FACTORS THAT INFLUENCE MEMBER’S INTEREST IN CHOOSING PRODUCTS OF ISLAMIC COOPERATIVE IN LAMONGAN

Abstract

Indonesia is a Muslim country, and as a Muslim society, it is appropriate that all actions and behaviors are by Sharia, including financial transactions. The Sharia Savings and Loans and Financing Cooperative (KSPPS) Baitul Tamwil Muhammadiyah (BTM) Mulia Babat can be the right choice for the Muslim community, especially in Babat and its surroundings. Therefore, the purpose of this study is to determine the influence of Religiosity, service quality, and institutional location on customer interest in choosing products at the Sharia Savings and Loans and Financing Cooperative (KSPPS) Baitul Tamwil Muhammadiyah (BTM) Mulia Babat. This type of research is quantitative, using data analysis techniques and multiple linear regression. The study results indicate that service quality significantly affects customer interest in choosing financial products at KSPPS BTM Mulia Babat. Meanwhile, Religiosity and location have little effect on customer interest in choosing financial products at KSPPS BTM Mulia Babat. The results of this study are expected to provide essential considerations for Islamic microfinance institutions, especially KSPPS BTM Mulia Babat when formulating policies.