HRMARS - This study aims to analyze the influence of psychological, social, cultural, and personality factors on customer decisions in choosing Islamic banking products in Riau Province. This study employed a quantitative approach with data analysis techniques using Structural Equation Modeling (SEM) based on SmartPLS. The test results showed that the research model was able to explain 13.4% of the variability in customer decisions (R-Square 0.134). Empirical findings revealed a contrasting pattern between external and internal factors. Cultural (0.178) and Social (0.155) factors proved to have a positive influence, indicating that support from traditional values and the social environment of the Riau community are the main drivers. Conversely, Personality (-0.180) and Psychological (-0.131) factors had a negative influence. This indicates internal barriers, where customer characteristics and their psychological perceptions tend not to align with the current image of Islamic banking. This study recommends that Islamic banking management in Riau implement more modern rebranding strategies and simplify services to overcome customer psychological resistance.
Saputra et al. (Fri,) studied this question.
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