Sharia insight factors: Does it matter to shift metropolitan decision behavior towards Islamic bank?

Article history: Received: April 29, 2020 Received in revised format: April 3


Introduction
Service quality is the critical success factors that affect the competitiveness of an organization. Dusuki and Abdullah (2007) explained that sharia banks should not only rely solely on religious factors as a strategy to ensure customer loyalty but also emphasize the provision of quality and efficient products and services for their customers. Al-Ajmi, Hussain, and Al-Saleh (2009) said that under some conditions on sharia, compliance may be an important factor in choosing sharia banks, but in other circumstances, it is possible that the aspect of sharia compliance is not a factor for customers to choose Sharia Bank. Some of literatures reveal a number of motives that formed a number of factors that have a significant influence on the decision of customers to choose sharia banks (Ahmad & Haron 2002;Blankson, Cheng, and Spears 2007;Bley & Kuehn 2003;Hamid & Nordin 2001;Metwally 2002;Zainuddin, Jahyd, and Ramayah 2004;Awan and Bukhari 2011) such as economic factors, comfort, influence of others, satisfaction of product and service of the bank, reputation, and social responsibility. A global survey is also conducted by the Economist Intelligent Unit, an institution under the auspices of Kuwait Finance House, in 2012 shows that the sharia compliance aspect plays an important role in influencing customers' preferences for sharia bank (Economist, 2012). This result is also consistent with research conducted by Nawi, Yazid, and Mohammed (2013) and Okumus (2005) who presented similar results. Bley and Kuehn (2003) state that Muslim preference, in the Uni Emirate Arab (UEA), is to choose sharia banking driven by a religious belief rather than a financial knowledge. Thailand customers support the idea of social objectives of Islamic banking rather than commercial objectives, Muslims highly appreciate the interest-free saving facilities while Non-Muslim tend to appreciate more to the reputation and image of the bank (Lateh et al., 2009). Awan and Bukhari (2011) indicate that sharia bank customers place the sharia compliance feature of sharia banking services in the last order among other criteria they use to choose sharia bank. Rashid and Hassan (2009) place the aspect of sharia compliance as a major factor for clients in moderate Muslim country Bangladesh with an age ranging between 31-40 years old, and non-sharia factors such as corporal efficiency and core banking services, etc. are more appreciated by the majority of respondents. Research on religion and individual choice decisions conducted in Malaysia shows that religiosity does not significantly influence an individual's investment behavioral choice (Muhamad et al., 2006). Customers of the retail banking industry in the Islamic Republic of Iran place more emphasis on quality services, innovation on product and services, staff attitudes and price to select bank criteria (Hedayatnia & Eshghi, 2011). Meanwhile, the growth of sharia banks in Indonesia not separated from the development of Jakarta as a metropolitan city, loaded with all activities of digital banking and business, the central activities of Islamic banking, and the center of the circulation of the country's economy. Jakarta is the most attractive and potential for the growth of the national sharia banking sector. The total number of offices in Jakarta reaches 12.7% of the total number of sharia bank offices throughout Indonesia, which are 283 offices. The assets of sharia banking in Jakarta recorded at the highest value of Rp 355.818 (in billion rupiahs). Jakarta is the province that provides the most sharia-based financing with a total value of Rp 137.715 (in billion rupiahs). Third-party funds sharia banking in Jakarta recorded as the largest number of all regions of Indonesia, with a value of Rp. 174.143 (in billion rupiahs). This phenomenon needs to be carefully observed, where the continuous increase of third-party funds from 2014 to 2018 is a concrete form of the flow of public funds to the sharia banks since more people are using sharia bank products and services. Total third-party funds continue to increase, ranging from Rp 217.860 (in billion rupiahs) in 2014 and Rp. 371.830 (in billion rupiahs) in 2018. Due to providing productive financing and performing good asset management, the total assets of sharia banks continue to increase, ranging from Rp 272.340 (in billion rupiahs) in 2014 and Rp. 477.330 (in billion rupiahs) in 2018. This shows that customers' trust to invest their funds in sharia banks is increasing every year. Indonesia's banking world recently is shaping up in the face of industrial revolution 4.0. Indeed, Jakarta is the most perfect region for the implementation of digital banking products and services. Digital economic activities are growing so fast and furious for the metropolitan society. On the other hand, Jakarta also specifically shows the political phenomenon of sympathizers of Islam. Sharia becomes an issue in the election of the regional governor, such an event of 212 in the year 2017 inspires the metropolitan community that still struggling within an issue of understanding religious practices and democratization (Wildan 2017). No wonder if the community's sentiment from the 212 alumnae that emerged was the civil society