The Role Of Customers' Cultural Values In Developing E-loyalty: Empirical Study On Bsm Kudus Branch

Objective of the study this paper is to discuss result of the study which examines effects of customers' cultural values in developing e-loyalty in globalization era and integrative model which based on relationship marketing theory. These customers' cultural values include personal relationship, long-term relationship, credibility among organizations, and English capability. Design/methodology/approach in this study is using triangulation approach consisted of survey on 17 customers, interview with manager, and instrument data processing of 200 respondents based on Structural Equation Modeling (SEM), its result shows that there is significant relation among customers' cultural values in developing e-loyalty of Sharia banking especially in BSM Kudus Branch. Knowledge provided in this paper is expected to be able to help bank manager in handling issues of decreasing customers' e-loyalty of Sharia banking by cultural approach.


Introduction A.
This study is motivated by the existence of phenomenon and gap between theoritical claim and practice of sharia banking in reality. The phenomenon in reality shows that after appearing globalizatioon era, society's need toward advancement of information technology especially in banking is greater. Therefore, a developed country, such as Indonesia, has a high expectation to adopt that advancement of information technology to create satisfaction and customer loyalty in the context of relationship marketing. There are many EHQHÀWV JRW IURP DSSO\LQJ PRGHUQ LQIRUPDWLRQ WHFKQRORJ\ among of them are to build long-term relationship between customer and banking. The Role Of Customers' Cultural Values In Developing E-Loyalty: However, empirical study shows that developed country, such as Indonesia, has a low adoption level of information technology. This is effected by many things, they are cultural values of society which are inappropriate or less support to adoption and development of information technology. 1 It will give bad effect on satisfaction and customer loyalty level. In interation process of culture and globalization, on one side gives a chance to sharia banking to access global market and advancement of information technology (such as: internet banking, sms banking e-loyalty) which can possibly make sharia banking to broaden its products and distribution channel of service. On the other hand, globalization on products and services to customers throughout the world can not be equalized because there are cultural difference, JHRSROLWLFV DQG PDQ\ PRUH ZKLFK ÀQDOO\ DIIHFW VRPH GLIIHUHQFHV VLJQLÀFDQWO\ LQ WDNLQJ GHFLVLRQ KDELW DQG WKHLU long-term relationship with company.
In term of cognitive, the meaning of culture is "collective programming from one's thinking which differ between member of one group and anoher". 2 Culture consists of mindset. It is viewed as a system set of gathering meaning and as an effort of dividing knowledge structure which leads to decreasing variability in individual interpretation toward stimulus. Because implementation of cultural content is very selective and adaptive, a differently ecological environment ZLOO PDNH FXOWXUDO PRGLÀFDWLRQ DOVR GLIIHUHQW &XOWXUH ZLOO form basic values and norms from its members. They will be divided and transmitted from one generation to another 1 S. 9DWDQDVDNGDNXO -'·$PEUD 3 5DPEXUXWK ´,7 'RHVQ·W )LW 7KH ,QÁXHQFH of Culture on B2B in Thailand", Journal of Global  through social learning, modelling process and observation, and also effect from action itself.
Vitkauskaite stated that interaction of internet will not be optimal if design system used is inappropriate with user perception. Noted that customers from many countries use different interface, graphic template, and their attitude in e-commerce is also different. Thus, if a company is intended to have bussiness in global market should consider the effects of cultural values and know every change of its in marketing FRPPXQLFDWLRQ .QRZOHGJH DERXW WKLV FXOWXUDO VSHFLÀFDWLRQ is important, especially in marketing campaign, to affect decision, satisfaction, and customer loyalty. Moreover, this knowledge should be arranged well and adjusted to job analysis.
Related to e-loyalty, some literatures are intended to broaden the meaning of loyalty to strengthen relationship marketing theory. /R\DOW\ KDV EHHQ LGHQWLÀHG DV DQWHFHGHQW RI competitive strategy, customer retention, and getting long-WHUP SURÀWDELOLW\ RI FRPSDQ\ 7KDW SURSRUWLRQ LV FDOOHG YDOLG because customer loyalty, actually, is the greatest asset of company, thus the purpose of every bussines is to make and mantain customers by creating loyalty. Coming from basic thought about that loyalty, e-loyalty is diveloped, according to Anderson and Srinivasan in Hur LV EHQHÀFLDO DWWLWXGH for customers to an e-business system which is potential to cause an action of buying repeatedly. Meanwhile, Hur (2011) GHÀQHV e loyalty as intention of customers to visit website again with or without online transaction. 3 Besides those backgounds above, this study is conducted to solve the gap, either theory or gap of the previous study. Theory gap raises because there is not a clear The Role Of Customers' Cultural Values In Developing E-Loyalty: consensus (multifacet) between the previous researcher about how to measure the effects of all practices of relationship marketing. 4 On the other hand, study gap raises because some opinions state that satisfaction and loyalty variables can be affected by culture. 5 Nevertheless, Avery, Baradwaj, and Singer pointed that not all of factors from those, only culture, Hofstede, affects understanding, satisfaction, loyalty, and taking attributes from varioous designs of certain web bank online situs. Therefore, this study will re-examine the effects of cultural values as well as those which were conducted by Vatanasakdakul, Ramburuth, and D'Ambra. It is like what was suggested by Webster and Achrol that the next researchers review and re-analyze deeply about design and practice of Relationship Marketing on banking bussiness to create customer loyalty from different culture background, especially in developed countries such as Indonesia.
The important objectives of this study are: First, to solve theory gap by developing and strengthening basic theory of marketing relationship, especially on bussiness of sharia banking. Second, shaping theoritically basic strategy to build e-loyalty by knowing what kinds of customers' cultural values which really affect on improving relation quality between sharia banking and customers. This study intends to show that there is interdependence among variables in building customer e-loyalty. Suggestion from Cáceres and Paparoidamis to the next researchers, to notice the difference of customers from various social background and is used as meaasurement variable which affects customers' loyalty in giving service. ,W LV DOVR ÀUPHG E\ :HEVWHU DQG $FKURO ZKR VWDWH WKDW cultural difference can cause the high or low level of customer loyalty.
$FFRUGLQJ WR EDFNJURXQG DQ LGHQWLÀHG JDS REMHFWLYH of the study and suggestion of the previous researcher, this study is conducted to solve the gap by reviewing theory abd basic concept of relationship marketing and identifying customers' cultural values which affect e-loyalty on sharia banking as well as done by Savanik, John, and Prem to build conceptual framework and aim to unite various relational variables which are related in literature of marketing relationship. Then, it is conducted investigation empirically for the formulated model. Because the objective of this study is investigating theoritical-basis model, so this study uses an analysis technique of Structural Equation Modelling (SEM). This SEM usage is also expected to solve the gap either theory or DQ LGHQWLÀHHG JDS RI WKH VWXG\ Discussion B.

