THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING

Islamic finance has been one of the fastest-rising industries over the last ten years, 71% of which has been dominated by the Islamic banking sector. Islamic banking and its assets are mainly spread in Qatar, UAE, Saudi Arabia, Turkey, Malaysia, and Indonesia. Indonesian Islamic banking has become t...

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Main Author: Fadila D.
Format: Article
Language:English
Published: iVolga Press 2023-05-01
Series:Eurasia: Economics & Business
Subjects:
Online Access:http://econeurasia.com/issue-2023-05/article_01.pdf
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author Fadila D.
author_facet Fadila D.
author_sort Fadila D.
collection DOAJ
description Islamic finance has been one of the fastest-rising industries over the last ten years, 71% of which has been dominated by the Islamic banking sector. Islamic banking and its assets are mainly spread in Qatar, UAE, Saudi Arabia, Turkey, Malaysia, and Indonesia. Indonesian Islamic banking has become the world’s most prominent Islamic banking retail. However, it only reaches 18.75% of customers compared to conventional banks in Indonesia. This study analyzes the impact of promotions and customer value on adopting Islamic Banking via customer trust. Our study employed 104 customers of Islamic banking. Data were analyzed using Partial Least Squares (PLS) analysis. The results show that promotion directly affects adoption and indirectly through trust and that customer value does not directly affect adoption and must be mediated by trust. This study proves that customer trust is needed so that they are willing to adopt Islamic banks.
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spelling doaj.art-60a1634cd9f94420a7aa386a4f6059f32024-01-10T07:34:49ZengiVolga PressEurasia: Economics & Business2522-97102023-05-0171538THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKINGFadila D.0Department of Business Administration, Politeknik Negeri SriwijayaIslamic finance has been one of the fastest-rising industries over the last ten years, 71% of which has been dominated by the Islamic banking sector. Islamic banking and its assets are mainly spread in Qatar, UAE, Saudi Arabia, Turkey, Malaysia, and Indonesia. Indonesian Islamic banking has become the world’s most prominent Islamic banking retail. However, it only reaches 18.75% of customers compared to conventional banks in Indonesia. This study analyzes the impact of promotions and customer value on adopting Islamic Banking via customer trust. Our study employed 104 customers of Islamic banking. Data were analyzed using Partial Least Squares (PLS) analysis. The results show that promotion directly affects adoption and indirectly through trust and that customer value does not directly affect adoption and must be mediated by trust. This study proves that customer trust is needed so that they are willing to adopt Islamic banks.http://econeurasia.com/issue-2023-05/article_01.pdfpromotioncustomer valuetrustadoption
spellingShingle Fadila D.
THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING
Eurasia: Economics & Business
promotion
customer value
trust
adoption
title THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING
title_full THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING
title_fullStr THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING
title_full_unstemmed THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING
title_short THE EFFECT OF PROMOTIONAL AND CUSTOMER VALUE ON CUSTOMER TRUST IN THE ADOPTION OF ISLAMIC BANKING
title_sort effect of promotional and customer value on customer trust in the adoption of islamic banking
topic promotion
customer value
trust
adoption
url http://econeurasia.com/issue-2023-05/article_01.pdf
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