Ijtim ā 'iyya: Journal of Muslim Society Research

The Purpose of this study is to evaluate the difference between customer preferences and customer attitudes of Islamic Bank in Ex-Banyumas residency of Central Java, Indonesia. It also evaluates the most considers attributes in choosing an Islamic bank. Accidental sampling is used in this study with a total of respondents as 100. To observe the difference in customer preferences, the scoring method and Chi-Square analysis are applied, meanwhile, Fishbein’s Attitude model is used to discover the customer attitudes. It is concluded that there is a significant difference in customer preferences on choosing Islamic banks on Ex-Banyumas residency, particularly when it is based on gender and long-period of customer status. It also revealed that customers’ decision in choosing Islamic banks is influenced by service quality. The findings of this study could give valuable input to Islamic bank management in the improvement in their services. This study is explaining the implementation of the Islamic principle in banking operational activities, as in fact the main reason for most customers to get services from the Islamic bank. This study is also enriched the Islamic banking studies in Indonesia.


A. Introduction
Challenges in the emerging banking sector internationally and globally, require strategies to attract more customers and gain the market share (Echchabi, 2017). To give more satisfaction to the customers, one of its survival strategies lies in finding how costumer set their priorities besides improving the facilities. This competing condition is also happened in Islamic Banking sector which attracted more attention of researchers, practitioners and regulators to begin the extensive research, in various fields and contexts as later it produced many variations in results and findings from their studies.
The Result from a study conducted by (Hegazy, 1995) explained that there are differences in the criteria for selecting Islamic banks and conventional banks. Specifically, word of mouth and recommendations from peers as the dominant criteria. But according to (Gerrard & Cunningham, 1997) in studying the perceptions of Muslim and Non-Muslim customers on Islamic Banking in Singapore, it revealed that there are no significant differences between these two customer categories.
In Indonesia, Islamic Bank where Islamic principles are applied to all banking transactions has become an option for society at large (Abduh & Omar, 2014). To increase the activities of this development, the government issued law Number 10 of 1998 as the amendment of law number 7 of 1992 on banking. Meanwhile, (Denton & Chan, 1991) studied the behavior of customer preferences in Hongkong. Its criteria selection showed that many bank customers displayed preferences such as risk reduction, meeting needs, and prestige. In addition, (Khazeh, K. and Decker, 1992) documented that lower banking costs are greatly affecting the customer's banking choices.
Public differences in perceptions and attitudes on Islamic banks are shown in varied responses. Customer's consideration in choosing Islamic banks is one of the topics that need to be more discussed. Especially, to discover how much the public sympathy towards Islamic banks in Indonesia and what factors could influence the public to become a customer of Islamic banks.
In the 2000s, religious factors were indeed influencing customers' decisions to save their funds in Islamic banks. According to (Ajzen, 2011) as quoted by (Schiffman & Wisenblit, 2015), it stated that person's desire to perform an attitude is based on two things, which are individual attitudes toward new behavior and subjective norms.
According (Meidar F.M, 1997) stated that preference is a person's right to give priority or preferences in utilizing certain products or services. This study is emphasized customer preferences, which are also become values for a customer as it plays role in decision-making. Customer preferences are the best assessment of a customer's desire, they determined customers' decisions when they faced a variety of products.
One of the popular attitude models is Fishbein's multi-attribute. This model predicts three main factors for predicting attitudes (Umar, 2000) which are: 1) People's beliefs towards prominent attributes on certain objects. 2) People's strength of beliefs that attributes have a distinctive value, ordinarily, it is known in forms of questions, for example how much people's agree on object X has the attribute of Y.
3) The evaluation of each belief on prominence attribute, where they evaluated how good or bad their beliefs towards those attributes.
The development of Islamic banking in Ex-Banyumas Residency showed encouraging growth. As the number of offices spreads all over this area, either the main branch, sub-branch, or cash offices which only serve withdrawal and deposit transactions from the customer. Islamic banks operating in this area are classified as Islamic Commercial Bank Islamic business unit, and Islamic Rural bank (Warsito, 2019).
This study aims to determine the differences of customer preferences in selecting Islamic Banks and customer attitudes on Islamic bank. It also studies what most considered attributes in selecting Islamic banks. The results of this study are expected to enrich the study of Islamic banking, especially in terms of the application of Islamic principles and services.

