Migration (Hijra) to Islamic bank based on push–pull–mooring theory: a services marketing mix perspective

Purpose: This study aims to examine the interactive effect of the push factor from the conventional bank, the pull factor from the Islamic bank and the internal mooring factor of the customers in influencing the switching behavior of two types of customer account holders, the conventional only and the mixed (conventional and Islamic bank) account holders, from the services marketing mix perspective. Design/methodology/approach: This study applied an explanatory research design. The data were collected via an online survey from 1,171 Muslim participants; participants consisted of conventional only account holders, Islamic bank only account holders and mixed (conventional and Islamic bank) account holders. The data were mainly analyzed using structural equation modeling. Findings: Based on the account, the results showed that the three types of customers differ significantly in terms of the effect of the push, pull and mooring factors. The study also showed that the mooring factor, which is internal to the customer, is the most significant factor that inhibits customers from migrating to Islamic banks. The effect was observed for both conventional customers and those who hold mixed accounts. Research limitations/implications: The study was conducted via an online survey, which reduces the representativeness of the sample. In addition, most respondents were urban dwellers and well educated, which might not represent the banking behaviour of Indonesian Muslim customers in general. Practical implications: The study implies that to attract the conventional only account holder, Islamic banks should first weaken the mooring factors (the internal characteristics of the customers) that inhibit customers from switching to an Islamic bank. Originality/value: The main contribution of the study is that it simultaneously identifies the push, pull and mooring factors that have the most significant impacts on Muslim customers' switching behavior from a conventional to an Islamic bank.