Islamic Banking (iB) Logo: In Santri Perception to Use Islamic

Banking Products in Indonesia

Tate Agape Bawana

, Imron Mawardi

and Sri Herianingrum

Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia

Keywords: Islamic Branding, Islamic Banking, Islamic Banking Logo, Santri’s Perception

Abstract: The logo named iB stands for Islamic Banking, popularized as a common identity marker for

the Islamic Banking industry in Indonesia. The use of this common identity

aims to make people easily and quickly recognize the availability of Islamic Banking services

throughout Indonesia. Santri itself can be defined as a cultural “stream” of people within the population of

Java who practice a more orthodox version of Islam; they tend to be oriented to the mosque, the Quran and

perhaps to Islamic canon law (Sharia). This research aims to determine the santri’s perception toward iB’s

logo especially about the visual symbols and product image, to drive them to use Islamic Banking products.

This research also studies the synchronization between the visual symbol of iB’s logo and iB’s product

image in santri’s perspective. It is analyzed using regression modelling in SPSS 18 software. The regression

analysis technique was performed on the data and results interpreted accordingly. 100 copies of a

questionnaire were distributed, 31 usable copies were subsequently collected. The results showed that in

general the visual symbol of the iB logo negatively influenced santri’s perception to use Islamic Banking

products, but the product image of Islamic Banking significantly and positively influenced santri’s

perception to use Islamic Banking products.

1 INTRODUCTION

Islamic branding has been a growing phenomenon to

be studied and discussed among the general public

and in academic circles within the past few years.

The study and application of the concept of Islamic

branding is not only specialized in Islamic countries

but has spread all around the world.

Islamic religious brands, or halal brands, are

created according to the Islamic principles that guide

what is permitted, not only in the food industry but

also in cosmetics, pharmaceuticals, logistics,

clothing, finance, hospitality and banking (Minkus-

McKenna, 2007). In Islam there is a strong

concept of encouraging the Muslim faithful to

work towards creating one global ummah (Arabic

for nation or community) (Wilson, Beck &

Bamossy, 2013).

Nowadays the Islamic banking is growing faster

because of the interest free system and many

developed countries have started to look at it as the

alternative to their conventional banking system. In

the last few decades the Islamic banking has

developed very rapidly in many different economies

and has been established in these economies as one

of the most influential alternatives to the

conventional banking system, which is based on

interest transaction (Ahmad & Haron, 2002).

With this issue, the Islamic branding concept

needs to be applied in Islamic banks to differentiate

their services, brand, and marketing effort from

conventional banks. Islamic banks should come up

with convincing and shariah compliant solutions to

overcome those rising problems and convince the

public (Jalil & Rahman, 2014).

Furthermore, Islamic branding itself can be

applied by using a conceptual logo because it can

describe the visualization, philosophy, concept,

product image and identity. The logo can also

describe characteristics, personality and corporate

culture as well.

The term Islamic branding could be used to

describe brands as “Islamic” in three different ways

(Alserhan, 2011):

(1) These brands are Shariah-compliant, i.e. Islamic

brands by religion.

(2) They originate from an Islamic country, i.e.

Islamic brands by country of origin.

Bawana, T., Mawardi, I. and Herianingrum, S.

Islamic Banking (iB) Logo: In Santri Perception to Use Islamic Banking Products in Indonesia.

DOI: 10.5220/0007537700760080

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 76-80

ISBN: 978-989-758-348-3

(3) Their target is the Muslim consumer, i.e. Islamic

brands by destination.

On the other hand, Islamic branding means

giving an Islamic name to the product or to comply

with the objectives of shariah (maqasid al-shariah)

while producing any products or offering any

services (Jalil & Rahman, 2014).

As one of the most salient visual elements of a

brand (Wallace, 2001), logos facilitate the

identification of the brand and its differentiation

from competing alternatives (Janiszewski & Meyvis,

2001; MacInnis, Shapiro, & Mani, 1999).

The logos can be reflected as its visual symbols,

which may personalize a brand and provide

customers with a sense of connection better than

brand names alone do, possibly because symbols are

an effective means of communicating information to

people (MacInnis et al., 1999), and to the extent that

they are perceived as richer and more tangible

representations of a firm than words or names are,

symbols work better for brand differentiation

(Swartz, 1983).