B. Theoretical and Hypothesis Frameworks
1. Theoretical Framework Islamic Bank Generally, the word "Bank" is traced from the French "bangue" or Italian "banco" refers to a chest, cupboard, or a bench. It is not explicitly mentioned in Islamic Qur'an, but when it refers to an element such as structure, management of functions, rights, and obligation of a Muslim, then it is stated by the concept of zakat, sadaqah, ghanimah (spoils of war), ba'i (buying and selling), dayn (trade debt), maal (assets), etc, which has function and conducted by people with a certain role in economic activities (Maysun, 2005).
According to law number 21 of 2008 on Islamic banking, especially on article 1, it stated that bank is a business entity mobilizing funds from the public in the form of deposits and disbursing them back to the public in form of a credit to improve people's living standard.
Islamic bank is a financial institution that provides financing and other services in financial payment traffic also money circulation which in its operation is in accordance with the principles of Islam (Muttaqin, 2003). Islamic banking provides free interest charging on its services. Including its payment, withdrawal, and all kinds forms of transactions. It's due to the Islamic principle which forbids Muslims to draw or pay interest. This is what distinguishes conventional commercial banks from Islamic Banks.
There are three main objectives of Islamic banking and finance, which are: (1). The elimination of interest is in line with Islamic principles (2) Appropriate wealth and income distribution. (3) Promotion of economic development (Algoud, 2001).
Difference Between Conventional Commercial Bank and Islamic Bank According to Article 1 Law No.21 of 2008 on Islamic banking, types of banks are distinguished based on the principle or the instrument that applied, which are: 1). The conventional bank is a bank conducting business activities conventionally or in this case take advantage of the difference of loan interest and deposit interest and in fact, its base activities are taking profit from the interest. 2). Meanwhile, banks with Islamic principles could be divided into two types, which are: a. Islamic Commercial Bank. This type of bank is basically similar to the conventional commercial bank but all its activities are based on Islamic or Islamic principles. Islamic bank earns their revenue not by charging interest which is strongly prohibited in Islamic or Islamic principle. b. Islamic Business Unit.
Is actually a working unit of the Conventional Commercial Bank, but the management is separated from its parent headquarters, its existence is also a reserve of its parent conventional bank.
Islamic bank could have the same structure as the conventional Bank in terms of the Commissioner's and Directors' position, one element that greatly distinguishes is the necessity for the establishment of the Islamic Supervisory Board which supervised the operation and products so as to be in line with Islamic principle.
Islamic Bank Strategic Development Islamic bank development strategies are directed at improving business competence so that could be competing with conventional bank system which managed comprehensively, using the reference of strength and weakness analysis at current Islamic banking situation in Indonesia. The vision of the Islamic banking development in Indonesia is mostly the realization of an Islamic banking system that is competitive, efficient, and fulfilling the prudential principle. All of which could be achieved through a mission, that is creating a conducive climate on Islamic principles implementation and being a central role in a real sector of the economy. The location of ex-Banyumas Residency, is actually referred to administrative regions in Central Java, consisted of five regencies which are Cilacap, Banyumas, Kebumen, Purbalingga and Banjarnegara ( https://infojateng.id/read/179/berikut-pembagian-karesidenan-di-jawatengah/).

Hypothesis
Based on the previous discussion, the hypothesis in this study are: H1. There are differences in customer preferences for Islamic Banks in the area of Ex-Banyumas Residency. H2. Customer's attitude towards Islamic banks in the area of Ex-Banyumas Residency is positive. H3. The attribute of an Islamic bank which is a bank that operates based on Islamic principle on relative profits variable is the most considered attribute by customers in choosing Islamic bank at Ex-Banyumas Residency.
The Research Model in this study is arranged as follows: The power of customer's belief on Islamic bank attributes, includes: 1) Service Quality 2) Relative Advantage 3) Information Openness 4) Compatibility 5) Complexity 6) Trialability

Customer Attitudes
The Power of beliefs in purchasing (bi) Evaluation of Beliefs

Analysis Research Method
This research is a case study that conducts a detailed examination of the setting of a subject, a person, or a storage place, which contains documents or events. The object of this research is Islamic bank customers in Ex -Banyumas residency. The type of data used in this study is primary data, obtained from selected respondents related to customer preferences and customer attitudes in Ex-Banyumas residency. Data were collected by distributing questionnaires to respondents. The population in this study is the customers of Islamic banks in the Ex-Banyumas residence area. The accidental sampling method is used with a total of 100 respondents.