interact with democracy in Indonesia's economic and political context (Herdiansah et al., 2017). The growth of third-party funds, as well as a significant increase in assets and political circumstances certainly raises the question of what is the dominant factor affecting metropolitan customer decisions to use sharia bank products and services? Since most of the metropolis customers would appreciate more to the fintech and e-banking activities (Asiyanbi & Ishola 2018). Thus, we need to know whether the relevance of Islamic religion, especially in the aspect of sharia compliance, influences the decision making to use the products and services of sharia bank. The point is what the dominant factors are affecting customer decisions in using sharia bank products and services. Is there any sense for the shifting market era or the changing behavior? Wilkie (1994) gives the best shoot to summarize a very specific definition of consumer behavior might be the mental, emotional, and physical activities that people engage in related activities such as selecting, purchasing, using, and disposing of products and services to satisfy needs and wants. For many reasons, consumer behavior is a complex, dynamic, multidimensional process and very often not considered rational. Implicit theory is just one of the many factors that build consumer psychology. Besides, the mindset is also one of the factors that influence consumer behavior (Murphy & Dweck 2016). Manzano, Rivas, and Bonilla (2012) confidently describe consumer behavior model that present sustainable empirical evidence which includes 5 models of consumer behavioral change such as spiral model of phases of change of Prochaska, Kotler and Andreasen model, Leal's model of the behavior change process, shopping behavior model of the ecological consumer and awareness model for the consumption decision process of fair trade. Some of these models are about how consumers gather information, think their decision through and most often find themselves emotionally involved in the selection phases process. Consumer taste is a marketing term which means the possibility of choosing one thing of another (Kontot, Hamali, and Abdullah 2016). In the economy, consumer tastes are defined as individual tastes and measured by the usefulness of various items (Fa et al., 2014). Echchabi and Olaniyi (2012) find that the main criteria for customer selection is the quality and convenience of the service. It is a combination of the quality of service offered, comfort, employee hospitality, competence and knowledge, professional advice given by employees, location, and acceptance. Namasivayam and Lin (2008) encourage that servicescape is important, it influences not only customer cognitive but also emotional, physiological states and behaviors.

Literature Review on Consumer Behavior and Decision toward Bank
According to Gerrard and Cunningham (2004) changes in consumer behavior for the banking world basically caused individuals involved emotionally by administrative costs, poor services, and inconvenience of facilities. If customers should be charged a high administrative fee on each transaction or ATM administrative burden, and in return and they receive poor services and facilities, then it certainly affects the consumers' point of view to the bank. Mavri and Ioannou (2008) find that the quality of banking products and services offered along with a good image of the bank has a positive effect on consumer behavior changes, while demographic characteristics such as gender and education levels have less effects on consumer behavior changes. Devlin and Gerrard (2005) examined the criteria behind for the customers to select a bank, they tried to investigate the customer of conventional and sharia bank. Applying a quantitative investigative technique and involving 495 respondents, the results showed a significant difference between the selection of the first and the second banks. Where recommendations from others are influential and significant to encourage the choice of a secondary bank. Offering much higher incentives also encourages the choice of the secondary bank. Service expectation and low cost turn out to have a less significant impact in encouraging customers to choose a second bank, and it recommended that the marketing system of each bank should further improved. While choosing sharia banks due to the religious motivation of the customers, few customers choose sharia banks since they are thinking of long-term satisfaction. Where a good name of a bank, convenience for customers that includes access location and support facilities, as well as invitations from friends and family is a factor that affects a customer to choose sharia bank (Dusuki & Abdullah 2007). The rest of the other customers choose sharia banks simply because of the lack of other alternatives in their respective situations. Besides, there are several other factors why customers choose sharia banks as their place of deposit, which includes the availability of ATMs, efficiency, bank name reputation and physical appearance of the bank and recommendations from third parties (Almossawi, 2001;Echchabi & Olaniyi, 2012). Lee and Ullah (2011) stated that almost all sharia bank's customers believe that being a good Muslim is important to them, it shows that the customers consider the sharia bank as a financial institution that leads to religious values and hopes that the