THE EXISTENCE OF FLIGHT TO QUALITY:

EVIDENCE FROM INDONESIA

Muhammad Riza Hafizi

Institut Agama Islam Negeri Palangka Raya, Palangka Raya

riza.hafizi@iain-palangkaraya.ac.id

Abstract

This study aimed to analyze the investments’ shift from high-risk investment (stock) to a
more secure investment (bond) or commonly called a flight to quality in the event of a crisis
in Indonesia. The samples in this study are taken from Jakarta Composite Index (JCI),
Indonesia Corporate Bond Index (CBIX) and Indonesia Government Bond Index (GBIX) in
Indonesia from January 2007 to December 2014. This study applies event study. The data
sources for bond prices are collected from Indonesia Bond Pricing Agency (IBPA) and
Indonesian Capital Market Electronic Library (ICAMEL), while the stock data are from Yahoo
Finance. During the study period, 2007-2014, it was found five events that were identified as
crisis. The results showed that during the period, when the market is experiencing a crisis,
the investment movement from high-risk investment (stock) to a more secure investment
(bond) or what was called as flight to quality do not take place. The case differs from
previous studies in times of crises.

Keywords: government bond, corporate bond, flight to quality

 AN ANALYSIS ON THE EFFECT OF LOCATION, BRANDING IMAGE, AND WORD OF MOUTH
ON THE CUSTOMERS’ DECISION PROCESS IN CHOOSING HAJJ SAVING
IN SHARIA-COMPLIANT BANKING

Siti Sholihah Putri

Ade Sofyan Mulazid
Sofyan Rizal

Syarif Hidayatullah State Islamic University Jakarta

sishol20@gmail.com
adesofyanmulazid@uinjkt.ac.id
sofyan.rizal@uinjkt.ac.id

Abstract

This research aims to find out, to analyze, and to explain the effect of location, branding
image and word of mouth on the customers’ decision in choosing hajj saving product in
sharia-compliant banking in South Jakarta, both simultaneously and partially. The result of
research was expected to contribute to sharia-compliant banking located in South Jakarta.
The data employed in this study primarily collected from direct questionnaire by using
purposive sampling method. The method of analyzing data used was a multiple linear
regression. The result of research showed that location, branding image and word of mouth
affected both partially and simultaneously the customers’ decision process in choosing hajj
saving product in sharia-compliant banking in South Jakarta.

Keywords: Location, Branding Image, Word of Mouth, Decision Process, Hajj Saving, Sharia-
Compliant Banking
THE EFFECT OF DIFFERENT ARGUMENT QUALITY AND RELIGIOUS SYMBOL TO THE MUSLIM
CONSUMERS’ ATTITUDE AND
INTENTION TOWARD HALAL FOOD PRODUCTS

Varah Nuzulfah
Mardhatilla Pefiza Sidik
Satria Fadil Persada
Dewie Saktia Ardiantono
Geodita Woro Bramanti

Department of Business Management

Institut Teknologi Sepuluh Nopember Surabaya, Indonesia
varah@mb.its.ac.id
mardhatillapefiza@gmail.com
satriafp@gmail.com
saktiad@gmail.com
geodita.bramanti@gmail.com

Abstract

Several previous studies have examined the determinants of Muslim consumers' attitudes
and intentions toward halal food products. However, until now there has not been much
research that specifically discusses the influence of argument quality and religious symbol as
a determinant of Muslim consumers' attitudes and intentions toward halal food products.
Moreover, research using an experimental method with the Elaboration Likelihood Model
(ELM) as the basic theory has never been done. Thus, this research aims to examine the
influence of argument quality and religious symbol on the Muslim consumers’ attitudes and
intentions on halal food products using experimental methods and ELM as the basic theory.
This research model was tested upon 150 Muslim consumers in Indonesia under the age
range of 19-41 years old. Analysis of Variance (ANOVA) and regression analysis were used to
test the research hypothesis. It was found that there were significant differences in attitudes
related to the presence and absence of halal logos on halal food products. However, the
opposite effect was found on differences in the argument quality displayed by the seller on
the description of halal food products. Finally, the results of the study also show that
attitudes significantly influence purchasing intentions of Muslim consumers upon halal food
products.

