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Article
Publication date: 7 September 2015

Rusnah Muhamad and Sharifah Alwi

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical…

1387

Abstract

Purpose

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical insight into the retail Islamic banking market segmentation to harness and enhance understanding, as well as provide a guideline for a better segmentation to bank marketers.

Design/methodology/approach

This study is conceptual in nature. Based on Qur’anic verses and previous literature, the authors aim to propose an applicable model of market segmentation for the retail Islamic banking market in Malaysia. Consumer segmentation in the conventional financial service industry is analysed, and prior studies on the selection criteria of Islamic banks are evaluated.

Findings

In moving forward, taking cue from the classification of people in classical doctrinal and historical literature and the initial exploratory study conducted from the managerial perspective, the authors propose five cluster groups of consumers for the retail Islamic banking market in Malaysia, namely, religious conviction, religious and economic rationality, economic rationality, ethical observant and economic rationality and ethical observant. A discussion linking consumer segmentation to the branding in the retail Islamic banking market is discussed.

Research limitations/implications

The five cluster groups of consumers for the retail Islamic banking market in Malaysia proposed in 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 Islamic banking market in Malaysia. Future research should focus on verifying the five proposed segments by conducting empirical studies on a larger scale among the retail banking consumers in Malaysia and globally.

Practical implications

The study provides an initial bases or dimensions of consumers of the retail Islamic banking market in Malaysia. The proposed consumers segments are useful in guiding the management of Islamic bank in Malaysia in making decisions relating to the promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the Islamic banking industry, this study provides useful knowledge in strategically using market segmentation to position Islamic banking products and services in Malaysia and the global market.

Details

Asia-Pacific Journal of Business Administration, vol. 7 no. 3
Type: Research Article
ISSN: 1757-4323

Keywords

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 positioning…

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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.

Article
Publication date: 2 December 2019

Syed Adil Shah, Sarwar M. Azhar and Niaz Ahmed Bhutto

The purpose of this paper is to conceptualize halal marketing from the marketing strategy perspective, particularly segmentation, targeting and positioning (STP).

3041

Abstract

Purpose

The purpose of this paper is to conceptualize halal marketing from the marketing strategy perspective, particularly segmentation, targeting and positioning (STP).

Design/methodology/approach

A literature review is carried out for the study. Building on the STP framework, an attempt is made to conceptualize halal marketing from the marketing strategy perspective and provide its implications.

Findings

The findings suggest that halal marketing has emerged and is used as a segmentation strategy. Furthermore, halal marketing can be more effectively used as a positioning strategy.

Research limitations/implications

The paper presents the opportunity to use halal marketing by combining the Islamic principles for halal with the marketing positioning strategy. In this way, halal marketing can also be used to attract consumers from other religious segments.

Originality/value

The paper presents a marketing strategy perspective of segmentation and targeting. Furthermore, the paper proposes an approach for using halal as a positioning strategy.

Details

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

Keywords

Article
Publication date: 6 June 2020

Mohammad Mominul Islam

This study aims to conceptualize the basic Islamic marketing (IM) process according to Shari’ah, addressing some of the queries raised by scholars on halal and marketing.

3288

Abstract

Purpose

This study aims to conceptualize the basic Islamic marketing (IM) process according to Shari’ah, addressing some of the queries raised by scholars on halal and marketing.

Design/methodology/approach

A qualitative approach and content analysis have guided to shape segmentation, targeting and positioning (STP) with the help of secondary data from conventional and IM. Required Qur’anic verses and hadiths have been galvanized to shape STP in line with empirical evidence, showing potential marketing implications.

Findings

This study has accepted Islamic resources to segment markets, mentioning mankind, non-Muslims, Muslims, generic, halal and Islamic products. It has proposed to target mankind, non-Muslims markets with generic and halal products. Muslim marketers can target the pious Muslim consumers with Islamic products. For positioning, the halal certification has been suggested for the non-Muslim marketers and Islamization is for Muslim marketers. The whole process has been conceptualized in a single framework.

Practical implications

Marketers can have many product development ideas and basic guidelines and scholars may be able to sense some queries as to IM.

Social implications

This study has shown how inter-religious relationships can be harmonized with carrying out marketing functions to keep the social fabric following the Qur’anic verses.

Originality/value

This study has outlined the IM process as per Muslim and non-Muslim marketers’ needs under Shari’ah. Besides, it has answered some questions on halal and IM that has been hardly addressed before.

Details

Journal of Islamic Marketing, vol. 12 no. 7
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 6 March 2017

Thanaseelen Rajasakran, Santhidran Sinnappan, Thinavan Periyayya and Sridevi Balakrishnan

The purpose of this paper is to propose and develop a distinct perspective from the consumer culture theory in the context of Muslim consumers, marketing and the feminist theory.