institution will comply with sharia principles. As expected, over 95 percent of customers in Pakistan responded that bank compliance with sharia principles is important. Even all respondents claim that they have the authority or influence to transfer their funds from one bank to another if they feel dissatisfied with the sharia services or compliance of a bank. Convenience is also the second most important factor for choosing a bank, and people might argue that 12,6 percent of customers may have chosen sharia banks simply because of easy access to the nearest branch. Ahmad et al. (2008) selected 27 criteria that, accordingly to previous research, may influence the choice of the bank customers, in this context in Malaysia. Some of the 27 criteria are related to the religiosity of banks, such as Islamic features, the absence of usury fees and trust in the sharia board. The authors develop an index that reflects the level of religiosity. Such an index unifies the basic facts of sharia, faith, Islamic law, and morality (virtue or ethics). The authors report that "the index is found to be right-winged as expected because a Muslim should be religious" with almost 72 percent of respondents having a medium or high religiosity index score. Dusuki and Abdullah (2007) examine the reasons that motivate customers in Malaysia to use sharia banks. The researchers used a combination of Friedman test and factor analysis. Their findings indicate that the selection of sharia banks is a combination of Islamic and financial reputations, as well as the quality of services offered by banks. Hawkins and Mothersbaugh (2010) suggest that the customer collects relevant information related to sharia banking product ands evaluate the information before deciding, current banking customers tend to be rational for decisionmaking. This is also indicated by research conducted by Aysan et al. (2018) which argues that customers of sharia bank decisions based on rationality behind, they do not hesitate to have deposit withdrawal if it is not an ideal condition for some investment. Besides, a high return on investment and service quality remains the main factor affecting the decision of customer's choice for Islamic banks (Kontot, Hamali, and Abdullah 2016).
Product features and the quality of the service are taken into account for the customer's self-concern, the application of technology gives more effect to the customer choice for the Islamic bank in Pakistan (Awan & Bukhari, 2011). Consumer taste is also changing as fast as technology improves. In the present world of technology, changes are taking place rapidly. It is observed that the change in technology changes the taste of consumers. An empirical study also reveals the importance of moral issues such as faithfulness, fairness, and honesty in Islamic banking. To attract more customer they need to improve justice-based services (Abdullah et al., 2013). To illustrate how customers process their decision making toward bank is as follows:

Research Methods
The research performed on Islamic banks located in Jakarta from 2017 to 2018. 200 samples of metropolitan customers (Jakarta inhabitant) of Islamic Banks were taken based on the non-probability sampling method. The analysis tools used in this research were exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). EFA differs from the CFA in which exploratory factor analysis designed to explore the underlying factor structure of the observed variables without the previously established model or structure of results. EFA allows the determination of the underlying structure for a group of measurable variables, EFA does not postulate any relationship in a priori, nor is it related to hypothesis testing related to theoretical model (Diana, 2014). Analysis conducted only until the step of interpreting the factors that have formed and given the name of the factors formed. The authors do not continue the validation and scoring steps, as both steps are necessary if we want to perform regression analysis and discriminant analysis. While the purpose of this research is merely to know the factors that will be formed on the variables that already exist. The use of CFA allows testing a construct relationship between observed variables and latent variables. The use of CFA is based on a theory and requires appropriate model specifications in the determination of several factors, as well as the identification of variable loads on each factor (Diana 2014). Operational definition is the specific way in which customer decision 'as main variables' is measured in a particular to this study. It is critical to operationally define attributes to lend credibility to the methodology and to make sure the reproducibility of the findings. The authors believe another study may measure the same attributes differently, related to the product, bank or company and customer characteristics (Kontot, Hamali, & Abdullah 2016) and 23 (twenty-three) attributes ordinally measured are given in Table 1

Findings and Discussions
The type of research that researchers do is exploratory and confirmatory nature which is useful to answer the question of 'what factors', to get answers to these questions will provide insight and deep understanding of an object, through a number of observed factors/variables for latent variables, in this case, are the factors influencing customer decisions in choosing Sharia Bank products and services.
