Consumers Knowledge About Islamic Banking and the Influence Towards Decision to Become Clients of Bank Syariah Mandiri Branch of Yogyakarta

Abstract

Monetary crisis that has afflicted Indonesia a couple years ago give significant impact on banking industry. The enforcement of liquidation towards sixteen private banks at the end of October 1997 creates crisis of trust on public towards national banking industry. Eventhough the government ensure the safety of customer funds deposited either on national or private bank through an announcement on January 27, 1998 the impact of liquidation is still inevitable. During monetary crisis in 1997 until 1998, sharia banking could survive and showed a significant great performance compare to conventional banks. It can be seen from distribution of financing that was relatively low troubled (non performing loan, amounted to 12.96% in 2000 and 4.04% in 2001) on sharia banks and there were no occurrence of negative spreads in its operational activities. The problem formulation in this research are: 1) How customer knowledge (based on attributes, utility, and satisfaction value) regarding sharia banking and the decision to become customer of PT Bank Syariah Mandiri Tbk Purbayan, Kotagede, Yogyakarta; 2) To what extent the influence of consumer knowledge on a decision of being customer and; 3) What types of consumer’s knowledge which determine most of the decision to become customer. Whereas, the purpose of research involves 1) Understanding consumer knowledge (based on attribute, utility, and product satisfaction value) about sharia banking and the decision to become customer of Bank Syariah Mandiri; 2) Understanding to what extent the influence of consumer knowledge on a decision of being customer; 3) Understanding types of consumer knowledge that determine the most of decision to become customer.