Do Social Role-Based Strategies Matter For Gen-Y Customers? The Case Of Indonesian Islamic Banks

Putri Swastika

Abstract

Since its conception, Islamic banks (IBs) have been perceived to be more society-oriented than its counterpart. IBs are expected to engage with their customers in the higher ethical norm, more philanthropic activities, and also concern with their impact on society. Such conceptions become customers’ bold line in distinguishing IBs and conventional banking. As one of the most important customers, understanding Generation-Y behavior is imperative in achieving and maintaining the sustainability of IBs. It includes whether the on-going conception still matters for this segment. The findings of this research demonstrate that Gen-Y consumer concern on relationship satisfaction than trust and identification factors, where relationship satisfaction is influenced by commercial performance, followed by ethical behavior and relational outcomes. Thus, the results suggest some key strategics for IBs maintaining loyalty of Gen-Y customers.


Semenjak kemunculannya, Perbankan Syariah (IB) dianggap lebih berorientasi kepada masyarakat (berperan sosial) ketimbang Perbankan Konvensional. IB diharapkan untuk berperilaku lebih etis, lebih dermawan, dan lebih peduli terhadap dampak kegiatan mereka ke masyarakat. Prinsip ini menjadi pembeda antara kegiatan IB dan Konvensional. Menjadi salah satu nasabah paling penting, memahami perilaku nasabah Gen-Y menjadi keharusan dalam mencapai bisnis yang berkelanjutan. Penelitian ini termasuk menganalisa apakah prinsip peranan sosial ini masih penting bagi segmen Gen-Y. Hasil menunjukan bahwa nasabah Gen-Y lebih peduli kepada kepuasan hubungan ketimbang faktor kepercayaan dan identifikasi. Kepuasan hubungan dipengaruhi oleh kinerja komersial, diikuti oleh perilaku etis dan nilai hubungan. Hasil ini merekomendasikan beberapa strategi kunci bagi IB untuk menjaga loyalitas nasabah Gen-Y.



Keywords


Generation-Y, Customer Behavior, Social Role, Islamic Banks

References

Abdullah, A. (2016). Islamic Financial System: Principles & Operations (Second Edi). International Shari’ah Research Academy for Islamic Finance.

Abror, A., Patrisia, D., & Padang, U. N. (2019). customer satisfaction , customer engagement and Islamic bank ’ s customer loyalty loyalty. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-03-2019-0044

Acar, A. B. (2014). Do intrinsic and extrinsic motivation factors differ for Generation X and Generation Y? International Journal of Business & Social Science, 5(5), 12–21.

Akhgari, M., Bruning, E. R., & Finlay, J. (2017). trust , and loyalty in financial services. https://doi.org/10.1108/IJBM-06-2017-0118

Ali, S. N. (2017). Building trust in Islamic finance products and services. Society and Business Review, 12(3), 356–372. https://doi.org/10.1108/sbr-03-2017-0017

Amin, M., Isa, Z., & Fontaine, R. (2013). Islamic banks: Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia. International Journal of Bank Marketing, 31(2), 79–97. https://doi.org/10.1108/02652321311298627

Applebaum, A. (2001). The constant customer. Gallup Management Journal.

Asnawi, N., & Fanani, M. A. (2019). The role of service quality within Indonesian customers satisfaction and loyalty and its impact on Islamic banks. Journal of Islamic Marketing, 11(1), 192–212. https://doi.org/10.1108/JIMA-03-2017-0033

Astrom, H. (2013). Survey on customer related studies in Islamic banking. Journal of Islamic Marketing, 4(3), 294–305. https://doi.org/10.1108/JIMA-07-2012-0040

BAPPENAS;, BPS;, & UNFPA. (2013). Proyeksi Penduduk Indonesia 2010-2035. In Badan Pusat Statistik. Badan Pusat Statistik.