Exploratory Factor Analysis; This research variable consists of 23 attributes, begin with testing the value of Kaiser-Mayer-Olkin (KMO) measures of sampling adequacy (MSA) and Bartlett's test of sphericity, the result of Table 2 shows 0.877 within a significance level of 0.000. Therefore, further analysis might considerably be conducted to see whether all the attributes are eligible for analysis or not, analysis refers to the MSA value of anti-image matrices, MSA number criteria should be above 0.5. The next step is to perform the core process of exploratory factor analysis, which is doing an extraction of a set of variables, to form one or more factors. In doing this extraction factor process, the used method is Principal Component Analysis. All extraction value of each attribute represents the percentage of the variance of each attribute that explained by the factors formed. Provided that the greater the value of the Communalities of an attribute, the closer the relationship to the factors formed. The MSA value of anti-image matrices for the respondent religion attribute is 0.849 with the extraction value 0.588, the MSA value of usury prohibition attribute is 0.731 and the extraction value is 0.630. The fair and transparent profit-sharing attribute is 0.873 MSA value with the extraction value is 0.644, the sharia principles of transaction attribute is 0.870 MSA value and extraction value is 0.634. The MSA value of investment/financing for good and halal business attribute is 0.833 with the extraction value is 0.688, products that are diverse, interesting and innovative attribute is 0.907 of MSA value and the extraction value is 0.729. The MSA value of the percentage of profit-sharing ratio attribute is 0.808 with the extraction value of 0.636, the user-friendly transaction of the product is 0.923. The MSA value of support 4.0 feature/convenience contained in product attribute is quite high with the value of 0.910 with the extraction value 0.695. Also, the MSA value of the big number of branch offices attribute is quite high (0.905) with the extraction value of 0.577, facilities of ATM network attribute are 0.841 and 0.742. The MSA and extraction ratios for Complete 4.0 banking transaction facilities are 0.895 and 0.776, respectively. See Table 3(a) as follows: The MSA value of service quality of the employee is 0.814 and the extraction value of 0.689. Each MSA and extraction value of attributes for accessible location (easy to reach) attribute are 0.862 and 0.747, respectively. The numbers for strategic location attribute are 0.914 and 0.756, respectively and for attractive, comfortable and pleasant building attribute are 0.827 and 0.659, for secure region location attribute are 0.929 and 0.582, respectively. Encouragement from outsiders (family, friends, and others) attribute are 0.884 and 0.668, respectively and for advertisement and promotion attribute are 0.891 and 0.665, for scholar's information (teachers, leaders, lecturers, and others) attribute are 0.925 and 0.663, respectively. For the well-known and reliable sharia bank name attribute the numbers of MSA and Extraction are 0.850 and 0.684, respectively, for sharia compliance aspect attribute are 0.763 and 0.760, and last for the equivalence to rate of return attribute are 0.905 and 0.489, respectively. See Table 3(b). Furthermore, the results of Total Variance Explained show that there are 23 attributes (Components) included in the factor analysis. Table 4 shows only six factors formed, and the eigenvalues are above 1, and then 2, 3, 4, 5, 6 factors formed eigenvalues are also still above 1. Factors formed number 7 up to 23, no longer concluded, the eigenvalues are below one. Once it is known that six factors are the most optimal, the rotated component matrix output (Table 5) shows the distribution of the 23 attributes on the six factors formed. While the values in the table are factors loading, which shows the magnitude of the correlation between an attribute with factor 1, factor 2, factor 3, factor 4, and so on. The process of determining which attributes will go into which factor is by doing a large comparison of correlations on each line. If there is any unclear correlation on each factor loading then rotation performed. After 23 attributes formed, with a factor that contains several attributes, an attribute may be difficult to determine which will go into which factor. To overcome this situation, the rotation process on the factors formed shall be done, so it will clarify the position of an attribute, will it be included on one factor or to another factor. In this research, the rotation process is using the Varimax method (part of Orthogonal). Table 5 is for Rotated Component Matrix and shows the clear and real distribution of attributes. The explanation below will explain which factor of the existing attribute will go into and 23 attributes were