Symbols with an appealing visual design can

help brands become more salient and vivid in

individuals' minds, hence facilitating favorable

attitude formation and memory retrieval (Fischer et

al., 1991; Henderson & Cote, 1998), and eliciting

strong affective and behavioral responses (Bloch,

1995). Symbols more easily signify a brand's

benefits and transcend language barriers than text or

names. Therefore, brand logos that incorporate

visual symbols should be more effective than purely

brand name-based logos at offering self-

identity/expressiveness benefits, representing a

brand's functional value, and providing aesthetic

appeal (Park, Eisingerich, Pol & Park, 2013).

On 2 July 2007 Bank Indonesia, as a central

bank in Indonesia, introduced the circular on

“Islamic Banking” (iB) Logo with specific visual

symbols.

In that logo, there is a form of geometric

ornament that become the main element. The shape

of the ornament reflects the search for perfection

that reflects balance, order, mathematical precision

and continuous change to the completeness.

Figure 1: Islamic Banking Logo in Indonesia

Reported from the page Sharianomics,

Wednesday (1/7), the colors used on the iB logo also

have a deep meaning. The blue color symbolizes

professionalism and integrity. The orange color

represents a friendly color, reflecting a friendly and

humble person. The green color symbolizes growth

and white color reflects a transparent and clean

system embracing sharia principles.

The iB logo also has the Beyond Banking tagline

(More Than Bank). iB is present as an icon of the

Islamic Banking industry (sharia banking) in

Indonesia offering more diverse banking products

and services with more varied financial schemes.

Thus, each individual with its distinctive financial

needs can find the solution in iB.

On the other hand, visual symbols in logos are a

part of a product image. Sutisna (2005, 80)

mentioned that the indicators in the product image

include: (1) Brand, symbols or symbols the

corporation gives to its products as differentiators

from other products. (2) Quality, that is, the whole

of the characteristics of a product in terms of its

ability to meet a predetermined need. (3) The

feature, which is a competitive means for

differentiating a corporate's product from a

competitor's product. (4) Design, which is the

totality of features that affect the appearance, taste,

and functionality of the product based on customer

needs.

Product image significantly and positively

affects perceived quality and performance

expectation. At the stage of purchase, the product

image is not a determinant of the purchase intention,

but it significantly and positively affects the price

that participants are willing to pay for the product. In

the post-purchase stage, product image does not

directly affect the participants' satisfaction, but

product image with product consumption

performance significantly affects satisfaction. When

the consumption performance is good, the product

image has a significant and positive effect. When

consumption performance is bad, product image

significantly declines (Chen-Yu & Kincade, 2001).

Islamic Banking (iB) Logo: In Santri Perception to Use Islamic Banking Products in Indonesia

This paper builds on extant research by

examining the visual symbol of iB’s logo and

product image of Islamic Banking on santri’s

perception to use Islamic Banking products

Perception itself can be defined as a basis for

comprehending the individual differences as for how

the individual perceives something will influence

how he/she behaves. The perceptions have a very

close relationship with the attitude. It deals with the

use of knowledge to understand a person’s

surroundings. The attitude, on the other hand, is the

feeling of a way of thinking about something based

on their perception (Pickens, 2005). In other terms,

the attitude is a feeling, belief, or opinion of

approval or

disapproval towards something. It is

predisposition or the conception to respond

cognitively, emotionally, or behaviorally to a

particular object, person, or situation in a particular

way (A’yun, 2017).

The santri or students’ attitude is a reflection of

their perception that can guide and set their sights on

their learning activities (Artini, 2010). The students’

learning activities and styles are related to the

perception of learning and often determine their

decisions to conduct many aspects of classroom

activities such as the interaction, presentation,

engagement, attention, discussion, and assessment

(Zhu & Wang, 2014).

Therefore, to investigate the influence of santri’s

perception of using Islamic Banking towards visual

symbols in iB’s logo and product image of Islamic

Banking, the researchers proposed the following

research questions:

Q1: Is there a relationship between visual symbols

of iB’s logo and santri’s perception to use Islamic

Banking products?

Q2: Is there a relationship between product image

of Islamic Banking and santri’s perception of using

Islamic Banking products?

Based on those questions, the hypotheses are as

follows:

H1: Visual symbols of iB’s logo have a positive

influence on santri’s perception of using Islamic

Banking products.

H2: Product image of Islamic Banking has a positive

influence on santri’s perceptionof using Islamic

Banking products.

Those variables are categorized into symmetrical

relationship variables, because they are indicators of

the same concept and they are not influenced or

caused by each other (Narbuko & Achmad. 2015).