Baumann, C., Elliott, G., & Burton, S. (2012). Modeling customer satisfaction and loyalty: Survey data versus data mining. Journal of Services Marketing, 26(3), 148–157. https://doi.org/10.1108/08876041211223951

Braciníková, V., & Matušínská, K. (2018). Corporate image of banks from the generation y perspective. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(2), 441–451. https://doi.org/10.11118/actaun201866020441

Chomvilailuk, R., & Butcher, K. (2013). The effect of CSR knowledge on customer liking, across cultures. International Journal of Bank Marketing, 31(2), 98–114. https://doi.org/10.1108/02652321311298672

Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297–334. https://doi.org/10.1007/BF02310555

Fauzi, A. A., & Suryani, T. (2019). Measuring the e ff ects of service quality by using CARTER model towards customer satisfaction , trust and loyalty in Indonesian Islamic banking. Journal of Islamic Marketing, 10(1), 269–289. https://doi.org/10.1108/JIMA-04-2017-0048

Foscht, T., Schloffer, J., Maloles, C., & Chia, S. L. (2009). Assessing the outcomes of Generation-Y customers’ loyalty. International Journal of Bank Marketing, 27(3), 218–241. https://doi.org/10.1108/02652320910950204

Fungáčová, Z., Hasan, I., & Weill, L. (2019). Trust in banks. Journal of Economic Behavior and Organization, 157, 452–476. https://doi.org/10.1016/j.jebo.2017.08.014

Garcia de los Salmones, M. M., Perez, A., & Rodriguez del Bosque, I. (2009). The social role of financial companies as a determinant of consumer behaviour. International Journal of Bank Marketing, 27(6), 467–485. https://doi.org/10.1108/02652320910988339

Greenyer, A. (2008). Are we paying attention? International Journal of Bank Marketing, 26(3), 200–207. https://doi.org/10.1108/02652320810864661

Hafez, M. (2018). Measuring the impact of corporate social responsibility practices on brand equity in the banking industry in Bangladesh: The mediating effect of corporate image and brand awareness. International Journal of Bank Marketing, 36(5), 806–822. https://doi.org/10.1108/IJBM-04-2017-0072

Hair, J. F. J., Black, W. C. ., Babin, B. J. ., & Anderson, R. E. (1998). Multivariate Data Analysis: A Global Perspective. In Pearson: Vol. 7th ed. Pearson. https://doi.org/10.2307/1266874

Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20(2009), 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014

Ireland, J. J. (2018). Just how loyal are Islamic banking customers ? International Journal of Bank Marketing, 36(3), 410–422. https://doi.org/10.1108/IJBM-09-2016-0138

Jaiyeoba, H. B., Adewale, A. A., & Quadry, M. O. (2018). Are Malaysian Islamic banks’ corporate social responsibilities effective? A stakeholders’ view. International Journal of Bank Marketing, 36(1), 111–125. https://doi.org/10.1108/IJBM-10-2016-0146

Kamath, P. R., Pai, Y. P., & Prabhu, N. K. P. (2019). Building customer loyalty in retail banking : a serial-mediation approach. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-01-2019-0034

Kartika, T., Firdaus, A., & Najib, M. (2019). Contrasting the drivers of customer loyalty ; financing and depositor customer, single and dual customer, in Indonesian Islamic bank. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-04-2017-0040

Licata, J. W., & Chakraborty, G. (2009). The effects of stake, satisfaction, and switching on true loyalty: A financial services study. International Journal of Bank Marketing, 27(4), 252–269. https://doi.org/10.1108/02652320910968340

Loureiro, S. M. C., & Sarmento, E. M. (2018). Enhancing brand equity through emotions and experience: the banking sector. International Journal of Bank Marketing, 36(5), 868–883. https://doi.org/10.1108/IJBM-03-2017-0061

Mansour, W., Ben Jedidia, K., & Majdoub, J. (2015). How ethical is islamic banking in the light of the objectives of islamic law? In Journal of Religious Ethics. https://doi.org/10.1111/jore.12086

Marjanen, H., Kohijoki, A. M., Saastamoinen, K., & Engblom, J. (2019). Old dogs learning new tricks? The effect of age and generation on shopping behaviour. International Review of Retail, Distribution and Consumer Research, 29(5), 549–567. https://doi.org/10.1080/09593969.2019.1664613

Martenson, R. (2008). How financial advisors affect behavioral loyalty. International Journal of Bank Marketing, 26(2), 119–147. https://doi.org/10.1108/02652320810852781

McDonald, L. M., & Rundle-Thiele, S. (2008). Corporate social responsibility and bank customer satisfaction: A research agenda. International Journal of Bank Marketing, 26(3), 170–182. https://doi.org/10.1108/02652320810864643

Misbach, I., Surachman, S., Hadiwidjojo, D., & Armanu, A. (2013). Islamic Bank Service Quality and Trust: Study on Islamic Bank in Makassar Indonesia. International Journal of Business and Management. https://doi.org/10.5539/ijbm.v8n5p48

Mohd, H., & Thaker, T. (2019). Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia Evidence from SmartPLS. https://doi.org/10.1108/IMEFM-07-2018-0211

Mostafa, R. B., & ElSahn, F. (2016). Exploring the mechanism of consumer responses to CSR activities of Islamic banks: The mediating role of Islamic ethics fit. International Journal of Bank Marketing, 34(6), 940–962. https://doi.org/10.1108/IJBM-11-2015-0179

Msweli, P., & Naude, P. (2015). Factors contributing to bank selection choices: A generation theory perspective. Banks and Bank Systems.