reduced to only 6 (six) factors, which are: Factor 1 consists of attributes of a big number of the branch office, the accessible location (easy to reach), strategic location, attractive and comfortable building, and location insecure region. Factor 2 consists of attributes of variety and innovative products, percentage of profit-sharing ratio, user-friendly transaction, and 4.0 feature of the product. Factor 3 consists of attributes of usury prohibition, fair and transparent profit-sharing system, sharia principle of banking transaction, and investment/financing for halal business. Factor 4 consists of attributes of respondent's religion, encouragement from outsiders (family, friends, and others), bank promotion and advertising performance and scholar's information (teachers, lecturers, leaders, and others). Factor 5 consists of attributes of ATM facilities network, complete facility of banking transaction service, service quality of the employees. Factor 6 consists of attributes of well-known and reliable sharia bank name, sharia bank jargon, and equivalence to other bank rates of return (high returns). Office-related characteristics are the most seduced factor to influence cosmopolitan customers, followed by product-related characteristics, digitalization of 4.0 took a special place to encourage decision. All attributes of Syariah insight of bank operational gather and took third position. Fourth is the bank marketing activities factor associated with the advertisement and promotion that attracts the customers' emotions for being a Muslim. Fifth is the facilities and quality services factor offered by sharia banks. Sixth factor are associated with image and branding that built by sharia bank to attract customers. Component Transformation Matrix at Table 6, the values on the diagonal, between Component 1 and 1, Component 2 with 2, Component 3 with 3, Component 4 with 4, Component 5 with 5, and Component 6 with 6. Then it will show three values which are above 0.5 which are factor 1 with 0.540, factor 4 with -0.639 (the "-" indicates only the direction of correlation) since there is no distinctly different correlation, and factor 6 with 0.511. And the remaining three values are below 0.5 which are factor 2 with 0.466, factor 3 with 0.057 and factor 5 with -0.059. Although only 3 factors have correlations above 0.5 (factors 1, 4 and 6) this is enough to prove the three factors or components (factors 1, 4 and 6) that are formed is quite precise, since they have a fairly high correlation, even though it will be better if all factors have a correlation of above 0.5.

Confirmatory Factor Analysis;
As an advanced stage of factor analysis decision, the validity of the results of the factor analysis again tested with the CFA approach. The first model specification test performed using the same data from the EFA results, and the factor loading arrangement follows the results of the above EFA analysis. The CFA model specification results are shown in Fig. 2. Critical issues seem to appear here, in which acceptable range for the validity criteria for the standardized solution factor, which values acceptable enough, simply all factors make sense theoretically, but math procedures should be convenience equals to ≥ 0.4, ≥ 0.50, ≥ 0.60 or ≥ 0.70, all these cut off have their own references, but of course the higher, the better for the sake of theory building. Most references consider a factor of 0.50 for validation that is strong enough to explain the latent construct (Hair et al., 2010;Ismanu & Kusmintarti, 2019;Ockey, 2013). Even though some other references (Costello & Osborne, 2005;Yong and Pearce 2013) explain that the weakest loading factor that can be accepted is 0.40. Focusing to the result, its only factor three which is the smallest (0.55).  The Author then excluded factor 3 from the model to have another run test again (re-specification model). Based on the result of output and the formation of EFA where only 5 factors have a correlation above 0.6 (factor 1, 2, 4, 5 and 6). Factor 3 consists of attributes of usury prohibition, fair and transparent profit-sharing system, sharia principles in every banking transaction, investment/financing for business that is halal and good. After re-tested, the values of factors 1,2,4,5,6 observed from customer decision were not entirely below the standardized solution value of 0.60. For more details, the output track diagram given in Fig. 4. Then from both the above model specifications and re-specification, it compared which model has a better match. As illustrated in the commonly used goodness fit statistics (Table. 