Search results

1 – 10 of 425
Article
Publication date: 7 January 2019

Shahab Aziz, Maizaitulaidawati Md Husin, Nazimah Hussin and Zahra Afaq

The purpose of this paper is to investigate the factors that affect one’s attitude and intentions towards family takaful schemes, apart from evaluating the mediating role of…

3290

Abstract

Purpose

The purpose of this paper is to investigate the factors that affect one’s attitude and intentions towards family takaful schemes, apart from evaluating the mediating role of perceived trust in the relationship between perceived religiosity and attitude towards family takaful. Most prior studies have considered religiosity as an individual’s tendency to be religious. However, the present study employed perceived religiosity as one’s perception regarding shariah compliance practices of family takaful schemes. Moreover, this study examines the direct relationship between perceived religiosity and attitude and the indirect relationship between perceived religiosity and trust.

Design/methodology/approach

A sample of 224 salaried individuals was selected with an age range of 24–50. Variance-based partial least squares structural equation modelling was employed for data analysis.

Findings

The results showed that knowledge and perceived usefulness (PU) had significantly positive relationships with attitude towards family takaful schemes. Perceived trust completely mediated the relationship between perceived religiosity and attitude towards family takaful. Attitude was positively related to purchase intention regarding family takaful.

Practical implications

The findings of the study are important for Islamic financial institutions, especially for takaful companies to revamp their marketing strategies. With enhanced understanding regarding consumer behaviour, takaful companies can sell their products in a more effective manner to increase their market share.

Originality/value

Behavioural aspects regarding the purchase of Islamic insurance products have yet to be profoundly explored in the literature. The indirect relationship between perceived religiosity and trust is established in this study. The study contributes to the field of consumer behaviour and marketing of Islamic financial products.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 8 February 2022

Puji Sucia Sukmaningrum, Achsania Hendratmi, Sylva Alif Rusmita and Syadiyah Abdul Shukor

This study aims to investigate the productivity level of family takaful in Malaysia and Indonesia from 2014 to 2019. Productivity can support corporate sustainability, which is…

Abstract

Purpose

This study aims to investigate the productivity level of family takaful in Malaysia and Indonesia from 2014 to 2019. Productivity can support corporate sustainability, which is one of the company’s goals.

Design/methodology/approach

The measurement of the productivity level in this study involved applying the Malmquist Productivity Index (MPI) method. The input variables used consisted of equity, total expenses and total investment. The output variables consisted of total profit and investment income. In addition, this research used the orientation of the output and intermediation.

Findings

Throughout the study period, the Indonesian family takaful had an average total factor productivity change (TFPCH) of about 0.945. In other words, it did not reach optimal productivity. It is more due to the low value of technological change (TECHCH). On the contrary, family takaful companies in Malaysia had called productivity, showing a TFPCH of about 1.041. Again, this is mainly due to an increase in TECHCH and efficiency change, but it is still low in pure technical efficiency change.

Research limitations/implications

This study focuses on factors that exist in internal takaful companies. Neither micro- nor macroeconomic variables that can affect productivity levels have been measured. In addition, this study only analyzed two countries out of the 11 countries in the Southeast Asian region.

Practical implications

Family takaful companies can use the productivity index as one of the bases of evaluation in managing their resources to enhance optimal output. Furthermore, the management of family takaful companies in Indonesia needs to focus more on technological innovation and delivery of services to increase productivity. Meanwhile, family takaful companies in Malaysia can maintain their technology usage and efficiency to operate productively. The government in both countries is expected to actively accelerate the growth of family takaful companies by producing regulatory products that strengthen the industry. Specifically, the government in Indonesia needs to make regulations that support technology improvement.

Originality/value

There is still not much research that examines family takaful’s productivity level using the MPI. The MPI is an appropriate tool to evaluate the productivity of family takaful companies. Thus, family takaful companies can improve their quality by assessing the productivity index value.

Details

Journal of Islamic Accounting and Business Research, vol. 13 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 27 July 2022

Md. Habibur Rahman, Md. Faruk Abdullah, Muhammad Nazmul Hoque and Abu Umar Faruq Ahmad

This study aims to investigate and propose the potential practice of hibah al-ʿumra as a Shari‘ah-compliant policy that would encompass the disbursement of death benefits and…

Abstract

Purpose

This study aims to investigate and propose the potential practice of hibah al-ʿumra as a Shari‘ah-compliant policy that would encompass the disbursement of death benefits and facilitate their smooth distribution among the projected beneficiaries of the family Takāful.

