selection of Islamic banks.
RELIGIOUS NORMS
In previous studies, researchers assumed that individuals within a religion have the same
beliefs. This is in line with the opinion proposed by Azra (2005) stating that people generally
perceive that two billion Muslims in the world adopted the same Islamic religious beliefs and
practices. In fact, different opinions would not be avoided among the Muslim community across
the world, because there are differences in history, tradition, and culture.
The main sources of the Islamic law are the Koran and Hadith. Every Muslim believes
that the Koran is the word of Allah, revealed to the Prophet Muhammad. While Hadith describes
the behavior of the Prophet Muhammad: what he said, what he did, what he saw and what he
decided during his life (Gatrad and Sheikh, 2001; Padela, 2007), including the approval of which
was not spoken by the Prophet, plus all the statements that describe his physical attributes and
character (Kamali, 1991). Since the Prophet Muhammad's death, Muslim leaders have made a
new source of the Islamic law called as Fatwa, which is intended to deal with new issues or
phenomena that arise with changes in time and culture (Hashim and Mizerski, 2010).
Although Islam has provided clear directions between Halal (permitted) and Haram
(forbidden) (Al-Qaradawi, 1999), the debates on the various issues are unavoidable because
many of the current issues are not explicitly commanded or forbidden. The fact that the Koran
explicitly communicated in Arabic (Al-Nahl: 30), leads to some divergences of the
interpretation, especially when it is translated into non-Arabic languages. In addition, none of the
institutions has the right to issue a universal Islamic law. Hence, it is possible to observe
different interpretations of the Islamic law among various Islamic institutions.
All Muslims agree that the riba is prohibited, because it is explicitly written in the Koran
(Ar-Rum: 39; Al-Nisa: 161; Al-Imran: 130, and Al-Baqarah: 275, 276, 278). However, when the
riba is associated with the bank interest, debates over the concept of the riba in Koran is
inevitable. As has been pointed out, the Islamic Traditionalist School believes that the bank
intersest is riba, and Islamic Modernist School believes that the bank interest is permitted under
certain conditions (Rahman, 1982). In this study, bank customers who believe Islamic
Traditionalist School opinions classified as traditional group, and bank customers who believe
in Islamic Modernist School classified as a contemporary group.
In the Theory of Reason Action, the subjective norms refers to the perceived social
pressures to perform or not to perform a certain behavior, which determined by the normative
belief, that is among others determined by the common norms believed by referential religious
leaders (Fishbein and Ajzen, 1980). Consistent with Ajzen (1985), perceived religious norms are
what one perceives as the beliefs of his or her religious leader. Hence, those who are influenced
by religion may regard their spiritual leaders highly when contemplating the decision (Morgan,
2004). This is the reason why this study uses the variable religious norms to explain the
relationship between religiosity and the selection of Islamic banks.
IMPORTANCE OF ATTRIBUTE
The purpose of using the importance of attributes variable is to detect which attributes are
important to consumers (Nevin and Houston, 1980). It is very valuable that the company knows
about the needs and desires of consumers. In the Theory of Reason Action, the attitude is a
function of: (a) consumers' perceived to the importance of attributes; and (b) consumers'
perceptions of the attributes (Fishbein and Ajzen, 1980). Hence, consumers will evaluate
whether the relative importance of attributes is in line with their perceptions. If both the
evaluation and perception are matched, the bank will be selected; otherwise the bank will not be
selected.
A sample of 301 Muslim and non-Muslim commercial bank customers in Alor Setar,
Sungai Petani, and Kangar towns was surveyed by Haron, et al (1994). The most important
factor considered by Muslims when selecting their financial institutions is fast and efficient
service and this factor was ranked second by non-Muslims. Friendliness of bank personnel,
considered as the most important factor by non-Muslims, while it is ranked third by Muslim
customers. Non-Muslims considered reputation and image of bank and reception received at
the bank as the third and the sixth important factors respectively, but Muslims ranked these
factors as the seventh and the fourteenth factors, respectively.
Mokhlis, Hazimah and Salleh (2008) conducted a study of 350 undergraduate students of
Universiti Malaysia Terengganu and they found that the ranking of the Bank Selection Criteria,
in the decreasing order of importance, are: (1) secured feelings; (2) availability of ATM service;
(3) financial benefits; (4) service provision; (5) proximity; (6) branch location; (7) non-people
influences; (8) attractiveness; and (9) people influences.
A study of 250 respondents was carried out by Awan and Bukhari (2011) in four cities of
Pakistan to examine customer awareness of key products/services being offered by the Islamic
banks. The data indicated that most customers value the product features and the service quality
as major factors for selecting the Islamic banks, while the religious belief is given lesser
importance as the influential factor in selecting the Islamic bank.
Other previous research has shown that the main criteria in selecting the Islamic banks
are the following. First is convenience (e.g. Kader, 1993; Metwally, 1996; Almossawi, 2001;),
followed by price (e.g. Manzoor, et.al., 2010; Thambia, et al, 2011; Hamid, Yaakub, Mujani,
Sharizam, and Jusoff, 2011), and services (e.g. Naser, Jamal and Al-Khatib, 1999; Dusuki and
Abdullah, 2007; Haque, Osman and Ismail, 2009; Marimuthu, et al, 2010).
Based on Shopping Preference Theory (Sheth, 1981) and Patronage Model of Consumer
Behavior (Darden, 1980), the religiosity has some influence on the importance of attributes.
Therefore, present study uses the importance of attributes as mediating variables. Both theories
do not explicitly put religiosity as explained variable, but personal values in Shopping Preference
Theory (Sheth, 1981), and terminal and instrument values in Patronage Model of Consumer
Behavior (Darden, 1980).
Religiosity can be considered as a substitute for a personal value in Shopping Preference
Theory (Sheth, 1981). He says that "An individual's personal values and beliefs about what to
look for when shopping for various products and services that reflect the shopper's personality
and may be determined by personal traits such as sex, age, race and religion" (Sheth, 1983, p.
23). This is why the study of Spigell and Sewall (1986) used religiosity as an antecedent variable
to explain consumer behavior in research in the field of retail.
Another theory in retail marketing, suggesting the relationship between the religiosity and
the consumers behavior, is called Patronage Behavior Theory (Darden, 1980). This theory
focuses on the use of personal attributes as the determinant factor, and does not suggest using the
religiosity explicitly to explain the consumers behavior. Instead, it puts forward the concept of
terminal and instrument values in the relationship. As of now, only Mokhlis (2006) has ever used
the religion and religiosity as antecedent variables for representing terminal and instrument value
in his research on the shopping patronage for apparel products.
This present study uses only three dimensions in studying the importance of the bank
attributes, namely: convenience, price, and service. These three dimensions are most frequently
used as the main criteria for selecting banks.
INFORMATION SOURCE
Information searching is one of the steps in the consumer decision-making process for the
purchase (Kotler, 2000). Consumers can commonly use three major sources of information:
marketing, personal and neutral. Marketing source is a marketing device used to communicate
product information from producers/sellers to buyers. Sources include the product itself, the
packaging, the seller, the displays, the promotions, the advertisements and other sources under
the control of marketers (Hawkins, Best and Coney, 2001). Meanwhile, the personal sources
include all forms of interpersonal communications by which the product are not under the control
of marketers. In one's everyday interactions with other people, various aspects of the products
may be communicated. These sources include the influence of family, friends recommendation,
word-of-mouth and personal observations (Tan and Dolich 1983).
Studies of Islamic banks indicate that the information from friends and relatives showed
consistent results, which is the information has significant influence on the selection of Islamic
banks (Zainuddin, et al, 2004; Devlin and Gerrard, 2004; Tan and Chua, 1986; Khoirunissa,
2003). Meanwhile, the effect of marketing sources is still very limited. Haron, et al (1994)
suggested that the advertisements in the mass media are not important in bank selection.
TRUST
The importance of continued interaction between the sellers and the buyers has been long
recognized in the marketing as to create a mutually beneficial long-term relationship. For
maintaining a long-term relationship, trust is a crucial element. Morgan and Hunt (1994) stated
that trust is the heart of all forms of relationships. According to Morgan and Hunt (1994), trust is
defined as when one party trusts the reliability and integrity of the other parties. Furthermore,
Morgan and Hunt (1994) states that trust is formed when both parties has confidence to establish
honest and trustworthy relationships. Therefore, to create trust from the other party, trustee must
demonstrate quality. Mayer, et al (1995) states that to be trusted by 'others', the trustee must have
the ability, benevolence, and integrity.
Ability is the skill and competency possessed by the trustee, which is influential in some
specific domain. Integrity is the trustor's perception that the trustee has established principles in
accordance with the trustor (Mayer, Davis and Schoorman, 1995). Integrity can be defined by:
honest in the transaction (Hosmer, 1995; Mayer, et al, 1995; Koeszeig, 2004). While
benevolence is the belief that trustee will work well for the benefit of trustor (Mayer, et al, 1995).
Benevolence can also be defined as a person's dependence on the good wishes of the other party
to act in accordance with his wishes (Hoy and Tarter, 2004).
In the perspective of Islamic principles, Islam gives a very high emphasis on trust and
makes the 'trustworthiness' as a Muslim character (Iqbal and Mirakhor, 2007). Thus, the basic
philosophy of trust dimensions in the Islamic banking system can be seen as a symbol of reliable
(trustworthy), honest, fair, equal as a human being, and moral values, which are all built in the
business relationship between the banks and the customers (Hanafi and Sallam, 1997 ).
A number of studies on the relationship between trust and consumer behavior have been
carried out (e.g. Gudlaugsson and Eysteinsson, 2013; Maroofi, 2013; Dalafooz, et al, 2011;
Wahab, 2009; Flavian and Guinaliu, 2006; Bart, et al, 2005 ; Pavlou and Gefen, 2004; Gefen and
Straub, 2003; Mukherjee and Nath, 2003; Chaudhuri and Holbrook, 2001; Yoon, 2000;
Garbarino and Johnson, 1999). However, these studies were not focused in the context of the
study on the Islamic banks.
HYPOTESIS
As pointed out earlier, many studies did not support the argument that religiosity plays an
important role on the selection of Islamic banks. Nevertheless, this present study considers that
the Islamic bank is established on the basis of the Islamic principles, and ulamas have made a
fatwa or guidance for prohibiting the bank interest. Similar to previous studies, this study
assumes that individuals with higher degrees of religiosity tend to choose Islamic banks.
Based on this rationale, it proposes the following hypothesis:
H1a1: the Islamic bank customers are more religious than the conventional bank customers
H1a2: the Islamic bank customers are more religious than the customers who have accounts at
both banks.
In Islam, there are two groups who have different beliefs about the bank interest, namely
those who believe that bank interest is prohibited (hereafter called as the traditional group) and
those who have an opinion that the interest is allowed (hereafter called as the contemporary
group). Among the traditional group, it is assumed that the higher the religiosity, the higher the
preference for Islamic banks, because individuals with higher religiosity will be more obedient to
their faith. From this proposition, the hypotheses for the traditional group can be put forward, as
follows:
H1b1: the Islamic bank customers of traditional group are likely to be more religious than the
conventional bank customers.
