“Rational, emotional and spiritual marketing strategies in Shariah banking in Medan, Indonesia”

This study was aimed to discover the direct influences of rational, emotional, and spiritual marketing on satisfaction, trust, and loyalty of Shariah banking customers in Medan. This study was an associative research, which is a research connecting two variables or more to see the influence of one variable on another. This study was conducted by means of an exploratory approach. The population in this study was Shariah banking customers in Medan. Total sample was 200 customers from 64 branches of Shariah banks across Medan. By using path analysis with SPSS 21 program, the results showed that there were direct and indirect influences of rational, emotional, and spiritual marketing on customer satisfaction, trust, and loyalty. Only emotional marketing variable had insignificant influence on the satisfaction of Shariah banking customers in Medan. This study was limited to impact of rational, emotional, spiritual marketing variables on satisfaction, trust, and loyalty of Shariah banking customers. Other variables which influence satisfaction, trust, and loyalty such as customer relationship management (CRM) and portfolio performance should be used, because they’re factors which influence consumer behavior. For Shariah banking in Medan, the research result was expected to give useful suggestions and inputs for Shariah banking in Medan in implementing marketing strategies, especially rational, emotional, and spiritual.


Introduction
The growth of Shariah banking in the past years was rapid, especially Shariah Commercial Banks (BUS) and Shariah Business Units (UUS), which dominate Shariah banking assets.In the data of Bank Indonesia (BI), the assets of Shariah banking per October 2013 raised to Rp 229,5 trillion year-over-year (yoy).Combined with the assets of Shariah People's Credit Bank (BPR), Shariah banking assets are Rp 235,1 trillion with ± 12 million accounts or 9.2 percent of total national bank accounts, and total office network is 2,925 offices.The market share of Shariah banking in the map was ± 4.8 percent per October 2013 (Rini and Absah, 2015).This market share was small.From time to time, it can be increased.To increase this market share, bank managers are encouraged to think creatively and innovatively to provide differentiation and advantages to products and services compared with the competitors.Shariah banking is necessary to not only develop good products, offer attractive prices, and make them available to customers, but also develop effective marketing strategies to create customer loyalty.Kotler and Armstrong (2012) state that companies should design customer-oriented marketing strategies, so they should understand and satisfy customers' be- Endang Sulistya Rini, Yeni Absah, 2017.Endang Sulistya Rini, Dr., Management Department, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia.Yeni Absah, Management Department, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia.This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International license, which permits re-use, distribution, and reproduction, provided the materials aren't used for commercial purposes and the original work is properly cited.
havior and needs to get customer loyalty.Loyal customers are valuable assets for companies.To create customers loalty, companies should make customers satisfied and trust the companies and their products or services.Consumer satisfaction is very important for companies, because it will impact sales performance.Kotler and Armstrong (2012) state that satisfied customers will repurchase and they will tell other people about the good experience with the products.Customer satisfaction contributes to several crucial aspects, such as the creation of customer loyalty.Another thing which creates customer loyalty is trust.Consumers who trust a company will have great confidence in the company, which eventually influences customer loyalty.In the marketing of services, which produce intangible products, the effectiveness depends on management, which is based on trust, because generally consumers purchase services based on confidence in parties which can be trusted (Rini and Absah, 2015).Rini and Absah (2015) discover that satisfaction is influenced by rational, emotional, and spiritual marketing.The orientation of global technological development shifts from merely providing functional benefits (more productive, faster, more efficient, cheaper, etc.) to being devices which facilitate relaying emotional messages.Technology, particularly internet, isn't only able to create a physically different world (new economy), but also influences the attraction of new customers.Technology and communication advances have attracted customers who want the fulfillment of functional and emotional satisfactions when buying a product.In fact, emotional benefit tends to be more attractive than functional benefits.This tendency creates a new opportunity for companies with lower functional competitiveness to win competition by dif-ferentiating their products based on emotional value (Mussry et al., 2007).Therefore, aside from targeting customers' minds, it's more important to target customers' hearts by providing new experiences and sensations in consuming Shariah banking services.
Beside rational and emotional marketing strategies, companies should also apply a spiritual strategy.Although companies have used very sophisticated technology and had high quality employees, without credibility, companies will collapse.Marketing should also consider spirituality, which prioritizes universal love.The best marketing to market this noble value of the company is spiritual marketing.Spiritual marketing tries to help companies with good spirits in getting competitive advantages.In an era where business ethics is forgotten and honesty is a rare resource, spirituality in business is the next source of competitiveness.It also applies to Shariah banking business.Shariah banking is a banking system, which is implemented by Shariah.This system was created based on a prohibition in Islam to lend or collect debts by applying interests (riba), and prohibition to invest in forbidden or Haram businesses.Conventional and Shariah banking systems are similar in terms of seeking profit and community services in financial business.However, they're different in terms of distribution system for the customers.In conventional banking, distribution of fund is usually in the form of credits for the public where the debtors must pay some interest when returning the debts.Meanwhile, in Shariah banking, banking system isn't oriented to interest, but uses profit sharing system instead.Shariah banking currently faces tight competition with conventional banks, and Shariah banks keep increasing in number.Many conventional banks expand their lines by opening banks based on Shariah.A total of Shariah bank offices in North Sumatra (Sumut) keeps increasing.As of January 2014, there were 115 Shariah bank units, which operate in Sumut."In 2011 and 2012, there were 97 and 112 offices recorded, respectively.BI predicts that the number of Shariah bank offices still increases", said the Head of Region IX (Sumut-Aceh) Bank Indonesia Representative Office Hari Utomo in Medan (Rini and Absah, 2015).A total of Shariah bank offices in Medan was 84 units.Loyal customers are important assets for companies.To get loyal customers, companies should provide satisfaction and trust for all customers.Sastisfaction and trust can be built by effective marketing strategies by rational, emotional, and spiritual marketing strategies.However, current marketing strategies of Shariah banking aren't maximum.This is shown by the low market share of Shariah banking, which is 4.89%.Healthy banking is a banking which is able to get high profit.With the profit, banks can improve the welfare of the employees, open job opportunities, and increase government revenue through tax.Beside facing tight competition, Shariah banking also faces another problem.People's perception on non-Shariah banking or conventional banking is that it's more financially profitable than Shariah banking because of its interest system.The profit sharing system applied by Shariah banks is considered identical to interest in conventional banks.Another problem is people's lack of knowledge on Shariah banking system.A lot of people think Shariah banks are only for Muslims and doubt the Shariah principles applied there.The formulation of the problem of this study was whether there's any direct and indirect influence of rational, emotional, and spiritual marketing on the satisfaction of Shariah banking customers in Medan.(Zachra, 2011).Emotion shapes and influences the assessment, and it forms behaviors.Therefore, companies should pay attention to customers' emotions and try to influence customers so that they have positive emotions.It's expected that with this, their thoughts and behaviors on the companies, products and services offered also become positive.
1.3.Spiritual marketing.Spiritual marketing is an ethical and honest marketing, which maximizes the satisfaction of stakeholders in a balanced way.These values are believed to not only increase the profit, but also guarantee the survival and strengthening of brand characters while forming incomparable differentiation.Rational, emotional, and spiritual marketing strategies can be synergized and combined to produce more optimal marketing and provide more positive benefits for consumers or customers (Rini and Absah, 2015).Usually, one purchases based on logical or rational consideration and if people rationally want, are interested in, and buy products or services, then, companies should also be able to provide something which touches the customers' emotion.
After giving the best to the consumer, both rationally and emotionally, a synergy of rational, emotional and spiritual marketing can be created (Livingstone, 2016).In spiritual marketing, a consumer will consider what to decide, buy or use which can also give meanings for his/her afterlife.Therefore, a businessperson should also develop this spiritual marketing.