2 RESEARCH METHODOLOGY

2.1 Method of Data Collection

The santri from “Pondok Pesantren Nurul Jadid” in

Paiton-Probolinggo, East Java were surveyed using a

questionnaire. A total of 100 questionnaires were

distributed, and 31 valid cases have been selected for

data analysis, as response rate was 31%. A

questionnaire containing structured questions and all

variables were measured using a 5-point Likert scale

in which 5 represented strongly agree and 1 is

strongly disagree to determine the relationship and

perception of santri in using Islamic banking

products and their concept of the Islamic Banking

(iB) Logo employed in this study. The identities of

the respondents were kept confidential, so were the

data. Statistical techniques used in this research are

“regression analysis” with SPSS 18.

2.2 Research Model

Figure 2: Research Model

3 RESULTS

According to the analysis requirements and data

type, regression analysis techniques have been

applied. Regression test was applied to find the

influence correlation between independent variable

(variable x) and dependent variable (variable y).

This research is using multiple linear regression

analysis by testing three variables. The three

variables tested are: the position and form of sharia

IB logo (variable x1), knowledge of service and

product reputation of Islamic Banking shariah

(variable x2), and decision in choosing Islamic bank

products (variable y). The degree of error (α) used

is 5% (0.05).

Visual symbols of

iB’s logo

Product image of

Islamic Banking

Santris’ Perception

of Using IB’s

Products

ICPS 2018 - 2nd International Conference Postgraduate School

Table 1: Regression Testing

Dependent Variable: Santri’s perception of using Islamic

Banking products

From Table 1, the significance variable

coefficient of x1 is 0.138. The signification

coefficient of 0.138 is greater than (0.026α0.05), so

the conclusion is that the visual symbols of the iB

logo has no significant influence on santri’s

perception of using Islamic Banking products.

However, product image of Islamic Banking

products has a significant influence on santri’s

perception of using Islamic Banking products. Based

on the data above, the variable significance

coefficient of x2 of 0.026 is smaller than α (0,026 <

0,05).

Table 2: Anova Analysis

Predictors: (Constant), visual symbols of iB’s logo,

product image of Islamic Banking

Dependent Variable: Santri’s perception of using

Islamic Banking products

Based on Table 2, the signification coefficient of

variables x1 and x2 is 0.007. The variable

significance coefficients of x1 and x2 are smaller

than <0.05). Therefore, the conclusions obtained are

the visual symbols of the iB’s logo and product

image of Islamic Banking have a significant

influence on santri’s perception of using Islamic

Banking products.

R square coefficient is 0.299 (see Table 3). It

states that santri’s perception of using Islamic

Banking products is influenced 29.9% by visual

symbols of iB logo and product image of Islamic

Banking. The influence is 29.9%, caused by only the

variable of product image of Islamic Banking

(variable X2) that has a significant influence on the

variable santri’s perception of using Islamic Banking

products (variable Y).

Table 3: Model Summary

odel R R S

uare

Adjusted

R S

uare

Std. Error

of the

Estimate

1 .547

.299 .249 2.099

Based on table 3, the coefficient correlation is

0.547. It means that each variable has a strong

relation, it supported the symmetrical relationship

variables theory.

4 DISCUSSION AND IMPLICATIONS

The results of this research indicate that the

regulator of Islamic Banking needs to consider iB’s

logo as a more effective and powerful tool in the

management of santri’s perception than previously

thought. That is, iB’s logo that is easily

recognizable, yet which does not convey the visual

symbols and functional benefits, fails to take full

advantage of their own potential. This is due to

inadequate information about the iB logo by Bank

Indonesia (BI) as Indonesian Central Bank. It leads

to recommend that BI should promote iB’s logo on

all of Islamic Bank’s advertisements and products.

The promotion of iB’s logo should be massively

applied in all of the mass media, in pesantren and in

all santri’s communities as well. It can minimize

lack of information about iB’s logo among santris

especially.

Santri have important roles to promote and

spread the concept of Islamic Banking among

Indonesian people, because they follow Islamic

Coefficients

(n=31)

odel

Unstandardized

Coefficients

Standardiz

Coefficient

t Sig.B

Std.

Erro

Beta

(Constant) 8.343 3.638 2.293 030

Visual

symbols of

iB’s logo

.250 .164 .259 1.527 138

Product

Image of

Islamic

Banking

.693 296 .397 2.342 026

ANOVA

(n=31)

odel

Sum of

uares df

Mean

uare

Regres-

ion

52.579 2 26.290 5.967 .007

esidual 123.356 28 4.406

Total 175.935 30

Islamic Banking (iB) Logo: In Santri Perception to Use Islamic Banking Products in Indonesia

values in their daily lives and they have strong

Islamic educational backgrounds.