H1b2: the Islamic bank customers of traditional group are likely to be more religious than the
customers who have accounts in both banks.
Among the contemporary group, they believe that they do not necessarily use the Islamic
banking services, as the religiosity does not affect them in making decision whether to use the
Islamic banks or conventional banks. Therefore, the hypothesis for this group is:
H1c: customers of the contemporary group who had bank accounts in the Islamic and
conventional banks, as well as in both banks have same degree of religiosity.
In the study of Islamic banks, the influence of trust towards the selection of Islamic banks
has not been studied extensively. However, studies by Erol and El-Bdour (1989), Erol, et al
(1990), Gerrard and Cunningham (1997), as well as Gerrard and Cunningham (2000) indicate
that trust in banks is one of the important criteria for selecting Islamic banks. Based on this
limited literature, the following hypothesis is proposed:
H2a: the Islamic bank customers have a higher degree of trust in Islamic banks than the
conventional bank customers.
H2b: the Islamic bank customers have a higher degree of trust in Islamic banks than the
customers who have accounts at both banks.
In addition, empirical studies show that convenience, price and services are the main
criteria in the selection of the Islamic banks (e.g. Almossawi, 2001; Thambia, et al, 2011;
Marimuthu, et al, 2010). Thus, the hypothesis to test the importance of the above attributes on
the selection of Islamic banks is as follows:
H3a: the degree of the importance of convenience, service and price for the Islamic bank
customers is higher than the conventional bank customers.
H3b: the degree of the importance of convenience, service and price for the Islamic bank
customers is higher than the customers who have accounts at both banks.
To study the influence of the information sources on the customers decision to choose the
Islamic banks, the present study uses two sources of information, namely marketing and
personal. The limited study mentioned above showed that the information source influences the
selection of the Islamic banks. Based on this argument, it is then hypothesized that:
H4a: the intensity to use marketing and personal sources among the Islamic bank customers is
higher than the conventional bank customers
H4b: the intensity to use marketing and personal sources among the Islamic bank customers is
higher than the customers who have accounts at both banks.
At present, there is no study that explicitly discusses the relationship between religiosity
and trust. Therefore, the hypothesis was formed based on the opinion of Delener (1994) on
religiosity, which states that one characteristic of people with high religiosity is they tend to be
dogmatic. This means that individuals who have a relatively high religiosity tend to do whatever
the religion has ruled without any hesitation. Hence, the following hypothesis is proposed:
H5: Customers who are more religious have a higher degree of trust towards the Islamic banks
than customers who are less religious.
McDaniel and Burnett (1990) and Mokhlis (2006) revealed that the religious commitment
affects consumers' evaluation on the importance of attributes. Meanwhile, Esso and Dibb (2004)
showed that religiosity affects the importance of product quality, service quality, price,
promotion, media search, and bargaining power. Another study conducted by Mokhlis (2008)
indicated that the degree of religiosity (low, medium, and high) is associated with the judgment
on the importance of merchandise, and prices in selecting the banks. Based on the above
empirical study, the following hypothesis is proposed:
H6: Customers who are more religious place a higher degree of the importance of convenience,
price and service than customers who are less religious.
Delener (1989) found that religiosity influences the search for external information and the
use of media for buying cars and microwave. This finding is supported by Mokhlis (2006) who
revealed the influence of religiosity on the usage intensity of information sources. Shin, Moon,
Park, and Kim (2011) stated that religious consumers tend to use social agents (family, friends or
colleagues, and the media) as the source of product information. Based on these few studies, it is
hypothesized, that:
H7: customers with a higher degree of religiosity are more likely to use marketing and personal
information sources.
METHODS
Population of study is Indonesia Muslim who has bank(s) account. The respondents were
conditioned as to be classified into three groups the Islamic bank customer group, the
conventional bank customer group, and the Islamic and conventional bank customer group.
Having established the number of respondents in each group of bank customers, then the
customers in each group is then classified into two classes according to dichotomous variable of
religious norms, namely: Traditional Group who believes in the prohibition of the bank interest
and Contemporary Group who do not believe in the prohibition of the bank interest. Thus, the
natural experimental design is a 3 x 2 factorial design with three groups of bank customers, i.e.
Islamic banks customers, conventional banks customers, and customers of both banks; and two
further groups of each, i.e. traditional group and contemporary group.
The sampling technique used in this study was a purposive quota. The first step is to
determine the number bank customers in each of the three groups of bank customers, that is 121
respondents in each group. The second step is to select the sample with the following criteria: 1)
Muslims, and 2) at least the age of 18 years. Data collection was carried out using a self-
administered. Respondents filled out a questionnaire by themselves. However, the data collector
accompany them, to help in case of respondents have difficulty filling out the questionnaires. A
survey conducted in Jakarta.
To test hypotheses about the influence of religiosity, trust, importance of attributes and
resources on the selection of banks, which is moderated by religious norms, the study uses the
Two-Way Analysis of Variance (ANOVA). Meanwhile, to test the effect of religiosity on trust,
importance of attributes and information sources, the Seemingly Causal Model (SCM) is applied.
VARIABLE MEASUREMENT
The measurement of religiosity, which is widely used in the fields of marketing,
particularly in the context of Islamic banks, is rooted from the method proposed by Glock and
Stark (1965), and Allport and Ross (1967). It is important to note that the approach has received
some criticisms from many researchers. It has been argued that the fundamental weakness of the
measurement is related to its exclusive application to Christian and Jewish-Christian; thus, its
adoption is not necessarily valid to other religions (Essoo and Dibb 2004).
Meanwhile, Krauss, Hamzah, Suandi, Noah, Mastor, Juhari, Kassan, Mahmoud and Manap
(2005) mentioned that the Glock and Stark model is not adequate to measure Islamic religiosity
because of its lack of attention to differences in traditions. In fact, the accuracy of the items in
these measurements are said to be questionable (e.g. Hood, 1978; Gorsuch and Venable, 1983;
Gorsuch and McPherson, 1989; Kirkpatrick, 1989; Kirkpatrick and Hood, 1990; Genia, 1993;
Burris, 1994; Gorsuch, et al, 1997; Spilka, 2003)
The concept of Islam is fundamentally different from the concept of religion in general, so
it needs its own measurement model (Shamsuddin, 1992). Therefore, in this study, the authors
develop a new measuring instrument of religiosity, namely Islamic Religious Scale (IRS). This
measurement is based on the two fundamental principles of Islam, which are Hablun MinAllah
(the relationship of men and God) and Hablun Min An-nas (men's relationship with men).
Statement items resulting from the exploratory study were formed into dimensions that refer to
the Comprehensive Measure of Islamic Religiosity (CMIR) (Tiliouine and Balgoumidi, 2009).
Upon thorough observations and considerations, the present study finally proposes 5-
dimensional measurements of religiosity, namely consequence, tolerance, enrichment,
contradiction, and belief. Statement items are measured on a six-point Likert Scale ranging from
1 strongly disagree to 6 strongly agree. Items Statement is presented in Appendix 1.
Based on Rahman (1982), the measurements of religious norms in this study adopts 4
aspects that need to be taken into account, namely: (1) bank interest should not be prohibited if it
does not aim to exploit the weak; (2) bank interest should not be prohibited if the amount is
reasonable; (3) bank interest should not be prohibited if the loan is used for investment rather
than consumption; and (4) bank interest should not be prohibited because it aims to prevent bank
losses due to inflation (see Appendix 1).
Meanwhile, for the other variables, this study adopts measurements used in previous
research. Trust measurement, which consists of three dimensions, Ability, Integrity, and
Benevolence, is taken from Morgan and Hunt (1994), Doney and Cannon (1997), McKight, et al
(2002), Wakefield, et al (2004), and Voon, et al (2011). Statement items for both religious norm
and trust are measured on a six-point Likert Scale ranging from 1 strongly disagree to 6
strongly agree (see Appendix 1).
Importance of attributes, consisting of three components, namely Convenience, Price, and
Service, is adopted from Metwally (1996), Almossawi (2001), Metawa and Almossawi (2001),
Abbas, et al (2003), Lee and Morlewe (2003), Esso and Dibb (2004), Visser, et al (2006),
Ahmad, et al (2008), Marimuthu, et al (2010), Rao and Sharma (2010), and Hamid, et al (2010).
Statement items are measured on a six-point Semantic Difference ranging from 1 not important
at all to 6 very important (see Appendix 1).
Furthermore, the following variables: information sources, marketing and personal, are
taken from Tan and Dolich (1983), and Hawkins, et al (2001), and Statement Items are
measured on a six-point Semantic Difference ranging from 1 never to 6 always (see
Appendix 1).
RESULTS
Descriptive Statistical Results
Table 1 presents a summary of descriptive statistical results. Based on these results, the
following findings are presented. The results show that 183 respondents are contemporary group,
who believe that interest is not (always) forbidden, compare to 180 respondents are traditional
group. In other words, 50.01% of the total respondents are contemporary group. This result
reveals that although the Islamic leaders have issued a fatwa prohibiting the bank interest, the
Muslims do not always adopt a similar interpretation over the Islamic beliefs and practices.
Table 1 Number and Percentage of Customers by Customer Group and
Religious Norm
Religious Norm
Customer group
Traditional Contemporary
Islamic Bank 82 (45,56) 39 (21,31)
Conventional Banks 35 (19,44) 86 (47,00)
Both Banks 63 (35,00) 58 (31,69)
Total 180 (100,00) 183 (100,00)
Note: Figures within brackets are in percentage.
In addition Table 1 shows that the traditional group prefers to use the Islamic banks
amounting to around 45% of traditional customers, whereas the contemporary group is less in
favor of using the Islamic banks covering only 21% of contemporary customers. Degree of
commitment to implement the religious norm may be the main cause of the fact that many
customers, who believe the prohibition of bank interest, remain being the customers of the
conventional banks.
Nevertheless, especially for the customers of both bank types, the choice of the bank is
most likely due to logical reasons. These customers use Islamic banks, which show commitment
to their religious norm, but at the same time, they do not leave conventional banks, which is
contrary to their religious norms. It is very likely that customers of both banks are forced to
ignore their religious norms, because the Islamic banks have not been able to provide their needs
and desires of bank services.
Conversely, many customers used the Islamic banks, even though they dont believe the
prohibition of bank interest. Different from the traditional group, customers of contemporary
group are more flexible to choose a bank because they are not tied to their religious norms.
Therefore, a variety of rational reasons is the main cause for the contemporary group customers
to determine their decision of selecting Islamic bank.
These findings confirm the suggestion by Wilson (1995) that Islamic banks should not only
consider their business just to fulfill religious obligations of the Muslim community, but should
emphasize efficient service, and should look into situational factors that will determine their
level of competitiveness in the future (Ahmad and Haron, 2002).
Table 2 Average Scores of Religiosity, Trust, Importance of Attributes and
Information Sources by Group of Bank Customers
Religious Norms
Variables Traditional Group Contemporary Group All Customers