Design/methodology/approach

This study uses a qualitative approach. It conducts semi-structured interviews with different Takāful practitioners in Malaysia. This study also consulted a few Shari‘ah scholars regarding their opinions on the application of hibah al-ʿumra in disbursing family Takāful benefits. The thematic analysis is carried out to analyse qualitative data.

Findings

From both Shari‘ah and the relevant industry perspectives, the notion of hibah al-ʿumra has a great potential to disburse the family Takāful benefits to the Takāful participants or nominated beneficiaries. Given the conditional nature of hibah in Takāful, it is argued that there is a scope for imposing some conditions to make hibah al-ʿumra a life grant gift. This is expected to play a significant role in resolving the issues relating to the disbursement of family Takāful benefits among the beneficiaries, where it becomes irrevocable.

Practical implications

In the current practice of family Takāful, in the event of the recipient’s death or divorce, the application of absolute hibah results in the disbursement of Takāful benefits among undesirable beneficiaries. In contrast, in hibah al-ʿumra, it is expected that subject to a condition of withdrawal, its practice would help manage any unwanted situation if other potential beneficiaries are nominated upon signing the agreement at the outset.

Originality/value

This study is expected to contribute to help channel the family Takāful benefits into the desired beneficiaries being the proposed hibah al-ʿumra as a form of conditional hibah. Besides, this type of hiba can be treated as a solution in any adverse situation.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 1
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 17 May 2019

Kashif Farhat, Wajeeha Aslam and Bin Mohd. Mokhtar Sany Sanuri

The purpose of this paper is to investigate the factors that influence the intention to choose family takaful in Pakistan through using theory of reasoned action (TRA) model…

1309

Abstract

Purpose

The purpose of this paper is to investigate the factors that influence the intention to choose family takaful in Pakistan through using theory of reasoned action (TRA) model. While family takaful is not a new financial solution in the market, the main factors that motivate customers to purchase family takaful remain unexplored. To fill this gap, this paper investigated the impact of attitude (ATT), subjective norm (SBN) with the addition of Halal certification (HCT) to predict the behavioral intention of customers in Pakistan.

Design/methodology/approach

The sample data of 250 respondents was drawn for this paper. The respondents were the regular visitors to the Islamic banks in Pakistan and were selected through judgmental sampling. Of 250, total 237 responses were included in the final study, after excluding the inappropriate and missing responses. For the final data, EFA, CFA and SEM were used to test the significance of relationships between the IVs (ATT, SBN and HCT) and DV (BI).

Findings

Findings from the SEM analysis suggest that ATT, SBN and HCT have positive significant relationships with BI. SBN appeared to be the most influencing factor that influences the behavioral intention to purchase family takaful.

Research limitations/implications

The paper has practical implications for takaful managers and academics. Bank managers can draw marketing communication policy based on the findings of this paper. While for academics, this paper laid a foundation for future studies by integrating Halal certification in TRA as a predictor to the behavioral intention towards selecting family takaful. The empirical nature of this paper will enhance understanding of the Islamic financial market and its customers specifically.

Practical implications

The findings of the paper also hold significance for managers and policy-makers of Islamic financial institutes. It guides to design the marketing strategies to develop the right attitude of customers, emphasize subjective norms and Halal certification when communicating the family takaful products to customers. As such, brand managers of family takaful may leverage the role of belief in developing the right attitude and then linking it to the family takaful brand. The attitude is rooted in the belief, and for family takaful brands, it potentially be useful to allow it a broader space in the brand strategies. Likewise, subjective norms in terms of choosing family takaful comprises the perceived social pressure of customers feel towards purchasing takaful for families. It highlights the role of social contacts and effect of their behavior and choices over customers. The recommendations and positive feedback customers receive from their social contacts can be instrumental in instilling the sale of family takaful. In the context of Halal certification, the findings of this paper call takaful brand managers’ attention to the significant role Shariah compliance plays for potential customers of family takaful.

Social implications

The findings of the paper also have significance for managers and policy-makers of Islamic financial institutes. The findings of this paper guide them to develop marketing strategies, develop the right attitude of customers, emphasize subjective norms and Halal certification when communicating the family Takaful products to customers.

Originality/value

Family takaful is relatively a new phenomenon that demands empirical evidence for academics and managers. This is one of the early studies that investigates the determinants of purchase of family takaful through extended TRA model. Therefore, this investigation will serve as a cornerstone to the scant knowledge of family takaful in Pakistan and around the globe.

