Assimilating Islamic Banking Customer Loyalty: A Halal Brand Personality Perspective Model

Raden Roro Fosa Sarassina; Reni Furwanti; Dini Maulana Lestari

Assimilating Islamic Banking Customer Loyalty: A Halal Brand Personality Perspective Model

Raden Roro Fosa Sarassina, Reni Furwanti, Dini Maulana Lestari

Abstract

As Indonesian government promotes Indonesia as the center of the Halal Industry Nation, numerous strategies are being implemented across every sector, including Islamic Financial Institution. This research focuses investigating factors that can influence customer loyalty. To bridge this gap, the study aims to create a model for increasing customer loyalty based on the Halal Brand Personality approach, by exploring competitive advantage as a mediating variable. This research is considered important due to the relatively small market share of Islamic banking in Indonesia, which faces intense competition. This is an explanatory research with a quantitative approach that employs survey method to collect 225 data points. Structural Equation Modeling (SEM) is used to analyze the direct and indirect relationship of each variable. It was found that from all the hypotheses, six were rejected, and the model was validated. The result delineated that the model proposed in this research can assist branch managers in maximizing and strengthening Islamic banking’s distinctive products and sophisticated technology, which are its primary competitive advantages when competing with other banking sectors.

JEL Classification: M20, M21, M31

How to Cite:
Sarassina, R. R. F., Furwanti, R., & Lestari, D. M., (2023). Assimilating Islamic Banking Customer Loyalty: A Halal Brand Perspective Model. Etikonomi, 22(2), 247 – 262. https://doi.org/10.15408/etk.v22i2.31566.

Keywords

halal brand personality; competitive advantage; customer loyalty; Islamic bank

References

Aaker, J. L. (1997). Dimensions of Brand Personality. Journal of Marketing Research, 34(3), 347–356. https://doi.org/10.2307/3151897.

Ahmad, M. F. (2015). Antecedents of Halal Brand Personality. Journal of Islamic Marketing, 6(2), 209-223. https://doi.org/10.1108/JIMA-03-2014-0023.

Ahmadia, E. (2017). Pengaruh Keunggulan Kompetitif dan Kualitas Pelayanan Terhadap Kepuasan dan Loyalitas Pengunjung Objek Wisata Air “Owabong” Purbalingga. Jurnal Manajemen Dayasaing, 19(1), 37. https://doi.org/10.23917/dayasaing.v19i1.5105.

Al Karim, R., Alam, M. M. D., & Al Balushi, M. K. (2023). The Nexus between CRM and Competitive Advantage: the Mediating Role of Customer Loyalty. Nankai Business Review International. https://doi.org/10.1108/NBRI-04-2022-0040.

Asnawi, N., Sukoco, B. M., & Fanani, M. A. (2020). 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.

Auda, J. (2019). Maqasid al-Shariah as Philosophy of Islamic Law: A Systems Approach. Washington D.C: The International Institute of Islamic Thought.

Berita Satu Ekonomi. (2015). Perbankan Syariah Kekurangan Nasabah Loyal. Berita Satu Ekonomi.

Choi, E., & Lee, K. C. (2019). Effect of Trust in Domain-specific Information of Safety, Brand Loyalty, and Perceived Value for Cosmetics on Purchase Intentions in Mobile e-Commerce Context. Sustainability, 11(22), 1–24. https://doi.org/10.3390/su11226257.

Delafrooz, N., Zendehdel, M., & Fathipoor, M. (2017). The Effect of Social Media on Customer Loyalty and Company Performance of Insurance Industry. International Journal of Economics and Financial Issues, 7(3), 254-264.

El-Seoudi, A. W. M., Mohamad, M. N., Nor, A. H. M., Nasohah, Z., Alias, M. N., & Ghani, N. A. R. N. (2012). Human Resources in the Islamic Banks. Journal of Economics Theory, 6(2), 66–69. https://doi.org/10.3923/jeth.2012.66.69.

Emanuela, B. L., & Iuliana, C. (2016). Consumers Behaviors of Online Banking Services. Proceedings of the 28th International Business Information Management Association Conference - Vision 2020: Innovation Management, Development Sustainability, and Competitive Economic Growth.

Fida, B. A., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman. SAGE Open, 10(2). https://doi.org/10.1177/2158244020919517.

Furwanti, R. (2021). Pengaruh Religiusitas, Islamic Social Reporting, dan Local Wisdom Terhadap Loyalitas Nasabah Dalam Menggunakan Produk Perbankan Syariah Melalui Kepuasan Sebagai Variabel Intervening (Studi Kasus Masyarakat Bugis Muslim di Kawasan BOSOWASI). (Unpublished Thesis). UIN Sunan Kalijaga.

