To read this content please select one of the options below:

Customer's criteria for selecting an Islamic bank: evidence from Pakistan

Hayat M. Awan (Institute of Management Sciences, Bahauddin Zakariya University, Multan, Pakistan)
Khuram Shahzad Bukhari (Institute of Management Sciences, Bahauddin Zakariya University, Multan, Pakistan)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 29 March 2011




Islamic banking is an emerging financial system in the contemporary world. Currently, it is found mostly in Islamic countries or in countries where OPEC oil revenues have been invested. Most of the research has therefore been oriented towards macro‐environment issues, ignoring the market‐oriented problems. The purpose of this paper is to determine the conditions under which Islamic banks can successfully compete with conventional banks by understanding customer attitudes towards Islamic banking products.


A sample of 250 respondents was taken from four cities of Pakistan to examine customer awareness of key products/services being offered by Islamic banks, usage of those services and customer satisfaction with the service delivery mechanism being used by pure Islamic banks and conventional banks with Islamic bank branches (IBBs). Data for this study were collected by using a structured questionnaire containing two sections, where section I contains ten statements using Likert scale, for assessing customer's preferred selection criteria for Islamic banks. These statements are developed based on past literature. Section II deals with the questions related to the social and demographic profiles of respondents.


Analysis of data indicated that most of the customers value product features and quality of service as major factors for making selection of Islamic banks, and give lesser importance to religious belief as influential factor in selecting an Islamic bank. Findings suggest that there is a lack of awareness about basic conventions of Islamic financing options among respondents and customers of both the pure Islamic banks and conventional banks with IBBs do believe that the bank's staff lacks ability to provide credible information about religious compliance of Islamic banking financial services.


The paper has practical significance for Islamic banking policy makers, for understanding the key behavioral and demographical dimensions of their customers and using these dimensions for effectively positioning Islamic banking financial instruments, developing policies; and articulating procedures to maximize customer satisfaction and to ensure better exchange of value.



Awan, H.M. and Shahzad Bukhari, K. (2011), "Customer's criteria for selecting an Islamic bank: evidence from Pakistan", Journal of Islamic Marketing, Vol. 2 No. 1, pp. 14-27.



Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

Related articles