Determinants to adopt conventional and Islamic banking: evidence from Indonesia

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 experiment method 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 and materialism partially mediate 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.