Search results

1 – 10 of over 7000
To view the access options for this content please click here
Article
Publication date: 5 February 2018

Mohammed Hersi Warsame and Edward Mugambi Ireri

The purpose of this paper is to examine the direct and indirect moderation effects of demographic and socio-economic(s) factors on the adoption of Islamic banking in UAE.

Abstract

Purpose

The purpose of this paper is to examine the direct and indirect moderation effects of demographic and socio-economic(s) factors on the adoption of Islamic banking in UAE.

Design/methodology/approach

Convenience sampling was done on the residents of Sharjah, Dubai, and Abu Dhabi. A closed-ended questionnaire with 30 items was designed and pre-tested before the start of the study. Path analysis and moderation testing were the main analytical approach. A total of 320 respondents completed the survey.

Findings

The research revealed that demographic and socio-economic(s) moderators may have direct and indirect moderation effects on the adoption of the Islamic banking in the UAE, which indicates the importance of these factors in the provision of Islamic banking products and services in the UAE.

Practical implications

This study further revealed that these moderators have huge practical implications for Islamic bank managers and marketers as they can exploit these demographics to enhance their market share in the UAE.

Social implications

In UAE, minimal attention has been directed toward the role moderators would play in the criterion that individual investors would use in the adoption of Islamic banking products and services in a cosmopolitan environment that is experiencing competition from conventional banks.

Originality/value

An extensive review of the existing literature on the adoption of Islamic banking reveals that no empirical research has been undertaken to explore the role played by demographic and socio-economic(s) moderators in the adoption of Islamic banking in UAE and internationally. This study attempts to fill this gap.

To view the access options for this content please click here
Article
Publication date: 12 October 2018

Brian Arthur Zinser

The purpose of this study is to identify the determinants of the intended use of Islamic banking and financial services by US Muslims. It builds on the plethora of studies…

Abstract

Purpose

The purpose of this study is to identify the determinants of the intended use of Islamic banking and financial services by US Muslims. It builds on the plethora of studies primarily conducted in Muslim-majority countries.

Design/methodology/approach

An extended theory of planned behavior model was tested using structural equation modeling. The hypothesized paths were positive attitude, positive subject norms, perceived behavioral control, greater Islamic religiosity and lower perceived cost of being Muslim. A sample size of n = 251 was analyzed.

Findings

The analysis showed that positive attitudes toward Islamic financial services were found to be statistically significant (p < 0.001), and its path was the strongest. The higher Muslim identification path was trending toward being statistically significant (p < 0.086). The analysis also showed that lower perceived cost of being Muslim path was statistically significant (p < 0.035), but in the opposite hypothesized direction. No support was found for the effect of positive subjective norms or perceived behavior control hypotheses.

Research limitations/implications

The study was exploratory in nature and has limitations, including some discriminant validity problems.

Practical implications

The paper includes recommendations for US Islamic banking and financial services providers to develop more effective market segmentation and targeting, as well as integrated marketing communication strategies.

Originality/value

This paper fulfills a void in research on Islamic marketing in the West, particularly the USA, a country with a nominal Muslim population.

To view the access options for this content please click here
Article
Publication date: 24 September 2018

Mohammad Enamul Hoque, Nik Mohd Hazrul Nik Hashim and Mohammad Hafizi Bin Azmi

The purpose of this paper is to introduce a conceptual framework that can facilitate investigations concerning the impact of marketing communication and financial

Downloads
1916

Abstract

Purpose

The purpose of this paper is to introduce a conceptual framework that can facilitate investigations concerning the impact of marketing communication and financial consideration on the relationship between customer attitude and purchase intention of Islamic banking products and services.

Design/methodology/approach

This conceptual paper is structured based on the extant literature; it provides a review of theoretical perspectives, highlights the gap and illustrates the significance for developing a framework.

Findings

The authors identify notable patterns and limitations in previous empirical studies. Specifically, despite increasing interest in Islamic banking customer behavior, prior research has not given much attention to explore moderating effects on the customer attitude–intention link. This has left researchers and bank managers with very limited information to explain the conditions that enhance customers’ attitude and intentions toward Islamic banking products. Based on this backdrop, the paper displays a viable research model with propositions that assess potential moderating effects on the domain relationship.

Research limitations/implications

This paper contributes to Islamic banking and management literature because prior research has predominantly focused on variables that directly influence customers’ behavior. This novel conceptual framework enables managers to better understand their customers and has implications for emerging themes, such as formulating strategies for specific customer groups and internationalization process. In addition, this paper provides a starting point to empirically examine whether and how the proposed moderators affect the link between customer attitude and behavioral intentions to purchase Islamic banking products.

