Examining the Determinant Factors on Consumer Switching Intention Toward Islamic Bank in Central Java, Indonesia

Abstract

Purpose of the study: The purpose of this paper is to examine the determinant factors that influence consumer switching intentions from conventional banks to Islamic banks in Central Java, Indonesia.
 Methodology: This study is quantitative research in which data is collected by using a survey with the questionnaire. Data was collected by distributing questionnaires to 480 Muslim respondents who were still registered as customers at three conventional government banks in Indonesia using purposive sampling techniques and analyzed with SEM-AMOS v24.
 Main Findings: The result showed that all out of the hypotheses tested, there is only one hypothesis that was rejected, is the fourth hypothesis. This research reveals that consumer trust in Islamic banks, consumer awareness and religiosity had a positive and significant effect on attitude toward Islamic banks. Furthermore, consumer awareness and religiosity are also able to predict consumer switching intentions at Islamic banks but consumer trust toward Islamic banks has insignificant consumer switching intentions at Islamic banks.
 Applications of this study: Based on the results of the study, conventional bank consumers' intentions to switch to Islamic banks are influenced by consumer awareness, level of religiosity, and consumer attitudes toward Islamic banks. Furthermore, this is becoming a very important concern for Islamic banks to pay more attention to the antecedents used in this study. Trust is an important predictor for companies in increasing intentions, in this study then it has not been proven to influence consumer intentions to move to Islamic banks. Trust will be able to increase intention if consumers have a good attitude towards Islamic banks.
 Novelty/Originality of this study: This study linked the variables of consumer awareness, religiosity, consumer trust, attitudes toward Islamic banks and consumer switching intentions on Islamic banks within a conceptual framework.

Effects of Subjective Norm, Attitude and Consumer Desire Toward Intention to Purchase Indonesian Herbal

“…The measurement of consumer purchase intention variables on Jamu uses four questionnaire items adapted from previous researchers (Rezai et al 2015;Nurhayati & Hendar, 2019). The Furthermore, subjective norms can also increase consumer intentions to buy a product (Ajzen, 2015;Shin & Hancer, 2016;Osburg, 2016;Riptiono et al 2020;J. Kim et al 2020).…”

“…Likewise, the relationship between consumer attitudes and intentions. Rehman et al (2007); Ajzen (2015); Wong et al (2018); Riptiono et al (2020) Prove that consumer attitudes are strong predictors to increase consumer intentions. Therefore, the hypotheses tested are: H4: Consumer attitude positively and significant influence on consumer desire to purchase Jamu H5: Consumer attitude positively and significant influence on consumer intention to purchase Jamu…”

Exploring Islamic Banking Switching Intention

“…Partial switching allows customers to maintain relationships with existing firms while adopting new behaviors. While it might be reasonable to assume that customers could be influenced to switch services due to a single event, many researchers suggest that the switch could also occur from various problems at hand (Ghamry & Shamma, 2020;Riptiono et al, 2020).…”

The Role of Affective Attitude as a Mediator Between Religiosity and Purchase Intention on Islamic Bank

“…Beberapa dekade yang lalu, keyakinan spiritual nasabah menjadi faktor pendorong niat nasabah perbankan syariah untuk menggunakan layanan bank syariah baik nasabah muslim ataupun non-muslim (Usman et al, 2017). Hal ini menjadikan religiosity (religiusitas) sebagai variabel penting yang dapat menjelaskan niat dan perilaku konsumen terhadap bank syariah (Usman et al, 2017;Riptiono et al, 2020). Meskipun religiusitas merupakan faktor pendorong konsumen untuk memilih bank syariah dari pada bank konvensional, namun masih ada ketidakkonsistenan hasil temuan penelitian yang dapat dijadikan gap dalam penelitian ini.…”