Based on that, santri have a good image about

Islamic Banking products, they consider that all of

Islamic Banking should operate without a

benefit/interest system. They also believe that the

interest charged by conventional banks is illegal

(haram) because it is required by the contract and

the existance of extortion. It drives their perspective

positively about all of the Islamic Banking products.

We consider several limitations of the present

research when interpreting the results. First, the

effectiveness of a visual symbol of iB’s logo likely

depends on multiple design properties of the logo

(e.g., color, shapes, and sizes). Because an analysis

of specific logo design elements is beyond the

scope of the present study, the authors encourage

future research that addresses these shortcomings.

Second, other elements of brand measurement (e.g.,

brand identity, brand equity, brand awareness) can

be applied for the next research.

REFERENCES

Artini, L.P. 2010. Theories of English as a Foreign

Language Teaching and Learning Singaraja:Ganesha

University Education

A’yun K, Suyono, Poedjiastoeti S, and Bin-Tahir SZ.2017.

Reduction of cognitive conflict and learningstyle

impact towards student-teacher’s misconceptionload.

AIP Conference Proceedings. Volume. 1868 (1)

Alserhan, B. 2011, “Islamic branding: a conceptualization

of related terms”, Journal of Brand Management (in

press).

Bloch, P. H. (1995). Seeking the ideal form: Product

design and customer response. Journal of

Marketing,59,16–29.

Fischer, P. M., Schwartz, M. P., Richards, J. W., Jr.,

Goldstein, A. O., & Rojas, T. H. (1991). Brand logo

recognition by children aged 3 to 6 years. JAMA: The

Journal of the American Medical Association,266,

3145–3148

H. Jessie Chen-Yu, Doris H. Kincade. (2011). Effects of

product image at three stages of the consumer decision

process for apparel products: alternative evaluation,

purchase and post-purchase. Journal of Fashion

Marketing and Management. An International Journal,

Vol. 5 Issue: 1, pp.29-43

Haron, S., Ahmad, N. &and Planisek, S.L. 1994.

BankPatronage Factors of Muslim and Non-

MuslimCustomers,International Journal of Bank

MarketingMacInnis, D. J., Shapiro, S., & Mani, G.

(1999). Enhancing brand awareness through brand

symbols. Advances in Consumer Research,26, 601–

608.

Narbuko, cholid dan achmad. 2015. Metodologi

penelitian. Jakarta: PT. Bumi Akasara

Norasyikin bini Shaikh Ibrahim, 2016. Employer

Branding: An Islamic Perspective. The

East Asian Journal of Management,Vol.10- 2

Jalil, A., Rahman, M.K., 2014, “The Impact of Islamic

Branding on Consumer Preference towards Islamic

Banking Services: An Empirical Investigation in

Malaysia. Journal of Islamic Banking and Finance

March 2014, Vol. 2, No. 1, pp. 209-

229Janiszewski,

C., & Meyvis, T. (2001). Effects of brand logo

complexity, repetition, and spacing on processing

fluency and judgment. Journal of Consumer

Research, 28(1), 18–32

Malik, K., Malik, M.S.K., 2016. Paper templates. In Kuala

Lumpur Conference on The journal Of Developing

Areas

Minkus-Mc Kenna , D . 2007. The pursuit of halal

Progressive Grocer 86 (17) : 42

Park, C.Whan, Eisingerich, A.B, Pol, G, Park, J.W. The

Role of brand logos in firm performance. Journal

ofBusiness Research 66 (2013) 180-187.

Pickens. J. Attitudes and Perceptions. In Borkowski, N.

Eds.). 2005. Organizational Behavior in HealthCare.

Mississauga: Jones & Bartlett Publisher.

Sutisna. 2005. Perilaku Konsumen dan Komunikasi

Pemasaran. Jakarta: Remaja Rosdakarya.

Swartz, T. A. (1983). Brand symbols and message

differentiation. Journal of Advertising Research, 23

(5), 59–64.

Wallace, R. (2001). Proving our value: Measuring package

design's return on investment. Design Management

Journal,12(3), 20–27.

Wilson,J, Russel W.B, Gary J.B, Ozlem S, Hermawan K,

Rana S, Jonathan L and Linda S. 2013. Crescent

marketing, Muslim geographies and brand Islam.

Journal of Islamic Marketing Vol. 4 No.

Zhu, C. & Wang, D. (2014). Key Competencies and

Characteristics for Innovative Teaching among

secondary School Teachers: a Mixed-Methods

Research. Asia Pacific Education Review

https://sharianomics.wordpress.com/