Originality/value

To the best of knowledge, this is the first attempt to introduce relevant moderating variables for investigating the attitude and intention nexus in an Islamic banking context. Furthermore, the authors propose a new measure, namely, profit-loss sharing proportions which could enhance customers’ intention to purchase Islamic banking products.

To view the access options for this content please click here
Article
Publication date: 20 July 2012

Rusnah Muhamad, T.C. Melewar and Sharifah Faridah Syed Alwi

The purpose of this paper is to explore the different segments of consumers in the Islamic financial services industry (IFSI) and their relationship with product/brand…

Downloads
6740

Abstract

Purpose

The purpose of this paper is to explore the different segments of consumers in the Islamic financial services industry (IFSI) and their relationship with product/brand positioning for Islamic financial services (IFS).

Design/methodology/approach

In‐depth interviews were conducted with individuals in managerial positions among the key market players in the IFSI to explore the segmentation of consumers and their buying motives.

Findings

Four segments of IFS consumers emerged, namely, Religious conviction group; Religious conviction and economic rationality group; Ethical observant group; and Economic rationality group. These segmentation groups were appropriately categorized through a psychographic (value)‐based approach.

Research limitations/implications

The empirical findings of this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for IFS in the global market. Future research should focus on analysing these issues from the perspective of consumers of IFS to identify the purchase trend.

Practical implications

The study provides empirical evidence of the bases or initial dimensions of consumer segmentation for IFS. The findings are useful in guiding the management of institutions offering IFS in making decisions relating to the marketing communication and promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the IFSI, this study provides useful knowledge in strategically using market segmentation to position IFS in the global market.

To view the access options for this content please click here
Article
Publication date: 8 July 2021

Ismah Osman, Mohsin Abdur Rehman, Sajid Mohy Ul Din, Ghazal Shams and Khurram Aziz

This study aims to examine a proposed model based on a combination of relationship marketing and service quality dimensions as a significant predictor of corporate image…

Abstract

Purpose

This study aims to examine a proposed model based on a combination of relationship marketing and service quality dimensions as a significant predictor of corporate image. More importantly, it attempts to identify whether corporate reputation mediates the relationship between and customer loyalty and corporate image in the takāful (Islamic insurance) context, from the viewpoint of Saudi Arabian customers.

Design/methodology/approach

An online survey was conducted through an adopted questionnaire from 362 family takāful policyholders from Saudi Arabia. Also, structural equation modelling was used to test the proposed model on the direct relationships of the related constructs, as well as the establishment of corporate reputation as a mediator concerning its relationship between corporate image and customer loyalty.

Findings

This study discovered that only two dimensions of service quality (i.e. reliability and assurance) and three aspects of relationship marketing (i.e. Islamic ethical behaviour, financial and structural bonds) have a significant impact on the corporate image of the takāful providers. This study further concluded that corporate reputation mediates the relationship between corporate image and customer loyalty.

Research limitations/implications

This study has presented and tested the perceived service quality using the PAKSERV model in the takāful (Islamic insurance) industry, particularly in the Saudi Arabian context. This research identified the dimensions of PAKSERV (i.e. reliability and assurance) that influence the corporate image and simultaneously, the aspects of relationship marketing (i.e. Islamic ethical behaviour, financial and structural bonds) are also connected to the corporate image. Corporate reputation acts as a mediator between the relationship of corporate image and customer loyalty. This study, nevertheless, only focused in the takāful industry alone, and these findings could also be tested for its validity to different services in other potential studies because of the diversity of the service industry.

Originality/value

The findings of this study highlight the specific components of PAKSERV measures in influencing the corporate image. Furthermore, relationship marketing addressing Islamic ethical behaviour, as well as the three facets of bonding – structural, financial and social bonds are also incorporated and connected to corporate image. Hence, this study will increase the understanding of the impact of service quality concerning the PAKSERV model and relationship marketing on corporate image, reputation and customer loyalty of the takāful operators in Saudi Arabia.

To view the access options for this content please click here
Article
Publication date: 20 May 2021

Umar Bello Umar, Abdulsalam Mas’ud and Sadisu Abdulazeez Matazu

The study aims to identify a gap within the extant literature on the inadequacy of earlier extension of the theory of reasoned action (TRA) and theory of planned behavior…

Abstract

Purpose

The study aims to identify a gap within the extant literature on the inadequacy of earlier extension of the theory of reasoned action (TRA) and theory of planned behavior (TPB) to accommodate the peculiarity of Muslims majority countries that experiencing poverty growth in modeling the factors influencing the acceptability of Islamic financial products and services. To address this gap, this study expands the aforementioned theories through the integration of customer financial condition through the analyzes of both direct and indirect effects.

