Loyalty towards Islamic Microfinances Industry: The Role of Religiosity, Image, and Trust

Fertika Puspita Dewi

2019

Abstract

Developing and generating customer loyalty is very important to give a positive impact on business results such as deposit amount, operating and marketing costs, rate customer retention and income. By having customers who are loyal to the product or organization, a business organization will be able to improve its business performance. Therefore, understanding the way to build customer loyalty is very important for every organization. In other words, loyalty is an important key for developing sustainable competitive advantage. However, the literature shows a lack of attention in assessing loyalty in the context of Islamic microfinance institutions (sharia cooperatives/BMTs). This study attempts to examine customer loyalty of Islamic microfinance institutions (sharia cooperatives/BMTs) through three important determinants, religiosity, image, and trust. This study used a field survey based on self-managed questionnaires with 300 respondents in total. The samplings were taken from some major cities in West Java Province, Indonesia, as representatives. The sample data were analyzed statistically through path analysis with the Partial Least Square Structural Equation Model (PLS-SEM) to determine perceptions of religiosity, image, trust, and loyalty. The results of this study indicate that Trust and Image have a positive effect on loyalty, but Religiosity does not. This finding shows that even though a person's religiosity is considered good, it does not make the customer loyal to sharia cooperatives/BMTs. Customers will be more loyal if sharia cooperatives/BMTs can provide good image and trust, that will generate customer's desire to be loyal. However, Religiosity has an influence on Trust and Image, so it is still important to increase Religiosity so that it can indirectly increase Loyalty.

Paper Citation

in Harvard Style

Dewi F. (2019). Loyalty towards Islamic Microfinances Industry: The Role of Religiosity, Image, and Trust.In Proceedings of the International Conference on Creative Economics, Tourism and Information Management - Volume 1: ICCETIM, ISBN 978-989-758-451-0, pages 262-267. DOI: 10.5220/0009868202620267

in Bibtex Style

@conference{iccetim19,
author={Fertika Puspita Dewi},
title={Loyalty towards Islamic Microfinances Industry: The Role of Religiosity, Image, and Trust},
booktitle={Proceedings of the International Conference on Creative Economics, Tourism and Information Management - Volume 1: ICCETIM,},
year={2019},
pages={262-267},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009868202620267},
isbn={978-989-758-451-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Creative Economics, Tourism and Information Management - Volume 1: ICCETIM,
TI - Loyalty towards Islamic Microfinances Industry: The Role of Religiosity, Image, and Trust
SN - 978-989-758-451-0
AU - Dewi F.
PY - 2019
SP - 262
EP - 267
DO - 10.5220/0009868202620267