Islamic Conventional Both Islamic Conventional Both Islamic Conventional Both

bank bank Banks bank bank Banks bank bank Banks
Religiosity 4.7362 4.3195 4.7023 4.5936 4.4522 4.5258 4.6902 4.4139 4.6177
(.4125) (.7827) (.4930) (.5376) (.5914) (.5142) (.4592) (.6519) (.5089)
Trust 4.8878 4.5390 4.8116 4.7607 4.5341 4.6667 4.8486 4.5355 4.7421
(.6472) (.5162) (.6041) (.6539) (.6763) (.5197) (.6494) (.6320) (.5676)
Importance of
Attributes
Convenience 5.2724 5.0857 5.2831 5.1838 5.2151 5.2644 5.2438 5.1777 5.2741
(.6305) (.7545) (.6390) (.7982) (.7112) (.6918) (.6869) (.7232) (.6621)
Price 4.6829 4.5347 4.6281 4.7363 4.8090 4.9729 4.7001 4.7296 5.2658
(.9337) (.8454) (1.0278) (.8184) (.8601) (.7981) (.8951) (.8615) (.9371)
Services 5.2642 5.2095 5.3571 5.2350 5.2888 5.4051 5.2741 4.7934 5.3801
(.8417) (.8588) (.7313) (.7490) (.7543) (.6345) (.8099) (.7831) (.6842)
Information
Sources
Marketing 3.9593 3.9905 3.7672 3.8889 3.6124 3.8848 3.9366 3.7218 3.8044
(1.0879) (1.1812) (.9794) (.9863) (1.0576) (.9411) (.1.0526) (1.1033) (.9581)
Personal 4.0813 3.5905 4.2169 3.8034 3.8062 4.0172 3.9917 3.7438 4.1212
(1.0993) (1.4732) (1.0145) (1.2835) (1.0384) (.9057) (1.1639) (1.1783) (.9651)
Note: Figures within brackets are standard deviation.
Table 2 shows the Islamic bank customers have the highest average scores of religiosity,
among all types of customers. This result indicates that the religious customers have a tendency
to choose the Islamic bank. Yet the data show that the average scores of religiosity between the
Islamic bank customers and customers who have accounts in both banks have relatively small
differences. Therefore it can be stated that many of religious customers do not leave
conventional banks after they used Islamic banks. In other words, for this group, the Islamic
bank is not a substitute of conventional banks, but rather as a complement. Religious norms may
be the cause of this condition, but as with the previous analysis, rational reasons should be need
to be considered as a determining factor.
As expected, the Islamic bank customers also have the highest average score of trust in the
Islamic bank, as compared to conventional bank customers and customers in both banks. Though
the degree of trust to Islamic banks of conventional banks customers is lowest, but it is relatively
not much different than the average scores of Islamic banks customers. It shows that in terms of
trust, the characteristics of all customers in the three types of banks are relatively the same.
In contrast to religiosity and trust, consumers who hold accounts at both banks have the
highest degree of importance of convenience, price and service. Considering the importance of
attributes in reflecting customers needs and desires, it is then reasonable to expect that the
customers using two banks place higher importance on these three attributes: convenience, price
and service. In other words, customers' needs and desires cannot be fulfilled by conventional
banks or Islamic banks.
In addition, Table 2 shows that the average score of the variables convenience, price and
services are relatively high. This result indicates that all bank customers, either Islamic bank
customer or conventional bank customers, as well as banks customers of both types of banks,
consider all banks attributes as important criteria when choosing a bank. The previous analysis
mentioned that, besides religious sentiment, there are rational reasons for customers to choose
bank, then one of these reasons is the importance of attributes. Thus, the availability and quality
of banks attribute is a key to winning the competition.
Table 2 also presents that Islamic bank customers have a higher average score of intensity
to use marketing information source than conventional bank and both banks customers. This
finding is not unexpected given the fact that Islamic bank existence is new in Indonesia, so that
the public knowledge about the bank is still relatively limited.
Meanwhile, customers of both banks have a higher average score of intensity to use
personal information source than Islamic bank and conventional customers. Nevertheless, the
difference in average scores between Islamic bank and both banks customers are relatively small.
In addition, for the Islamic bank customers, the average score of personal information source is
higher than marketing information source. It shows that the Islamic bank customers are more
likely use personal information sources more intensively. This finding confirms the previous
study suggesting the importance of the influence of family, relatives, and friends, in choosing
Islamic banks.
The low average scores intensity for both marketing and personal information sources of
the conventional bank customers is expected, because the customers already have sufficient
information or knowledge on conventional banks. The situation is different for Islamic banks
where people who want to become customers of Islamic banks still need to find more
information to increase their knowledge. Thus, the high intensity using information source by the
customers of both banks, in particular personal information sources, occurs when the customer
would like to use the Islamic bank, if it is assumed that the bank customers in Indonesia using
conventional bank before using Islamic bank.
Testing Hypothesis Results
Table 3 presented the t-statistics and its p-value of all research hypotheses. Based on this
table, the conclusion of each hypothesis is as follows.
The data support hypothesis 1a1, based on the t-statistic of t0 = -3.935610 with a p-value =
0.00005. Thus it can be stated that the religiosity mean parameter of Islamic bank customers is
significantly higher than the conventional bank customers. In other words, individuals who have
the higher degree of religiosity tended to prefer Islamic bank than conventional bank.
The data does not support hypothesis 1a2, based on the t-statistic of t0 = -1.032766 with a
p-value = 0.1512. These result leads to the conclusion that the parameter mean of religiosity
Islamic bank customers is insignificantly higher than the customers who have accounts at both
banks. It can be interpreted that religious Muslims tended to use Islamic banks, but not all of
them are considered forbidden to use conventional banks. Based on statistical hypothesis 1a1 and
1a2, it can state that religiosity has a role in the selection of the Islamic banks, and support some
previous studies as mention above.
The same result was found in testing the statistical hypothesis 1b1 and 1b2. The data
support hypothesis 1b1, based on the t-statistic of t0 = -3.796396 with a p-value = 0.0001. Thus it
can be stated that the religiosity mean parameter of traditional Islamic bank customers is
significantly higher than the traditional conventional bank customers. In other words, in the
traditional group customers, individuals who have the higher degree of religiosity tended to
prefer Islamic bank than conventional bank. One of the characters religious individuals is they
have a high commitment in implementing their belief. Therefore, it is reasonable if individuals
who have a high of religiosity tend to prefer Islamic banks, and individuals who have a low
degree of religiosity tend to prefer conventional banks.
Table 3 Summary Results of Hypotheses Test
Hypothesis of each
Statistical Hypothesis t-statistics p-value
Research Variable
Hypothesis 1a
Religiosity 1. H0: I C -3.935610 0.00005*)
H1: I < C
2. H0: I B -1.032766 0.1512
H1: I < B
Hypothesis 1b
Religiosity 1. H0: I C -3.796396 0.0001*)
H1: I < C
2. H0: I B -0.371814 0.3551
H1: I < B
Hypothesis 1c
a)
Religiosity 1. H0: I = B = C 1.929987 0.3810
H1: Otherwise
Hypothesis 2
Trust a. H0: I C -3.922206 0.00005*)
H1: I < C
b. H0: I B -1.318972 0.0940**)
H1: I < B
Hypothesis 3
Convenience 1. H0: I C -0.744038 0.2285
H1: I < C
2. H0: I B 0.341017 0.6334
H1: I < B
Price 1. H0: I C 0.255537 0.6008
H1: I < C
2. H0: I B 0.807498 0.7902
H1: I < B
Services 1. H0: I C 0.112625 0.5449
H1: I < C
2. H0: I B 1.281114 0.8998
H1: I < B
Hypothesis 4
a. Marketing 1. H0: I C -1.607456 0.0542*)
H1: I < C
2. H0: I B -0.989204 0.1614
H1: I < B
b. Personal 1. H0: I C -1.742512 0.0409*)
H1: I < C
2. H0: I B 0.909979 0.9185
H1: I < B
Note: I: mean parameter of a research variable for the customers of Islamic bank
C: mean parameter of a research variable for the customers of conventional bank
B: mean parameter of a research variable for the customers of both banks
*) significant at = 5%; **) significant at = 10%
a) Chi-Square statistics
Meanwhile the data does not support hypothesis 1b2, based on the t-statistic of t0 =
-0.371814 with a p-value = 0.35515. Thus it can be stated that the religiosity mean parameter of
contemporary Islamic bank is insignificantly higher than the customers who have accounts at
both banks. These finding again showed not all of religious people in the traditional group
opposed to the use of conventional banks; even they believe the prohibited bank interest. These
conditions indicate the existence of other factors to be considered by customers in addition to the
religious sentiments.
The same result was found in testing the statistical hypothesis 1b1 and 1b2. The data
support hypothesis 1b1, based on the t-statistic of t0 = -3.796396 with a p-value = 0.0001. Thus it
can be stated that the religiosity mean parameter of traditional Islamic bank customers is
significantly higher than the traditional conventional bank customers. In other words, in the
traditional group customers, individuals who have the higher degree of religiosity tended to
prefer Islamic bank than conventional bank. One of the characters religious individuals is they
have a high commitment in implementing their belief. Therefore, it is reasonable if individuals
