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Maqasid-based consumer preference index for Islamic home financing

Hanudin Amin (Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan, Malaysia)

International Journal of Ethics and Systems

ISSN: 2514-9369

Article publication date: 16 August 2021

Issue publication date: 12 January 2022

425

Abstract

Purpose

Using the maqasid-based consumer preference index (MCPi), this study aims to investigate customer preference for Islamic home financing.

Design/methodology/approach

The current study, based on valid 1,034 usable questionnaires and the MCPi, evaluates consumer choice for the supplied Islamic home finance products by 16 Islamic banks in Malaysia.

Findings

According to the findings, all banks have a moderate value of MCPi. Bank Islam Malaysia Berhad is at the top of the list, followed by Maybank Islamic, Commerce International Merchant Bankers Islamic and Malaysia Building Society Berhad.

Research limitations/implications

The MCPi is used in this study to test a new technique to measuring consumer preference. The contributions are confined to these particular variables – Educating Customer, Establishing Justice, Promoting Welfare and Fulfiling Islamic Debt Policy. The research also has limitations in terms of the facility’s general setting. Future research may shed light on these issues from new angles.

Practical implications

This research offers banks a new way to manage their products based on maqasid al-Sharīʿah.

Originality/value

In the context of Malaysia, this study introduces the MCPi, a new measure of consumer preference for home financing.

Keywords

Acknowledgements

This study is funded by the Fundamental Research Grant Scheme (FRGS): FRG0438-SS-1/2016, Ministry of Higher Education (MOHE), Malaysia.

Citation

Amin, H. (2022), "Maqasid-based consumer preference index for Islamic home financing", International Journal of Ethics and Systems, Vol. 38 No. 1, pp. 47-67. https://doi.org/10.1108/IJOES-07-2020-0117

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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