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The application of the theory of reasoned action on services of Islamic rural banks in Indonesia

Ihsan Effendi (Faculty of Economics and Business, Universitas Medan Area, Medan, Indonesia)
Miftahuddin Murad (Faculty of Economics and Business, Universitas Medan Area, Medan, Indonesia)
Ahmad Rafiki (Faculty of Economics and Business, Universitas Medan Area, Medan, Indonesia)
Mitra Musika Lubis (Faculty of Agriculture, Universitas Medan Area, Medan, Indonesia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 18 May 2020

Issue publication date: 8 June 2021

926

Abstract

Purpose

The Islamic rural banks have the potential to grow in Indonesia. It is important to learn and study the consumer behaviors toward the Islamic rural banks’ services to plan for future strategies. The purpose of this paper is to test the applicability of the theory of reasoned action in predicting the customers’ decision to use the Islamic rural banks’ services.

Design/methodology/approach

The descriptive and structural equation model analyses were used to analyze the data. A random sampling technique is adopted with a sample size of 180 consumers of the Islamic rural banks. There are variables to be tested such as Sharia system compliance, product knowledge on Sharia, promotion, services, attitude, subjective norms, intention and customer decisions to use the Islamic rural banks’ services.

Findings

The results found that the Sharia system compliance, promotion, services, attitude, subjective norms and intention variables have a significant effect on the use of services at Islamic rural banks. Only product knowledge on Sharia variable has been found to be insignificant.

Originality/value

The model can be used to prepare better strategies to attract more customers as well as increase public awareness toward Islamic rural banks’ products and services. The results are useful as a benchmark for policymakers to improve the establishment of Islamic rural banks particularly in Indonesia.

Keywords

Acknowledgements

This study is funded by the researchers’ fund themselves.

Citation

Effendi, I., Murad, M., Rafiki, A. and Lubis, M.M. (2021), "The application of the theory of reasoned action on services of Islamic rural banks in Indonesia", Journal of Islamic Marketing, Vol. 12 No. 5, pp. 951-976. https://doi.org/10.1108/JIMA-02-2020-0051

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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