Sunaryo SUNARYO, Zakaria Bahari


The majority of the Indonesian population is Muslim, in which the share of Sharia Banking is only three (3) percent of the total banking market share in the country. This indicates a low participation, possibly leading to a negative perception on ethic reputation and low awareness among the Muslim communities in using sharia banking products and services. The objectives of this paper are to analyze the influence of sharia banking organization ethics reputation on Muslims customer loyalty and to analyze the role of satisfaction as a mediating effect on sharia banking organization ethics reputation on Muslims customer loyalty for the sharia banking products and services. Survey with 315 respondents in the city of Malang, Indonesia was conducted to gather information to further understand the situation, to answer the questions raised and to meet the study objectives. Purposive sampling was used to select the relevant respondents. The Structural Equation Model (SEM) is used to analyze the direct and indirect relationship between sharia banking organization ethic reputation, satisfaction and Muslims customer loyalty. The findings of this study showed that all independent variables significantly influenced the dependent variable, both directly and indirectly. Satisfaction as mediating factor has a high positive support to the relationship between organization ethic reputation Muslims customer loyalty. Hence, satisfaction plays an important role to support the perception of ethic reputation of the sharia banking organization in influencing Muslim customer loyalty. In addition, the study also suggests that ethic reputation of an organization also helps in maintaining customer loyalty.


Ethics Reputation; Satisfaction; Customer Loyalty; and Sharia Banking

Full Text:



Al-Qahthani, Muhammad bin Sa’id. (2005). Al-Wala’ Wal Bara’: Loyalitas dan Antiloyalitas Dalam Islam, Penerjemah Salafuddin Abu Sayid, Era Intermedia, Surakarta.

Anonymous. (2010). Loyalitas Nasabah Mengalami Peningkatan pada 2010, retrieved on July 16, 2012 from

Armstrong, R.W. (1996). The relationship between culture and perception of ethical problems in international marketing, Journal of Business Ethics, Vol. 15 No. 11, pp. 1199-208.

Bloemer, J., de Ruyter, K., and Peters, P. (1998). Investigating drivers of bank loyalty: the complex relationship between image, service quality and satisfaction. International Journal of Bank Marketing, 16(7), 276-286.

Bloemer, Jose M.M. and Ko de Ruyter. (1999). Customer loyalty in high and low involvement service settings: The moderating impact of positive emotions, Journal of Marketing Management, 15, 315- 30.

Caruana, Albert. (2002). Service quality: the effect of service quality and the mediating role of customer satisfaction, European Journal of Marketing, 36 (7/8), 811-828.

Carrillat, F.A., Jaramillo, F. and Mulki, J.P. (2009). Examining the impact of service quality:a meta-analysis of empirical evidence, Journal of Marketing Theory and Practice, Vol. 17 No. 2, pp. 95-110.

Dawkins, Jenny & Stewart Lewis. (2003). CSR in stakeholder expectations: and their implication for company strategy. Journal of Business Ethics 44 (2-3):185 - 193.

DeConinck, J.B. (2010). The influence of ethical climate on marketing employees’ job attitudes and behaviors, Journal of Business Research, Vol. 63 No. 4, pp. 384-91.

De los Salmones, Garcia, M.M., Perez, A. and Rodriguez del Bosque, I. (2009), The social role offinancial compaines as a determinant of consumer behavior, International Journal of Bank Marketing, Vol. 27 No. 6, pp. 467-85.

Dispensa, G. (1997). Use logistic regression with customer’s satisfaction data, Marketing News, Vol. 6 No. January p. 13. Farah, M.F. and Newman, A.J. (2010), Exploring consumer boycott intelligence using a socio-cognitive approach, Journal of Business Research, Vol. 63 No. 4, pp. 347- 55.

Gan, C., Clemes M., Limsombunchai V., Weng A. (2006). A logit analysis of electronic banking in New Zealand, Discussion Paper No. 108, Hair, J.F. Jr. , Anderson, R.E., Tatham, R.L., & Black, W.C. (1998).

Multivariate Data Analysis, (5th Edition). Upper Saddle River, NJ: Prentice Hall. Islam, Nurul. (2008). Syari’ah Banking – a golden opportunity for European banks. Retrieved July 15, 2012, From’ahBanking100108.html

Jaramillo, F., Mulki, J.P. and Solomon, P. (2006). The role of ethical climate on salespersons’ rolestress, job attitudes, turnover intention, and job performance, Journal of Personal Selling & Sales Management, Vol. 26 No. 3, pp. 271-82.

Yusuf, Eva. Z & Kusumawati, Galuh. (2006). Consumer behavior in choosing an syari’ah bank: a case study of Indonesia. Paper Presented At The INCEIF Syari’ah Banking And Finance Educational Colloquium, 3-5 April 2006.

Karim, Adiwarma; Zakaria Afiff. (2005). Consumer behavior of islamic Ranking in Indonesia, The sixt International Conference on Islamic Economi and Finance, Jakarta

Kartajaya, Hermawan (2008). New Wave Marketing The World Is Still Round, The Market is Already Flat, PT Gramedia Pustaka Utama, Jakarta.