Customer satisfaction. Satisfaction is a feeling
where one states the result of a comparison between the performances of a product (service) received and expected.Satisfaction is one's happiness or disappointment after comparing his/her perception/impression on the performance of a product and his/her expectations.Customer satisfaction is experienced after consumers make post-purchase evaluation, where the perception on the alternative performance of a selected product/service meets or exceeds the expectations before the purchase ( Customer loyalty is an attitude, which drives the customers to purchase products/services from a company, which includes emotional aspect, especially purchasing regularly and repeatedly with high consistency, not only purchasing a product or service, but also having commitment and positive attitude to the company, which offers the product/service.

Conceptual framework
Waringin (2012) states that usually one purchases based on logical or rational consideration and if people rationally want, are interested in, and buy products or services, then, companies should also be able to provide something, which touches the customers' emotion.This is so that the purchase continues, not only in a short term.This can be done by creating closeness, giving attention earnestly and regularly.Beside the consumers, companies can also give their attention to people around them who have special closeness or meaning for the consumers (e.g., children, partners, parents, etc.) so that the customers feel cared for and appreciated.Generally, rational and emotional marketing, which are performed well, will be able to create customer satisfaction in using company products or services.Moreover, rational and emotional marketing can also influence trust.Kotler and Keller (2009) defines trust as an overview of one's thoughts on something.Trust based on knowledge, opinion, and belief can be influenced by rational and emotional factors.
Another factor which drives people to become bank customers is a spiritual factor.Spiritual marketing is a marketing instilled with religious spiritual values in every process and transaction.Spiritual marketing contains worship values based on the most basic needs such as honesty, moral and ethics in business and, therefore, can influence customer trust.In spiritual marketing, a consumer will consider what to decide, purchase, or use to also give meanings to his/her afterlife.The implementation of rational, emotional and spiritual marketing strategies is predicted to create customer satisfaction and trust and finally make customers loyal.Griffin (2002) argues that loyal customers are customers who are very satisfied with certain products or services so they enthusiastically introduce them to anyone they know.Based on the background and description above, the conceptual framework is as follows:

