Search results

With a substantial Muslim population in the world, Indonesia has economic potential in halal products’ consumption. However, as new products develop, halal products need a specific marketing strategy since the consumers of this industry have unique characteristics. This study aims to examine consumer behavior toward halal products by examining how content quality, religious consciousness and brand awareness affect consumer buying behavior and consumer loyalty.

This research uses a quantitative approach by surveying 1,429 young Muslim students in Indonesia. This research uses a structural equation model analysis to prove the relationship among the variables of this study.

The results revealed that religious consciousness and content quality have a direct positive significant influence on consumer buying behavior. The indirect significant effect is also exhibited by brand awareness as a mediating variable. This paper also found empirical evidence that consumer buying behavior has a significant positive relationship with consumer loyalty. Besides, the significant positive relationship between consumer buying behavior and consumer loyalty is moderated by consumers’ gender.

This study is restricted in young Muslim community from Islamic universities in Yogyakarta and Central Java, Indonesia. Besides that, this research is further restricted regarding the involved variables that is tested in proposed model. This concerns the involvement of content quality, religious consciousness, brand awareness, consumer buying behavior and consumer loyalty.

The result would give an insight to marketing practitioners on formulating marketing strategy to attract much consumers on purchasing halal products and then expanding their business. This study further profound that religious-based products’ consumers have seem characteristics to conventional-based products, they need to be induced through rational approaches of appropriate content marketing strategy.

This study gives an empirical proof to extended of stimuli-organism-respond model, which is held by many scholars as the primary theory in spelling out the consumer behavior. To the best of the authors’ knowledge, this research is the first study that attempts the using of such theory to capture the consumer behavior in halal industry. Besides, this study further serves a breakthrough on how does content marketing determine young Muslim consumers’ behavior.

Multi-national corporations (MNC) are investing in Malaysia to serve Malay Muslims by carrying the tag line “we are Islamic” for their products. Academicians defined it, as “Islamic brand/s”. Islamic brand/s further divided into three subcategories, namely, Islamic brand/s by compliance, Islamic brand/s by the customer and Islamic brand/s by country of origin. This study aims to identify the important aspect of the Islamic brand/s among the Malaysian Muslims, and it identifies, which Islamic brand aspect motivate Malay consumers to buy Islamic brands.

The conceptual model takes on in the current study was the theory of planned behaviour (TPB). The data was collected from three states of Malaysia (Penang, Kuala Lumpur and Johor Baharu) from 236 Malaysian Muslims through a structured survey instrument. Smart-partial least squares 3 statistical software was used for analyses.

Among Malaysian Muslims, the most important attitude is the Islamic brand/s by origin (country of origin) followed by the Islamic brand/s by the customer and Islamic brand/s by compliance.

The study was conducted in three states of Malaysia, and the results are based on three attitudes of Islamic brands as independent variables and buying behavioural intentions (BI) construct of TPB.

Current study valuable for local businesses, MNCs, other Islamic and halal institutes. This study put light and give awareness of the positioning of the Islamic brand/s. Plus the intentions of users in selecting Islamic brand/s.

This research pursues to clarify consumers’ buying BIs in buying Islamic brand/s in Malaysia.

In southeast Asia, international companies are growing to serve customers with multiple faiths. This study aims to focus on Thailand and it is one of Southeast Asia’s nations and it has Muslim minority customers. To represent Thai Muslim companies, Thai Muslims are marketing their goods by bearing the tagline “we are Islamic”. Scholars described it as “Islamic brands”. This research describes the significant feature of Islamic brands between Thai Muslim people. It examines, which of the Islamic brand dimensions motivates Thai customers towards buying Islamic brands.

The current study’s conceptual model was the theory of planned behaviour (TPB) and 281 Thai Muslims responded via a standardised survey. The data was collected from four southern Thailand provinces (Narathiwat, Pattani, Satun and Yala) and the statistical application Smart-partial least-squares 3 was used for data analysis.

The most significant factor motivating Thai Muslims towards purchasing Islamic brands is the customer’s Islamic brand. The second factor was the Islamic brands by compliance and Islamic brands by country of origin.

Three regions in Thailand have been researched, as well as the results concentrate only on three Islamic brand attitudes as independent variables and the development of behavioural expectations of TPB. This research also presents a model that could help understand the consumer perceptions about Islamic brands and established brands amongst various consumers.

The present research applies to small companies and multi-national businesses, as it illuminates and recognises the image of Islamic brands and suggests the preferences of customers in selecting the brand of Islamic brand.

The current study aims to explain Thai Muslim customers’ buying behavioural intentions while purchasing Islamic brands in Thailand.

This study aims to explore the prospects of istijrar financing in the Islamic banking of Bangladesh. Istijrar is a supply sale contract that facilitates recurrent transactions under a master agreement without needing a deal-to-deal agreement. Murabahah financing in Bangladesh is being criticized for Shari’ah violations, which can be minimized if istijrar financing is integrated and applied.