Design/methodology/approach

The quantitative research design was deployed through data, which was collected from samples of microentrepreneurs within the agricultural sector of northwestern Nigeria. The data from this sample was analyzed through hierarchical regression analysis.

Findings

The findings confirmed significant direct effects of all the original TPB variables; attitude, subjective norms and perceived behavioral control on acceptance intention of Islamic microfinance. More pioneering, the study established a significant direct negative effect of customer financial condition on the acceptance of Islamic microfinance among agribusiness customers. It further established the indirect (moderating) effects of customer financial condition on the influence of subject norms and perceived behavioral control on acceptance intention of Islamic microfinance, however, such indirect effect was not established in relation to the influence of attitude.

Research limitations/implications

The findings implied that the providers of Islamic financial products and services should target Nigeria’s frontier market as a potential avenue for expanding their existing market share. More specifically, the agricultural sector of northwestern Nigeria could be given focus in such a marketing strategy. In terms of social impact, providing necessary finances to the agricultural sector will further enhance employment creation and reduce poverty in the northwestern region.

Originality/value

Despite several extensions of TRA and TPB in various settings, this could the first study which examined both direct and indirect effects of customer financial condition not only in relation to the acceptance of Islamic microfinance but also all other Islamic financial products and services.

To view the access options for this content please click here
Article
Publication date: 10 December 2019

Mohsin Abdur Rehman, Ismah Osman, Khurram Aziz, Hannah Koh and Muhammad Awais

Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine…

Abstract

Purpose

Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine the customers’ perception of the Takaful (Islamic insurance) in relation to service quality and relationship marketing. More importantly, the examination of the impact of both service quality and relationship marketing on corporate image is further established. Accordingly, corporate reputation and customer loyalty were further evaluated, along with these respective interactions.

Design/methodology/approach

A self-administered survey was conducted from 350 Malaysian customers of Takaful products and services. The purposive sampling was used to collect data from the existing customers of Takaful service operators in the Klang Valley, an area in Malaysia. The questionnaire was constructed through measures of PAKSERV for service quality, as well as other measures related to relationship marketing and other constructs in this study. Structured equation modeling was used in the analysis of data.

Findings

The current study is the first one of its kind to examine perceptions of customers of relationship marketing and service quality as predictors of corporate image, which drives corporate reputation and ultimate customer loyalty from the perspective of the Takaful industry in Malaysia. Service quality dimensions (tangibility, reliability and personalization) and relationship marketing dimensions (Islamic ethical behavior and structural bond) positively influence corporate image of the Takaful organizations. Moreover, customer loyalty can be predicted, mainly through corporate reputation as well as corporate image.

Research limitations/implications

The present study is focused on the existing Malaysian Takaful customers as the population frame. Accordingly, future research studies may evaluate the same model, but perhaps in another different cultural context where the Takaful industry can grow and expand in other countries, including Saudi Arabia, Sudan and Pakistan. More importantly, the same variables may be verified to different service industries in future studies, especially those constructs related to relationship marketing because many products and services at present can be attained without face-to-face interactions through online transactions without having brick and mortar businesses.

Practical implications

It is important for Takaful service operators to focus on connecting the social and financial bonds to ensure the fulfilment of customers’ needs. They also need to improve the qualities related to tangibility, reliability and personalization to be able to increase their market share, especially in this present highly competitive market. Indeed, Takaful generally provides financial protection and risk management; nevertheless, the religious and ethical values need to be embraced in totality unlike conventional insurance, which has the element of gambling, uncertainty and the imposition of interest. Hence, this study aims to assist the Takaful operators toward achieving corporate reputation and apparently customer loyalty for them to remain relevant in this industry.

Originality/value

The model used in this study is based on the cultural context of Malaysia from the perspective of the Takaful industry. It attempts to explain customer loyalty through the incorporation of service quality and relationship marketing dimensions, where it is associated with the elements of the values of Islamic ethics especially in business transactions. More importantly, these dimensions were put together to identify its impact on corporate image, corporate reputation, and ultimately, customer loyalty, thus illustrating a distinct set of outcomes of the present study.

Details

Journal of Islamic Marketing, vol. 11 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

To view the access options for this content please click here
Article
Publication date: 5 June 2019

Abid Mahmood Muhammad, Mohamed Bilal Basha and Gail AlHafidh

The purpose of this paper is to develop, measure and empirically validate the promotional techniques adopted by Islamic banks and the effect of these methods on consumer…

Abstract

Purpose

The purpose of this paper is to develop, measure and empirically validate the promotional techniques adopted by Islamic banks and the effect of these methods on consumer interest in Islamic banking products and services in the UAE (United Arab Emirates).