Cultural Values 1.
This study is more directed to how individuals and Indonesian cultural values have an adaptive perspective and attitude toward the development of information technology to support banking loyalty programs. Why culture is the focus of discussion, because culture includes various setting of social behavior and interaction. This setting that causes anthropologists and researcher succeed to develop several cultural models that illustrate the differences between cultures with each other. Hewett et al. stated that national culture is The Role Of Customers' Cultural Values In Developing E-Loyalty: an important factor in maintaining long-term relationships between customers and companies.
One of the most widely quoted anthropologists is Geert Hofstede. Hofstede successfully undertook cultural studies from 1970 to 1980 on IBM companies, in 72 national subsidiaries, 38 jobs, 20 languages, and 116.000 individuals. %DVHG RQ WKHVH VWXGLHV +RIVWHGH LGHQWLÀHV IRXU FXOWXUDO dimensions consisting of dimensions: individualism vs. collectivism, avoidance of uncertainty, masculinity, and distance of power. This understanding has dominated the literature in the last two decades.
Power distance is the level of public acceptance of uneven distribution in a power. The power distance scores in Indonesian society are very high at 78 compared to the Thai state is 64. 6 Hofstede claims that high-powered countries have centralized and hierarchical political structures, developed with status differences, while low-power countries consider individuals as normal and status differences among them are not very strong.
The fundamental issue of individualism versus collectivism is the degree of individual dependence in society. In a collectivist culture the interests of the group take precedence over the interests of the individual, on the contrary in the individualist culture, the interests of the individual are greater than the interests of the group. So in a cultured society of high collectivism, the feeling of dependence on each individual is very high. Indonesia has a low individualism score is 14, indicating that Indonesia is cultured by high collectivism.
The culture of masculinity versus femininity is related to the effort of separating traditional gender roles or not doing it. In a masculine culture the role of gender is more detached than that of feminism and manifests itself through the tenacity, competitiveness, violence and femininity of the home-oriented, the children, the parents and the tenderness. The cultural score of masculinity for Indonesia is 46, this shows the characteristic of Indonesian culture is lower than Malaysia with score 50.
The culture of avoidance of uncertainty is the cultural dimension that addresses its role in accepting uncertainty. Individuals in a society whose avoidance of high uncertainty seek to avoid personal risk, they are more opposed to innovation and respect for rules. Indonesia's uncertainty avoidance score is 48, which means that Indonesians have an awareness of the low uncertainty situation. Ravichandran argues that innovation and the adoption of complex technologies always involve a certain degree of risk. In the diffusion process, innovators are more willing to take risks and they are more tolerant of risk than other groups.
A long-term orientation culture describes how people behave when faced with present and future challenges. Character of society with long-term orientation more maintain stability, prudence, make long-term agreement and have tremendous value. Countries in Asia are more focused on wise behavior compared to Western countries whose IRFXV LV PRUH IRFXVHG RQ ÀQGLQJ WKHLU RZQ WUXWK 7KH ORQJ term orientation score of Indonesia is 62, indicating that Indonesia has a pragmatic culture. In a pragmatic culture, people believe that the truth depends on the situation, context and time. Society shows its ability to adapt more easily to rapidly changing situations. People have a tendency to save and invest for the future.
Differences in the results of cultural suitability research &XOWXUH ,7 DGDSWDWLRQ VWDUWHG IURP WKH LQÁXHQFH RI Other studies have also examined the implications of national culture for certain technologies such as SPKK, E-mail, and fax, etc., but the analysis is usually limited in one particular country, and cannot be generalized to other countries. 7 7KHUHIRUH LW LV QHFHVVDU\ IXUWKHU UHVHDUFK LQ WKLV ÀHOG Because there are differences in the level of acceptance of each culture towards the advancement of banking information technology, the cultural values used as independent variables as ever done by are as follows: personal relationship, long relationship Length, inter-organizational trust, and English ability. 8

