The Effect of Customer Knowledge, Advertising and Brand Image on Transaction Intention of Sharia Commercial Bank

International Journal of Economics and Management Studies

© 2022 by SSRG - IJEMS Journal

Volume 9 Issue 2

Year of Publication : 2022

Authors : Sholhan Aziz, Mahrinasari MS, Satria Bangsawan

10.14445/23939125/IJEMS-V9I2P102

How to Cite?

Sholhan Aziz, Mahrinasari MS, Satria Bangsawan, "The Effect of Customer Knowledge, Advertising and Brand Image on Transaction Intention of Sharia Commercial Bank," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 2, pp. 7-14, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I2P102

Abstract:

Since the establishment of Islamic Banks in Indonesia in 1991, namely with the establishment of Bank Muamalat, Islamic banking has experienced various developments and contributions to banking in Indonesia. Until 2020, there have been 14 Sharia Commercial Banks (SCB) in Indonesia. However, if the performance of the SCB on total assets and absorption of customer funds per bank is compared to the performance of conventional commercial banks, the SCB is still far behind. The SCB value is only around 36% when compared to conventional commercial banks. A positive brand image is one of the important elements that need to be instilled in customers in order to increase customer intention in transacting at the SCB. In addition to brand image, increasing positive knowledge and positive advertising are also important elements in increasing brand image as well as customer intention in transacting. This study aims to determine the effect of customer knowledge, advertising and brand image on transaction intentions, both direct and mediated effects by brand image. The sample used was 226 respondents who were taken by random sampling technique in the period September-November 2021. SEM PLS was used in this study to test data and hypotheses. The results showed that customer knowledge and brand image have a direct and significant effect on transaction intentions, but advertising does not have a significant direct effect on transaction intentions. Meanwhile, the brand image proved significant in mediating the relationship between advertising and transaction intentions and the relationship between customer knowledge and transaction intentions.

Keywords:

Advertising, Brand Image, Customer Knowledge, Purchase Intention, Transaction Intention.

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