Data Analysis Methods
To analyze the data, researchers used qualitative data from customers via questionnaires. For testing the validity, this study is using the product -moment correlation procedures taken from 30 respondents' questionnaires. Meanwhile, the Cronbach's Alpha coefficients are applied for testing the Reliability. To determine the differences in customer preferences for Islamic banking customers, the scoring methods and chi-square analysis are applied. Lastly, an attitude model from Martin Fishbein is conducted to research customers' attitudes.

D. Results and Discussion
Description of Respondents Respondents in this study are customers who get Islamic bank services at Ex -Banyumas Residency. The majority, the age of respondents who visit the Islamic bank in this area ranged from 30 -35 years, with a total of 42 people in this group. Among those respondents who are less than 30 years old are 30 people, and the remaining 28 are respondents with the age of more than 45 years.
Based on gender, 74 percent of the respondents were men and the remaining 26 percent were women. 46 people among those respondents have become Islamic bank customers between 5 -10 years, or it indicates that these customers have been receiving Islamic banking services for a quite long period of time. Furthermore, for less than 5 years are 29 people, and lastly, respondents who have been customers for more than 10 are the remaining 25 people.
Data Analysis 1. Validity and Reliability Product moment correlation procedures are applied to test the validity meanwhile spearman-brown calculation is used to test the validity. , shows that the calculation of validity and reliability test as r count on "Confidence" attribute and the attribute of "Evaluation" is higher than r table. Also, the coefficient of reliability is greater than r table of 0,361. It could be concluded that each of Attribute's questions is valid and reliable to be instrument research.

Results of The Respondents Perception
The Likert scale is applied to study respondents' perceptions, by giving scores from one to five. The result showed that most of the responses were at the "agree" level with of total 37,29 percent, or most of the customers had a good perception of service quality. It showed by the responses on how Islamic bank is providing fast and professional services, it also equipped with modern tools which faster the transaction, it is general to have a freeinterest charges on administration services. Islamic bank is also considered to have higher profit-sharing compared to other banks, it has clear transaction instructions, has adequate equipment as a pen which always available either having neat application form and lastly they have a polite and neat appearance of staffs. Based on table 3, it illustrated that most of the respondents acquired good perceptions towards the relative advantage given by Islamic bank at Ex -Banyumas Residency Area with the total of "Agree" responses of 34,67 percent. It supports the responses from the customers which stated that Islamic bank is operating based on Islamic principles, customers in other way are deeply concerned with the implementation of Islamic principle and they support the socialization or awareness of Islamic principles to the customers. Based on table 4. It describes that most of respondents gives "Agree" responses towards the statements or they tend to have a good perception on information openness with total of answer of 38,67 percent. This supported by the number of customers stating that general information about Islamic is easily to find either on print or electronic media. Besides, financial Reported which are information about bank performance condition and information related to the total of the third-party fund on certain period, is easily obtained. Based on the data above, it describes that most of the respondents gave good perception on compatibility attribute of Islamic bank in Ex-Banyumas regency area, with a total of 38 percent on "Agree" responses. It is demonstrated by the number of responses that agree with the statement that Islamic bank is identical with profit sharing system, the profit-sharing system is only suitable for Islamic Bank and Islamic compliant Profit-sharing is not as promised. Based on table 6. It illustrated that most of respondents have good perception on complexity attribute, with total of "Agree" responses as 42,67 percent. This number is supported by the total of responses which agree with statement that by saving at Islamic bank, savers also give charity-alms as well. Customers, indirectly, help in overcoming the social problem such as poverty, and agree that the financing system provided by Islamic banks is only aimed at halal investments. Based on table 7, it could be known that most of the respondents agree with the statement that indicates good perception towards trialability attribute on Islamic bank at Ex-Banyumas residency with a total of responses as 36,67 percent. It is supported by the number of "Agree" responses on three statements which are, Islamic principle information is easy to find, Islamic principle awareness has often been conducted and There has been quite a number of Islamic banks in the area. Based on Chi-square (X2) calculation, it could be concluded that there is a difference in Customers' preference on Islamic banks from the point of Banking Service Quality, Relative Advantage, Information Openness, Compatibility, Complexity, and Trialability. It shows from the overall significance value of Chi-Square (X2) is smaller than the alpha value (α = 0,05).

Chi-Square Analysis
The result of this study also showed that from the gender standpoint, the main factor which determines the savings desire is the service quality of the bank. Also, when it refers to the period of being a customer. Results showed that customers' saving-decision is due to the service quality of the bank. Thus, the hypotheses which stated that there are differences in customer preferences for an Islamic bank in ex-Banyumas residency are accepted.

