Determinants of Micro Enterprise Owners’ Loyalty towards Their Favourite Banks

Kasuma, Jati; Ung, Ting Su; Kanyan, Agnes; Kamri, Thalany; Yacob, Yusman

doi:10.1016/j.sbspro.2016.05.489

Cited by 4 publications

(6 citation statements)

References 25 publications

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“…Reputation is statistically significant (p < 0.01) with in which t-value is 3.524. MSMEs This finding regarding the reputation is consistent with previous study, Kasuma et al (2016) that stated, reputation is the key component in Islamic financing. This finding indicates that Halal MSMEs need to improve their reputation as halal companies.…”

Section: Findings and Analysissupporting

confidence: 92%

THE HALAL ASPECT AND ISLAMIC FINANCING AMONG MICRO, SMALL, AND MEDIUM ENTERPISES (MSMEs) IN YOGYAKARTA: DOES BERKAH MATTER?

Qoyum

Fauziyyah

2019

JIMF

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The development of Halal industry points out an amazing result around the world,including Indonesia. Surprisingly, the biggest contributor for its growth is Micro, Smalland Medium Enterprises (MSMEs). In order to improve its significant contribution, thecombination of Halal MSMEs and Islamic financing becomes very crucial. Nevertheless,there is still a lack of awareness of the concept and of intention from MSMEs regardingthe penetration of Islamic financing. Therefore, this study investigates the determinantsaffecting the MSMEs’ desire for utilizing Islamic financing from the Islamic financialinstitution and encouraging Halal MSMEs to adopt Islamic financing in all businessactivities. A survey was conducted on 58 MSMEs in Yogyakarta, Indonesia byemploying self-administered questionnaire as the main approach for data collection.By using Structural Equation Modeling- Partial Least Square (SEM-PLS) analysis, thisstudy reveals that from the variables examined, Cost Benefit and Halal Awareness arethe two factors that have impact on the Use of Islamic Financing. In addition, CostBenefit and Reputation are the two variables that have direct impact on the Attitudeof MSMEs toward Islamic Financing. Interestingly, this research also finds that Berkahas the key component in Islamic financing will be gained by MSMEs when they useIslamic financing instrument, and, thus will encourage Halal MSMEs’ intention to reuseIslamic financing. Moreover, service quality and competitiveness are very crucialto maintain the customer satisfaction. In addition, preaching Berkah as key componentin Muslim life is an important agenda in the future development of Halal Industry,especially in MSMEs sectors.

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Section: Findings and Analysissupporting

confidence: 92%

THE HALAL ASPECT AND ISLAMIC FINANCING AMONG MICRO, SMALL, AND MEDIUM ENTERPISES (MSMEs) IN YOGYAKARTA: DOES BERKAH MATTER?

Qoyum

Fauziyyah

2019

JIMF

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“…Abou-Youssef et al (2015) stated that religiosity functions as the formation of consumer attitudes towards Sharia Banks and religiosity is one of the variables that influences customer loyalty. Kasuma et al (2016) show that religiosity influences the loyalty of micro business owners to their favorite banks in Malaysia. Wahyoedi et al (2020) show that religiosity, service quality and satisfaction directly influence loyalty.…”

Section: Introductionmentioning

confidence: 95%

“…Tjiptono (2014) states "Loyalty is a situation where consumers have a positive attitude towards a product or producer (service provider) and is accompanied by a consistent repeat purchase pattern". Kasuma et al (2016), research shows that religiosity has a positive effect on the loyalty of micro-business owners to their favorite banks. Wahyoedi (2017), the result is that aspects of religiosity affect loyalty if supported by trust.…”

Section: Islamic Customer Engagementmentioning

confidence: 99%

Study on the influence of Islamic Customer Engagement and Religiosity on Customer Loyalty

Hasan

2023

MEC-J

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Indonesia is the largest Muslim country in the world and Indonesia has Islamic banks which are starting to develop at this time. Islamic Bank is a Bank that carries out its business activities based on Islamic principles and according to its type consists of Islamic Commercial Bank and Sharia People’s Financing Bank. Islamic banking is a banking system developed based on Islamic Sharia (law). The effort to establish this riba and a ban on investment for businesses that are categorized as haram, which cannot be guaranteed by the conventional banking system.Islamic banks need loyal customers in order to survive and improve their performance in banking competition. The image of Islamic banks is still lagging behind conventional banks. This situation is one of the challenges of Islamic banks to develop and become a bank used by many customers both Muslim and non-Islamic. For a Muslim using Islamic banking is a religious guidance that must be obeyed and implemented. This study examines the influence of religiosity and Islamic customer engagement on the loyalty of Islamic bank customers in Malang City. Data analysis using SEM-PLS. the results indicate all hypotheses are accepted, i.e. there is a positive and significant influence between religiosity and Islamic customer engagement on loyalty imagery to loyalty.