who have a high of religiosity tend to prefer Islamic banks, and individuals who have a low
degree of religiosity tend to prefer conventional banks.
Meanwhile the data does not support hypothesis 1b2, based on the t-statistic of t0 =
-0.371814 with a p-value = 0.35515. Thus it can be stated that the religiosity mean parameter of
contemporary Islamic bank is insignificantly higher than the customers who have accounts at
both banks. These finding again showed not all of religious people in the traditional group
opposed to the use of conventional banks; even they believe the prohibited bank interest. These
conditions indicate the existence of other factors to be considered by customers in addition to the
religious sentiments.
From the earlier finding on the existence of the traditional group using the conventional
bank (at 19.44%, see Table 1), it might be argued that those customers are more likely to have
low degree of religiosity. However it does not mean that religious individuals in traditional group
were against the conventional banks. With respect to the insignificant difference in religiosity
degree between Islamic bank account holders and both banks customers, this finding suggests
that the religious individuals have other reasons, beside religious sentiment, in choosing the
bank, even though they believes the prohibited of bank interest.
However, different result is found for the contemporary group. The data does not support
hypothesis 1c1, based on the t-statistic of t0 = 1.929987 with a p-value = 0.3810. The result
indicate that in the contemporary group, there were insignificantly differences in the mean
parameter of religiosity between the customers of Islamic banks and conventional banks, and
between customers of Islamic banks and customers who hold accounts at both banks. This results
support Hypothesis 1c, that is for the contemporary group, religiosity has not a role in the
selection of Islamic banks, which means it is supporting some other previous studies. Hence, it
can be concluded that in term of religiosity, the average degree of religiosity of the customers of
the three types of banks in the contemporary group, are more or less the same.
The results of hypothesis tests above reveal that the religious role in the selection of
Islamic banks depends on religious norms. Therefore, it can be concluded that different
conclusions on the previous research may be due to previous studies assume that Muslims have
the same belief about the bank interest.
The data supports hypothesis 2a, based on the t-statistic of t0 = -3.922206 with a p-value =
0.00005. Thus it can be stated that the trust mean parameter of Islamic bank customer is
significantly higher than the conventional bank customers.
The data does not support hypothesis 2b, based on the t-statistic of t0 = -1.318972 with a p-
value = 0.0940. Thus it can be stated that the trust mean parameter of Islamic bank customers is
insignificantly higher than the conventional bank customers.
Statistical hypotheses 2a and 2b tests showed that the trust mean parameter of the Islamic
bank customers is significantly higher than the conventional banks, but did not differ with
customers in both banks. These results indicated that trust in Islamic banks has an influence on
the selection of Islamic banks, and this is consistent with the finding of previous studies.
For the Variable Importance of Attributes, the data does not support hypothesis 3a1, based
on the t-statistic of t0 = -0.744038 with a p-value = 0.2285. Thus it can be stated that the
importance of convenience mean parameter of Islamic bank customers is insignificantly higher
than the conventional bank customers.
The data does not support hypothesis 3a2, based on the t-statistic of t0 = 0.341017 with a p-
value = 0.6334. Thus it can be stated that the importance of convenience mean parameter of
Islamic bank customer is insignificantly higher than the customers who have accounts at both
banks.
The data does not support hypothesis 3b1, based on the t-statistic of t0 = 0.255537 with a p-
value = 0.6008. Thus it can be stated that the importance of price mean parameter of Islamic
bank customer is insignificantly higher than the conventional bank customers.
value = 0.7902. Thus it can be stated that the importance of price mean parameter of Islamic
bank customer is insignificantly higher than the customers who have accounts at both banks.
The data does not support hypothesis 3c1, based on the t-statistic of t0 = 0.112625 with a p-
value = 0.5449. Thus it can be stated that the importance of services mean parameter of Islamic
bank customer is insignificantly higher than the conventional bank customers.
The data does not support hypothesis 3c2, based on the t-statistic of t0 = 1.281114 with a p-
value = 0.8998. Thus it can be stated that the importance of services mean parameter of Islamic
bank customer is insignificantly higher than the customers who have accounts at both banks.
Although the average among bank customer group varies, but the mean parameter test
results show the mean parameter of convenience, price, and services, did not differ significantly
between groups of bank customers. In contrast to previous studies, the present study is conducted
by comparing the importance of the attribute between customers of the Islamic bank and the
conventional banks. This condition is considered to be the cause of the data did not support these
hypotheses. As Holstius and Kaynak (1995) mentioned that the selection criteria of the Islamic
banks and the conventional banks are not really different, because the banking products and
services are similar between both kinds of banks. This condition causes the data do not support
this hypothesis.
Nevertheless the result of this study supports the previous research findings that
convenience, price, and service are an important criterion in the selection of Islamic banks. This
can be seen by relatively high average scores for component of Variable Importance of Attribute.
The difference, this study revealed that these attributes are not only considered important by the
Islamic bank customers, but also customers of the conventional banks.
Recent evidence reports that the Islamic bank customers accounts are made up only
13,430,904 of total approximately 152 million bank customers accounts (8,8%) throughout
Indonesia, up to June 2014 (Bank Indonesia, 2014). Since the importance of the attributes are
similar for both Islamic banks and conventional banks customers, this low number of Islamic
bank customers have been related to the poor service quality in providing the customers needs
and wants. Further in-depth interview in this study reveal that the religious customers used the
Islamic bank for the purpose of money deposit, while they use the conventional bank for the
purposes of doing transaction merely because the conventional banks offer better facilities and
services.
With regard to variable information source, Table 3 indicates that the data supports
hypothesis 4a1, based on the t-statistic of t0 = -1.607456 with a p-value = 0.0542. Thus it can be
stated that the marketing sources mean parameter of Islamic bank customers is significantly
higher than the conventional bank customers.
The data does not support hypothesis 4a2, based on the t-statistic of t0 = -0.989204 with a
p-value = 0.1614. Thus it can be stated that the marketing sources mean parameter of Islamic
bank customers is insignificantly higher than the customers who have accounts at both banks.
The data supports hypothesis 4b1, based on the t-statistic of t0 = -1.742512 with a p-value
= 0.0409. Thus it can be stated that the personal sources mean parameter of Islamic bank
customers is significantly higher than the conventional bank customers.
value = 0.9185. Thus it can be stated that the personal sources mean parameter of Islamic bank
customers is insignificantly higher than the customers who have accounts at both banks.
The results indicate that the means parameter were significant higher among the customer
of Islamic bank than those of conventional bank and combined banks customers, both marketing
and personal. This finding is consistent with previous studies as mentioned above, which
mention the importance of the advertisement, the influence of family, relatives, and friends, in
choosing Islamic banks.
Based on the above results, it can be concluded that religiosity, trust and information
sources affect the selection of the Islamic banks. To test whether religiosity affects those
variables (trust, the importance of attributes and information source), which in turn also
determine the selection of Islamic banks, SCM is applied. Table 4 below presents the results of
the SCM.
Tests on the coefficients of SCM support the hypothesis 5 that customers who are more
religious have a higher level of trust towards the Islamic banks than customers who are less
religious. These results confirm the argument on the dogmatic tendency among highly religious
people as suggested by Delener (1994). This group of people would automatically do the rules of
religion, i.e. they implement them without question. So people with a higher religiosity also have
a higher trust in Islamic banks. In addition, these results suggest that religiosity affects the
selection of Islamic banks indirectly. It affects trust, which in turns influences the selection.
Table 4 Seemingly Causal Model: Effect of Religiosity on Trust, Importance of
Attributes, and Information Resources
Independent
Dependent Variable(s) Variable(s) Coefficient Std. Error t-Statistic Prob.
Trust Religiosity 0.561183 0.051576 10.88061 0.0000

Convenience Religiosity 0.004493 0.065229 0.068878 0.9451
Price Religiosity 0.115352 0.084507 1.365001 0.1724
Service Religiosity 0.051131 0.071849 0.711652 0.4768

