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Article
Publication date: 2 July 2024

A. Azizon, Rahmatina Awaliah Kasri, Kenny Devita Indraswari and Wahyu Jatmiko

The recent growth of Islamic bank (IB) assets in Indonesia has been mainly driven by government interventions rather than the organic development on the demand side. A novel…

Abstract

Purpose

The recent growth of Islamic bank (IB) assets in Indonesia has been mainly driven by government interventions rather than the organic development on the demand side. A novel approach to attract new consumers, increase market share and accelerate its development is the need of the hour. This study aims to propose beyond-money framing that promotes the Shari’ah and social dimensions of IB’s products on top of its contemporary marketing strategy. This paper examines whether this technique can advance IBs selection.

Design/methodology/approach

This paper uses the (online) laboratory experiment involving 192 high- and low-literate participants from Generation Z (Gen Z). Using difference tests and Logit regression, this paper examines the impact of beyond-money framing on customers decision-making.

Findings

Beyond-money framing has a significant impact in influencing customers decisions to select profit-and-loss sharing (PLS) products offered by IBs. The effect of the framing accelerates in the high-literate customers.

Research limitations/implications

The contract examined is only the PLS one (mudharabah). Respondents are also restricted to Gen Z. This study does not separate the effect of Shari’ah and social aspects from beyond money framing.

Practical implications

To attract new customers, IBs should emphasise their products’ social and Shari’ah features rather than relying solely on a low-price strategy.

Originality/value

To the best of the authors’ knowledge, this paper is the first study proposing the framing strategy for IBs and examining its impact on IB’s product acceptance in Indonesia.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 1 July 2024

Harris Rizki Ananda, Kenny Devita Indraswari, A. Azizon, Irfani Fithria Ummul Muzayanah, Tika Arundina and Ashintya Damayati

The market value of luxury goods at the global and national levels continues to increase from year to year. The sales growth of the Indonesian luxury goods market is currently at…

Abstract

Purpose

The market value of luxury goods at the global and national levels continues to increase from year to year. The sales growth of the Indonesian luxury goods market is currently at 6.6% per year. The largest sales sector in the market is the fashion sector, with more than US$700m per year. Several big cities in Asia, including Jakarta, experienced a shift in the age group of luxury goods buyers to a younger group with limited income resources. The behavior of purchasing luxury goods in the low-income group is contrary to Islamic values, which prioritize the fulfillment of needs rather than the fulfillment of desires. This study aims to analyze the factors that influence the intention of Muslim Generation Z consumers to buy luxury fashion products.

Design/methodology/approach

The purposive sampling method in this study involved 240 respondents who had bought luxury fashion products in the masstige category in the past two years. This study adopts the Theory of Reasoned Action (TRA) model and a quantitative approach through the structural equation modeling method.

Findings

The results of this study indicate that attitude towards behavior, subjective norms, self-esteem and materialism have a significant positive effect on the intention to consume luxury fashion, while the influence of religiosity was found to be insignificant. At the same time, religiosity has a significant negative effect on attitude towards behavior and subjective norms.

Research limitations/implications

These findings indicate that if consumers who have a positive attitude toward luxury fashion purchases, can be influenced by their significant others, self-esteem and materialistic nature, then they tend to buy luxury fashion items.

Originality/value

This study extends the theory of TRA by adding religiosity, self-esteem and materialism and it uses Muslim Generation Z as the respondent. Masstige category of luxury brands is also used to take into account the affordability of its generation toward luxury fashion products.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 6 July 2020

Sri Rahayu Hijrah Hati, Gita Gayatri and Kenny Devita Indraswari

This study aims to examine the interactive effect of the push factor from the conventional bank, the pull factor from the Islamic bank and the internal mooring factor of the…

1134

Abstract

Purpose

This study aims to examine the interactive effect of the push factor from the conventional bank, the pull factor from the Islamic bank and the internal mooring factor of the customers in influencing the switching behavior of two types of customer account holders, the conventional only and the mixed (conventional and Islamic bank) account holders, from the services marketing mix perspective.

Design/methodology/approach

This study applied an explanatory research design. The data were collected via an online survey from 1,171 Muslim participants; participants consisted of conventional only account holders, Islamic bank only account holders and mixed (conventional and Islamic bank) account holders. The data were mainly analyzed using structural equation modeling.

Findings

Based on the account, the results showed that the three types of customers differ significantly in terms of the effect of the push, pull and mooring factors. The study also showed that the mooring factor, which is internal to the customer, is the most significant factor that inhibits customers from migrating to Islamic banks. The effect was observed for both conventional customers and those who hold mixed accounts.

Research limitations/implications

The study was conducted via an online survey, which reduces the representativeness of the sample. In addition, most respondents were urban dwellers and well educated, which might not represent the banking behaviour of Indonesian Muslim customers in general.

Practical implications

The study implies that to attract the conventional only account holder, Islamic banks should first weaken the mooring factors (the internal characteristics of the customers) that inhibit customers from switching to an Islamic bank.

Originality/value

The main contribution of the study is that it simultaneously identifies the push, pull and mooring factors that have the most significant impacts on Muslim customers' switching behavior from a conventional to an Islamic bank.

Details

Journal of Islamic Marketing, vol. 12 no. 8
Type: Research Article
ISSN: 1759-0833

Keywords

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