Do Religious Factors Influence Consumers’ Intention to Switch to Sharia Banking in Indonesia?

Elvira Azis (), Ratih Hurriyati, Heny Hendrayati, Hilda Monoarfa and Arie Indra Gunawan
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Elvira Azis: Universitas Pendidikan Indonesia
Ratih Hurriyati: Universitas Pendidikan Indonesia
Heny Hendrayati: Universitas Pendidikan Indonesia
Hilda Monoarfa: Universitas Pendidikan Indonesia
Arie Indra Gunawan: Universitas Pendidikan Indonesia

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 293-303 from Springer

Abstract: Abstract The paper investigates the religious factors influencing the intention to switch to Sharia Bank in Indonesia. Switching intention often occurs among consumers who have choices and access to information about products or services that are being used or will be used. A broader choice that allows consumers to consider the option of product or service to be used by paying attention to factors that suit consumer needs and references [1]. One increasingly relevant phenomenon in this context is the shift in consumer behavior, which is influenced by the consumers’ religion. The data are gathered through an online self-administered questionnaire. The sample in this study was 260 conventional bank customers who were also Sharia bank customers in Indonesia. Smart PLS-SEM is used to analyze the data. The result showed that belief and trust in Islamic banks influence the intention to switch from conventional banks in Indonesia to a Sharia bank. The literacy of Islamic financial and religious motivations does not significantly affect the intention to switch from a conventional bank to a Sharia bank. This paper provides several factors rarely investigated previously in the context of religiosity in marketing literature. Hence, several factors in this research contribute significantly to the switching intention of Muslim consumers to Sharia banks from conventional banks.

Keywords: Literacy in Islamic banking; Religious motivation; Belief; Trust in Sharia Bank; Switching intention (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-817-2_36

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DOI: 10.2991/978-94-6463-817-2_36

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