Determinants of Customer Decision-Making in Sharia Mortgage Adoption: Evidence from Islamic Banking in Indonesia

Abstract

This study was motivated by the public’s growing need for homeownership due to population growth and high property prices, making Sharia mortgage loans a popular financing alternative. This study aims to analyze the influence of financing margins, promotions, brand image, and location on customers’ decisions when choosing Sharia mortgage products at Bank Syariah Indonesia, both partially and simultaneously. The method used is quantitative with a causal-associative approach, while primary data was obtained through questionnaires distributed to Sharia mortgage customers using purposive sampling. Data analysis was conducted using SPSS through validity and reliability tests, classical assumption tests, multiple linear regression, t-tests, F-tests, and the coefficient of determination. The results indicate that, when analyzed individually, the financing margin does not have a significant effect on customer decisions, whereas promotions have a positive and significant effect. Meanwhile, brand image and location also did not show a significant effect. However, simultaneously, the financing margin, promotions, brand image, and location significantly influence customers’ decisions in choosing Sharia mortgage products. These findings indicate that promotion is the most dominant factor; therefore, Indonesian Islamic banks need to improve the quality, reach, and effectiveness of their promotional strategies to stimulate customer interest and encourage them to choose Sharia mortgage products.