Hypothesis
There are direct and indirect influences of rational, emotional and spiritual marketing on the satisfaction of Shariah banking customers in Medan.Respondents were determined by systematic random sampling, where sampled customers were every three customers who came one after another and then two customers later.

Data type.
The data in this study were primary data, which are the data directly collected from selected respondents in the research location.Primary data were collected by giving a list of questions (Muda and Dharsuky, 2015).The questionnaire consisted of two parts.The first section contains a number of questions of a general nature, namely the demographic data of respondents.

Data analysis technique.
The technique used was descriptive statistical analysis and inferential statistical analysis by path analysis to test research hypothesis by SPSS program.Source: tabulation result (2015).

Research result. 6.2.1. Result of hypothesis test.
The result of simultaneous testing is shown in Table 3.The first equation of path analysis is:  In Table 6, the second equation of path analysis is: Table 6 shows that:  Rational marketing variable had a positive and significant influence on customer trust.It's shown by significant value (0.003), which is smaller than 5% and t count (3.052) > t table (1.980).It means if rational marketing strategy was increased, the trust of Shariah bank customers would increase. Emotional marketing variable had a positive and significant influence on customer trust.It's shown by significant value (0.007) which is smaller than 5% and t count (2.745) < t table (1.980).It means if emotional marketing strategy was increased, the trust of Shariah bank customers would increase. Based on significant value (0.001) which is smaller than 5% and t count (3.307) > t tabel (1.980), it's discovered that spiritual marketing variable had a positive and significant influence on the satisfaction of Shariah bank customers.It means if spritual marketing strategy was increased, the satisfaction of Shariah bank customers would increase.The third equation of path analysis is: The fourth equation of path analysis is:

Conclusion
 Rational marketing had significant a positive influence on the satisfaction of Shariah banking customers in Medan. Emotional marketing had an insignificant influence on the satisfaction of Shariah banking customers in Medan. Spiritual marketing had a significant positive influence on the satisfaction of Shariah banking customers in Medan. Rational marketing had a significant positive influence on the satisfaction of Shariah banking customers in Medan.
 Emotional marketing had a significant positive influence on the trust of Shariah banking customers in Medan. Spiritual marketing had a significant positive influence on the trust of Shariah banking customers in Medan. Rational marketing had a significant positive influence on the loyalty of Shariah banking customers in Medan. Emotional marketing had a significant positive influence on the loyalty of Shariah banking customers in Medan. Spiritual marketing had a significant positive influence on the loyalty of Shariah banking customers in Medan. Customer satisfaction had a significant positive influence on the loyalty of Shariah banking customers in Medan. Customer trust had a significant positive influence on the loyalty of Shariah banking customers in Medan.

Limitation
This study was limited to rational, emotional, spiritual marketing variables on satisfaction, trust, and loyalty of Shariah banking customers.Other variables, which influence satisfaction, trust, and loyalty such as customer relationship management (CRM) and portfolio performance, should be used because they're factors, which influence consumer behaviors.

Suggestion
Future researches on satisfaction, trust, and loyalty can use customer relationship management (CRM) and portfolio performance variables, which are factors influencing consumer behaviors.Good relation with customers is one of the key in developing satisfaction, trust, and loyalty.

Research contribution
The research result was the development of rational, emotional, and spiritual marketing strategy models, which was expected to benefit Shariah banking in Medan, so they can play their role in serving the public in providing Shariah banking products.
For Shariah banking in Medan, the research result was expected to give useful suggestions and inputs for Shariah banking in Medan in implementing marketing strategies, especially rational, emotional, and spiritual.
For future researchers, it should be a reference in conducting similar researches in the future.

5. 3 .
Research population and sample.The population in this study was Shariah banking customers in Medan from Bank Muammalat, Bank Negara Indonesia (BNI) Shariah and Bank Mandiri Shariah.Total sample by SEM analysis was 10 x total indicator.Total indicator in this study was 20, so total sample was 10 x 20 = 200 customers in 64 branches of Shariah banks across Medan.