Design/methodology/approach

Data were collected through 250 questionnaires distributed randomly to customers of five leading UAE Islamic banks and, following outlier analysis, the final sample size was reduced to 205, representing a sample of 82% of polled respondents. Multiple regression analysis was used on four key factor determinants that contributed towards the customers’ attitude in determining the most influential promotional strategies adopted by the Islamic banks.

Findings

The study found that the promotional strategies adopted by the UAE Islamic banking sector are having a significant impact on customer attitude towards Islamic banking products and services. The use of mass media has been partially successful, while the use of social media as a promotional tool is predicted to further enhance competitiveness for the UAE Islamic banking industry.

Research limitations/implications

This paper is limited to five leading UAE Islamic banks and a specified set of promotional techniques nevertheless its findings have potential implications and can be extended and validated through studying the customers’ attitude towards promotion techniques used by Islamic banks in the GCC and MENA regions.

Originality/value

This paper adds value to the limited research on modern marketing and promotional strategies adopted by UAE-based Islamic banks and while regionally specific, it is valuable in its potential application to the Islamic banking sector in the entire GCC and MENA region.

Details

Journal of Islamic Marketing, vol. 11 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

To view the access options for this content please click here
Article
Publication date: 6 January 2021

Ishfaq Ahmed, Ahmad Usman, Waqas Farooq and Muhammad Usman

With the advent of technology and internet banking, the role and value of bank’s websites have increased. Additionally, the Islamic banking boom has also increased the…

Abstract

Purpose

With the advent of technology and internet banking, the role and value of bank’s websites have increased. Additionally, the Islamic banking boom has also increased the role of Shariah-based banking in the market. But neither web-based information nor Shariah board members have been investigated for their possible effects on the branding of Islamic banks. Against this backdrop, this study aims to explore web-based information and Shariah board as a source of branding of Islamic financial institutions (IFIs).

Design/methodology/approach

An interpretivism-based thematic inquiry is carried out through semi-structured interviews of 22 customers of Islamic banks.

Findings

The findings of the study highlighted the fact that customers’ perceived web-based information is in line with the Shariah objectives but showed low level of trust on that information. They assumed that the practices are not consistent with this information. Moreover, the Shariah board members were considered as brand ambassadors, and customers valued board members more than the Shariah board and Islamic bank itself. Findings further highlight the more knowledge customers have about the Shariah board members (experience, qualification, achievements, etc.) the greater is the impact on the branding of the IFIs.

Originality/value

This study offers a novel perspective by considering the value of web-based information and Shariah board on branding of Islamic banks. As there is no such study available in literature, up to the best of researchers' knowledge, the qualitative inquiry may suffice the study objectives and research questions.

Details

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

Keywords

To view the access options for this content please click here
Article
Publication date: 11 September 2017

Nurul Shahnaz Mahdzan, Rozaimah Zainudin and Sook Fong Au

The purpose of this paper is to examine the level of understanding of Islamic banking concepts and the factors that influence Islamic banking adoption in Malaysia, based…

Downloads
2245

Abstract

Purpose

The purpose of this paper is to examine the level of understanding of Islamic banking concepts and the factors that influence Islamic banking adoption in Malaysia, based on Rogers’ (1983; 2003) Diffusion of Innovation. Specifically, the impact of perceived attributes and other variables (understanding, consumer innovativeness and bank personnel’s professionalism) on Islamic banking adoption is examined.

Design/methodology/approach

A quantitative approach using a sample of 200 working MBA students in a leading public university in Malaysia was used. The instrument used was a self-administered questionnaire survey.

Findings

The level of understanding of various Islamic banking concepts is below average. A logistic regression reveals that the understanding of Islamic banking concepts and perceived advantage significantly influences the adoption of Islamic banking services.

Research limitations/implications

The small sample size of 200 individuals may render the findings ungeneralizable. Future studies may use a larger sample from across Malaysia and incorporate other independent variables, such as religiosity and Islamic financial literacy.

Practical implications

The Malaysian government can provide tax incentives and conduct educational roadshows on Islamic banking. Educating prospective consumers on the advantages of Islamic banking as opposed to conventional banking would provide more objective benefits that would boost the adoption of Islamic banking.

Originality/value

The results of this paper will be useful for Islamic financial institutions to increase their marketing and promotional efforts to keep pace with stiff competition within the industry.

1 – 10 of over 7000