Integrating Religious Values and Service Quality in Parental Decision-Making

Education serves as a strategic investment in human capital that shapes both intellectual and moral development. In Indonesia, parents increasingly perceive education as a dual investment academic and spiritual particularly reflected in the growing popularity of Integrated Islamic Junior High Schools (Sekolah Menengah Pertama Islam Terpadu or SMPIT). This study aims to examine the structural relationship among school image, perceived price, service quality, and religiosity in influencing parents’ decisions to choose SMPIT in Pekanbaru, Indonesia, with interest as a mediating variable. A quantitative survey was conducted involving 255 parents whose children were enrolled in SMPIT. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The findings reveal that school image, service quality, and religiosity significantly influence parental interest and decision-making, whereas perceived price shows a weaker direct effect. Moreover, interest mediates the relationship between religiosity and the final decision, suggesting that value-based motivation transforms into behavioral intention through emotional engagement. This study contributes theoretically by integrating economic rationality and religious values into a unified behavioral model, and practically by providing managerial insights for Islamic schools to strengthen branding, communication, and service quality. The results highlight the need for educational institutions to align quality improvement with the spiritual expectations of modern Muslim families

Islam · Popularity · Quality (philosophy · Rationality · Religiosity · Service (business · Structural equation modeling · Education and Islamic Studies · Halal products and consumer behavior · Islamic Finance and Banking Studies