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“…Previous studies have investigated the influence of religion on various marketing concepts and issues such as shopping orientation (Mokhlis, 2009), product adoption (Rehman and Shabbir, 2010), consumer ethical judgement (Swimberghe et al, 2011), trust (Mohamed and Daud, 2013), intentions to buy (Jamal and Sharifuddin, 2015), equity (Mohamed and Daud, 2013), acceptance of new products (Mansori et al, 2015), sustainable behaviours (Minton et al, 2015), green food consumption (Mohd Suki and Mohd Suki, 2015), purchase behaviour (Iqbal and Nisha, 2016) and halal choice behaviour (Butt et al, 2017). However, the understanding of customer's loyalty from the religious perspective has received insignificant research attention (Alam et al, 2012;Jamal and Sharifuddin, 2015;Kasuma et al, 2016;Siala, 2013;Swimberghe et al, 2009;Abu-Alhaija et al, 2018a, 2018b. This statement is in line with McDaniel and Burnett (1990) who previously stated that almost all models of patronage behaviour did not consider the role of religious orientation or religiosity.…”

Section: Introductionmentioning

confidence: 99%

“…It is believed that there is the need to understand the religious influences on customer's loyalty models. Hence, it is recommended to examine the customer's loyalty model from a religious perspective (Agag and El-Masry, 2016;Alam et al, 2012;Butt and Aftab, 2013;Gayatri and Chew, 2013;Jamal and Sharifuddin, 2015;Kasuma et al, 2016;Siala, 2013;Swimberghe et al, 2009;Tang and Li, 2015;Abu-Alhaija et al, 2018a, 2018b.…”

Section: Introductionmentioning

confidence: 99%

The influence of religious orientation on viewers’ loyalty towards satellite TV channels

Abu-Alhaija

Yusof

Hashim

et al. 2019

JIMA

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Purpose This paper aims to examine the influence of religious orientation on viewers’ loyalty, viewers’ satisfaction and perceived content quality; to examine the influences of perceived content quality and viewers’ satisfaction on viewers’ loyalty; and to examine the mediating roles of perceived content quality and viewers’ satisfaction. Design/methodology/approach A set of questionnaires was distributed to 750 respondents in Jordan using convenience sampling. The data were analysed using structural equation modelling. Findings The following are the findings: religious orientation has a direct positive influence on viewer’s loyalty, viewer’s satisfaction and perceived content quality; perceived content quality has a positive influence on viewer’s satisfaction; viewer’s satisfaction has positive influence on viewer’s loyalty; perceived content quality does not have any direct influence on viewer’s loyalty; perceived content quality has partial mediation role in the relationship between religious orientation and viewer’s satisfaction, while viewer’s satisfaction has full mediation role in the relationship between perceived content quality and viewer’s loyalty. Originality/value It is different from the previous studies that mostly focussed on religious commitment and religiosity as the important predictors of customer’s loyalty, and this study emphasised on the influence of religious orientation (the motivational approach of religion) as one of the religious dimensions that can affect customer’s loyalty model. The selected approach may provide additional insights into the existing loyalty models.

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Determinants of Micro Enterprise Owners’ Loyalty towards Their Favourite Banks

Cited by 4 publications

References 25 publications

THE HALAL ASPECT AND ISLAMIC FINANCING AMONG MICRO, SMALL, AND MEDIUM ENTERPISES (MSMEs) IN YOGYAKARTA: DOES BERKAH MATTER?

THE HALAL ASPECT AND ISLAMIC FINANCING AMONG MICRO, SMALL, AND MEDIUM ENTERPISES (MSMEs) IN YOGYAKARTA: DOES BERKAH MATTER?

Study on the influence of Islamic Customer Engagement and Religiosity on Customer Loyalty

The influence of religious orientation on viewers’ loyalty towards satellite TV channels

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