Analysis of Marketing of Sharia Banking Service Products Based on
Consumer Perception
Nizar Alam Hamdani and Galih Abdul Fatah Maulani
Universitas Garut, Garut, Jawa Barat, Indonesia
Keywords: product mapping; consumer perception, Multidimensional Scaling.
Abstract: The present study was aimed at describing the perception map of the position of each Islamic banking services
in Garut and identifying the benefits of each Islamic banking based on consumer perceptions. The study was
conducted by taking a sample of 100 respondents who performed Islamic banking activities using services of
the following banks: Bjb Syariah (Bjbs), Bank Syariah Mandiri (BSM), BNI Syariah and Bank Muamalat. To
achieve the aims, this study employed a descriptive analysis method using an inferential statistical approach.
The samples were chosen using a systematic sampling technique. The data were analyzed using a
multidimensional scaling (MDS) procedure. The results revealed that, in terms of product and price
perceptions, Bank Muamalat topped the list. In terms of emotion and convenience factors, BSM excelled in
its social class, life style, image, technology, strategic location, and likeable bank physical appearance. BNI
Syariah; meanwhile, was at the bottom since each of its attributes was always at the lowest rank.
1 INTRODUCTION
The development of Islamic banking has always
shown positive trends. This can be seen in the annual
increase in assets and market shares of the sharia
banking. However, in national banking scale, this
does not seem to affect national banking assets at all.
This is due to the fact that the asset value and market
share of sharia banking are relatively small. This is
very ironic considering the majority of Indonesia's
population is Muslim. This is in line with a study
(Ismal, 2011) that revealed that sharia banking issues
in Indonesia are associated with market share, human
resources, and product diversity. (Sari, Bahari, and
Hamat, 2016) suggested that “The main issues and
problems that inhibited the establishment of
Indonesian Islamic banks were political issues, lack
of government support, legal issues, social problems,
economic problems (lack of capital) and the debate
among scholars about the legal prohibition of halal-
interest conventional banks.” Compared with other
countries, the development of sharia banking in
Indonesia has not reached its optimum level. The
market share of sharia banking asset in Indonesia is
below 10%, lower than that in the neighboring
country Malaysia.
Figure 1: Banking penetration and Participation asset
market share (Ernst and Young, 2016).
Based on (Bank Indonesia, 2015), it can be seen
that the development of sharia banks in the period
2003-2010 showed a positive trend and in 2010-2015
showed a stagnant trend.
Hamdani, N. and Maulani, G.
Analysis of Marketing of Sharia Banking Service Products Based on Consumer Perception.
In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 515-520
ISBN: 978-989-758-315-5
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
515

Table 1: The Development of Sharia Banks in Indonesia (2003-2010).
The Financial Services Authority (OJK) (OJK,
2016) noted the growth of sharia banking market
share by 4.86% until July 2016. This was an
improvement to the previous year’s growth in the
same period by 4.61%. The 2016’s growth was in line
with the ever-improving national economy condition.
The improvement was made possible by various
policies in sharia finance. (Anwar, 2016) suggested
that there was an improvement in the performance of
sharia banking after the implementation of sharia
financial policy in Indonesia.
The development of sharia banking in Indonesia
is far behind that in Malaysia despite the fact that
Indonesia enjoys its status as a country with the
largest Muslim population in the world. Today’s
market share of sharia banking in Malaysia is around
40-50%, and that in Indonesia is only 4.86%. (Bm and
Uddin, 2016). Sharia banking is expected to
contribute to the economic transformation in
productive economic activities and to have high
added and inclusive values, especially by making the
most of demographic bonus and high economic
growth prospect so that sharia banking can play a
more significant role in the society. Furthermore,
based on the study by (Furqani and Mulyany, 2009),
sharia banking greatly contribute to the growth of
economy in Malaysia.
The greater the growth of sharia banking, the
more people will be served. A wider scope of sharia
banking scope indicates its greater role in the
economic development of the society. The sharia
banking is supposed to become a vanguard or a
locomotive of the financial inclusion.
In order for its services to perform well in the
market, the sharia banking can do product positioning
in accordance with existing targets and create a
consumer perceptions based on the corporate
expectations. Basically, this study was conducted to
figure out the strengths and weaknesses of a product
when compared with its competitors. Before and after
sales, consumers will always see banking services
from different perspectives. Thus, this study took
account of consumer perceptions to ensure its
accuracy and relevance to the real market condition.
2 LITERATURE REVIEW
Every function of management contribute in its own
way to the drafting of strategy at different levels.