Details

Journal of Islamic Marketing, vol. 10 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 21 August 2017

Mohamed Sherif and Sadia Hussnain

The purpose of this paper is to investigate the driving forces (economics and socio-demographic) that influence family Takaful demand in the Middle East and North Africa (MENA…

1346

Abstract

Purpose

The purpose of this paper is to investigate the driving forces (economics and socio-demographic) that influence family Takaful demand in the Middle East and North Africa (MENA) region, using a sample of 15 countries from the MENA.

Design/methodology/approach

The authors use multivariate analysis, bootstrapping and generalised method of moments techniques. They first examine a full model that combines all variables; second, a model that controls for product market factors; and finally, a model that controls for socio-demographic factors. They further separate all models into linear and log-linear demand functions.

Findings

The authors demonstrate that the relationship between the demand for family Takaful in MENA and Islamic banking deposits, education, dependency rate, female life expectancy and Muslim population is significantly positive. On the other hand, the significant factors that are inversely related to the demand for family Takaful in MENA are inflation, financial development and male life expectancy.

Research limitation/implications

The crucial limitation of this study is the amount of data available in regards to the dependent variable, family Takaful contributions. Consequently, to improve the understanding in explaining the family Takaful demand in MENA, further research can take advantage of expanding the variables that were omitted in this research as a consequence of the unavailability of data. Some of the possible influential variables can include government social security expenditure, legal system and government policies, price of Takaful and level of competition within the Takaful and insurance industry.

Originality/value

It is obvious that there are very few studies that focus on the MENA market, and indeed, none of them gives attention to the factors that influence demand for family Takaful. While this study is expected to provide more understanding and awareness on the concept of Takaful and the factors that influence its demand, the authors hope that it would encourage more studies on various issues on the Takaful industry so as to help researchers to understand more aspects of this new emerging business.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 10 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 16 July 2021

Hafizuddin-Syah Bangaan Abdullah, Rubayah Yakob, Sajiah Yakob and Nuratikah Syafiqah Sharif

Participation in micro-family takāful plans amongst low-income earners remains low despite the various initiatives promoted by the Malaysian Government. Therefore, this study aims…

1056

Abstract

Purpose

Participation in micro-family takāful plans amongst low-income earners remains low despite the various initiatives promoted by the Malaysian Government. Therefore, this study aims to conduct an in-depth examination on the indicators of having micro-takaful tafakul in Malaysia.

Design/methodology/approach

Questionnaires were distributed to respondents residing in Selangor, the state with the highest recorded percentage of low-income earners in Malaysia. Regression analysis was conducted in this study. Demographic characteristics and knowledge were treated as the independent variables, whereas the tendency of having a micro-family takāful plan was considered the dependent variable.

Findings

Gender and knowledge on the benefits of micro-family takāful plans have significant and positive effects on the tendency of having a micro-family takāful plan. Married and employed women are more likely to own a micro-family takāful plan compared with their male counterparts.

Research limitations/implications

This study contributes to the growing literature on the research of micro-takāful determinants in Malaysia.

Practical implications

Industry players and regulators need to tailor the operating and marketing strategies of micro-family takāful plans based on the gender and knowledge of potential participants. The industry may also improve the features of takāful plans to ensure that they are even more attractive and comprehensive.

Originality/value

This study offers a much deeper analysis compared with past research owing to the identified dimensions of a demographic factor that can influence the tendency of having micro-family takāful plans. Besides, this study offers a comprehensive measurement of the knowledge on micro-family takāful plans by considering all aspects (i.e. concept, importance and benefit) of these plans. Moreover, this study examines the influence of each element of knowledge on the tendency of having a micro-family takāful plans, a topic that was rarely studied in the past.

Details

Journal of Islamic Marketing, vol. 13 no. 12
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 7 March 2016

Maizaitulaidawati Md Husin, Noraini Ismail and Asmak Ab Rahman

This paper aims to address the influence of mass media (MM) and word of mouth (WOM) on subjective norm (SN) and the intentions to purchase a family takaful scheme among Muslim…

5621

Abstract

Purpose

This paper aims to address the influence of mass media (MM) and word of mouth (WOM) on subjective norm (SN) and the intentions to purchase a family takaful scheme among Muslim Malaysians.

Design/methodology/approach

Data were collected from 384 Muslim consumers in Kuala Lumpur, Malaysia, using a convenience sampling approach. The hypotheses were tested by applying structural equation modelling.

Findings

The results revealed that MM and WM were able to influence SN. In addition, the results also found that SN significantly influences intentions to purchase a family takaful scheme.

Practical implications

By examining MM and WM on SN, the study validated the importance of both constructs in affecting consumers’ SN and purchase intention. This study would be useful for takaful operators, as the findings would help them to formulate strategies for promotional activities.