Marketing Religiosity 0.062191 0.098262 0.632909 0.5269
Personal Religiosity 0.406841 0.103116 3.945454 0.0001
The data also support the hypothesis 7 which states that religiosity affects the intensity of
use of personal resources. This is in line with Delener (1989), Mokhlis (2006), and Shin, et al
(2011). Mokhlis (2006) said that there is no firm explanation of the impact religiosity on the use
of personal sources. However, Hamby (1973) suggested that religious individuals are more
dependent, and thus more likely to use personal resources. In fact, consumers consider that
religious group members, including family, close friends, or colleagues, as agents of
socialization, is more important than people outside the group (Choi, et al, 2009). Therefore,
religious individuals tend to be more vulnerable to be affected personally to be identifiable
information through participation in the activities of religious groups (Mokhlis, 2006).
CONCLUSIONS
The present study reveals that religious norms have critical role in the relationship between
religiosity and selecting of the Islamic banks. Religiosity does not always play a significant role
on the decision of Muslim customers to choose Islamic banks. Only customers in the traditional
group with a higher degree of religiosity tend to prefer the Islamic banks. In contrast, the
contemporary group, religiosity is not determinant for choosing an Islamic bank. These results
also explain why previous studies on the relationship between religiosity and Islamic banks show
inconclusive finding.
Moreover, religiosity also affects the selection of the Islamic banks indirectly, through
variables trust and information sources. Therefore, this study suggests that the development of
the Islamic banks simply cannot be separated from the religious sentiment, because the Islamic
banks are naturally established on the basis of the Islamic law or principles In other words,
religiosity should be taken into account as part of a strategy to get new customers or to retain the
existing customers, specifically for the traditional group.
On the other hand, this study also supports the view that the Islamic banks should not rely
solely on the religious factor as a strategy to attract more customers (e.g. Wilson, 1995; Ahmad
and Haron, 2002; Asyraf and Nurdianawati, 2006; and Dusuki and Abdullah, 2007), because the
role of religiosity on the selection of the Islamic banks seems valid only in the traditional group.
In other words, the Islamic banks should not be considered as a means of doing business,
fulfilling the religious obligations of a Muslim community (Wilson, 1995).

These results reveal that although based on the teachings and principles of Islam, Muslim
market is not a homogeneous. In other words, the Muslim market cannot be viewed as a single
entity. Thus, market segmentation toward Muslims, is still highly needed in the marketing
strategy of Islamic bank, and the Islamic bank must apply different strategies toward each
segment.
Until now, Islamic banks more use of the issue of the prohibition of riba as propaganda to
attract customers. As a result, the market sees the difference of Islamic banks and conventional
banks only a matter of interest the bank. In fact, there are many positive values that actually
have been embedded in Islamic banking principles, which can be relied upon to promote Islamic
bank. The Islamic banks offer a fair system as 'equity-participation' (Hassan, et. al., 2008), profit
and loss sharing (Haron, 1997), and 'mutual risk and profit sharing' (Idris, et. al., 2011). In
addition, Islamic banks also follow Islamic law which prohibits 'gharar' which means:
speculative trading (Idris, et. al., 2011) and 'maisir' (transactions that contain elements of
gambling) (Idris, et. al., 2011), transaction (payment or receipt) to businesses engaged in the
business of dealing with illicit products, such as: alcohol, pig trade, or gambling activities
(Manzoor, et. al., 2010), and they continue to run the business and trading activities based on the
principle justice and justifies profit, pay zakat, prohibits monopolistic practices, and work
together for social purposes (Haron, 1997). The system, which is based on positive values as
offered by Islamic banks, will, of course, be accepted by all parties, including contemporary
group, and even non-Muslims. If the market has been aware of positive values that brought the
Islamic bank, then the market will certainly be different views on the Islamic bank.
To disseminate the above positive values, Islamic banks may use either personal or
marketing information source, because both these sources affect the selection of Islamic banks.
However, the most effective medium of communication, especially for religious customers, is
through the activities of Islamic groups, such as Islamic studies, Islamic social institutions, and
Islamic educational institutions.
The positive values that embedded in the concepts and systems of the Islamic banks as
discussed previously will lead to higher institution-based trust', which will, in turn, encourage
the creation of trusting beliefs (McKnight, et. al., 2002). The present study shows that trust in
Islamic banks has a positive influence on the selection of Islamic banks, both for the traditional
group and the contemporary group of customers. In contrast to the religiosity, trust influences
the selection of the Islamic banks, regardless of the religious norms adopted by the customers.
The study finds that all customers, both the Islamic banks and the conventional banks,
indicate that convenience, price, and service are important criteria in choosing their bank. If the
Islamic banks could meet these three factors then they would be able to compete with the
conventional banks in providing the needs and desires of customers. However, the results of in
depth-interview indicates that the Islamic banks still have some fundamental problems, such as
(1) difficulty in getting sharia-minded human resources; (2) lack of personnel with high
competence; (3) limited infrastructure, especially on the information technology. Thus, Islamic
banks have to make improvements constantly if it wants to win a large potential market in
Indonesia.
REFERENCES
Abbas, S.Z.M., Hamid, M.A.A., Joher, H., and Ismail, S., 2003. Factors That Determine
Consumers' Choice in Selecting Islamic Financing Products. Paper presented at the
International Islamic Banking Conference, 9-10th September, Prato.
Abou-Youssef, M., Kortam, W., Abou-Aish, E., and El-Bassiouny, N., 2011. Measuring Islamic-
Driven Buyer Behavioral Implications: A Proposed Market-Minded Religiosity Scale.
Journal of American Science, 2011;7(8) http://www.americanscience.org
Ahmad, N., and Haron, S., 2002. Perceptions of Malaysian Corporate Customers Towards
Islamic Banking Products and Services. International Journal of Islamic Financial
Services 3(4).
Ahmad, W.M., Rahman, A. A,. Ali, R. N.A. and Seman, A.C., 2008. Religiosity and Banking
Selection Empirical Analysis. Criteria among Malaysia in Lembah Klang. Shariah
Journal, 16(2).
Ajzen, I., 1985. From intentions to actions: A theory of planned behavior. In Action-control:
From cognition to behavior (pp. 1139), J. Kuhl & J. Beckman (Eds.). Heidelberg,
Germany: Springer.
Al-Quran
Al-Qardawi, Y., 1999, The Lawful and the Prohibited in Islam. 20th ed., American Trust
Publications. Indianapolis
Al-Sultan, W., 1999. Financial Characteristics of Interest-Free Banks and Conventional Banks.
Accounting and finance, Dissertation, The University of Wollongong.
Allport, G. and Ross, J., 1967. Personal Religious Orientation and Prejudice. Journal of
Personality and Social Psychology 2: 423-443.
Almossawi, M., 2001. Bank Selection Criteria Employed by College Students in Bahrain: An
Empirical Analysis. International Journal of Bank Marketing 19(3): 115-125.
Amin, H, 2008. Choice Criteria for Islamic Home Financing: Empirical Investigation among
Malaysian Bank Customers. International Journal of Housing Markets and Analysis,
1(3): 256 274.
Asyraf, W, D., and Nurdianawati, A., 2007. Why do Malaysian Customers patronize Islamic
Banks. International Journal of Bank Marketing, 25:3, 142-160.
Awan, H. M., and Bukhari, K. S., 2010. Customers Criteria For Selecting an Islamic Bank:
Evidence From Pakistan. Journal of Islamic Marketing Vol. 2 No. 1, 2011 pp. 14-27.
Emerald Group Publishing Limited
Azra, A., 2005. Islamic thought: theory, concepts, and doctrines in the context of Southeast
Asian Islam. In Islam in Southeast Asia: Political, Social and Strategic Challenges for
the 21st Century, Nathan, K.S. and Kamali, M.H. (Eds), Institutes of Southeast Asian
Studies, Singapore, pp. 2-21.
Bailey, J. M. and Sood, J., 1993. The Effect of Religious Affiliation on Consumer Behavior: A
Preliminary Investigation. Journal of Managerial Issues 5 (3): 328-352.
Bank Indonesia (2014). Indonesians Banking Statistics. www.bi.go.id.
Bart, Y., Shankar, V., Sultan., F., and Urban, G. L., 2005. Are the Drivers and Role of Online
Trust the Same for All Web Sites and Consumers? A Large-Scale Exploratory Empirical
Study. Journal of Marketing Vol. 69 (October 2005): 133 152.
Berry, L.L., 1983. Relationship Marketing. In Emerging Perspectives on Services Marketing,
L.L. Berry, G.L. Shostack and G.D. Upah, Chicago, IL, American Marketing
Association, pp. 2528.
Bley, J., and Kuehn, K., 2005. Conventional Versus Islamic Finance: Student Knowledge and
Perception in the United Arab Emirates. International Journal of Islamic Financial
Services Vol. 5 No.4.
Burris, C. T., 1994. Curvilinearity and religious Types: A Second Look at Intrinsic, Extrinsic,
and Quest Relations. International Journal for the Psychology of Religion, 4: 245 260.
Butt, I., Saleem, N., Ahmed, H., Altaf, M., and Jaffer, K., 2011. Barriers to adoption of Islamic
banking in Pakistan. Journal of Islamic Marketing Vol. 2 No. 3, 2011pp. 259-273.
Chaudhuri, A., and Holbrook, M.B., 2001. The chain of effects from brand trust and brand affect
to brand performance: The role of brand loyalty. Journal of Marketing 2001; 65 (April):
81-93.
Choi, Y., Kale, R., and Shin, J., 2009. Religiosity and consumers use of product information
source among Korean consumers: an exploratory research. International Journal of
Consumer Studies, 34, 61-68.
Cutler, B. D., 1991. Religion and marketing: important research area or a footnote in the
literature? Journal of Professional Services Marketing 8 (1): 153-164.
Darden, W. R., 1980. A patronage model of consumer behaviour. In Competitive Structure in