Kidwell, R. and Valentine, S. (2009). Positive group context, work attitudes, and organizational misbehavior: the case of withholding job effort, Journal of Business Ethics, Vol. 86 No. 1, pp. 15-28.

Kotler Philip,Kevin Lane Keller (2006), Marketing Management, 12th Edition, Prentice-Hall

Kuusik, A. (2007). Affecting Customer loyalty: Do different factors have various influences in different loyalty levels?, Tartu University Press Order No. 366.

Lai, Chi-Shiun, Chih-Jen Chiu, Chin-Fang Yang and Da-Chang Pai. (2010). The effects of corporate social responsibility on brand performance: the mediating effect of industrial brand equity and corporate reputation, Journal of Business Ethics Volume 95, Number 3, 457-469.

Lee Jonathan, Lee Janghyuk and Feick Lawrence. (2001). The impact of switching costs on the customer satisfaction-loyalty link: mobile phone service in France, Journal of Services Marketing, Vol 15 No. 1, pp 35 – 48.

Lin, H.H., and Wang, Y.S. (2006). An examination of the determinants of customer loyalty in mobile commerce contexts, Information & Management, 43, 271-282.

Marican, Sabitha. (2006). Penyelidikan Sains Sosial Pendekatan Pragmatik. Batu Caves, Selangor: Edusystem Sdn. Bhd.

Mittal, Banwari and Walfried M. Lassar. (1998). Why do customers switch? the dynamics of satisfaction versus loyalty, Journal of Services Marketing, 12(3), 177-194.

Mostaghel Rana. (2006). Customer satisfaction: service quality in online purchasing in Iran, from Lulea University of Techology

Mulki, J.P., Jaramillo, J.F. and Locander, W.B. (2008). Effect of ethical climate on turnover intention: linking attitudinal and stress theory, Journal of Business Ethics, Vol. 78 No. 4, pp. 559-574.

Mulki, Jay, Prakash & Fernando, Jaramillo. (2011). Ethical reputation and value recieved: customer perception. International Journal of Bank Marketing, 29 (5), 358-372.

Natale, S.M. and Sora, S.A. (2009). Ethics in strategic thinking: business processes and the global market collapse, Journal of Business Ethics, Vol. 94 No. 3, pp. 309-316.

Ndubisi, N.O. (2007). Relationship marketing and customer loyalty, Marketing Intellegence & Planning, 25(1): 98-106.

Pirsch, J., Gupta, S. and Grau, S.L. (2007). A framework for understanding corporate social responsibility programs as a continuum: an exploratory study, Journal of Business Ethics, Vol. 70 No. 2, pp. 125-40.

Purwadi, Didi. (2011). Murabahah masih dominasi produk perbankan syariah, retrieved on July 14, 2012 from

Raharjo, Budi. (2010). Industri Keuangan Syariah Global Capai Momentum, retrieved on July 14, 2012 from

Reichheld, F.F., Earl, J. and Sasser, W. (1990). Zero defections: quality comes to services, Harvard Business Review, Vol. 68 No. 5, pp. 105-111.

Roman, S. and Ruiz, S. (2005). Relationship outcomes of perceived ethical sales behavior: the customer’s perspective, Journal of Business Research, Vol. 58 No. 4, pp. 439-445.

Rowley, J. and Dawes, J. (2000). Disloyalty: a closer look at nonloyal, Journal of Consumer Marketing, Vol. 17 No. 6, pp. 538-547.

Schneider, B. and Bowen, D.E. (1999). Understanding customer delight and outrage, MIT Sloan Management Review, Vol. 41, Fall, pp. 35-45.

Spiteri, J.M. & Dion, P.A. (2004). Customer value, overall satisfaction, end-user loyalty, and market performance in detail intensive industries. Industrial Marketing Management, 33(8), 675-687.

Subkhan, F. (2005). Loyalty of banking customers: From rational to emotional and spiritual, retrieved on July 16, 2012 from

Sheth, J.N. and B. Mittal. (2004). Customer behavior: a managerial perspective, South-Western, a division of Thomson Learning, USA.

Solomon, M.R. (1997). Consumer behavior: buying, having and being, 2nd ed., Allyn and Bacon, Canberra.

Szymanski, D.M. and Henard, D.H. (2001). Customer satisfaction: a meta-analysis of empirical evidence, Journal of the Academy of Marketing Science, Vol. 29 No. 1, pp. 16-35.

Valenzuela, L., Mulki, J.P. and Jaramillo, J. (2010). Impact of customer orientation, inducements and ethics on loyalty to the firm: customers’ perspective, Journal of Business Ethics, Vol. 93 No. 2, pp. 277-91.

Williams, Jonathan., Nguyen, Nghia. (2005). Financial Liberalisation, Crisis, and Restructuring: A comparative study of bank performance and bank governance in South East Asia, Journal of Banking and Finance, Vol. 29 No.1, 2119-2154

Wirtz, Jochen. (2003). Halo in customer satisfaction measures: the role of purpose of rating, number of atributes, and customer involvement, International Journal of Service Industry Management, Vol. 14. No. 1, 96-119.



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.