Originality/value

This paper empirically justifies the relationship between MM and WM on SN and purchase intention of family takaful schemes in an integrated model.

Details

Journal of Islamic Marketing, vol. 7 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 30 May 2023

Abdulla Al-Towfiq Hasan and Md Takibur Rahman

The purpose of this study is to predict family takāful purchase intentions (FTPIs) using an extended theory of planned behavior (TPB) with relevant mediating and moderating…

1238

Abstract

Purpose

The purpose of this study is to predict family takāful purchase intentions (FTPIs) using an extended theory of planned behavior (TPB) with relevant mediating and moderating factors.

Design/methodology/approach

This study is based on a survey of 384 Muslim employees who work in both government and private organizations. This study used partial least square structural equation model (PLS-SEM) for hypothesis testing, predictive relevance and measuring the effect size of the model.

Findings

The study found that attitude (ATT), subjective norms (SN), perceived behavioral control (PBC), saving motives (SM), promotional campaign (PC) and religiosity (RG) directly contribute to the prediction of FTPIs. Furthermore, ATT and SM partially mediate between PC and FTPI. Moreover, RG significantly moderates the association between ATT, SN, SM and FTPI, while RG insignificantly moderates the link between PBC and FTPI.

Practical implications

This study provides insight into understanding the factors leading to an enhanced understanding of FTPI in a country where the industry is growing very fast. Further, the study suggests informative and persuasive promotions to encourage FTPI in Bangladesh and similar countries.

Originality/value

This study provides insights into previously unaddressed FTPI among Muslim employees in Bangladesh and similar countries. Prior work on determining FTPI has not focused on promotional campaigns and saving motives, and thus, this study has extended TPB to understand the phenomenon.

Article
Publication date: 30 December 2019

Imran Mehboob Shaikh, Kamaruzaman Bin Noordin, Sindhia Arijo, Fawad Shaikh and Ahmed Alsharief

This paper aims to examine the determinants that influence the customer’s adoption towards the use of family takaful scheme by extending diffusion theory of innovation (DOI) in…

Abstract

Purpose

This paper aims to examine the determinants that influence the customer’s adoption towards the use of family takaful scheme by extending diffusion theory of innovation (DOI) in the context of Pakistan.

Design/methodology/approach

The published work allied to takaful studies and DOI was reviewed. Total of 282 respondents who are non-users of family takaful product were used for the purpose of primary data collection through convenience sampling.

Findings

The customer’s adoption towards Islamic insurance is determined not only by perceived relative advantage and perceived compatibility but also by awareness and religious belief. Perceived complexity, on the contrary, turns out not to be a predictor of family takaful adoption. Further, gender, age and education do not moderate the family takaful adoption by the customers.

Research limitations/implications

This research alike others have limitations in terms of sampling method used and only covers one city of Pakistan, namely, Karachi. Further studies need to be conducted in other cities as well with a large population.

Originality/value

Extended DOI is not used in the context of takaful in Pakistan as evident from scarce literature on the empirical studies. Therefore, the authors extend the DOI in the current work. Further, this paper will be a useful reference guide for the academicians, operators of takaful business and future researchers.

Details

Journal of Islamic Marketing, vol. 11 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 14 June 2021

Waheed Akhter, Hassan Jamil and Kim-Shyan Fam

This paper aims to identify Islamic influence on customer satisfaction in Pakistan Takaful and conventional insurance industry. Specifically, it analyses the vital role of…

Abstract

Purpose

This paper aims to identify Islamic influence on customer satisfaction in Pakistan Takaful and conventional insurance industry. Specifically, it analyses the vital role of Shari’ah perception in achieving higher customer satisfaction.

Design/methodology/approach

The data from 400 customers of both the family Takāful and life insurance (200 each) were collected. Further, the regression-based bootstrapping approach was applied through process macro developed by Hayes (2013).

Findings

The results indicate that a higher Shari’ah perception positively affects the customer satisfaction in the Takaful industry with improved service and relationship quality; whereas, it negatively affects customer satisfaction in case of the conventional insurance. Further, it has been found that customer satisfaction partially mediates the customer switching intentions in both the Takaful and conventional insurance industry in the presence of service quality and relationship quality.

Practical implications

This research will enable the practitioners to understand the factors that affect customer satisfaction in Pakistan. It has the essential policy and managerial implications for the growth of the Takaful and conventional insurance industry.

Originality/value

This is one of the pioneer studies investigating the impact of Islamic influence (specifically Shari’ah perception) on customer satisfaction in both the Takaful and conventional insurance industry in Pakistan.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

1 – 10 of 425