service is the most dominant factor

Oct 13, 2025 by wbrum.org 58 views

Analysis of the Factors that Influence Public Interest in Choosing Islamic Banks as a Source of Home Ownership Credit (KPR): A Case Study in Medan Tuntung District

Introduction

The increasing popularity of Islamic banking, particularly in terms of home ownership loans (KPR), has sparked a growing interest in understanding the factors that influence public interest in choosing sharia mortgages. This study aims to uncover the key factors that drive public interest in Islamic banks as a source of home ownership credit in Medan Tuntung District. By examining the impact of bank profit margins, services, and promotions on public interest, this research provides valuable insights for Islamic banks and regulators to develop effective strategies for promoting sharia mortgages.

Methodology

This study employed a descriptive quantitative approach, utilizing primary data collected through a questionnaire and measured on a Likert scale. The data was analyzed using a multiple linear regression test, the Goodness of Fit test, and a classic assumption deviation test with the help of SPSS 17.0. The study focused on three main factors: bank profit margins, services, and promotions.

Results

The results of this study revealed that bank profit margin had a significant and negative impact on public interest in choosing sharia mortgages. This means that the higher the bank's profit margin, the lower the interest of the public to choose sharia mortgages. On the other hand, services and promotions have a positive and significant impact on public interest. The better the services and promotions offered, the higher the community's interest in choosing sharia mortgages.

The Dominant Factor: Service

This study also revealed that service is the most dominant factor in influencing the interest of the community to choose sharia mortgages in Medan Tuntung District. This shows that the public highly appreciates the services provided by Islamic banks. After the service, promotion and margins of bank profits are also a factor that influences public interest, even though the impact is not as significant as service.

Why is Service More Important?

The results of this study can be explained by the following points:

Trust

People tend to trust more in Islamic banks that provide good and professional services. This trust is built through a positive and empathic process of interaction between banks and customers.

Affordability

Good and easily accessible service, such as the process of submitting a fast and transparent mortgage, is a special attraction for the community. Service affordability can also be interpreted as a competitive administrative fee and not burdensome customers.

Justice

People want a fair and transparent service from Islamic banks. They want to avoid the practice of usury and obscurity in the credit agreement.

Conclusion

This study provides a clearer picture of the factors that influence public interest in choosing sharia mortgages in Medan Tuntung District. The results showed that service is the most dominant factor in influencing public interest. This confirms the importance of Islamic banks to focus on improving the quality of services and building strong trust in the eyes of the community.

Implications for Islamic Banks and Regulators

The results of this study have significant implications for Islamic banks and regulators. By understanding the needs and preferences of the community, Islamic banks can improve more effective promotional services and strategies to attract wider community interest. In addition, the results of this study can also be a consideration for regulators to encourage the development of Islamic banking products and services that are more in accordance with the needs of the community.

Future Research Directions

This study provides a foundation for future research in the field of Islamic banking and sharia mortgages. Future studies can explore the impact of other factors, such as interest rates and loan terms, on public interest in choosing sharia mortgages. Additionally, research can be conducted to examine the effectiveness of different promotional strategies and services in attracting public interest in sharia mortgages.

Limitations of the Study

This study has several limitations. Firstly, the study was conducted in a specific region, Medan Tuntung District, and may not be generalizable to other regions. Secondly, the study relied on self-reported data from respondents, which may be subject to biases and errors. Finally, the study only examined three main factors, bank profit margins, services, and promotions, and may not have captured other important factors that influence public interest in choosing sharia mortgages.

References

[1] Islamic Banking and Finance Institute Malaysia (2019). Islamic Banking and Finance in Malaysia: A Review of the Industry.
[2] World Bank (2020). Islamic Finance: A Guide for Policymakers.
[3] International Monetary Fund (2020). Islamic Finance: A Review of the Literature.

Appendices

[Appendix 1] Questionnaire used in the study
[Appendix 2] Data analysis procedures
[Appendix 3] Results of the multiple linear regression test
Frequently Asked Questions (FAQs) about the Analysis of the Factors that Influence Public Interest in Choosing Islamic Banks as a Source of Home Ownership Credit (KPR)

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the factors that influence public interest in choosing Islamic banks as a source of home ownership credit (KPR) in Medan Tuntung District.

Q: What are the three main factors examined in this study?

A: The three main factors examined in this study are bank profit margins, services, and promotions.

Q: What is the significance of the study's findings?

A: The study's findings are significant because they provide insights into the factors that influence public interest in choosing Islamic banks as a source of home ownership credit. This information can be used by Islamic banks and regulators to develop effective strategies for promoting sharia mortgages.

Q: What is the most dominant factor influencing public interest in choosing sharia mortgages?

A: The study found that service is the most dominant factor influencing public interest in choosing sharia mortgages.

Q: Why is service more important than other factors?

A: Service is more important because it builds trust, provides affordability, and ensures justice in the eyes of the community.

Q: What are the implications of the study's findings for Islamic banks?

A: The study's findings imply that Islamic banks should focus on improving the quality of services and building strong trust in the eyes of the community.

Q: What are the implications of the study's findings for regulators?

A: The study's findings imply that regulators should encourage the development of Islamic banking products and services that are more in accordance with the needs of the community.

Q: What are the limitations of the study?

A: The study has several limitations, including the fact that it was conducted in a specific region and relied on self-reported data from respondents.

Q: What are the future research directions based on the study's findings?

A: Future research directions include examining the impact of other factors, such as interest rates and loan terms, on public interest in choosing sharia mortgages, and exploring the effectiveness of different promotional strategies and services in attracting public interest in sharia mortgages.

Q: What are the references used in the study?

A: The study references several sources, including the Islamic Banking and Finance Institute Malaysia, the World Bank, and the International Monetary Fund.

Q: What are the appendices included in the study?

A: The study includes three appendices: the questionnaire used in the study, the data analysis procedures, and the results of the multiple linear regression test.

Q: What is the significance of the study's findings for the development of Islamic banking?

Q: What are the implications of the study's findings for the community?

A: The study's findings imply that the community values service, affordability, and justice in Islamic banking products and services. This information can be used by Islamic banks and regulators to develop products and services that meet the needs of the community.

Q: What are the future implications of the study's findings?

A: The study's findings have future implications for the development of Islamic banking products and services that are more in accordance with the needs of the community. They also imply that Islamic banks should focus on improving the quality of services and building strong trust in the eyes of the community.

Q: What are the limitations of the study's findings?

A: The study's findings have several limitations, including the fact that they are based on a specific region and relied on self-reported data from respondents.

Q: What are the future research directions based on the study's limitations?

Q: What are the references used in the study's limitations?

A: The study references several sources, including the Islamic Banking and Finance Institute Malaysia, the World Bank, and the International Monetary Fund.

Q: What are the appendices included in the study's limitations?

A: The study includes three appendices: the questionnaire used in the study, the data analysis procedures, and the results of the multiple linear regression test.