THE EFFECT OF COMMUNITY'S PERCEPTION, MOTIVATION AND KNOWLEDGE IN CHOOSING SHARIA BANK PRODUCTS IN BATAM CITY

Abstract

Islamic banks have great prospects considering the largest Muslim population in Indonesia. but ironically, the customers of Islamic banks are still few compared to conventional banks. This is caused by various factors, including public perception that Islamic banks are still less good than conventional banks, lack of community motivation to become customers and knowledge. People who are still minimal about the products and services owned by Islamic banks. This study aims to determine the effect of the variables Perception, Motivation, and Community Knowledge regarding the selection of Islamic Bank products in Batam City. This research is a correlational study with the population is all Islamic bank customers in Batam City. Example inThis study consisted of 75 respondents where the sampling used random sampling technique. Data analysis used multiple linear regression analysis. Results shows that the variables of perception, motivation and knowledge have a significant effect on people's decisions to choose Islamic banking products. Recommended for Islamic banks to continuously strive to improve public perception, motivation, and knowledge of its products and services. For further researchers, it is better to add research variables considering the three variables have a relationship that is not too strong in explaining the factors that influence people to choose Islamic banking products.