E-Loyalty 2.
In the marketing literature, loyalty has been widely recognized as the most important. 9 Reichheld studied the SRVLWLYH HIIHFW RI SURÀWV ZKHQ KDYLQJ OR\DO FXVWRPHUV $DNHU also discusses loyalty programs very important, especially with regard to brand equity. Fornell and Wernerfelt note that customer retention costs substantially, can reduce customer acquisition rates.
E-loyalty is an extension of the concept of conventional loyalty applied on line. E-loyalty is the intention to visit the website again with or without the occurrence of online transactions. Therefore, because the company website is non ecommerce which means not serving the transaction, in this 7 S. Vatanasakdakul, P.J. D'Ambra, and Ramburuth, "IT Doesn't Fit! 7KH ,QÁXHQFH RI &XOWXUH RQ % % LQ 7KDLODQGµ Journal of Global Information Technology Management, Volume 13, Number 3, 2010. 8 Ibid. 9 R.L. Oliver, "Whence Consumer Loyalty", Journal of Marketing, Volume 63, 1999, p. 33-44. study e-loyalty is measured by using three of four indicators without including action that is: cognitive, affective and conative with each indicator is preference, positive attitude, and revisit.
Based on the various opinions above, if on the understanding of customer loyalty explained about how loyal customers means to make repeat purchases in e-loyalty. This repeat purchase turns into a repeat visit. This visit may mean customer interest in the company, or the potential to make a purchase or transaction.