Marketing is a function with the largest contacts with
the external environments over which the corporation
has only little control (Muangkhot, 2015). Thus,
marketing plays an important role in the strategic
planning (Jaakkola, Parvinen, and Möller, 2007). Its
strategic role includes all efforts to adjust the
corporation to the environment in order to find
solutions to issues associated with two basic
considerations. The first is the question of what kinds
of business the business people run today and what
business that could be penetrated in the future. The
second is the question of how to successfully run the
selected business in a competitive environment on the
basis of product, price, promotion, and distribution
perspectives(Kotler, Philip dan Keller, 2012) and
(Kotler and Keller, 2009).
In the Sura of an-Nisa (4), Ayat 29, Allah the Most
Holy said: “O you who have believed, do not
consume one another's wealth unjustly but only [in
lawful] business by mutual consent. And do not kill
yourselves [or one another]. Indeed, Allah is to you
ever Merciful.” This means that all economic
activities can be carried out through rightful trading
and marketing that are free from unjustness.
The consumer perception is a process of making
someone choose, organize, and interpret stimuli into
a meaningful and comprehensive picture of his world
(Kotler, Philip dan Keller, 2012). Some studies
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suggested that perceptions are influenced by stimuli.
These stimuli come from family, religion, friends,
media, and a bank image (Awan and Azhar, 2014).
This is in line with the opinion of (Ioanăs and Stoica,
2014) that the now trending social media factor can
influence consumer behaviors in purchasing a
product or service. Meanwhile, (Zeithaml, 1988) and
(Quratulain and Karachi, 2012) said that consumer
behaviors are influenced by price, quality, and value.
Today’s competition has encouraged corporation to
offer high value to the consumers by proposing the
best quality with a competitive price. That is why
intrinsic and extrinsic factors are required to shape
quality perceptions.
On internal and environmental stimuli, (Kotler,
Philip dan Keller, 2012) stated that the stimuli can be
in the form of: (1) market stimuli which refer to every
communication or physical stimulus intentionally
shaped and designed based on market analyses with
the purpose of influencing consumers and (2)
environmental stimuli which refer to the physical
stimuli designed to influence the environments.
The results of the study conducted by (Rivai,
Luviarman, and Dkk, 2006) revealed that perceptions
of Syariah banks were different from that of
conventional banks. As many as 51.4% of 124
respondents of the conventional banks’ customers
expressed that bank interests were against the
religious teachings. However, this did not keep them
from choosing products of conventional banks.
29.8% of respondents firmly expressed that interests
were not against the religious teachings, so it was
legitimate for them to use conventional banks’
products. The rest (18.5%) were undecided if the
interests were against the religious teachings.
Similarly, (Noonari et al., 2015) stated that religious
factors and understandings about religion influence
consumer perceptions of sharia banks. What
encourages consumers to choose sharia banks
includes religious knowledge and expectation about
benefits offered by sharia banks (Amin Safri, Inda
Hasnan, 2012).
The results of study conducted (Fada and Bundi
Wabekwa, 2012) revealed that consumer perceptions
of sharia banks were directed towards their products,
services, and economic benefits. Similarly, (Kotler,
Philip dan Keller, 2012) suggested that consumer
perceptions were shaped by price, quality, emotion,
and convenience. The price is represented by price
adjustment and perception, the quality is represented
by the quality of product as perceived by the
consumers, and emotion is associated with the brand
image and the convenience of sharia financial
transaction process. (Doraisamy, Shanmugam, and
Raman, 2011) studied perceptions of sharia banking
through the dimensions of service quality, awareness,
and expected benefits of sharia banks. The results
revealed that consumers chose sharia banks due to the
service quality and benefits they offered; the
awareness factor was not significantly influential.
Some studies revealed that factors affecting
consumers’ decisions in choosing sharia banks
included awareness, environmental influence, and
knowledge of sharia banks’ products (Imhmed
Mohmed, Binti Azizan, and Zalisham Jali, 2016),
(Amin Safri, Inda Hasnan, 2012), and (Bodibe et al.,
2016).
3 RESEARCH METHODOLOGY
A descriptive method was deemed appropriate to
conduct this study. The purpose of a descriptive
study is to systematically, factually, and accurately
describe facts about the characteristics of relationship
between the investigated phenomena.
This study was conducted by collecting and
analyzing data, drawing a conclusion based on
products’ attributes as perceived by the consumers.
The samples were 100 persons consisting of 25
consumers of BNI Syariah, 25 of Bank Muamalat, 25
of Bjb Syariah, and 25 of Bank Syariah Mandiri in
Garut. They were selected using a non-probability
sampling technique. The concepts used in this study
were quality perception, price perception, emotion
perception, and convenience perception.