Keywords: Elaboration Likelihood Model (ELM); Argument Quality; Religious Symbol; Muslim
Consumers’ Attitude and Intention; Halal Food Products
 THE INFLUENCE OF SHARIA COMPLIANCE AND CUSTOMER’S EXPERIENCE ON
SATISFACTION AND LOYALTY OF MUSLIM TOURIST VISITING SHARIA HOTEL

Muhammad Nur Alam

Middle East and Islamic Studies-Islamic Economics and Finance, University of Indonesia

Muhammad Soleh Nurzaman

Faculty of Economics and Business, University of Indonesia

Fahadil Amin Al Hasan

Independent Researcher, 6 Salemba Raya Street 10440 Jakarta, Indonesia

Abstract

Halal tourism is one of the sectors in Islamic Economy which develop significantly. In this
case, sharia hotel is an inseparable part of the halal tourism sector. In Indonesia, the
implementation of halal tourism is still being addressed. However, the quantity of sharia
accommodation available in Indonesia is relatively small compared to the number of regular
accommodation. Thus, the developments of sharia hotels or hotels which are friendly for
Muslim tourists need to be undertaken, both more intensively and massively. The
development of the hotel can be undertaken by implementing several strategies, among
which are business and marketing strategies that taking focus on the approach of consumers
or tourists. This research aims to analyze the influence of sharia compliance and customer’s
experience such as helpfulness, value for time, customer recognition, promise fulfillment,
problem solving, personalization, competence, accessibility on satisfaction and loyalty of
Muslim tourists visiting sharia hotels. The population of the research is Muslim tourists who
stay at sharia hotels in Lombok, Indonesia; while the number of samples used are 205
respondents. Data analysis method used is Structural Equation Modeling (SEM). The results
of the research shows that sharia compliance, helpfulness, customer recognition, promise
fulfillment, personalization have significant influence toward satisfaction; and satisfaction is
proved to influence the loyalty of Muslim tourists who visited sharia hotels.

Keywords: sharia compliance, customer’s experience, satisfaction, loyalty, and sharia hotel.
 STRATEGY OF SELLING PRICE, INNOVATION, AND VALUES CONTAINED IN BUSINESS
OF BATIK GENTHONGAN

Yuni Rimawati
Robiatul Auliyah

Ekonomic and Bussiness Faculty, University of Trunojoyo Madura

rimawati.unieq@gmail.com
robiatul.auliyah@trunojoyo.ac.id

Abstract

Batik is not only a clothing product but also a work of art. This study aims to gain an
understanding of business innovation and batik Genthongan selling price strategy. In
addition, this research seeks to explore the values contained in business innovation and
strategy. The approach used in this research is phenomenology. Business innovation
conducted by JC founder is the implementation of profit sharing system to the labors of
batik Genthongan. To understand the selling price strategy is by understanding every
handcrafting process of batik and its philosophy which then JC founder is able to execute a
competitive selling price followed by an excellent understanding of the product (product
knowledge). The outcome of running such business is to serve orphans lives. This is
undertaken only to help orphans having a better life. In addition, the owner of JC has 2
biological-orphan children.

Keywords : strategy, selling price, innovation

 DISTRIBUTION ANALYSIS AND AGRICULTURAL PRODUCTIVITY DETERMINANTS
IN INDONESIA
(STOCHASTIC FRONTIER ANALYSIS (SFA) AND RATIO OUTPUT/INPUT METHODOLOGY)

Rizky Oktabriani Putri

Selamet Joko Utomo
Henny Oktavianti
Faculty of Economics and Business
University of Trunojoyo
rizkyoktabriani_putri@yahoo.co.id

Abstract

Agricultural productivity is a major issue in agricultural development in Indonesia. Therefore,

research on agricultural productivity is still very much needed. Accordingly, the objective of
this study is to evaluate agricultural productivity and its distribution in Indonesia. The
method used to identify the distribution of agricultural productivity is the Stochastic Frontier
Analysis (SFA) and the ratio of output/input (agricultural production/agricultural production
factor) by collecting data from 32 provinces during 2007-2015. The results of the analysis on
Stochastic Frontier Analysis (SFA) indicate that Lampung Province, East Java Province, Central
Java Province and West Java Province were recorded as provinces with the most efficient
level of agricultural productivity. Its Output/Input Ratio shows that the Province of Nusa
Tenggara Barat, Lampung Province and East Java Province are treated as a highly efficient
province. Thus, the effort to develop needs to be carried out efficiently in provinces with
highly agricultural productivity to reduce overall economic disparities.