The Analysis of Customer Attitudes on Islamic Bank in Ex-Banyumas
Residency Customer Confidence in The Service Attribute of Islamic Bank in Ex -Banyumas Residency. Information related to the total of the third-party fund on certain period that were collected is easily obtained 3,57 Compatibilit y Islamic bank is identical with profitsharing system.

3,89
The profit-sharing system is only suitable for Islamic Bank.

3,77
Islamic compliant profit-sharing is not as promised

3,48
Complexities By saving at Islamic bank, savers also give charity-alms as well 3,91 Indirectly, by saving or depositing funds at Islamic Bank, savers is also help in overcome the social problem such as poverty 4,10 The financing provided by Islamic banks is only aim at halal investments.

3,99
Trialability Islamic principle information is easily acquired 4,07 Islamic principle awareness has often been conducted

3,75
There are quite number of Islamic banks 3,96 Based on table 9, illustrated that before getting services from an Islamic bank, customers have confidence that saving or depositing funds in an Islamic bank could help to overcome the social problem such as poverty. Besides, customers also believe that information related to Islamic principles is easy to obtain, and Islamic bank has sufficient equipment to support service in it.
Customer Evaluation Towards Services from Islamic Bank in Ex-Banyumas Residency Compatibility Islamic bank is identical with profitsharing system.

4,00
The profit-sharing system is only suitable for Islamic Bank.

3,99
Islamic compliant profit-sharing is not as promised 4,12 Complexity By saving at Islamic bank, savers also give charity-alms as well 4,18 Indirectly, by saving or depositing funds at Islamic Bank, savers is also help in overcome the social problem such as poverty 3,87 The financing provided by Islamic banks is only aim at halal investments.

4,21
Trialability Islamic principle information is easily acquired Islamic principle awareness has often been conducted 4,14

4,12
There are quite number of Islamic banks 4,09 Based on table 10, it is seen that after using the services, customer expectations that the related Islamic bank is appllied the principles of Islamic in its operational activities. Besides, the customer is expecting the socialization or awareness activities of Islamic principles and Islamic bank always provides quick and professional services.

Testing of Hypothesis 2
After calculating the respondent's trust value and also evaluating the Bank's services to the respondent, the attitude value is calculated Previously, it is known that the value of customer attitude is 340,72 where the value is in the "Good" category. It means that the customer has given a good rating towards the attributes offered by an Islamic bank in the Ex -Banyumas Residency area. As statements of Islamic bank is a type of bank that operates based on Islamic principles, financing provided by Islamic banks is only aimed at halal investments, Islamic principle information is easily acquired, Islamic principle awareness has often been conducted and also fast and professional services.
This Good rating is preceded by a good perception before the customer comes which is later followed by the visit to prove and receive the services. After receiving the service, the customer draws the conclusion that the attributes are meet their expectation. Thus, the second hypothesis stating that Customer's attitude towards Islamic banks in the area of ex-Banyumas Residency is positive is accepted. 6. Testing of Hypothesis 3 To acknowledge the highest attribute in shaping a customer's attitude could be indicated from its highest score. Based on the calculation value of attitude, it depicted that the attribute of "Islamic bank is a type of bank that operates based on Islamic principles" which clustered in relative advantage ranks the highest with a value of 17,30.
It means that the application of Islamic or Islamic principles is the most important reason for customers to get banking services. Thus, it concluded that the third hypothesis which stated that the attribute of Islamic bank which is a bank that operates based on Islamic principle on relative profits variable is the most considered attribute by customers in choosing Islamic bank at Ex -Banyumas Residency is accepted.

E. Conclusion and Implications
Based on the result of this study is concluded that: There is a significant difference in customers' preferences in choosing Islamic banks on Ex-Banyumas Residency Area based on gender and a long period of being a customer. Customer's decisions are also influenced by service quality given by the related bank. The result from this study also revealed that customer has a good attitude towards the attribute of Islamic Bank in the Ex-Banyumas Residence Area. It was shown from the value of attitude of a total 340,72 which include in the good category. Based on the calculation value of attitude, it's shown that the attribute of Islamic bank is a type of bank that operates based on Islamic principles which clustered in relative advantage ranks the highest with a value of 17 ,30. Thus, the applications of Islamic principle on Islamic Bank operational is the most important reason for customers to keep coming and get service by the bank. Implications The finding of differences in customers' preferences for Islamic Bank in Ex-Banyumas Residency should be a meaningful input for management to improve their services. Islamic banks should keep applying Islamic principles in all bank's operations in order to maintain their customers.