Customer Loyalty Business Model during the Covid-19 Pandemic: A Case Study on Bank Syariah Indonesia Post-Merger

Mustika Widowati, Winarto, Atif Windawati, Mella Katrina Sari

2021

Abstract

Islamic banks are business entities that are growing and developing rapidly in the world. Indonesia is a country with the largest Muslim population in the world, but the market share achieved is still small. It shows that the Indonesian people prefer conventional banks to Islamic banks. Indonesian government took the initiative to merge three state Islamic banks into one Islamic bank. As a bank with a new entity, the adjustment process will create various complex uncertainties and have the potential to affect customer loyalty. The condition was exacerbated by the fact that the merger was carried out when the COVID-19 pandemic was sweeping the world. This study aims to build a loyalty development business model in the context of a recently merged Islamic bank in Indonesia. Data collection was conducted through a survey that involved 138 Bank Syariah Indonesia’s customers. Customer knowledge, trust, and engagement variables are used to predict customer loyalty. The research model was tested using path analysis. The result shows that customer trust affects customer loyalty is a better model than customer knowledge affects loyalty with customer engagement as a mediating role.

Paper Citation

in Harvard Style

Widowati M., Winarto., Windawati A. and Katrina Sari M. (2021). Customer Loyalty Business Model during the Covid-19 Pandemic: A Case Study on Bank Syariah Indonesia Post-Merger. In Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-605-7, pages 399-407. DOI: 10.5220/0010934900003255

in Bibtex Style

@conference{icaess21,
author={Mustika Widowati and Winarto and Atif Windawati and Mella Katrina Sari},
title={Customer Loyalty Business Model during the Covid-19 Pandemic: A Case Study on Bank Syariah Indonesia Post-Merger},
booktitle={Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2021},
pages={399-407},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010934900003255},
isbn={978-989-758-605-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - Customer Loyalty Business Model during the Covid-19 Pandemic: A Case Study on Bank Syariah Indonesia Post-Merger
SN - 978-989-758-605-7
AU - Widowati M.
AU - Winarto.
AU - Windawati A.
AU - Katrina Sari M.
PY - 2021
SP - 399
EP - 407
DO - 10.5220/0010934900003255