Keywords: Spreading, Productivity, Agriculture

CLIENT SATISFACTION LEVELS

AT MICROFINANCE INSTITUTION: AN EMPIRICAL RESEARCH
 Rudy Pramono
Sekolah Tinggi Pariwisata Pelita Harapan, Tangerang, Indonesia
rudy.pramono@uph.edu

Sabrina O. Sihombing
University of Pelita Harapan, Tangerang, Indonesia
sabrina.sihombing@uph.edu

Diena M. Lemy
Sekolah Tinggi Pariwisata Pelita Harapan, Tangerang, Indonesia
diena.lemy@uph.edu

Abstract

Since 2008 up to this time, a cooperative called XYZ has never conducted any assessment of
satisfactions and interest of clients to a body called ‘loan services to micro businesses’ by
which it is being to be. On the other hand, customer satisfaction can be treated as a key
indicator of an institutional development success as well as supporting the success and
sustainability of a business achievement. Thus, this research aims to understand clients’
satisfaction and some other factors that decrease client’s satisfaction which then causing
clients to stop purchasing. Respondents which are taken as samples of the study were active
clients within service branches of XYZ cooperative, determined by a multistage random
sampling method. Data analysis was done through descriptive statistic using SPSS program.
Based on Cartesian diagram mapping, it was concluded that the prior performance
improvement should be given by Dian Mandiri are the factor of working hour, punctuality,
fulfillment of appointment, loan amount, installment amount and loan term. The reason for
outgoing clients is mainly influenced by factors outside the organization (pull factor) when it
is compared to factors coming from within the inside of it (push factor). A gap (minus)
considered between performance and importance indicates are needed to improve,
especially the performance of services. Without this, a huge competition with external
organizations can draw clients out.

Keywords: Customer’s satisfaction, micro business, micro finance institution.

THE INFLUENCING FACTORS ON COFFEE SHOP CUSTOMERS’ RE-VISITING INTENTION

 Widyawati
University of Pelita Harapan Karawaci, Indonesia

Margaretha Pink Berlianto

Department of Management
University of Pelita Harapan Karawaci, Indonesia
margaretha.berlianto@uph.edu

Abstract

This study aims to investigate the effect of service marketing mix (7Ps) on satisfaction, the
effect of trust on commitment, the effect of satisfaction and commitment on re-visiting
intention in the context of coffee shop retailer in Jakarta. There are 11 hypotheses
developed in this study. There were 332 questionnaires distributed. The study applies PLS-
SEM statistical tool. The findings of this study are price, place, promotion, people and
process having a positive effect on satisfaction; satisfaction has a positive effect on trust and
re-visiting intention; trust has a positive effect on commitment. Product and physical
evidence have no effect on satisfaction; commitment has no effect on re-visiting intention.

Keywords: service marketing mix, satisfaction, trust, commitment, re-visiting intention.

THE GAP ANALYSIS OF PUBLIC SERVQUAL

(CASE STUDY OF BUS RAPID TRANSIT’S CUSTOMER ON MAKASSAR)
 Harry Yulianto
Syarief Dienan Yahya

STIE YPUP
Makassar, Indonesia
harryyulianto.stieypup@gmail.com
dienanyahya@gmail.com

Abstract

Public transportation such as Bus Rapid Transit (BRT) was an alternative solution in reducing
traffic congestion in major cities of Indonesia. Trans Mamminasata was one of the urban
transportation as part of the government program to provide mass transit for Makassar
people. This study aims to 1) testing the difference of average value between perceived
service with expected service upon each dimension of servqual (reliability, responsiveness,
tangible, assurance and empathy); 2) testing the gap between perceived service and
expected service; and 3) testing the priority indicator servqual in the improvement effort for
Trans Mamminasata management in order to fulfill the expected service for the community.
The approach used in this research was quantitative, with cross sectional design. Data
collection techniques in this study were using questionnaires. And, sampling technique was
using non probality sampling, with purposive sampling method. There were two variables
perceived service and expected service consisting of five dimensions, namely: reliability,
responsiveness, tangible, assurance, and empathy. Pairing T test was used to test H 1, H2, H3,
H4, and H5. Wilcoxon Signed-Rank test was used to test H 6. And, Importance Performance
Analysis was used to test the servqual priority indicators. The results showed that H 2, H3, H4,
H5, and H6 were accepted, while H1 was rejected. Performance Analysis indicates that there
were no indicators in A quadrant. Meanwhile, 20 indicators were in B quadrant; 12 indicators
were in C quadrant; and 1 indicator in C quadrant.