7) for the results of the first model specification test, based on the cut-off score, its p-chi-square shows less good match. None of the other goodness fit indexes such as root mean square error of approximation (RMSEA), adjusted goodness of fit statistic (AGFI), non-normed fit index (NNFI) shows less good match. However, the value of root mean residual (RMR) and goodness of fit statistic (GFI) have shown a good match. Besides, the Normed-fit index (NFI) and comparative fit index (CFI) of the re-specification model show better values than the subsequent specifications model. Then for the reliability value of both models above, it shows the value of CR ≥ 0.7 and VE ≥ 0.5. Absolute goodness fit indices actually determine how good an a priori model fits the sample (data/fact/phenomenon) and also demonstrates which figured model has the most superior fit, these measures of goodness fits show the most fundamental indication on how well the applied theory of customer decision fits the cosmopolitan fact (Hooper et al., 2008). For more details, the description of each goodness fit seen in Table 7: Source: Amos processed data EFA might form sharia insight as the third factor among five others, but the correlation value of the sharia insight factor shows the lowest value among other factors (component transformation matrix). While the CFA results ensure that the respecification model that does exclude sharia insight factors shows a better goodness fit model than the specification ones. This is supported by the research of Ahmad and Haron (2002) who found that economic factors, such as increased profit sharing and service quality, more significant for customers than religious reasons in choosing banks. Similarly, Mohd Yusof et al. (2009) also pointed out that current bank customers are more likely to be sensitive to issues of economic policy change (interest rate) than religious issues. However, EFAs and CFAs differ in the order of the most important factors to influence the decisions of metropolitan consumers. EFA version are bank marketing activities (factor 4), office location characteristic (factor 1), brand image (factor 6), feature digitalization of product (factor 2) and servicescape quality (Factor 5). While the CFA version is office location characteristic (factor 1), bank marketing activities (factor 4), servicescape quality (Factor 5), digitalization feature of the product (factor 2) and brand image (factor 6). To have a closer look of this empirical findings, and to synchronize all pro-cons of the previous research, the authors might state that emotions, sympathy or personal sentiments from consumers are not engaged into sharia insight when proceed to do a number of activities to make decisions or change or shift decisions, consumers are still logical so that they look more at other factors related to bank marketing activities, services and technology applications. However, that does not mean that banks might ignore sharia insights existence, but even more, this should translate into how marketing, service, and technology development activities in banks can be all sharia-oriented. The full application of sharia must attach to every side of Islamic bank activity, its embedded ones, sharia is not a factor but it is in every factor. In doing so, sharia insight will be well informed to encourage the consumer evaluation process to the end of decision making. Furthermore, from this point of view, research and development in the world of Islamic banking marketing should provide this concern into their focus.

Conclusion
The result of exploratory factor analysis has shown that the factors that build customer decisions on the use of sharia bank products and services are from 23 attributes extracted/reduced into 6 factors. In which the first factor is office location characteristic, it is an accessibility, the easiness to reach the location. Second is the digitalization feature of the bank associated with several indicators that show the uniqueness of products and services based on 4.0 industrial growth. Third, is the sharia factor related to sharia insight in the operational presentation of sharia bank's products and services. Fourth is bank marketing activities associated with the promotion that attracts the customers' emotions. Fifth is the servicescape quality offered by sharia banks. Sixth factor is the brand image of sharia banks that are associated with image and branding that built by sharia bank to attract customers. This research has also concluded that there are similarities in the results of exploratory (EFA) and confirmatory factor (CFA) analysis that sharia insights are no longer important to shift metropolitan consumer behavior towards Islamic banks. It is not a matter to shift the taste of metropolitan decision behavior, for the metropolitan customer 'bank is a bank' even though it is in the sense of Jakarta's fast-growing industrial 4.0 interact with recent emotional democracy activities in such typical of economic and political context. On the other words, Islamic bank should re-find the marketing way to leverage the strength they have, that no other bank else could be.