Gopalsamy, S., & Gokulapadmanaban, S. (2021). Does Implementation of Customer Relationship Management (CRM) Enhance the Customer Loyalty? An Empirical Research in Banking Sector. Iranian Journal of Management Studies, 14(2), 401–417. https://doi.org/10.22059/IJMS.2020.302683.674075.

Griffin, J. (1995). Costumer Loyalty: How to Earn it How to Keep it. New York: The Fore Press.

Indonesia.go.id. (2020). Indonesia Berpeluang Memimpin Industri Halal Dunia. Profil Agama.

Jayathilake, N., Abeysekera, N., Samarasinghe, D., & LakshanUkkwatte, J. (2016). Factors Affecting for Customer Loyalty in Sri Lanka Banking Sector. International Journal of Marketing and Technology, 6(4), 148-167.

Johnson, H. (2017). Banking Technology as Competitive Advantage. ALM-Treasury & Risk.

Kaleka, A. (2002). Resources and Capabilities Driving Competitive Advantage in Export Markets: Guidelines for Industrial Exporters. Industrial Marketing Management, 31, 273–283.

Kotler, P. (2012). Marketing Management. New Jersey: Pearson Education International.

Liputan6.com. (2021, April). Industri Perbankan Syariah Indonesia Kalah Jauh Dibanding Malaysia.

Memon, M. S., Soomro, M. A., Channa, M. A., & Solangi, B. (2021). Measuring the Effect of Brand Personality on Brand Loyalty: Mediating Role of Customer Satisfaction. Psychology and Education Journal, 58(1), 2386–2397. https://doi.org/10.17762/pae.v58i1.1114.

Oliver, R. L. (1999). Whence Consumer Loyalty? Journal of Marketing, 63(4), 33–44. https://doi.org/10.2307/1252099.

Otoritas Jasa Keuangan Indonesia. (2022). Statistik Perbankan Syariah-Juni 2022.

Rahman, A. (2017). 115 Pimpinan Perguruan Tinggi Islam Bahas Ekonomi dan Keuangan Syariah. Finansial Bisnis. retrieved from: https://finansial.bisnis.com/read/20170125/232/ 622863/bsm-gagas-konferensi-perguruan-tinggi-islam

Raithel, S., & Schwaiger, M. (2015). The effects of corporate reputation perceptions of the general public on shareholder value. Strategic Management Journal. https://doi.org/10.1002/smj.2248

Ramdzan Ali, A. A. E., Razali, K. A., & Othman, A. K. (2021). Enhancing Brand Awareness Via Halal Brand Personality. Halalpshere, 1(1), 1–10. https://doi.org/10.31436/hs.v1i1.7.

Rubiyanti, N., Mohaidin, Z., & Murshid, M. A. (2022). Purchasing Behaviour: Mediating Roles of Brand Personality and Religiosity in the Purchase of Halal Cosmetics. Global Journal Al-Thaqafah, Special Issue, 113–120. https://doi.org/10.7187/gjatsi022022-12.

Rudzewicz, A., & Strychalska-Rudzewicz, A. (2021). The Influence of Brand Trust on Consumer Loyalty. European Research Studies Journal 24(Special Issue 3), 454-470. https://doi.org/10.35808/ersj/2439

Sung, Y., & Kim, J. (2010). Effects of Brand Personality on Brand Trust and Brand Affect. Psychology and Marketing, 27(7), 639-661. https://doi.org/10.1002/mar.20349

Thomas, B. J., & Sekar, P. C. (2008). Measurement and Validity of Jennifer Aaker’s Brand Personality Scale for Colgate Brand. Vikalpa, 33(3), 49-62. https://doi.org/10.1177/0256090920080304.

Williams, G. (2018). Sincerity in Medieval English Language and Literature. New York: Palgrave Macmillan.

Yeung, I. M. H., & Leung, S. C. H. (2010). Relationships among Service Quality, Value, Customer Satisfaction and Loyalty in a Hong Kong Harbour Cruise Company. Management Sciences Journal, 1(1), 1–14.

Zainudin, M. I., Haji Hasan, F., & Othman, A. K. (2020). Halal Brand Personality and Brand Loyalty among Millennial Modest Fashion Consumers in Malaysia. Journal of Islamic Marketing, 11(6), 1277-1293. https://doi.org/10.1108/JIMA-10-2018-0187

Full Text: PDF

DOI: 10.15408/etk.v22i2.31566