Keywords: Servqual, Bus Rapid Transit, Trans Mamminasata.

THE INFLUENCE OF “ISLAM NUSANTARA” ISSUE ON BATIK STYLE

 IN SURAKARTA, CENTRAL JAVA

Muhammad Sholahuddin
Faculty of Economic and Bussines
University of Muhammadiyah Surakarta
muhammad.sholahuddin@ums.ac.id

Umrotun
Faculty of Geography, University of Muhammadiyah Surakarta
umrotun@ums.ac.id

Muhammad Wahyuddin
Faculty of Geography, University Muhammadiyah Surakarta
muhammad.wahyuddin@ums.ac.id

Abstract

Previously, Batik style in Surakarta had animal in the pattern. On the other hand, drawing
animal is forbidden in Islam. After receiving Islamic teachings, the pattern had been changed
into plant. This paper aims to identify the strengths, weaknesses, opportunities and
challenges on batik manufacture in Surakarta after receiving the influence of Islamic art.
Thus, it is expected that the decision of stakeholders, especially regional governments, will
be able to accelerate economic growth. To date, there has been no identification of
strengths, weaknesses, opportunities and challenges of featuring product which is export-
oriented creative economy in Indonesia. The purpose of this research is to analyze the
strengths, weaknesses, opportunities and challenges of export-oriented creative economy
SMEs in Solo City-Central Java, Indonesia. Secondary data are obtained from the local offices
of the Department of Industry and Trade and the Department of SMEs and Creative
Economy. The primary data in the form of identification of strengths, weaknesses,
opportunities and challenges of export-oriented creative economy are obtained from
interviews with related entrepreneurs. The result of the analysis shows that batik style with
Islamic art in Surakarta has export-oriented SMEs potential. Therefore, it can be concluded
that Batik pattern in Surakarta has a role in supporting the achievement of Sustainable
Development Goals in Surakarta.

Keywords: Creative Economy; Export; Opportunity; Challenge.

 IMPLEMENTASION OF SHARIA BUSINESS STRATEGY DEVELOPMENT THROUGH SHARIA
MULTILEVEL MARKETING SCHEMES IN HAJJ AND UMRAH TRAVEL AGENCIES

Shofie Amilia Budi Rachmawati

Nur Rizqi Febriandika

Department of Islamic Economic Science, Postgraduate School, Airlangga University,

shofieamilia@gmail.com
rizqi.febriandika@gmail.com

Abstract

Over time, the Sharia business model continues to develop, including in terms of marketing
strategies. Sharia multilevel marketing strategies are also used in the business of Hajj and
Umrah travel agents as a way to get a significant number of customers. This study is
intended to find out how the implementation of Islamic business schemes with multilevel
marketing strategy has been practiced by Hajj and Umrah travel, especially at PT. Arminareka
Perdana in 2017. This study uses descriptive qualitative research approach with explanatory
case studies as the type of qualitative research. The reference in this study is the practice of
tiered direct sales by PT. Arminareka where the practice is using the Jualah agreement and
the reference of the DSN fatwa no: 83/DSN-MU/2012. The results of this study show that
Multilevel Marketing is permissible since applying a tiered direct selling system and Jualah
contract.

Keywords: Sharia Business, Strategy, Multilevel Marketing, Travel Agencies.

AN ANALYSIS ON THE EFFECT OF PERFORMANCE FACTORS AND TECHNOLOGY ASPECT ON
MARKET SHARE OF SHARIA-COMPLIANT BANKING IN INDONESIA

Muhamad Sandy
Ade Sofyan Mulazid
Faizul Mubarok

Faculty of Economics and Business

Syarif Hidayatullah State Islamic University Jakarta
m.sandi@gmail.com
adesofyanmulazid@uinjkt.ac.id
fayzmubarok@uinjkt.ac.id

Abstract

This study aims to analyze the influence of the Operational Efficiency Ratio (OER), Return on
Assets (ROA), Non Performing Financing (NPF) and Electronic Banking towards market share
of sharia-compliant banking in Indonesia. Its secondary data was collected from annual
report of Financial Services Authority Board (OJK) related to Sharia Commercial Bank (BUS)
and Sharia Business Unit (UUS) performance in 2011-2015. A Panel Data Regression is used
to analyze data. The result found that both partially and simultaneously OER, ROA, NPF and
Electronic banking affect Market Share of sharia-compliant banking significantly in
Indonesia.

