Switching intention of conventional bank customers to Sharia bank based on push-pull-mooring theory

Purpose

This study aims to see the variables of customer satisfaction level, attractiveness of alternatives, subjective norms and level of religiosity of conventional bank customers in West Java and their effect on switching intentions.

Design/methodology/approach

A causality description technique with a quantitative approach is used in this research. The analytical technique used is partial least square-structural equation modeling with a sample of 320 respondents from conventional bank customers in West Java.

Findings

The results revealed that the level of customer satisfaction and subjective norms were in the medium category, whereas the level of alternative attractiveness, religiosity and switching intentions was in high level. The level of customer satisfaction harms switching intentions, whereas the level of alternative attractiveness and religiosity variables have a positive effect on switching intentions. In contrast, the subjective norm variable does not affect switching intentions. Therefore, customer satisfaction, the attractiveness of alternatives and religiosity are essential points to cause someone to have the intention to switch.

Practical implications

For stakeholders, especially the government or the Islamic banking industry, to improve the climate of the Islamic finance industry in Indonesia, in particular, to increase knowledge and insight from the public regarding the intention to switch conventional bank customers to Islamic banks.

Originality/value

The use of the religiosity variable as an independent variable on switching intentions is still rarely done. Hence, the authors combine this variable with customer satisfaction, alternative attractiveness and subjective norms. The update in this study also places conventional bank customers included in the millennial generation and generation Z categories who live in the province of West Java as research subjects.