WHY THE CUSTOMERS OF CONVENTIONAL BANKS DO NOT WANT TO BECOME THE CUSTOMERS OF ISLAMIC BANK (A Study of the Effect of Religiosity on Trust and Its Impact to Purchase Intention)

Abstract

Abstract
The purpose of this study is to analyze why a lot of Muslim customers of conventional banks have not become
the customers of Islamic bank yet. The study was conducted in municipality of Banda Aceh, Aceh province,
Indonesia in the early of 2016. A total of 92 Muslim customers of conventional banks that relatively easy to
reach Islamic Bank randomly selected as a sample. The relatively small number of samples due to the data of
religiosity is very hard to obtain because the practices of religiosity is personalized, and data will be biased if
collected by sending questionnaire to every respondent. To overcome these difficulties it was determined that a
small number of samples, so that the data can be collected through interviews. The magnitude of the effect of
exogenous variable to variable endogen is used the formula of path analysis. This study documents the following
findings: First, religiosity has very significant effect on the customers’ desire to become the customers of Islamic
bank. However, when trust variable positioned as the mediator variable, the coefficient of adjusted is dropped.
This condition occurs due to the Muslim customers of conventional banks believe that the risk-sharing system
practiced by Islamic banks is tantamount to the system of interest. Second, religiosity has not significant effect
on the trust of customers of conventional banks to Islamic banks, and the trust is not significant impact on the
customers’ desire to become the customers of Islamic bank.
Keywords: Religiosity, Trust, Purchase Intention, Islamic Bank, Conventional Bank