Customer Loyalty to the Sharia Microfinance Institution in Indonesia

Kholis, Nur and Parmujianto, Parmujianto and Arifin, Ah. Ali (2019) Customer Loyalty to the Sharia Microfinance Institution in Indonesia. In: INTERNATIONAL CONFERENCE ON BUSINESS MANAGEMENT (ICBM 2019). Universiti Sultan Zainal Abidin, Terengganu Malaysia, pp. 61-72. ISBN 978-967-0899-77-0

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Various studies have identified the correlates of customer loyalty including satisfaction, trust, commitment, involvement, perceived cost, and service quality. This paper aims to describe customer loyalty to the Sharia microfinance institution in Indonesia. The main question developed was whether the customers of this institution have similar drives in maintaining their loyalty in using its services. The study uses qualitative method with a phenomenological approach and descriptive analysis. Data were collected from a series of in-depth interviews and focus group discussions with the management and the customers of Bayt al Mal wa al Tamwil Maslahah (BMTM) Sidogiri Pasuruan Indonesia. The study found that customer loyalty to BMTM Sidogiri was characterized by a positive response to and the utilization of products. The positive attitude towards BMTM products was based on the motives of meeting daily needs, business development and the acceptance of sharia values in the form of blessing and economic justice when using the products. In addition, the customer loyalty to BMTM Sidogiri was driven by emotional connection among the alumni of Sidogiri pesantren even though there is no structural connection between BMTM and Sidogiri pesantren. In maintaining its customer loyalty, the BMTM Sidogiri attempts to bring its services closer to the community, opens BMTM branches in other cities and adds new counters to ease customer transaction services. This study suggests that the customer loyalty to the Islamic financial institution is determined by a combination of shariah values acceptance and the fulfilment of daily need as well as business development

Item Type: Book Section
Kholis, Nur
Parmujianto, Parmujianto
Arifin, Ah. Ali
Uncontrolled Keywords: Customer loyalty; Indonesia; shariah microfinance institution
Subjects: 14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
14 ECONOMICS > 1402 Applied Economics > 140219 Welfare Economics
15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking)
Divisions: Fakultas Ekonomi dan Bisnis ISlam > Ekonomi Syariah
Depositing User: Dr. Nur Kholis
Date Deposited: 18 Apr 2023 02:48
Last Modified: 18 Apr 2023 02:48

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