The study uses a qualitative approach, primarily using a semistructured interview method to collect the primary data. The study conducted 13 one-to-one interviews with leading Islamic banking experts in the country, including Shari’ah scholars, Islamic bankers and regulators. Besides, the study consults with classical and contemporary fiqhi sources to realize the status of istijrar sale in Islamic law. Thematic analysis is performed to explore the qualitative data.

The study finds that istijrar financing has great prospects in the Islamic banking of Bangladesh. Istijrar is applicable in consumer financing and can be offered as an alternative or supplement to murabahah. Also, postimport murabahah financing can be structured with istijrar, while it can also be used in export financing. Besides, a few challenges should be dealt with before offering istijrar, such as proper structure, lack of literacy, stakeholders’ awareness, Shari’ah and regulatory approval and alignment with the law of the land.

Murabahah financing is dominant on the asset side of Islamic banks’ balance sheets in Bangladesh. Murabahah practice in Bangladesh is frequently criticized for some possible Shari’ah violations. Also, more documents are needed for each murabahah operation, which eventually accelerates the costs. Applying istijrar would minimize these issues as it does not require a new contract for each deal. Multiple supplies can be done under a single agreement. Besides, istijrar reduces documentation hassle and transaction costs. Istijrar would be an easy practice and benefit the bank and its clients.

This study contributes to the body of knowledge and the Islamic banking industry. The existing studies have not adequately addressed the potential of istijrar in Islamic banking. In addition, this study will be an eye-opener for Islamic bankers to develop new products with istijrar.

This paper aims to explore whether the market perceives liquid international sovereign sukūk as distinct from comparable bonds and as an asset class of their own that could shield investors against turbulences in the bond markets.

If sukūk and bonds belong to the same asset class, then basically the same supply and demand factors determine inverstors’ activities in both markets. This should lead to matching patterns of yield curves for sukūk and bonds comparable in terms of issuers, maturity, currency, size, liquidity and rating. Only a rough analysis of holding and trading patterns of conventional and Islamic sukūk investors was possible, as most sukūk market transactions are “over-the-counter” and not registered in the Bloomberg database. However, price information could be used for an analysis of yield curves of liquid sovereign sukūk and comparable bonds.

Conventional investors participate in the sukūk market, but their influence on prices is rather small, as they act primarily as intermediaries (i.e. market makers) as opposed to price setters. The yield curves of the selected bonds and sukūk widely match. This suggests that bonds and liquid sovereign sukūk belong to the same asset class. Furthermore, as turbulences in conventional markets are also reflected in the sukūk markets, Islamic investors themselves play a role in the transmission.

The study of holding patterns and of the market perception of sovereign sukūk and bonds required a focus on four countries with deep and (potentially) liquid sukūk markets (Malaysia, Turkey, Indonesia and Hong Kong) and US$-denominated international securities. Some suitable combinations of sukūk and bonds are relatively young issuances with time series data for two to three years only. Data on holding patterns are sketchy and require interpretations based on market knowledge.

Parallel yield curves indicate that conventional investors do not perceive international sovereign sukūk as an asset class of their own distinct from conventional government bonds. This market perception of liquid international sovereign sukūk could have an impact on other types of sukūk (e.g. on international corporate sukūk) if sovereign sukūk are taken as pricing and performance benchmarks.

The paper sheds light on institutional investor behavior in the bond and sukūk markets and outlines data availability issues that constrain quantitative analyses in over-the-counter markets.

This paper aims to first explain short selling and its benefits and damages; then, using experts’ opinions and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method as well as based on the legal, financial and jurisprudential criteria adopted, evaluate and prioritize Islamic alternatives to short selling; and finally, introduce the most proper approach for implementing it in Iran’s stock market.

The methods applied in the paper are as follows: Library method to collect the required data for developing the theoretical and jurisprudential foundations of the study, identifying the appropriate criteria for prioritizing; the alternative methods for short selling in the Islamic markets; and the field method to determine the level of significance of the ranking criteria and prioritize the alternative methods for short selling in the Islamic markets on the basis of such criteria. The alternative methods for short selling in Iranian stock market were identified and analyzed jurisprudentially and legally. Afterwards, these strategies were prioritized based on the (legislative, financial and jurisprudential) criteria which were adopted in the form of Delphi from the related literature, research and expert opinions by means of TOPSIS approach. The method with the highest ranking will be introduced as the alternative method for short selling.

The paper suggests that among all Islamic alternatives to short selling, based on experts’ opinions and legal considerations, method of combining Murabaha and Wa’ad is the most proper strategy in Iranian stock market.

An important limitation we faced in this study was limited familiarity of Iran, capital market participants with Islamic finance concepts including Islamic alternatives to short selling. Therefore, designed questionnaire was sent only to participants who had experience in the field of Islamic finance that they were not more than 31 people. Of course, in this study, large sample size was not necessary because the questionnaire was completed by experts, and therefore, results were scientific and reliable.

One of the transaction strategies which significantly contributes to the enhancement of market liquidity is short selling. However, this strategy is not applicable to the Islamic stock markets because of its contradictions with a number of Islamic laws. Therefore, Islamic financial researchers have attempted to design relevant legal mechanisms drawing on the Islamic contracts to make use of the merits of this transaction strategy. In addition to introducing short selling and its demerits for the stock market, the paper explored the alternative methods and proposed the most proper one for implementing in Iranian stock market.

Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal sectors in the global Halal economy.

The first section will briefly describe the Halal concept in both Islamic finance and Halal industries, and the growth of both sectors in Asian countries. The second part highlights the review of Asian consumers’ perception towards Islamic finance products and Halal products.

The review found that the consumers’ perception towards the Islamic finance products and Halal products is distinctive. This is due to the diversity of Asian countries in terms of geography, religion, culture, ethnic, school of thoughts (madzahib), income per capita and government’s involvement.

The third part of the chapter concentrates on planning towards Halal marketing, which involves the move and future challenges in different layers of industries to gear up and strengthen the Halal economy.

This study aims to determine the effect of Islamic branding, experiential marketing and word of mouth on college decisions and to find marketing strategies through strengthening Islamic branding based on experiential marketing to increase the number of students at Muhammadiyah-Aisyiyah Higher Education.

This study used a quantitative method, with data collection carried out using a survey method by giving questionnaires to respondents. The respondents' criteria are active students, at least in semester three, who have studied at Muhammadiyah-Aisyiyah Higher Education in Indonesia, using a sampling technique with accidental sampling. Data analysis used Partial Least Square - Structural Equation Modeling to determine the estimated results or model predictions.

The results showed a significant direct effect of experiential marketing, Islamic branding and word of mouth on college decisions. There is an indirect effect between experiential marketing and Islamic branding on college decisions through word of mouth, but the word-of-mouth variable could not mediate the relationship between experiential marketing and Islamic branding on college decisions perfectly.

The limitation of the results of the study is that it uses respondents who are and have participated in learning activities on the Muhammadiyah-Aisyiyah Higher Education, where the Muhammadiyah-Aisyiyah Higher Education has added value compared to other private campuses. The added value on the Muhammadiyah-Aisyiyah Higher Education is the overall learning activity based on Kemuhammadiyahan Islam in Indonesia. Islam Kemuhammadiyahan is the identity of the Islamic branding strategy on the Muhammadiyah-Aisyiyah Higher Education, which is only owned by the Muhammadiyah-Aisyiyah Higher Education.

This study recommends marketing strategies through strengthening Islamic branding based on experiential marketing to increase the number of students at Muhammadiyah-Aisyiyah Higher Education.

The novelty of this research is the addition of experiential marketing and Islamic branding variable measurements on word of mouth and college decisions, especially prospective students to study at Islamic Higher Education in Indonesia.

This study aims to better understand the Islamic consumption incentives because the spectacular flourishing of the halal market in different places around the world has grown the interest in understanding and deciphering the mechanisms behind its development.

Through an exploratory study of some Tunisia-based Islamic groups’ purchasing behavior, this paper investigates factors leading to the purchasing of halal goods (Islamic consumption).

Findings show that the Islamic consumer is more of an Islamist than simply a Muslim. In addition, findings show that halal consumption is not merely related to religious affiliations but also the product of numerous cultural, social and psychological factors.

In addition to Islamism and Islamic activism, this paper puts in evidence the role of some post-structural factors such as identity, nostalgia and hedonism in relation to the buying intention of halal products and services.

The purpose of this paper is to explore the critical factors that influence Muslim consumers’ motivation towards the Islamic market mechanism.

The paper also attempts to formulate Ibnomer Mohamed Sharfudddin’s “Islamic Administrative theory and Klaus Hurrelmann’s socialization theory” based on the “productive processing of reality (PPR)” model. The data were collected by distributing a self-administered questionnaire to a sample of 147 participants residing in the major cities in Peninsular Malaysia. The constructs and items used in the questionnaire were derived from the basic guidelines provided in the literature review and Al-Qur’an and Sunnah (Prophet’s deeds) on the conduct of Malaysian business practices.

The results suggest that while awareness of the Islamic market mechanisms exists amongst businesses, in practice, not many obey such rules. However, a significant relationship does exist between the Muslim consumer motivational factors and Islamic market mechanisms.

First, limitation in scope as only two main components (productive service and commodity market) practices was examined. Future research may include other types of variables practices in the Islamic market mechanism. Second, the sample size is small and respondents were restricted to marketing and the academic sector. Future research should be done on bigger sample size and more on diverse sample, such as extended to the manufacturing sector and the service industry because manufacturing firms and the service sector might have different Islamic market mechanism practices and outcomes compared to marketing and the academic sector.

Productive service and commodity market have positive impact on consumers’ motivation towards the Islamic market mechanism. Government’s controlling and monitoring in the market has positive effect on consumers’ motivation in selecting the Islamic market mechanism.

There is a need for more research on how to establish the Islamic market mechanism practice. In addition, the outcomes of this paper are of particular significance to policymakers, as it better informs them as to how best to design the Islamic market mechanism to make it more practical regardless of various religious beliefs.

This research is a rare attempt on the part of scholars and researchers in Malaysia to relate the Islamic market mechanism practices and guidelines on a specific discipline. Based on the researchers’ knowledge, it is the first study investigating the application of the Islamic market mechanism practice in Malaysia.