Exploration of Switching Behavior of Sharia Banking Customer in Indonesia with Satisfaction as an Intervening Variable

Abstract

The industrial revolution 4.0 will have a great impact on the level of competition in the banking industry including Islamic banking in Indonesia. The analysis of the switching behavior of sharia banking customers is very important to do because environmental change factors greatly affect customers’ behavior. This study aims to analyze the switching behavior of Islamic banking customers based on the push-pull mooring factor theory. This study is conducted on Islamic banking customers in Indonesia with the number of respondents of 100 people. This study uses a purposive sampling technique. The research instrument in the form of a questionnaire has been tested valid and reliable which is arranged based on strong indicators from the theoretical studies and previous research. Hypothesis test using path analysis proves that customers’ perception of the reward level on deposits/savings, the reputation of Islamic banks, service quality and satisfaction are the factors that influence the switching behavior of sharia banking customers. The results of this study show that customers’ perceptions of the reward level on deposits/savings and the reputation of Islamic banks are the factors that have a very positive effect on customer satisfaction of Islamic banks. Customers’ satisfaction with Islamic bank products and services can be an intervening variable to the Islamic banking customers switching behaviour.