Retail Markets: The Department Store Perspective, R. W. Stampfl and E. C. Hirschman
(eds.). Chicago: American Marketing Association.
Delafrooz, N., Paim, L. H. J., and Khatibi, A., 2011. A Research Modeling to Understand Online
Shopping Intention. Australian Journal of Basic and Applied Sciences, 5(5): 70-77, 2011.
Delener, N., 1994. Religious Contrasts in Consumer Decision Behavior Patterns: their
Dimensions and Marketing Implications. European Journal of Marketing 28 (5): 36-53.
Devlin, J.F. and Gerrard, P., 2004. Choice Criteria in Retail Banking: An Analysis Of Trends.
Journal of Strategic Marketing, 12(1).
Doney, P.M., and Cannon, J. P., 1997. An Examination of the Nature of Trust in Buyer-Seller
Relationships. Journal of Marketing, 61 (April), 35-51.
Dusuki, A.W., and Abdullah, N.I., 2007. Why Do Malaysian Customers Patronize Islamic
Banks? International Journal Bank Marketing, 25(3).
Erol, C, Kaynak E and El-Bdour R, 1990. Conventional and Islamic Banks: Patronage Behaviour
of Jordanian Customers. International Journal of Bank Marketing 8(4).
Erol, C. and El-Bdour, R., 1989. Attitudes, behaviour and patronage factors of bank customers
towards Islamic banks. International Journal of Bank Marketing, Vol. 7 No. 6.
Esso, N., and Dibb, S., 2004. Religious Influences on Shopping Behavior: An Exploratory Study.
Journal of Marketing Management, 2004, 20, 683 712.
Fishbein, M. and Ajzen, I. (1980), Belief, Attitude, Intention and Behavior: An Introduction to
Theory and Research. Addison-Wesley, Reading, MA.
Flavian, C., and Guinalu, M., 2006. Consumer trust, perceived security and privacy policy Three
basic elements of loyalty to a web site. Industrial Management and Data Systems, Vol.
106, No. 5, pp. 601-620.
Garbarino, E., and Johnson, M. S,. 1999. The Different Roles of Satisfaction, Trust, and
Commitment in Customer Relationships. Journal of Marketing, 63 (2), 70-87.
Gatrad, A. R., and Sheikh, A., 2001. Medical Ethics and Islam: Principles and Practice. Archives
of Disease in Childhood, 84 (1), 72-75.
Gefen, D., and Straub, D., 2003. Managing user trust in B2C e-services. E-Service Journal 2 (2),
724.
Genia, V., 1993. A Psychometric Evaluation of the Allport-Ross I/E Scales in A Religiously
Heterogeneous Sample. Journal of the Scientific Study of Religion 32 (3): 284-290.
Gerrard, P. and Cunningham, J.B. 1997. Islamic banking: a study in Singapore. International
Journal of Bank Marketing, 15(6).
Gerrard, P., and Cunningham, J., 2000. Gazetted Hotels in Singapore: A Banking Study.
International Journal of Bank Marketing 18(3): 135-147.
Glock, C., 1962. On the Study of Religious Commitment. Religious Education 57: 98 - 110.
Glock, C., and Stark, R., 1965. Religion and Society in Tension. Chicago: Rand McNally, in
Krauss, et al, 2005.
Gorsuch, R. L., and Venable, G. D., 1983. Development of an Age Universal I E Scale.
Journal for the Scientific Study of Religion, 22: 181 187.
Gorsuch, R. L., and McPherson, S. E., 1989. Instrinsic/Extrinsic Measurement: I/E Revised and
Single-Item Scales. Journal for the Scientific Study of Religion, 28: 348 352.
Gorsuch, R. L., 1997. Exploratory factor analysis: Its role in item analysis. Journal of
Personality Assessment, 68, 532-560.
Gudlaugsson, T., and Eysteinsson, F., 2013. What is the Effect of a Change in Customers Trust,
Following a Bank Collapse, on Their Loyalty towards Their Own Bank? International
Journal of Business and Social Science, 4 (10): 49 - 56
Hamby, J., 1973. Some personality correlates of religious orientation. Dissertation Abstract
International 34: 1127-1128.
Hamid, Yaakub, Mujani, Sharizam, and Jusoff., 2011. Factor Adopting Islamic Home Financing:
A Case Study Among Consumers of Islamic Banks in Malaysia. Middle-East Journal of
Scientific Research 7 (Special Issue of Diversity of Knowledge on Middle East): 47 58.
Hanafi, A. A,. and Sallam, H., 1997. Business Ethics: An Islamic Perspective, Islamic Principles
of Business Organisation and Management. Faridi, FR. (ed), S. Abdul Majeed & Co.,
Kuala Lumpur.
Haque, A., 2010. Islamic Banking in Malaysia: A Study of Attitudinal Differences of Malaysian
Customers. European Journal of Economics, Finance and Administrative Sciences ISSN
1450-2275 Issue 18 (2010) EuroJournals, Inc. 2010 http://www.eurojournals.com.
Haque, A., Osman, J., and Ismail, A. Z., 2009. Factor Influences Selection of Islamic Banking:
A Study on Malaysian Customer Preferences. American Journal of Applied Sciences 6
(5), 2009 ISSN 1546-9239
Haque, Jamil, and Ahmad., 2007. Islamic Banking: Customers Perception and its Prospect on
Bank Product Selection towards Malaysian Customers Perspectives. 5th International
Islamic Finance Conference, 3-4 September, The Ritz Carlton, Kuala Lumpur, Malaysia.
Haron, S., Ahmad, N. and Planisek, S. L., 1994. Bank Patronage Factors of Muslim and Non-
Muslim Customers. International Journal of Bank Marketing 12 (1): 32-40.
Haron, S. (1997). Islamic Banking Rules and Regulations, Pelanduk Publications (M) Sdn Bhd,
Kuala Lumpur.
Harrell, G. D., 1986. Consumer Behavior. Harcourt Brace. Javanovich.
Hashim and Mizerski, 2010. Exploring Muslim ConsumersInformation Source for Fatwa rulings
on Products and Behaviors. Journal of Islamic Marketing 1 (1): 37 50.
Hassan, A., Chachi, A., and Latiff, S. A., 2008. Islamic Marketing Ethics and Its Impact on
Customer Satisfaction in the Islamic Banking Industry. J.KAU: Islamic Economics, Vol.
21 No. 1, pp: 23-40 (2008 A.D./1429 A.H.).
Hawkins, D., Best, R., and Coney, K., 2001. Consumer Behaviour: Building Marketing Strategy,
8th. Boston: Irwin Mcgraw-Hill.
Heiman, A., Just, D., McWilliams, D. and Ziberman, D., 2004. Religion, Religiosity, Lifestyle
and Food Consumption. ARE Update Quarterly Newsletter 8 (2): 9-11.
Hirschman, E. C., 1981. American-Jewish ethnicity: its relationship to some selected aspects of
consumer behavior. Journal of Marketing 45 (Summer): 102-110.
Hirschman, E. C., 1982a. Religious Differences in Cognitions Regarding Novelty Seeking and
Information Transfer. Advances in Consumer Research 10. St. Louis, Missouri:
Association for Consumer Research: 228-233
Hirschman, E. C., 1982b. Ethnic variation in leisure activities and motives. In An Assessment of
Marketing Thought and Practice, Bruce J. W., et. al. (eds.),1982, Educators Conference
Proceedings. Chicago: American Marketing Association: 93-98
Hirschman, E. C., 1982c. Ethnic variation in hedonic consumption. Journal of Social Psychology
118 (2): 225-234
Hirschman, E. C., 1983. Religious affiliation and consumption processes: an initial paradigm. In
Research in Marketing, Sheth, J. N. (ed.), Greenwich, CT: JAI Press: 131-170
Hirschman, E. C., 1985. Ethnicity as a predictor of media content preferences. In Marketing

Communications: Theory and Research, Houston., M. J., and Lutz, R. J. (eds.),
Proceedings of the AMA Educators Winter Conference. Chicago, IL: American
Marketing Association: 209-214
Hood, R. W. Jr., 1978. The Usefullness of the Indiscriminately Pro and Anti Categories of
Religious Orientation. Journal for the Scientific Study of Religion, 17: 419 431.
Hosmer, L.T., 1995. Trust: the connecting link between organizational theory and philosophical
ethics. Academy of Management Review, 20(2): 379-403.
Hoy, W.K., and Tarter, C.J., 2004. Organizational justice in schools: no justice without trust.
International Journal of Educational Management; 18(4): 250-259.
Hunt, S. D., and Vitell, S, 1986. A General Theory of Marketing Ethics. Journal of Macro
Marketing. Vo. 8 pp. 5 16.
Idris, A.R., Naziman,N. M., and Januri,S.S., 2011, Religious Value as the Main Influencing
Factor to Customers Patronizing Islamic Bank. World Applied Sciences Journal 12
(Special Issue on Bolstering Economic Sustainability, 2011. ISSN 1818-4952.
Iqbal, Z and Mirakhor, A., 2007. An Introduction to Islamic Finance: Theory and Practice, John
Wiley and Sons Ltd, Chichester.
Jalaluddin, A., and Metwally, M., 1999. Profit/Loss Sharing: An Alternative Method of
Financing Small Businesses in Australia. The Middle East Business and Economic
Review 11(1): 8-14.
Johnson, B. R., Jang, S. J., Larson, D. B. and Li, S. D., 2001. Does Adolescent Religious
Commitment Matter? A Reexamination of the Effects of Religiosity on Delinquency.
Journal of Research in Crime and Delinquency 38 (1): 22-43.
Jones, S., Wilkens, M., Morris, P., and Masera, M., 2000. Trust Requirements in e-business.
Communication of the ACM 43 (2). 81 87.
Kader, R.A., 1993. Performance and market implications of Islamic banking: a case study of
Bank Islam Malaysia Berhad. Unpublished PhD Thesis, Durham University, Durham.
Kamali, M. H., 1991. Principles of Islamic Jurisprudence. International Islamic University,

Malaysia.
Kamaruddin, A. R., 2007. Religiosity and Shopping Orientation: A Comparative Study of

