Loyalty Towards Islamic Microfinance: The Roles of Perception, Expectation, and Trust

DOI

10.2991/aer.k.211106.099How to use a DOI?

Keywords

perceptions; expectations; trust; saving participations

Abstract

Customer loyalty is an important factor in the current rise of Islamic microfinance. This study estimates the loyalty factors through the direct role of perceptions and expectations on trust. This study intends to determine the effect of members’ perceptions, expectations, and beliefs on the decision to save at a Sharia Microfinance Institution (LMKS). This study used the quantitative method to measure the relationship between variables based on numerical calculations (statistics). Primary data were obtained from questionnaires given to respondents asking about their perception, expectations, and trust towards Islamic cooperatives in the Greater Bandung area. The population was the members of the Syariah cooperatives in the Greater Bandung area with a sample of 213 customers or LKMS partners. This study analyzed the data using Structural Equation Modeling (SEM-PLS). The results show a positive influence of perceptions and expectations on the loyalty of Islamic microfinance savers through the mediating role of trust. Theoretically, this study enriches views on the loyalty of Islamic microfinance savers in the context of attitudes and perceptions in the field of Islamic fundraising. This study focuses on the importance of improving service quality for Islamic microfinance customer loyalty.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Sofian
PY  - 2021
DA  - 2021/11/23
TI  - Loyalty Towards Islamic Microfinance: The Roles of Perception, Expectation, and Trust
BT  - Proceedings of the 2nd International Seminar of Science and Applied Technology (ISSAT 2021)
PB  - Atlantis Press
SP  - 637
EP  - 642
SN  - 2352-5401
UR  - https://doi.org/10.2991/aer.k.211106.099
DO  - 10.2991/aer.k.211106.099
ID  - 2021
ER  -