Abstract

Purpose

The purpose of this paper is to propose and develop a distinct perspective from the consumer culture theory in the context of Muslim consumers, marketing and the feminist theory.

Design/methodology/approach

This paper is based on a critical review of the literature for insights into the consumer culture theory in the context of Muslim consumers, Islamic marketing paradigm and the feminist theory.

Findings

The study suggests that scholars in the area of marketing may consider drawing on the theory of Islamic consumer culture, film and feminist theory. This theory can be used as a platform to understand the Muslim mind and the related cultural traits to create greater engagement and interest in Malaysian horror genres among local and international audience. The Malaysian local horror genres currently have an interesting blend of Islam, local culture and gender biases addressing the universal concept of good against the evil forces, and this has the potential of offering new experiences to especially international audiences.

Research limitations/implications

This study is purely theory-based and is aimed at knowledge development in this field of Islamic consumer culture. It also invites academics to engage in scholarly activities toward theory building in this area.

Practical implications

The study provides directions for areas of possible future research in Islamic marketing, consumer culture and film studies.

Social implications

This study intends to broaden the research efforts in Islamic consumer culture marketing in terms of innovative ways to serve this growing Muslim market.

Originality/value

This study contributes to the discipline by providing new perspectives in Islamic consumer culture inquiry in the context of film studies.

Details

Journal of Islamic Marketing, vol. 8 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Case study
Publication date: 3 December 2015

Ajay Chauhan and Rabia Rasheed

The case discusses Islamic Banking Principles and Products (Banking), Business Strategy for Niche Markets (Strategic Management) and Segmentation and Marketing Strategy (Marketing

Abstract

Subject area

The case discusses Islamic Banking Principles and Products (Banking), Business Strategy for Niche Markets (Strategic Management) and Segmentation and Marketing Strategy (Marketing Management).

Study level/applicability

Undergraduate Graduate Training – Executives at junior level.

Case overview

This case is about the dilemma faced by Azhar Mehmud, a newly recruited Marketing Manager, Islamic Products (MMIP) in Bank Islam on six-month probation. Prior to Bank Islam, Azhar had an MBA degree from the UK and about 15 years of experience of business development in a multi-national bank in Indonesia. Looking at his experience, he was awarded to promote Islamic banking (IB) products in Malaysia where the competition was very intense. After his interactions with customers for about six to seven months, he prepared a report for his boss, General Manager, Consumer Banking (GMCB). In this report, he had summarized the challenges of marketing IB products in a market meant for conventional banking. When he presented the report to GMCB, he met with unfavorable reactions. GMCB was not convinced that IB products had any competition from conventional banking. He gave Azhar one additional month to either revise his thinking or quit the organization.

Expected learning outcomes

The expected learning outcomes are as follows: to enhance the awareness of IB products, principles and differences from the conventional banking products; to introduce the concept of business strategies for niche markets; to make students realize the importance of segmentation in view of niche market like IB.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Details

Emerald Emerging Markets Case Studies, vol. 5 no. 8
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 21 June 2021

Suzanna ElMassah and Heba Abou-El-Sood

As the popularity of Islamic banking and financial instruments continues to rise globally, a recurring empirical question is what specifically makes consumers choose Islamic

Abstract

Purpose

As the popularity of Islamic banking and financial instruments continues to rise globally, a recurring empirical question is what specifically makes consumers choose Islamic banking. This paper aims to investigate the determinants of bank type selection, especially in culturally diverse settings where the Islamic banking sector is well-established. It further examines whether consumers’ gender/religion influences their choices. One intuitive prediction is that Muslim consumers opt for Islamic banking products as “ethical” because of conviction-related reasons. However, the reality is not necessarily straightforward.

Design/methodology/approach

This paper uses structural equation modeling to examine data collected from a survey questionnaire of 790 respondents in an emerging market setting. Further analysis is made based on gender and religion to remove related bias.

Findings

Results suggest that overall consumer awareness significantly affects the selection of Islamic banking products. The positive effect of awareness is more significant for Muslim consumers relative to non-Muslims. Interestingly, social stimuli and bank attributes have an insignificant effect on the banking choices of both Muslims and non-Muslims.

Practical implications

Results suggest that Islamic banks’ marketing managers should adopt differentiated strategies for men and women, focusing on the core benefits of the service or personal interactions with consumers, respectively, along with a focus on different aspects of personal service for each gender. Awareness should be enhanced by adopting informative and effective marketing strategies to attract and retain consumers in the competitive bank environment. Islamic banks (IB) should pay attention to the religious effect without considering it as the sole variable motivating potential customers. They should design segmented and customized marketing strategies based on gender-religion market segmentation to suit different groups’ needs.

Originality/value

The findings fill a gap in the literature and provide Islamic bankers with insights to help design and articulate their business strategies to appeal to consumers in a multicultural context. Examining an integral part of gender and religion mitigates biased estimates due to the omission of variables. The study contributes to the existing literature on customer preferences for IB with a relatively large, new data set.