Keywords: Electronic Banking, Market Share, Islamic Banking, Banking Performance.

 THE ROLE OF DIGITAL MARKETING IN IMPROVING SALES TO SMEs IN DEALING WITH
ASEAN ECONOMIC COMMUNITY

Mohamad Trio Febriyantoro

Departement of Management
Universal University, Batam, Indonesia
mtriofeb@gmail.com

Debby Arisandi
Department of Management
University of Indonesia, Tangerang, Indonesia
debbyarisandi@gmail.com

Abstract

Technology is to grow up and taking benefit of it increasingly felt down for users who apply
internet as their main tool, including small and medium enterprises (SMEs) in utilizing
information technology to run its business. The increasing number of competitors is into a
consideration for business actors to innovate, especially to win the competition. In the era of
ASEAN Economic Community (MEA), SMEs are required to continue to develop their market
potential as more and more foreign products to flood the Indonesian market. The use of
digital marketing to be the right solution for the perpetrators of SMEs, the use of the
Internet in the promotion process is expected to increase their sales volume. The purpose of
this research is generally to describe the impact of digital marketing on sales volume for
SMEs in Batam. This study applies qualitative research methods, triangulation model, which
combines structured interview method, in-depth interview and observation on SMEs. Digital
marketing simplify them to provide information and interact directly with consumers. Digital
marketing is also expanding their market share, increasing awareness and sales.

Keywords: SMEs, digital marketing, entrepreneurship.

 SHARIA-BASED BUILDING LOYALTY IN FINANCIAL SERVICES COMPANIES
(STUDY ON BMT SIDOGIRI PASURUAN)

Siti Asiyah

STIE Gempol Pasuruan

al.asiyah@yahoo.com

Abstract

This study aims to examine and analyze the relationship between the adherence into Sharia
Principles on customer’s loyalty, with trust as a mediation in the BMT Sidogiri, East Java. This
is an explanatory research: a research that wants to find explanations in the form of
causation.This study aims to analyze and examine the effect of adherence into sharia
principles on customer’s loyalty, with a trust as a mediation, in BMT Sidogiri East Java. This
research was undertaken by distributing questionnaires randomly to 136 loan recipients of
Qardul Hasan BMT Sidogiri located in Pasuruan, Malang, Surabaya and Mojokerto. Its
sampling is purposive. The data analysis method used is PLS. The results of this study prove
that an adherence into Sharia Principles is enable to increase the loyalty of BMT Sidogiri’s
customers through a trust as mediation. Trustness significantly contributes in increasing
customer’s loyalty, and an adherence to Sharia Principle is directly related to loyalty.

Keywords: Obedience to the principles of sharia, trustness and loyalty

 THE CONCEPT AND STEPS OF PERSONAL SELLING

Fani Firmansyah
Doctoral Program of Management Science, Faculty of Economics and Business,
Brawijaya University, Malang
firmansyahfani@yahoo.co.id

Margono. S
Fatchur Rohman
Nur Khusniyah
Faculty of Economics and Business, Brawijaya University, Malang

Abstract
Personal selling has long been recognized as the oldest and perhaps the most
important component of the promotion mix. Personal selling can be defined as oral
presentation in a conversation with one or more potential buyer to ensure sales.
Persuading customers to buy goods or services personally as marketing process can be
defined as personal selling. One of the most powerful elements in the promotion mix is
salesmanship, a term used to indicate activities of personal selling. There are some
opinions expressed about the steps in the sales process on personal selling. This theory
and reviewed studies from expert opinion suggested some of the steps being taken in
personal selling. Some opinions from the experts are different from one another. On the
other hand, there are several things to do to achieve successfulness in terms of personal
selling by salespeople.

Keyword: personal selling

 STRATEGIC MARKETING FOR WASTE BANKING IN MALANG

Nihayatu Aslamatis Solekah

Alif Septian Prabowo

Faculty of Economics, Maulana Malik Ibrahim State Islamic University

Malang, Indonesia
nihayatuaslamatiss@yahoo.co.id
Septian.alif86@gmail.com

Abstract

Waste problem has been common at Malang. Uncontrolled waste piles cause various
problems. To overcome this, Malang City government establishes environmental cadres for
Waste Banking. This study aims to explore the Strategic Marketing for Waste Banking in
Malang. This study was conducted in Malang Waste Bank by applying qualitative descriptive
approach as a research method. Informants are determined by purposive sampling
technique with a three principal informant and three additional informants. In addition, the
collecting data process includes observation, interviews, and documentation. For data
validity, this study uses triangulation techniques. The results shows that the implementation
of marketing mix in Waste Banking in Malang was performed by designing the product
collection and distribution in the form of savings (product), pricing products to survey the
market (price), disseminating to the public (promotion), collecting the waste using a fleet of
vehicles (place), involving employees in marketing (people), operating the schedule of
Malang Waste Banking (process) and distinguishing production warehouse and offices of
Malang Waste Bank (physical evidance).

