The role of customer satisfaction in mediating the effect of the evaluation of the bank's compliance with Islamic law on the continuous intention to use Islamic banking among coastal communities

¹ Management Department, Faculty Economic and Business, Universitas Syiah Kuala, Indonesia
² Accounting Department, Faculty Economic and Business, Universitas Syiah Kuala, Indonesia

^* Corresponding author: syafruddin.chan@unsyiah.ac.id

Abstract

This study aims to analyze the factors that cause low intention of Islamic bank customers to continue using banks' services, especially among those who live in coastal areas. The population in this study is the coastal community who are customers of Islamic banks and domiciled in the coastal areas of Aceh and North Sumatra. The sample size in this study was 200 respondents (Hair, 2009). Sampling was done by stratified random sampling method with the following proportions: Aceh 40%, North Sumatra 60%. In this study, the sampling method used the census technique. Data analysis used SEM (Structural Equation Modelling) to verify the path of the relationship between variables in this study using IBM SPSS-AMOS software version 22. The results showed that Of the 3 direct hypotheses tested, the effect of Evaluation of bank's compliance with Islamic law on Customer satisfaction, the effect of Evaluation of bank's compliance with Islamic law on Continuous Intention to Use Islamic Banking and The effect of Customer Satisfaction on Continuous Intention to Use Islamic Banking, all of which show a significant effect. On the indirect effect tested, the effect of Evaluation of bank's compliance with Islamic law on Continuous Intention to Use Islamic Banking mediated by Customer Satisfaction has also a significant effect. In contrast to previous studies, which mostly analyzed the reluctance of customers to switch to sharia banks because of the profit motive, this study tries to look at the phenomenon of the reluctance of coastal communities to stay in Islamic banks, especially related to the aspect of compliance with Islamic law which is carried out by Islamic bank practitioners as seen from customer perceptions.