Details

Journal of Islamic Marketing, vol. 13 no. 11
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 20 September 2011

Özlem Sandıkcı

The purpose of this paper is to explore the reasons underlying the recent interest on Islamic marketing, discusses past research on the topic and offers a future research…

6100

Abstract

Purpose

The purpose of this paper is to explore the reasons underlying the recent interest on Islamic marketing, discusses past research on the topic and offers a future research perspective.

Design/methodology/approach

The paper is based on a critical review of the existing literature. It offers ethnoconsumerism as a way to develop a situated understanding of Muslim consumers and businesses.

Findings

Two distinct phases, omission and discovery, characterize the existing literature. Omission derives from the stereotyping of Muslims as traditional and uncivilized people and Islam as incompatible with capitalist consumer ideology. Discovery relates to the identification of Muslims as an untapped and viable consumer segment and the increasing visibility of Muslim entrepreneurs.

Research limitations/implications

A deeper understanding of Muslim consumers and marketers requires doing away with essentialist approaches that reify difference. Instead of focusing on differences future research needs to pay attention to how such differences play out in the daily lives of consumers and examine the religious, political, cultural and economic resources, forces and tensions that consumers experience and negotiate as they (re)construct and communicate their identities as Muslims.

Practical implications

Managers should not assume Muslims to be a homogeneous and preexisting segment. They should focus on the daily practices for which the product may be relevant and generate solutions that will help Muslims live proper Islamic lives.

Originality/value

The paper draws attention to the potential problems in carrying out research on Islamic marketing and highlights the dangers of an essentialist perspective.

Details

Journal of Islamic Marketing, vol. 2 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 4 March 2014

Jason Dean

– The paper aims to study the consequences of the development of Islamic marketing on the social construction of Muslim religious identities.

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Abstract

Purpose

The paper aims to study the consequences of the development of Islamic marketing on the social construction of Muslim religious identities.

Design/methodology/approach

The paper uses Max Weber's ideal-type methodology to analyze actors and strategies in Islamic marketing, as represented by their self-presentation on French-, English- and Arabic-language web sites.

Findings

First, the paper argues that by conflating values and preferences, rational choice theory fails to recognize an essential function of values, which govern the relationship between the personal and the social. Second, it describes the emergence of brand markets within traditional Muslim commodity economies. Third, it uses these distinctions, between the personal and the social and between commodity and brand economies, to construct four ideal types of Muslim economic actors: “collectivists”, “differentialists”, “integrationists”, and “entrepreneurs”.

Research limitations/implications

The choice of web sites to survey Muslim economic and religious actors favors producers over consumers, religious specialists over laypeople. Future research should include protocols designed to test ways in which Muslims negotiate the conflicting demands of religion, society and economics in their daily lives.

Originality/value

In contradistinction to studies that emphasize the influence of Muslim consumer demand on the development of goods and services, this paper shows that economic conditions, notably globalization and market segmentation, affect the way Muslims construct their religious identities.

Article
Publication date: 3 June 2014

Farooq Muhammad Haq

This paper aims to highlight the significance of partnership among stakeholders as a marketing strategy for Islamic spiritual tourism. Partnership as a marketing strategy is…

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Abstract

Purpose

This paper aims to highlight the significance of partnership among stakeholders as a marketing strategy for Islamic spiritual tourism. Partnership as a marketing strategy is studied by interviewing stakeholders on the supply side of Islamic tourism. Only recently, Islamic spiritual tourism has been identified, not recognised yet, as a growing segment of Islamic tourism that needs to be effectively marketed.

Design/methodology/approach

Convenient sampling was used in this exploratory research to select and interview tourism operators selling in-bound and out-bound Islamic spiritual tourism in Australia and Pakistan. Cross-case content analysis was used to identify critical themes related to marketing Islamic spiritual tourism.

Findings

Three issues emerged from the content analysis in this study: political, commercial and religious. The management of these three issues is found necessary to effectively build and implement horizontal partnerships among stakeholders on the supply side in Islamic spiritual tourism.

Research limitations/implications

The selected sample is not the representation of the population based in the two countries. Only few potential participants agreed to be interviewed due to the perceived threat of manipulation of their views. Findings of this research contribute to the theory of marketing Islamic tourism specifically, and tourism in general.

Practical implications

The three issues found in this study provide a guideline for crafting strategies to market Islamic spiritual tourism based on local and global partnerships.

Social implications

The three issues found in this study provide a platform for cultural understanding and coherence.

Originality/value

This original study advocates partnerships among tourism operators, government bodies, destination managers and religious organisations involved in Islamic spiritual tourism. The structure and implementation of partnerships should critically consider the political, commercial and religious issues.

Details

Journal of Islamic Marketing, vol. 5 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

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