Purpose – The fact that the roles of Conventional Banking are still far dominant than Sharia Banking and keep growing show that most Muslims in Indonesia are inert to Conventional Banking. Unfortunately, research on this subject is very limited. This study aims to analyze the Inertia on Conventional Banking, and Intention to Switch to Sharia Banking of Muslim Customers.

Design/methodology/approach – This is a quantitative research. Six antecedents of customer Inertia have been identified i.e.: Knowledge, Confusion, Similaritiy, Switching Costs, Satisfaction, and Religious Norms; and two antecedents of Switching Intention i.e.: Inertia and Satisfaction. 315 data from online survey were analyzed using SEM with the LISREL program, and Friedman Test with the PASW Statistics.

Findings – That Knowledge and Similarities have significant negative effect; Confusion and Switching Costs have significant positive effect on customer Inertia; while Satisfaction and Religious Norms have no significant effect. Then that customer Inertia and Satisfaction have negative effect significantly on Switching Intention. Another important findings, there are significant difference of the levels of the customer Inertia, Satisfaction and Switching Intention indicators.

Research limitations – provided.

Practical implications The findings are critical because provide clear directions for Sharia Banking in formulating the effective and efficient development strategy.

Originality/value – This is a little of research which analyzes the inertia and intention to switch to Sharia Banking of Muslim customers in Indonesia completely.

Type of paper – Research Article.



Abduh, M., Kassim, S., Dahari, Z. (2012). Customer Satisfaction and Switching Behavior in Islamic Banking: Evidence from Indonesia. School of Doctoral Studies (European Union) Journal. Pp. 209 – 215.

Ahmad, M. (2004, January). The Attitude of Bank Customers and Professional Bankers towards Islamic and Conventional Banks in Bangladesh. In Selected Papers from Conference in Brunei, 5-7 January, 2004. Ali, S.S., & Ahmad, A. (Ed). (2007). Islamic Banking & Finance: Fundamentals and Contemporary Issues. Seminar Proceeding, No. 47, pp. 191-190. Islamic Research & Training Institute-Islamic Development Bank. 1’st Published 1427H.

Asian Development Bank and the Islamic Financial Services Board. (2015). Islamic Finance for Asia: Development, Prospects & Inclusive Growth. ISBN 978-92-9254-907-7(Print), 978-92-9254-908-4 (e-ISBN), pp. 1-111.

Cheng-Hsien Li. 2016. The Performance of ML, DWLS, and ULS Estimation With Robust Corrections in Structural Equation Models With Ordinal Variables. Psychological Methods. American Psychological Association, 2016, Vol. 21, No. 3, 369 –387.

Chin-Hung Liu. (2015). The Impact on Switching Intention of ETrading Sytems for The Securities Industry. Global Journal of Business Research, Vol. 9, No. 1, 2015, pp. 75-88.

Cindy Li. (2016, January). Islamic finance in Asia: Recent developments and regulatory issues. Asia Focus, Federal Reserve Bank of San Fransisco–Country Analysis Unit, pp. 1-11.

Colgate, M. & Lang, B. (2001). Switching barriers in consumer markets: an Investigation of the financial services industry. The Journal Consumer Marketing; 2001; 18, 4/5; ProQuest, pp. 332-347.

Fahmi. 2017. Halal labeling effect on muslim consumers attitude and behavior. Advances in Intelligent Systems Research, volume 131. Published by Atlantis Press, pp. 56 – 62.

Fatwa MUI no. 1 Tahun 2004 Tentang Bunga-Interest~Faidah.

Ghani, A. (2012). Konasi masyarakat terhadap penggunaan Arabic terms dan deskripsi finance scheme dalam pemasaran produk Bank Syariah. (Analisa Pada Masyarakat Kota Yogyakarta). JESI (Jurnal Ekonomi Syariah Indonesia), Volume II, No.2 Desember 2012/1433 H., pp. 155-166.

Ghozali, I. (2017, cet. VII, ed. 7). Model persamaan struktural- Konsep dan aplikasi dengan program Amos 24. Badan Penerbit Universitas Diponegoro, Semarang.

Ghozali, I. & Fuad. (2014). Struktural Equation Modelling: Teori, Konsep dan Aplikasi Dengan Program LISREL 9.10, Edisi 4. Badan Penerbit Universitas Diponegoro. Semarang.

Gray, DM., et al. (2017). Inertia in services: causes and consequences for switching", Journal of Services Marketing, Vol. 31 Issue: 6, pp.485-498.

Gupta, R., et al. (2017). Collision Between Customer Inertial Factors And Brand Love: Transformations In Re-Purchase Intentions. Int. Journal of Engineering Research and Application ISSN : 2248-9622, Vol. 7, Issue 9, ( Part -1), September 2017, pp.27-38.

Hair Jr., JF., et al. (2014, 7’th ed.). Multivariate data analysis. Pearson Education Limited, Edinburgh, England.

Huang, Ming-Hui; Yu, Shihti (1999). Are consumers inherently or situationally brand loyal? - A set Intercorrelation Account for Conscious Brand Loyalty and Nonconscious Inertia. Psychology & Marketing. Sep 1999; 16, 6; ProQuest, pp. 523-544.

Hui-Wen Chuah, S. et al. (2016). Why do satisfied customers defect? A closer look at the simultaneous effects of switching barriers and inducements on customer loyalty. Journal of Service Theory and Practice, Vol. 27, no. 3, 2017, pp. 616-641.