The data were analyzed using a multidimensional
scaling (MDS) procedure. The objective of MDS is to
provide a visual representation of the proximity
pattern in the form of similarity or distance between
a set of objects. In contrast to factor and discriminant
analyses which involve a researcher’s assessment,
MDS can directly visualize the respondents’
assessments in the form of proximity pattern about
products’ similarities. MDS is able generate a map
that can be used to display the groupings of the
observed objects.
4 RESULTS AND DISCUSSION
The instrument validity was tested using the Pearson
product-moment correlation with the significance
level of 0.05. Every questionnaire item stated to be
valid could be used as an instrument to collect the
data. The validity test procedure can be seen in the
appendix. The result is illustrated in Table 2.
Analysis of Marketing of Sharia Banking Service Products Based on Consumer Perception
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Table 2: Result of validity test.
The validity test results showed that the
correlation coefficient of each questionnaire item was
greater than 1.66. Thus, it could be concluded that all
items were valid.
The Cronbach’s alpha test also revealed that the
questionnaire was reliable. The reliability test
procedure can be seen in the appendix. The result is
summarized in Table 3
Table 3: Reliability test summary.
∑σ² item
23.72
σ² total
80.70
r
0.71
t
o
10.07
t
c
1.66
Decision
Reliable
As the coefficient value was greater than 1.66, the
instrument was deemed to be reliable.
Table 4: Quality and price perception.
Table 4 showed that in terms of price and quality
perception, Bank Muamalat topped the list, and its
attributes were the second in number. Bank Muamalat
was perceived by the consumers to excel in the during
sale condition, its sharia compliance, the price/quality
conformity, and price change. BSM was ranked the
second for its excellent service quality, product
diversity, and its affordable administration cost. Bjbs
was ranked the third, and BNI Syariah was at
the bottom since each of its attributes was always at
the lowest rank. However, BNI Syariah excelled in its
profit sharing system.
Table 5: Emotion and convenience.
Attribute
BSM
Bank
Muamalat
BJbs
BNI
Syariah
Social Class
1
2
3
4
Life Style
1
2
3
4
Service
Image
1
2
3
4
Experience
2
1
3
4
Banking
Technology
1
2
3
4
ATM
availability
1
2
3
4
Transaction
Convenience
3
1
2
4
Strategic
Location
1
2
3
4
Bank
Physical
Appearance
1
2
3
4
Total
13
20
27
40
Average
1.30
2.00
2.70
4.00
Rank
1
2
3
4
Table 5 showed that in terms of emotion and
convenience perception, BSM topped the list. BSM
was perceived by the consumers to excel in its
packaging size variants, social class, life style, bank
image, technology, strategic location, and likeable
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bank physical appearance. This was made possible by
the existence of two subbranch offices in two
different sub-districts. BNI Syariah; meanwhile, was
at the bottom since each of its attributes was always
at the lowest rank. This was due to the fact that they
have only operated in Garut since 2016. This result
came as no surprise.
Based on the perceptual map of product quality,
price, emotion, and convenience, the brand rank can
be listed as seen in Table 6.
Table 6: Rankings based on consumer perceptions of
product quality, price, emotion, and convenience
dimensions.
Table 6 shows that based on consumer
perceptions of the overall dimensions of product
quality, price, emotion, and convenience, the ranking
of the sharia banks in Garut can be listed from the
highest to the lowest as BSM, Bank Muamalat, Bjbs,
and BNI Syariah respectively.
5 CONCLUSIONS
With the average score of 1.80, BSM was perceived
by consumers to be the first ranked sharia bank in
Garut. Bank Muamalat was ranked at the second with
the average score of 1.95. Bjbs came third with
average score of 2.70, and the last was BNI Syariah
with the average score of 3.55. Based on consumer
assessment, the position of each brand can be
determined. The position of product in the
consumers’ mind can be identified by looking at the
attributes. This way, the corporation can evaluate if
their strategic planning has been in line with the
consumer perception.
6 RECOMMENDATION
BSM was perceived to be the first ranked sharia bank
in Garut, but many consumers complained its less
convenient transaction process. Therefore, BSM
should make innovations in its transactions to ensure
a speedy service to the consumers. Its profit sharing
system also needs re-evaluating to be more
competitive.
Bank Muamalat excels in its sharia system
compliance, banking service, and experience, but
lacks product and service diversity and technology. In
order to perform better in consumer perception, Bank
Muamalat should develop technology system to
ensure the easiness in online transactions and ensure
a good bargaining power. Since BNI Syariah has only
operated in Garut since 2016, they need to increase
their marketing activities in order for the society of
Garut get to know better of them.
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