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Determinants of consumer’s readiness to adopt Islamic banking in Kashmir

Asif Hamid Charag (Department of Management Studies, Islamic University of Science and Technology, Awantipora, India)
Asif Iqbal Fazili (Department of Management Studies, Islamic University of Science and Technology, Awantipora, India)
Irfan Bashir (Department of Management Studies, Islamic University of Science and Technology, Awantipora, India)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 29 July 2019



The purpose of this study is to examine the factors that influence the consumer intention to adopt Islamic banking.


The study extends the theory of reasoned action (TRA) by incorporating additional variables such as government support, perceived risk, perceived image, religiosity and culture. A research instrument adapted from previous studies is administered online on a sample of 310 respondents. The data collected are subjected to exploratory factor analysis followed by structural equation modeling using SPSS and analysis of a moment structures (22.0 Version).


The results of the study reveal that consumer intention to use Islamic banking is collectively determined by attitude, religiosity, culture, government support and perceived risk. It reflects that attitude and religiosity are the major predictors of a consumer’s intention followed by government support. Furthermore, results indicate that a consumer’s attitude toward Islamic banking is determined by social influence, government support, religiosity and perceived risk. Also, it is found that culture and perceived image have no significant effect on a consumer’s attitude toward adoption of Islamic banking. Further, the results indicate that attitude mediates the effect of religiosity, perceived risk, government support and culture on a consumer’s intention to use Islamic banking.

Research limitations/implications

The success of Islamic banking ultimately depends on consumer readiness and adoption of it. This study provides significant insights into various aspects of consumer attitude and intention toward Islamic banking adoption. The results provide vital inputs to policymakers and practitioners in offering and promoting Islamic banking. Also, the knowledge and understanding of key consumer specific factors can be used by banks in framing strategies for positioning and targeting Islamic banking products. The study is subjected to certain limitations such as – the study accounts only for limited factors and does not provide for factors such as pricing, behavioral control and Islamicity of the product. Second, this study is limited to the geographic area of Kashmir. Third, the study design is cross-sectional is nature.


Essentially, this study is a pioneering effort in applying an integrated TRA model to determine consumer intention to use Islamic banking in Kashmir. Furthermore, the current study examines the relationship between additional variables simultaneously within the framework of TRA. The study also explores the effect of religiosity and culture on consumer’s attitude and intention, which has remained largely unexplored in the context of Islamic banking.



The authors wish to thank the anonymous reviewer for insightful comments and recommendations. The authors are also indebted to Mr M.A. Parry for proofreading the manuscript.


Charag, A.H., Fazili, A.I. and Bashir, I. (2019), "Determinants of consumer’s readiness to adopt Islamic banking in Kashmir", Journal of Islamic Marketing, Vol. 11 No. 5, pp. 1125-1154.



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