Keywords: Waste banking, Product, Price, Place, People, Process, Physical Evidence.
 THE IMPLEMENTATION OF SUSTAINABLE MARKETING STRATEGY ENTERPRISE AT
INDONESIA SHARIA BANKING

Irmayanti Hasan

Faculty of Economics, Maulana Malik Ibrahim State Islamic University,

Malang, Indonesia

Abstract

Sharia marketing is one of the best marketing concepts for todays’ and future’s marketing.
This principle refers to the religious ethics applied in marketing activities. The marketing
perspective in Islam is a rabbinic, realistic, humanist and equilibrium economy. This is what
distinguishes Islamic economic with conventional economic system. According to Islamic
teaching, marketing has a lot of interesting values and characteristics. Sharia marketing
believes that person's actions will be held accountably. In addition, sharia marketing
emphasizes moral values and moral ethics in its implementation. Since 2016, PT. Bank Sharia
Mandiri Malang (BSM) has changed into PT. Bank Sharia Mandiri. This fact shows that the
existence of BSM should be taken into account, because it covers a wider area of
responsibility. Thus, a strategy is needed to maintain its position. In this qualitative
approach, the researcher is the main instrument in collecting data. This is a single case study,
by looking at the implementation of Sustainability Marketing Enterprise strategy at BSM. The
implementation of Sustainable Marketing Enterprise at BSM has been done well. For the
sustainability competition, BSM uses customer centric strategy. This marketing
implementation includes Marketing outlook seen from change, competitor/customer and
company. Technological changes started in 2011, which previously used green screen
software with limited data capacity. By 2012, Temenos software is used. It was a Web-Based
with a greater capacity.

Keywords: Sustainable marketing strategy, enterprise, Sharia Banking.

THE EFFECT OF MOBILE BANKING ON USER SATISFACTION AND LOYALTY THROUGH THE
QUALITY OF MOBILE BANKING SERVICE
 (STUDY ON BANKS IN EAST JAVA)

Lailatul Farida

Maulana Malik Ibrahim State Islamic University, Malang

Ellyfarida.fia@gmail.com

Abstract

The background of this research is a dramatic development of Mobile Banking in Indonesia.

It is so obvious because m-Banking service has provided an unhampered practical financial
transaction through cellular phone so that user is capable of operating online baking
transaction at any times and places. Mobile Banking can be used to access whole online
banking transaction including ATM (Automatic Teller Machine), except the cash of
withdrawal facility. This research is taking focus on the acceptance and the use of
information technology in Mobile Banking; therefore, the customer of Mobile Banking is
categorized as user. Based on some researches, the system usage becomes a main
instrument to accept the technology. Indeed, this research considers Mobile Banking user as
the instrument of Mobile Banking acceptance. This research attempts to explore the
variables affecting the use of Mobile Banking such as perception of security, perception of
new product adoption, perception of IT knowledge, perception of internet connecting
quality, and the quality of Mobile Banking service. Mobile Banking creates satisfaction and
loyalty of the user. Therefore, user’s satisfaction represents a response and feedback given
by the user after using Mobile Banking. The attitude of user toward Mobile Banking
becomes a subjective criterion of how the user’s system like. The analysis tool is Structural
Equation Modeling (SEM). Based on the direct effect among variables, it seems that seven
hypotheses proposed, six hypotheses of which have significant effect; only one has non
significant effect. The result of this research indicates that Mobile Banking service has non
significant but positive effect to user’s loyalty. It shows that the facility of Mobile Banking is
not ensuring user’s loyalty to use Mobile Banking. The progressive development of
telecommunication technology and banking is introducing user with new application and
new facility. However, it is not really increasing user’s loyalty to certain services because the
user is using the service based on the demand.

Keywords: Mobile Banking, Security, New Product Adoption, IT Knowledge, Internet

Connection Quality, Service Quality, User Satisfaction, User Loyalty