Religiosity versus profit-loss sharing: how Islamic banks brand fidelity influence the Muslim consumers’ commitment

Abstract

Purpose: The purpose of study examine the relationship between religiosity, consumers’ materialism, brand fidelity, attitude and consumers’ commitment to Islamic banking products using evidence from Indonesia. Design/methodology/approach: The sample consists of 658 Muslim and bank consumers obtained through a survey study and using structural equation modeling to test the research hypotheses. Findings: The empirical results indicate that religiosity has significant and positive effects on consumers’ materialism, brand fidelity and attitude, also mediating variables. Furthermore, the mediator variables partially mediate religiosity and consumers’ commitment based on consumers’ culture theory. Research limitations/implications: This study is validated by Indonesian Muslims; therefore, future study is required to analyze across the culture and region. It can help Islamic bank managers and scholars to observe the correlation between religion, Islamic banks products and Muslims’ commitment. Practical implications: The current study enlightened the consumers’ Islamic bank principle operation from marketing and religiosity. The government and the shariah supervisory board need to enhance the control and promote to make sure that Islamic banking operations have compliant with Islamic law. Originality/value: The result of this study provided the Muslim decision-making process by developing and testing a model of religious determinants toward Islamic bank products.