Conceptual Framework Model and Hypothesis 3.
From the understanding of the cultural values and e-loyalty above, the conceptual scheme and the hypothesis proposed in this study are as follows: Figure 1

. Conceptual Framework Model and Hypothesis
Source: Hofstede (1991), Teliwat and Huff (2003), Morgan and Hunt (1994 From the above conceptual framework, the researcher proposed a hypothesis to be tested in this study as follows: H1 : There is effect of customer relationships on e-loyalty of Sharia banking H2 : There is effect of long-term customer relationship orientation on e-loyalty of Sharia banking H3 : There is effect of trust between organizations from customers on e-loyalty of Sharia banking H4 : There is effect of the customer's English ability on e-loyalty of Sharia banking

Methodology of the Study 4.
The research design adopted in this study uses a triangulation approach that includes a combination of qualitative and quantitative approaches. A preliminary survey was conducted on 17 Sharia bank customers to ensure the development of e-loyalty, the keyword for the Sharia bank and the third step was a questionnaire customer in 200 respondents as BSM bank customers taken by accidental sampling. Based on the type of electronic banking transactions ever conducted, from 200 respondents obtained data in the following table 2: Researcher takes research setting in Bank Syariah Mandiri (BSM) Branch Kudus and Pati. Each measured by XVLQJ ÀYH TXHVWLRQ LWHPV 0HDVXUHPHQW RI YDULDEOHV XVHV Likert scale ladder 5 points with the following criteria: Strongly disagree; a.
Strongly agree. e.
After all the data is complete, the next step testing the YDOLGLW\ DQG UHOLDELOLW\ RI WKH LQVWUXPHQW XVLQJ &RQÀUPDWRU\ Factor Analysis with the aid programs AMOS 6. Loading factor. As the result, each culture item is valid because of

C.
From the result of testing hypothesis as has been explained above, we can conclude that Indonesian customers' cultural values based on Hofstede theory, especially motivation to build long-term-oriented relationship, affect greater on e-loyalty of Sharia bankimg. A society which has long-term perspective tends to emphasize future relation. In this case, bank should mantain quality of its electronic VHUYLFH VR FXVWRPHUV ZLOO EH PRUH VDWLVÀHG FUHGLEOH DQG committed to sustain the relatioonship.
As we can see on the result of hypothesis testing 3, customers' cultural values based on Hofstede theory, especially mantaining credibility on bank, affect as the second after long-term orientation. As well as statement of Hofstede which stated that the real condition of Indonesia culture which is collective culture tends to keep credibility DQG LQWHJULW\ RI RQH WR DQRWKHU VR ÀQDOO\ LW OHDGV WR OR\DOW\ ,Q SHUVRQDO UHODWLRQVKLS VLJQLÀFDQWO\ DIIHFWV LW is caused on service of electronic banking, role of human VHUYLFH LV VPDOOHU WKDQ PDFKLQH VHUYLFH %DQNLQJ RIÀFHUV RQO\ work to control service and maintenance behind the scene. 1RQHWKHOHVV SHUVRQDO UHODWLRQVKLS VWLOO KDV VLJQLÀFDQW HIIHFW because it can be separated from Indonesia background which is characterized by collective culture and emphasized on personal relationship.
0HDQZKLOH HQJOLVK FDSDELOLW\ DIIHFWV VLJQLÀFDQWO\ VPDOO that is 2.379, it is because foreign language capability has been taught since elementary school so when facing web design or electronic service which uses english does not become problem to keep continuing e-loyalty relationship of Sharia banking. Nevertheless, it is better for bank to provide foreign language facilities, not only English, to broaden service for all users throughout the world.
This study has some limitations which can be reviewed by the next researchers, they are: Time allotment in the study is only 4,5 months, thus it 1.
affects data depth which should be got during survey. Therefore, the next researchers are suggested to conduct longitudinal study; Broaden the review of cultural values of Hofstede, 2.
such as power distance, masculinity-feminity, also avoid uncertainty and investigate its effect on e-loyalty of Sharia banking. Reminding that measuring cultural values is really affected; 5H UHYLHZ WKH ÀQGLQJV RI WKLV VWXG\ RQ RWKHU VWXG\ 3.
objects beyond Sharia banking, such as government institution, MLM, or private company.