The Patronage Behaviour of Islamic Bank’s Customers: Empirical Studies in Aceh

Authors

  • M. Shabri Abd. Majid Department of Islamic Economics, Faculty of Economics and Business, Syiah Kuala University, Darussalam, Banda Aceh, Indonesia
  • Said Zulhanizar Bank Aceh Syariah

DOI:

https://doi.org/10.15408/aiq.v8i2.3139

Keywords:

customer preferences, patronage behaviour, Islamic banking, logistic regression

Abstract

This study is aimed at empirically exploring the pertinent factors, which customers and non-customer perceive as germane to their selection of Islamic bank in Aceh, Indonesia. A sample of 300 customers and non-customer of Bank Aceh Syariah were selected based on the convenience sampling technique. Using the logistic regression technique, the study documented that the customers’ selection of the banks were influenced by the factors of banks’ characteristic, services and trust, shari’ah compliance, and physical objects. Of these factors, banks’ characteristic and shari’ah compliance were found to be the most pertinent factors perceived by the customers and non-customer to their selection of Islamic bank in Aceh, Indonesia. These findings imply that to attract more customers, the Islamic bank should enhance their unique characteristics and products’ compliance.

DOI:10.15408/aiq.v8i2.3139

Author Biography

  • M. Shabri Abd. Majid, Department of Islamic Economics, Faculty of Economics and Business, Syiah Kuala University, Darussalam, Banda Aceh, Indonesia
    Abd. Majid, M. Shabri. received his Sarjana Ekonomi (SE) from Syiah Kuala University, Indonesia, in 1995. He completed his Master of Economics (MEc) and PhD in Financial Economics from the International Islamic University Malaysia (IIUM) in 1998 and 2005, respectively. He has served the IIUM for six years (2005-2011) both as the Assistant and Associate Professors. Currently, he is the Head of Islamic Economics Department, Faculty of Economics, Syiah Kuala University, Indonesia. His research interests include financial economics, applied econometrics, Islamic economics, banking and finance. He has published more than 60 articles in international refereed journals such as International Journal of Emerging Markets, Global Economic Review, Journal of Asia-Pacific Business, Studies in Economics and Finance, International Journal of Managerial Finance, Journal of Economic Cooperation and Development, Review of Islamic Economics, and JKAU: Islamic Economics. He has also presented his papers in various seminars locally and internationally.

     

    Researcher’s contact details: Department of Islamic Economics, Faculty of Economics, Syiah Kuala University, Banda Aceh, Indonesia, E-mail: hannanan@gmail.com; Phone: +6282160229553.

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Published

2016-07-09

Issue

Vol. 8 No. 2 (2016)

Section

Original Research Articles