Malaysia and Thailand Consumers. Journal of Global Business Management., Vol. 3 No.
2, 2007.
Kerlinger, F. M., 1986. Foundations of Behavioral Research. 3rd ed. New York: Harcourt Brace
Javanovich College Publishers
Khoirunissa, D., 2003. Consumers Preference Toward Islamic Banking (Case Study in Bank
Muamalat Indonesia and Bank BNI Syariah. IQTISAD Journal of Islamic Economics Vol.
4, No. 2.
Kirkpatrick, L. A., and Hood, R. W., 1990. Intrinsic-Extrinsic Religious Orientation: the Boon or
Bane of Contemporary Psychology of Religion? Journal for the Scientific Study of
Religion, 29(4) : 442-462.
Koeszeig, S.T., 2004. Trust-building strategies in inter-organizational negotiations. Journal of

Managerial Psychology; 19(6): 640-660.
Kotler, P., 2000. Marketing Management, The Millenium Edition, Prentice Hall, Upper Saddle
River, NJ.
Krauss, S. E., Hamzah, A., Suandi, T., Noah, S. M., Mastor, K. A., Juhari, R., Kassan, H.,
Mahmoud, A., and Manap, J., 2005. The Muslim Religiosity-Personality Measurement
Inventory (MRPI)'s Religiosity Measurement Model: Towards Filling the Gaps in
Religiosity Research on Muslims. Pertanika J. Soc. Sci. & Hum. 13 (2): 131-145 (2005)
ISS : 0128-7702.
LaBarbera, P. A. and Gurhan, Z., 1997. The Role of Materialism, Religiosity and Demographics
in Subjective Well-Being. Psychology & Marketing 14 (1): 71-97.
Lee, J., and Marlowe, J., 2003. How Consumers Choose a Financial Institution: Decision-
Making Criteria and Heuristics. International Journal of Bank Marketing 21(2): 53-71.
Manzoor, M. M., Aqeel, M., and Sattar, A., 2010. Factors Paving the Way towards Islamic
Banking in Pakistan. World Academy of Science, Engineering and Technology 66, 2010.
Marimuthu, M., Jing, C. W., Gie, L.P., Mun, L. P., and Ping, T. Y., 2010. Islamic Banking:
Selection Criteria and Implications. GJHSS Classification Vol 10 Issue 4.
Mayer, R.C., Davis J.H., and Schoorman, F.D., 1995. An Integrative Model of Organizational
Trust. Academy of Management Review, 20(3); 709-734.
McDaniel, S. W. and Burnett, J. J., 1990. Consumer Religiosity and Retail Store Evaluative
Criteria. Journal of the Academy of Marketing Science 18 (Spring): 101-112.
McKnight, D.H., and Chervany, N.L., 2002. What Trust means in e-Commerce Customer
Relationship: an Interdisciplinary conceptual Typology. International of Electronic
Commerce 6 (2): 35 59.
Metawa, S.A. and Almossawi, M., 1998. Banking behaviour of Islamic bank customers:
perspectives and implications, International Journal of Bank Marketing, 16(7).
Metwally, M., 1996. Attitudes of Muslims Towards Islamic Banks in a Dual-Banking System.
American Journal of Islamic Finance 6: 11-17.
Mokhlis, S., 2006. The Infuence of religion on Retail Patronage Behavior in Malaysia.
Unpublished Dissertation University of Stirling.
Mokhlis,S., Hazimah, N., and Salleh, S, H., 2008. Commercial Bank Selection: The Case of
Undergraduate Students in Malaysia. International Review of Business Research Papers,
4(5), 258-270.
Morgan, S. E., 2004. The power of talk: African Americans communication with family
members about organ donation and its impact on the willingness to donate organs.
Journal of Social and Personal Relationships, 21(1), 112124.
Morgan, R. M, and Hunt, S. D. 1994. The commitment-trust theory of relationship marketing.

Journal of Marketing, 58(3): 20-38.
Mukherjee, A., and Nath, P., 2003. A model of trust in online relationship banking. The
International Journal of Bank Marketing, 21(1), pp. 5-16.
Naser, K., Jamal, A., and Al-Khatib, K., 1999. Islamic Banking: A Study of Customer
Satisfaction and Preference in Jordan. International Journal of Bank Marketing 17(3):
135-150.
Nevin, J. R., and Houston, M. J., 1980. Image as a Component of Attraction to Interurban
Shopping Areas. Journal of Retailing, 56 (Spring), 77-93.
Okumus, H., 2005. Interest-Free Banking in Turkey: A Study of Customer Satisfaction and Bank
Selection Criteria. Journal of Economic Cooperation 26(4): 51-86.
Omer, H., 1992. The Implication of Islamic Beliefs and Practice on Islamic Financial Institutions
in the UK. Unpublished Dissertation, Loughborough University.
Othman, A. and Owen, L., 2001. Adopting and measuring customers service quality (SQ) in
Islamic banks: a case study in Kuwait finance house. International Journal of Islamic
Financial Services, 3(1).
Pavlou, P., and Gefen, D., 2004. Building Effective Online Marketplaces with Institution-based
Trust. Information Systems Research (15:1), 2004: 37-59.
Padela, A. I., 2007. Islamic medical ethics: a primer. Bioethics, 21 (3), 169- 78.
Rao, A. S., and Sharma, R. K., 2010. Bank Selection Criteria Employed by MBA Students in
Delhi: An Empirical Analysis. Journal of Business Studies Quarterly 2010, Vol. 1, No. 2,
pp. 56-69.
Rahman, F., 1982. Islam and Modernity: Transformation of an Intellectual Tradition, Chicago:
The University of Chicago Press, 1982, pp.30-33.
Reeves, C.A. and Bednar, D.A., 1996. Keys To Market Success-A Response and Another View.
Journal of Retail Banking Services, 18(4).
Shamsuddin, Q.M.I., 1992. Dimensions of Muslim religiosity: Measurement considerations. In

Qur'anic Concepts of Human Psyche, ed. Zafar Maq Ansari. Islamabad: Institute of
Islamic Culture.
Sheikh, M. A., Taseen, U., Haider, S. A., and Naeem, M., 2010. Islamic Vs Conventional Banks
in Pakistan (A case study of Bahawalpur). Department of commerce, IUB E-mail:-
sheikhazhar2005@yahoo.com
Sheth, J. N., 1981. An integrative theory of patronage preference and behavior. Faculty Working
Paper No. 808, University of Illinois. Illinois USA.
Sheth, J. N., 1983. Cross-cultural Influences on the Buyer-Seller Interaction/Negotiation Process.

Asia Pacific Journal of Management, 1 (1): 46 55.
Shin, J. K., Moon, M. K., Park, M. S., and Kim, M. R. (2011). Does Religiosity affect on
Consumers Socialization Agent and Shopping Orientation? 2010 International
Conference on E-business, Management and Economics. IPEDR vol.3 (2011) (2011)
IACSIT Press, Hong Kong
Siguaw, J. A. and Simpson, P. M., 1997. Effects of Religiousness on Sunday Shopping and Out
Shopping behaviors: A Study of Shopper Attitudes and Behaviors in the American
South. International Review of Retail, Distribution and Consumer Research 7 (1): 23-40.
Sood, J. and Nasu, Y., 1995. Religiosity and Nationality: An Exploratory Study of their Effect on
Consumer Behavior in Japan and the United States. Journal of Business Research, 34 (1):
1-9.
Spiggle, S. and Sewall, M. A., 1987. A Choice Sets Model of Retail Selection. Journal of
Marketing 51 (April): 97-111.
Spilka, B., Hood, R.W., Hunsberger, B, and Gorsuch, R., 2003. The Psychology of religion: an
empirical approach. 3rd ed. New York: The Guilford Press.
Stephenson, M. T., and Morgan, S. E., 2008. The Role of Religiosity, Religious Norms,
Subjective Norms, and Bodily Integrity in Signing an Organ Donor Card. Health
Communication, 23: 436447, 2008 Copyright Taylor & Francis Group, LLC ISSN:
1041-0236 print / 1532-7027 online DOI: 10.1080/10410230802342119.
Tan, C. T. and Dolich, I. J., 1983. A comparative study of consumer information seeking:
Singapore versus US. Journal of the Academy of Marketing Science 11(Summer): 313-
322.
Tan, C.T., and Chua, C., 1986. Intention, Attitude and Social Influence in Bank Selection: A
Study in an Oriental Culture. International Journal of Bank Marketing, 4(3), 43-53.
Thambia, Eze, Santhapparaj and Arumugam., 2011. Customers Perception on Islamic Retail
Banking: A Comparative Analysis between the Urban and Rural Regions of Malaysia.
International Journal of Business and Management Vol. 6, No. 1; January 2011.
Tiliouine, H., and Belgoumidi, A., 2009. An Exploratory Study of Religiosity, Meaning in Life
and Subjective Wellbeing in Muslim Students from Algeria. Applied Research Quality
Life, 4:109-127.
Visser, E. M., Preez, R. D., and Van Noordwyk, H. J., 2006. Importance of Apparel Store Image
Attributes: Perceptions of Female Consumers. SA Journal of Industrial Psychology,
2006, 32 (3): 49-62.
Vitell, S. J., Paolillo, J. G. P., and Singh, J. J, 2005. Religiosity and Consumer Ethics. Journal of
Business Ethics,57(2): 175-181.
Vayanos, P., Wackerbeck, P., Golder, P. T., and Haimari, G., 2008. Competing Successfully In
Islamic Banking. Booz and Company Inc., USA. Available at
http://www.booz.com/media/uploads/Competing-Successfully-Islamic-Banking.
Wahab, S., Noor, N. A. M., and Ali, J., 2009. Technology Trust and E-Banking Adoption: The
Mediating Effect of Customer Relationship Management Performance. The Asian
Journal of Technology Management Vol. 2 No. 2 (2009) 40-49.
Wakefield, R. L., M. H. Stocks, and Wilder, W. M., 2004. The Role of Web Site Characteristics
in Initial Trust Formation. Journal of Computer Information Systems, Vol. 45, No. 1: 94-
103.
Weaver, G. and Agle, B., 2002. Religiosity and Ethical Behavior in Organisations: A Symbolic
Interactionist Perspective. Academy of Management Review 27 (1): 77-87.
Wilkes, R. E., Burnett, J. J. and Howell, R. D., 1986. On the Meaning and Measurement of
Religiosity in Consumer Research. Journal of the Academy of Marketing Science 14
(Spring): 47-56.
Wilson, R., 1995. Marketing Strategies for Islamic Financial Products. New Horizon.
Yoon, S., 2000. The antecedents and consequences of trust in online purchase decisions. Journal
of Interactive Marketing 16 (2), 4763.
Zaher, T.S. and Hassan, M.K., 2001. A comparative literature survey of Islamic finance and
banking. Financial Markets, Institutions & Instruments, Vol. 10, pp. 155-99.
Zainuddin, Y., Jahyd, N., and Ramayah, T., 2004. Perception of Islamic Banking: Does It Differ
among Users and Non Users. Journal Manajement and Bisnis, 6(3), 221-232.
Appendix 1: Items Statement of Research Variables
1. Items Statement of Religiosity
Religious Consequences Dimension

