Implementation of Islamic Business Ethics and Customer Loyalty: Practices in Nongkojajar Pasuruan Traditional Market

Abstract

This study investigates the implementation of Islamic business ethics and its influence on customer loyalty in the Nongkojajar Traditional Market, Pasuruan. Employing a qualitative method, the research explores traders’ understanding and daily practices related to ethical business conduct, including honesty, fairness, and responsibility. Data were collected through in-depth interviews and participatory observation with selected traders and customers. The findings reveal that most traders consistently apply Islamic business ethics, particularly in their pricing strategies, customer service, and product quality assurance. These ethical practices foster customer trust, satisfaction, and loyalty, which in turn contribute to business sustainability. However, the study also notes a need for greater awareness and formal education among traders to enhance their ethical practices. The research contributes to the literature by highlighting how traditional market settings can serve as a foundation for ethical commerce, rooted in Islamic values, and demonstrates the positive impact of ethics on long-term customer relationships.