Fig. 3 .
Fig. 3. Path diagram  The influence of emotional marketing variable on customer loyalty through customer satisfaction IE: X2 Y1 Y3 = (0.120 x 0.070) = 0.00840  The influence of spiritual marketing variable on customer loyalty through customer satisfaction IE: X3 Y1 Y3 = (0.343 x 0.070) = 0.02401  The influence of rational marketing variable on customer loyalty through customer trust IE: X1 Y2 Y3 = (0.064 x 0.087) = 0.005568  The influence of emotional marketing variable on customer loyalty through customer trust IE: X2 Y2 Y3 = (0.066 x 0.087) = 0.005742  The influence of spiritual marketing variable on customer loyalty through customer trust IE: X3 Y2 Y3 = (0.067 x 0.087) = 0.005829

1. Literature review 1.1. Rational marketing. Rational
Gap between consumer expectation and management perception, which is the gap between consumer satisfaction and customer perception, which emerge, because the management doesn't always fully know what the consumers want.2. Gap between management perception and service quality specification, which is the gap between management perception and service quality.Maybe the management knows what the consumers want, but the management can't or don't fully provide the consumer desire.Essentially, the management doesn't pay enough attention to the details of the offered service.
(Barnes, 2003) al. (1990)Similarly,Zeithaml et al. (1990), Cumming and Leveridge (1996),Peppers and Rogers (2004)and DeWitt et al. (2008) state customer satisfaction is a response to evaluation of imbalance between initial expectations and actual performance of products which is experienced after usage.Meanwhile,Tjiptono (2004)states that customer satisfaction is determined by two things, such as customer complaints and expectations on services received.Customer satisfaction in service industry is a function of difference between the appearances experienced and expected.There are 3 (three) levels of satisfaction, which are: 1) if appearance is less than expectation, customers are dissatisfied; 2) if appearance is equal to expectation, customers are satisfied; 3) if appearance exceeds expectation, customers are very satisfied or happy.According toParasuraman et al. (1990), there are five gaps which cause failure in delivering services: 1.1.5.Trust.Trust is a belief that one will find what s/he wants in an exchange partner.Trust involves someone's willingness to act in a certain way due to belief that the partner will give what s/he expects and an expectation generally held by someone that someone else's words, promises, or statements can be trusted(Barnes, 2003).Green (in Pepers and Rogers, 2004) states that the components of trust are:

Table 1 .
Variable operationalization pendent variables and a dependent variable with hypothesis proofing.In addition, a combination of quantitative and qualitative research is used in this study.5.2.Operational definition.The operational definitions of the research variables are:Likert Source: Kartajaya (2004), Mussry et al. (2007) and Setiadi (2003).

Table 2 .
Research respondents

Table 3 .
Result of simultaneous testing by path analysis

Table 3
F table(2.75).Rational, emotional, and spiritual marketing strategies had a positive and significant influence on the loyalty of Shariah bank customers.This is shown by significant value 0.000 < 0.05 or F count (27.574) > F table(2.75).Satisfaction and trust simultaneously had a positive and significant influence on customer loyalty.This is shown by significant value 0.000 < 0.05 or F count (40.065) > F table(2.75).The result of determination test is shown in Table4.
count (50.594) > F table(2.75).Rational, emotional, and spiritual marketing strategies had a positive and significant influence on the trust of Shariah bank customers in Medan.This is shown by significant value 0.000 < 0.05 or F count (33.224) >

Table 4 .
Result of determination test of path analysis Source: result processed bySPSS 21 (2015).

Table 5 .
Partial test of the first equation

Table 5
5% and t count (0.155) < t table(1.980).It means even if emotional marketing was increased, the satisfaction of Shariah bank customers wouldn't increase.Basedon significant value (0.002), which is smaller than 5% and t count (3.177) > t table(1.980),it's discovered that spiritual marketing variable had a positive and significant influence on the satisfaction of Shariah bank customers.It means if spritual marketing strategy was increased, the satisfaction of Shariah bank customers would increase.
 Emotional marketing variable had a positive and insignificant influence on customer satisfaction.It's shown by significant value (0.063) which is bigger than

Table 6 .
Partial test (t-test) of the second equation

Table 7 .
Partial test (t-test) of the third equation Source: result processed by SPSS 21 (2015).

Table 8 .
Partial test (t-test) of the fourth equation

Table 8
It means assessment of the uniqueness of a product or service, which provides comfort related to the fulfillment of a need, including needs below expectations or fulfilling needs above customers' expectations.In this study, customers of Bank Sumut Shariah were satisfied with the Shariah system applied by Bank Sumut Shariah such as in the amount of profit sharing and the profit sharing system, transparence in calculating profit sharing and safety provided by Bank Sumut Shariah.Satisfaction and trust to what received the customers from Bank Sumut Shariah made them loyal and they didn't have to select other banks and were willing to recommend Bank Sumut Shariah to other people.