Why the Customers of Conventional Banks Do Not Want to Become the Customers of Islamic Bank (A Study of the Effect of Religiosity on Trust and Its Impact to Purchase Intention)

Abstract

The purpose of this study is to analyze why a lot of Muslim customers of conventional banks have not become the customers of Islamic bank yet. The study was conducted in municipality of Banda Aceh, Aceh province, Indonesia in the early of 2016. A total of 92 Muslim customers of conventional banks that relatively easy to reach Islamic Bank randomly selected as a sample. The relatively small number of samples due to the data of religiosity is very hard to obtain because the practices of religiosity is personalized, and data will be biased if collected by sending questionnaire to every respondent. To overcome these difficulties it was determined that a small number of samples, so that the data can be collected through interviews. The magnitude of the effect of exogenous variable to variable endogen is used the formula of path analysis. This study documents the following findings: First, religiosity has very significant effect on the customers’ desire to become the customers of Islamic bank. However, when trust variable positioned as the mediator variable, the coefficient of adjusted 12R2">  is dropped. This condition occurs due to the Muslim customers of conventional banks believe that the risk-sharing system practiced by Islamic banks is tantamount to the system of interest. Second, religiosity has not significant effect on the trust of customers of conventional banks to Islamic banks, and the trust is not significant impact on the customers’ desire to become the customers of Islamic bank.

Keywords: Religiosity, Trust, Purchase Intention, Islamic Bank, Conventional Bank