Religiosity versus profit-loss sharing: how Islamic banks brand fidelity influence the Muslim consumers’ commitment

• Published in: Journal of Islamic accounting and business research Vol. 13; no. 6; pp. 960 - 976
• Main Author: Junaidi, Junaidi
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Publishing Limited 23-06-2022; Emerald Group Publishing Limited
• Subjects: Attitudes; Decision making; Islamic financing; Muslims; Thailand; Indonesia; Consumer attitude; Brand fidelity; Consumer commitment; Religiosity; Materialism
• ISSN: 1759-0817; 1759-0825
• DOI: 10.1108/JIABR-07-2021-0188

Purpose
The purpose of study examine the relationship between religiosity, consumers’ materialism, brand fidelity, attitude and consumers’ commitment to Islamic banking products using evidence from Indonesia.
Design/methodology/approach
The sample consists of 658 Muslim and bank consumers obtained through a survey study and using structural equation modeling to test the research hypotheses.
Findings
The empirical results indicate that religiosity has significant and positive effects on consumers’ materialism, brand fidelity and attitude, also mediating variables. Furthermore, the mediator variables partially mediate religiosity and consumers’ commitment based on consumers’ culture theory.
Research limitations/implications
This study is validated by Indonesian Muslims; therefore, future study is required to analyze across the culture and region. It can help Islamic bank managers and scholars to observe the correlation between religion, Islamic banks products and Muslims’ commitment.
Practical implications
The current study enlightened the consumers’ Islamic bank principle operation from marketing and religiosity. The government and the shariah supervisory board need to enhance the control and promote to make sure that Islamic banking operations have compliant with Islamic law.
Originality/value
The result of this study provided the Muslim decision-making process by developing and testing a model of religious determinants toward Islamic bank products.