Jones, T. (2017). Breaking Inertia: What will it take to change customer attitudes to financial services? True Digital Bristol, United Kingdom. https://www.pdfdrive.com/what-will-it-take-to-change-customer-attitudes-to-financial-services-e52071120.html, accesed on 15 Januari 2019, at 22.54, pp. 1-36.

Jöreskog, KG., 2002 revised 2004. Structural Equation Modeling with Ordinal Variables using LISREL. Scientific Software International, Inc. (SSI), in Karl’s Corner: http://www.ssicentral.com/lisrel/corner.htm, 1-77.

Kamla, R. & Alsoufi, R. (2015). Critical Muslim Intellectuals’ discourse and the issue of ‘Interest’ (riba): Implications for Islamic accounting and banking. Accounting Forum 39, p. 140–154.

Kardes, F.R., Cronley, M.L., Cline, T.W. (2011). Consumer Behavior, South-Western, Cengage Learning.

Lee, M. & Cunningham, LF (2001). A cost/benefit approach to understanding service loyalty. The Journal of Services Marketing; Santa Barbara, Vol. 15, Iss. 2, (2001), pp. 113-130.

Lee, R. & Neale, L. (2012). Interactions and consequences of inertia and switching costs. Journal of Services Marketing, Vol. 26 Issue: 5, pp.365-374.

LPPOM MUI- Lembaga Pengkajian Pangan Obat-Obatan dan Kosmetika Provinsi Jawa Tengah. http://halaljateng.or.id/statis-8/sejarah.html, accesed on 25/1/19, at 17:04.

Lembaga Penjamin Simpanan - Laporan Distribusi Simpanan Bank Umum Desember 2015 & 2018.

Mahdzan, NS., Zainudin, R., Sook Fong Au. (2015). Journal of Islamic Marketing. Vol. 8 Issue: 3, 2017. pp.496-512.

MUI (RMOL.ID (Januari 2018). https://nusantara.rmol.id/read/2018/01/08/321438/ MUI:-Waspada,-Kuliner-Binatang-Haram-Makin-Marak-. Accesed on 25/1/19, at 18:10.

Otoritas Jasa Keuangan. Statistik Perbankan Indonesia (2014, 2015, 2018).

Rahman, AA., et al. (2015). Consumers and Halal cosmetic products: knowledge, religiosity, attitude and intention. Journal of Islamic Marketing, Vol. 6 Issue: 1, pp.148-163.

Schumacker, RE. & Lomax, RG., 2010. A Beginner’s Guide to Structural Equation Modeling, 3’rd Edition. Taylor & Francis Group, New York.

Shiu, JY. & Tzeng, SY (2018). Consumer confusion moderates the inertia-Purchase intention realationship. Social Behavior and Personality. Scientific Journal Publishers Limited, 2018, 46 (3), 387–394.

Sunyoto, Y., Ghozali, I., Purwanto, A. 2017. Analysis of Auditor Performance by Using Covariance Based Structural Equation Modeling: A Study of Public Accounting Firms in Indonesia. European Research Studies Journal. Volume XX, Issue 3A, 2017, pp. 524-537.

Suwandi, I. (Oktober, 2019). Analisis Inersia Nasabah Muslim Untuk Beralih Ke Bank Syariah Di Indonesia. Tesis. Sekolah Kajian Stratejik dan Global, Universitas Indonesia, Jakarta.

Swastika, P. 2016. http://www.thejakartapost.com/academia/2016/07/15/why-market-share-of-islamic-banks-is-so-small-in-indonesia.html. Accessed on 28-5-2018, at 06:17.

Sharianews.com. Nov, 2018. https://sharianews.com/posts/pertumbuhan-bank-syariah-lamban-karena-masih-ada-perbedaan-tafsir-soal-riba. Accessed on 18-8-2020, at 11:30.

Tello, FPH. & Ramírez, MAM. & García, MIB. (2018). Confirmatory Factor Analysis of Ordinal Variables: A Simulation Study Comparing the Main Estimation Methods. Avances en Psicología Latinoamericana, 36(3), 601-617.

Tempo.co (Agustus 2018) https://nasional.tempo.co/read/1119009/mui-nyatakan-vaksin-mr-haram-begini-isi-lengkap-fatwa-mui, 21 Agustus 2018. Accesed on 25/1/19, at 17:30.

Thomson Reuters - The Answer Company (2018). Islamic Finance Development Report 2018 - Building Momentum, pp. 1-44.

Usman, H. (Januari 2014). The Role of Religious Norm on Selecting the Islamic Bank, Al-Iqtishad: Vol. VII No. 1, 31-44.

Usman, H., et al. (2015). The role of religious norms, trust, importance of attributes and information sources in the relationship between religiosity and selection of the Islamic bank. Journal of Islamic Marketing, Vol. 8 No. 2, pp. 158-186.

White, L., Yanamandram, V. (2007). A model of customer retention of dissatisfied business services customers. Managing Service Quality: An International Journal, Vol. 17 Issue: 3, pp.298-316.

Yaacob, Z. (2014). The link between quality management and muslim customer satisfaction. International Journal of Business and Society, Vol. 15 No. 1, 81 – 96.

Ye, Gewei (2005). The locus effect on inertia equity. The Journal of Product and Brand Management; 2005; 14, 2/3; ProQuest, pp. 206-210.

Yanamandram, VK. & White, L. (2004). Why customers stay: reasons and consequences of inertia in financial services", Managing Service Quality: An International Journal, Vol. 14 Issue: 2/3, pp.183-194.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.