Musa, M. A., Sukor, M. E. A., Ismail, M. N., & Elias, M. R. F. (2020). Islamic business ethics and practices of Islamic banks: Perceptions of Islamic bank employees in Gulf cooperation countries and Malaysia. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-07-2016-0080

Naser, K., & Moutinho, L. (1997). Strategic marketing management: The case of Islamic banks. International Journal of Bank Marketing, 15(6), 187–203. https://doi.org/10.1108/02652329710184424

Nuzulita, N., & Subriadi, A. P. (2019). The role of risk-benefit and privacy analysis to understand different uses of social media by Generations X, Y, and Z in Indonesia. Electronic Journal of Information Systems in Developing Countries, October, 1–17. https://doi.org/10.1002/isd2.12122

Park, N. Y. (2020). Trust and trusting behavior in financial institutions: Evidence from South Korea. International Review of Economics and Finance, 67(January), 408–419. https://doi.org/10.1016/j.iref.2020.02.007

Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189–199. https://doi.org/10.1016/j.jretconser.2012.12.001

Pekerti, A. A., & Arli, D. (2017). Do Cultural and Generational Cohorts Matter to Ideologies and Consumer Ethics? A Comparative Study of Australians, Indonesians, and Indonesian Migrants in Australia. Journal of Business Ethics, 143(2), 387–404. https://doi.org/10.1007/s10551-015-2777-z

Poolthong, Y., & Mandhachitara, R. (2009). Customer expectations of CSR, perceived service quality and brand effect in Thai retail banking. International Journal of Bank Marketing, 27(6), 408–427. https://doi.org/10.1108/02652320910988302

Raich, M. (2008). Basic values and objectives regarding money: Implications for the management of customer relationships. International Journal of Bank Marketing, 26(1), 25–41. https://doi.org/10.1108/02652320810847093

Rony, Z. T. (2019). Generation y challenges in becoming innovative leaders at organization in the 21st century. International Journal of Recent Technology and Engineering, 8(2 Special Issue 9), 789–794. https://doi.org/10.35940/ijrte.B1164.0982S919

Saridona, R., & Cahyandito, M. F. (2015). Social Performance Analysis of Indonesia Islamic Banking Using Islamic Social Reporting Index. https://doi.org/10.2991/iceb-15.2015.29

Suhartanto, D., Marwansyah, Muflih, M., Najib, M. F., & Faturohman, I. (2019). Loyalty formation toward Halal food: Integrating the Quality–Loyalty model and the Religiosity–Loyalty Model. British Food Journal, 122(1), 48–59. https://doi.org/10.1108/BFJ-03-2019-0188

Syafii, M., Sanrego, Y. D., & Taufiq, M. (2012). An Analysis of Islamic Banking Performance: Maqashid Index Implementation in Indonesia and Jordania. Journal of Islamic Finance, 1(1), 12–29.

Tabrani, M., Amin, M., & Nizam, A. (2018). Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships. International Journal of Bank Marketing, 36(5), 823–848. https://doi.org/10.1108/IJBM-03-2017-0054

Tafti, S. F., Hosseini, S. F., & Emami, S. A. (2012). Assessment the Corporate Social Responsibility According to Islamic Values (Case Study: Sarmayeh Bank). Procedia - Social and Behavioral Sciences, 58, 1139–1148. https://doi.org/10.1016/j.sbspro.2012.09.1095

Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational Statistics and Data Analysis, 48(1), 159–205. https://doi.org/10.1016/j.csda.2004.03.005

Wahyuni, S., & Fitriani, N. (2017). Brand religiosity aura and brand loyalty in Indonesia Islamic banking. Journal of Islamic Marketing, 8(3), 361–372. https://doi.org/10.1108/JIMA-06-2015-0044

Zakiah, F. (2017). Customers ’ Islamic ethical behavior : the case of Malaysian Islamic banks. 33(3), 371–383. https://doi.org/10.1108/H-03-2017-0046


Full Text: PDF

DOI: 10.15408/aiq.v12i1.15305

Refbacks

  • There are currently no refbacks.