Abstract:
Abstract
Purpose – This paper aims to investigate how extrinsic and intrinsic religiosity influences the
mediator variables, such as consumers’ brand image and materialism in the Indonesian banking
sector (e.g. conventional and Islamic). It also examines how mediators influence consumers’
preferences.
Design/methodology/approach – The sample consists of 575 bank consumers. The experimentmethod
was used to test the research hypotheses through three studies.
Findings – The empirical results indicate that religiosity positively affects consumers’ decision-making
process, precisely when bank products are based on Islamic principles. Furthermore, consumers’ brand image
andmaterialismpartiallymediate religiosity and consumers’ preferences.
Research limitations/implications – This study was limited to Indonesian bank consumers.
Therefore, future study is needed to analyze cross-region.
Practical implications – Bank managers and regulators need to enhance Islamic banks’ products and
services and the varying principle between conventional banks. They also need to enlighten consumers from
the perspective of business and religiosity.
Originality/value – This study contributes to consumers’ behavior literature and the decision-making
process of developing and testing a model of religious determinants of consumer preference toward bank
products.