1. Islamic banking system lead to any transaction in Islamic banks are guaranteed kosher
(halal)
2. Islamic banking system lead to any products of Islamic banks are guaranteed halal
3. Islamic banking system lead to any benefits of Islamic banks are guaranteed halal
4. Important differentiator between Islamic banks and conventional banks is contract (akad)
5. Wealth will be safe from evil if using Islamic banks
Religious Tolerance Dimension
6. I can understand if there are people who choose a different bank (Islamic or Conventional
Bank)
7. I prefer not to discuss the different options of banks (Islamic or Conventional Bank)
8. It is the right of all people to choose any bank (Islamic or Conventional Bank)
9. I'm not going to judge negatively, those who choose a different bank (Islamic or
Conventional Bank)
10. I can understand people who choose a bank because of lower costs (Islamic or
Conventional Bank)
11. I can understand people who choose a bank because of difficulties in accessing other
banks (Islamic or Conventional Bank)
12. I can understand people who think all banks only pursue advantage of customers (Islamic
or Conventional Bank)
Religious Enrichment Dimension
13. I tried to find out the laws of the banking system in the Qur'an
14. I tried to find out the laws of the banking system in the Hadith
15. I tried to understand the Islamic banks by seek information from various sources
16. I tried to understand Islamic banks by discussing with friends
17. I tried to understand Islamic banks by ask to the experts of Islamic banking
18. I enjoyed hearing the explanation of Islamic banks
19. I like to watch television that shows explanation of Islamic banks
20. I love to learn Islamic banks
21. I like listening to the information about the Islamic banks in the media
Religious Contradiction Dimension
22. I choose a bank that gives benefits to society regardless of Islamic or conventional banks
23. I choose a bank that really helps customers especially when in trouble regardless of
Islamic or conventional banks
24. I choose a bank that is away from the dirty practices that can be detrimental to the public
regardless of Islamic banks or conventional
Religious Belief Dimension
25. I believe use of Islamic banks is the command of Allah
26. I believe use of Islamic banks is a form of submission to Allah
27. I believe that Islamic banks are banking system in accordance with the Quran and Hadith
28. I believe the Islamic banking system in accordance with the rules and teachings of Islam
in conducting banking business
29. I believe the Islamic banking system is the implementation of the principles of Islamic
business
30. Using the Islamic banks is a form of worship
31. Using the Islamic banks is a form of obedience to the teachings of Islam
2. Items Statement of Religious Norms
Items Statement Sources
1. Banks interest should not be prohibited if it does not aim to exploit the weak Rahman (1982)
2. Banks interest should not be prohibited if the interest rates is reasonable Rahman (1982)
3. Banks interest should not be prohibited if it for investment not consumption Rahman (1982)
4. Banks interest should not be prohibited if the interest is to compensate losses to Rahman (1982)
creditors due to inflation
3. Items Statement of Trust

Variable
/
Items statement Source
Dimensi
on
Ability 1. I believe that Islamic banks have a very good performance McKnight & Chervany (2002)
2. I believe that Islamic banks are able to compete in the banking sector
Wakefield et al. (2004)
3. I believe that Islamic banks are managed by people who live according to the
Islamic teachings Voona, et al (2011)
4. I believe that Islamic banks have enough experience to provide quality services
Wakefield et al. (2004)
5. I believe the Islamic bank is able to provide services as required by customers

McKnight & Chervany (2002)
Integrity 6. I believe that Islamic banks always have a commitment.

McKnight & Chervany (2002)
7. I believe the Islamic bank will fulfill his promise to the customer. Wakefield et al. (2004)
8. I believe that Islamic banks are always honest in transactions

Doney & Cannon (1997)
9. I believe that Islamic banks have lawful source of funds Mcknight & Chervany (2002);
10. I believe that Islamic banks have always acted with full responsibility
Morgan & Hunt (1994)
Benevo- I believe that Islamic banks have always acted in the interests of customers
Voona, et al (2011); Doney &
lence
Cannon (1997)
I believe the Islamic bank will help the customer to take a favorable decision
I believe that Islamic banks will not let customers get loss
I believe that Islamic banks are always willing to help customers to solve problems
I believe any action by the Islamic bank is based on a sense of justice

4. Items Statement of the Importance of Bank Attributes

Variable/Dimensi
Items Statement Sources
on
Convinience 1. Ease of access to branches Khan et al. (2012); Lee & Morlewe (2003)
2. Ease of access to ATM Almossawi (2001); Rao & Sharma (2010)
3. Wider ATM Network Almossawi (2001); Rao & Sharma (2010)
4. 24 Hours ATM Services Almossawi (2001); Rao & Sharma (2010)

5. Availability of parking at the branch or ATM Esso & Dibb (2004); Visser, et al. (2006)
6. Availability of public transport to reach the branch or
Ahmad, et al. (2008)
ATM
Price 7. High return, which is paid on savings or deposits Ahmad, et al. (2008); Metawa &
Almossawi (2001)
8. Availability of point reward Ahmad, et al. (2008); Metawa &
Almossawi (2001)
9. There is no charge to open an account Metwally (1996); Marimuthu, et al. (2010)
10. There is no inter-bank transaction fee Ahmad, et al. (2008); Metawa &
Almossawi (2001)
11. There is no cost to replace bankbook Metwally (1996); Marimuthu, et al. (2010)
12. There is no charge for the use of internet banking Ahmad, et al. (2008);
13. There is no charge for the use of sms banking Ahmad, et al. (2008);
Services 14. Efficiency in teller services Haron, et al. (2004); Hassan (2009)
15. Fast resolve the problems which is faced by customers Haron, et al. (2004); Hassan (2009)
16. Queue using the waiting number Rao & Sharma (2010)
17. Easy to ask various things Abbas, et al. (2003); Hamid, et al. (2001)
18. Easy to report problems Hamid, et al. (2011); Rao & Sharma (2010)
19. Easy to get a variety of information Hamid, et al. (2011); Rao & Sharma (2010)
5. Items Statement of the Importance of Information Sources

Variable Items Statement Sources
Marketing Information 1. Advertising in the media Hawkins, et al. (2001)

Sources
2. Brochure promotion Hawkins, et al. (2001)
3. Marketer Hawkins, et al. (2001)
Personal 4. Parents / elders (Such as: Teacher, uncle, and so on) Tan dan Dolich (1983)
Information Sources
5. Family Tan dan Dolich (1983)
6. Friends Tan dan Dolich (1983)

The Role of Religious Norms, Trust, Importance of Attributes, and Information

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

The Role of Religious Norms, Trust, Importance of Attributes, and Information

Hochgeladen von

Copyright:

Verfügbare Formate

Journal of Islamic Marketing

*Related content and download information correct at time of download.

Variables Traditional Group Contemporary Group All Customers

Islamic Conventional Both Islamic Conventional Both Islamic Conventional Both

Trust Religiosity 0.561183 0.051576 10.88061 0.0000

Service Religiosity 0.051131 0.071849 0.711652 0.4768

fulfilling the religious obligations of a Muslim community (Wilson, 1995).

Bank Indonesia (2014). Indonesians Banking Statistics. www.bi.go.id.

Darden, W. R., 1980. A patronage model of consumer behaviour. In Competitive Structure in

Harrell, G. D., 1986. Consumer Behavior. Harcourt Brace. Javanovich.

Hirschman, E. C., 1985. Ethnicity as a predictor of media content preferences. In Marketing

Kamali, M. H., 1991. Principles of Islamic Jurisprudence. International Islamic University,

Kamaruddin, A. R., 2007. Religiosity and Shopping Orientation: A Comparative Study of

Koeszeig, S.T., 2004. Trust-building strategies in inter-organizational negotiations. Journal of

Criteria. Journal of the Academy of Marketing Science 18 (Spring): 101-112.

Morgan, R. M, and Hunt, S. D. 1994. The commitment-trust theory of relationship marketing.

Shamsuddin, Q.M.I., 1992. Dimensions of Muslim religiosity: Measurement considerations. In

Sheth, J. N., 1983. Cross-cultural Influences on the Buyer-Seller Interaction/Negotiation Process.

1. Items Statement of Religiosity

Religious Consequences Dimension

2. Items Statement of Religious Norms

Items Statement Sources

3. Items Statement of Trust

5. I believe the Islamic bank is able to provide services as required by customers

Integrity 6. I believe that Islamic banks always have a commitment.

8. I believe that Islamic banks are always honest in transactions

I believe any action by the Islamic bank is based on a sense of justice

4. Items Statement of the Importance of Bank Attributes

4. 24 Hours ATM Services Almossawi (2001); Rao & Sharma (2010)

5. Items Statement of the Importance of Information Sources

Marketing Information 1. Advertising in the media Hawkins, et al. (2001)

3. Marketer Hawkins, et al. (2001)

6. Friends Tan dan Dolich (1983)

Das könnte Ihnen auch gefallen