Search results

1 – 5 of 5
To view the access options for this content please click here
Article
Publication date: 29 March 2011

Hayat M. Awan and Khuram Shahzad Bukhari

Islamic banking is an emerging financial system in the contemporary world. Currently, it is found mostly in Islamic countries or in countries where OPEC oil revenues have…

Abstract

Purpose

Islamic banking is an emerging financial system in the contemporary world. Currently, it is found mostly in Islamic countries or in countries where OPEC oil revenues have been invested. Most of the research has therefore been oriented towards macro‐environment issues, ignoring the market‐oriented problems. The purpose of this paper is to determine the conditions under which Islamic banks can successfully compete with conventional banks by understanding customer attitudes towards Islamic banking products.

Design/methodology/approach

A sample of 250 respondents was taken from four cities of Pakistan to examine customer awareness of key products/services being offered by Islamic banks, usage of those services and customer satisfaction with the service delivery mechanism being used by pure Islamic banks and conventional banks with Islamic bank branches (IBBs). Data for this study were collected by using a structured questionnaire containing two sections, where section I contains ten statements using Likert scale, for assessing customer's preferred selection criteria for Islamic banks. These statements are developed based on past literature. Section II deals with the questions related to the social and demographic profiles of respondents.

Findings

Analysis of data indicated that most of the customers value product features and quality of service as major factors for making selection of Islamic banks, and give lesser importance to religious belief as influential factor in selecting an Islamic bank. Findings suggest that there is a lack of awareness about basic conventions of Islamic financing options among respondents and customers of both the pure Islamic banks and conventional banks with IBBs do believe that the bank's staff lacks ability to provide credible information about religious compliance of Islamic banking financial services.

Originality/value

The paper has practical significance for Islamic banking policy makers, for understanding the key behavioral and demographical dimensions of their customers and using these dimensions for effectively positioning Islamic banking financial instruments, developing policies; and articulating procedures to maximize customer satisfaction and to ensure better exchange of value.

Details

Journal of Islamic Marketing, vol. 2 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

To view the access options for this content please click here
Article
Publication date: 20 September 2011

Hayat Muhammad Awan, Khuram Shahzad Bukhari and Anam Iqbal

The purpose of this paper is to investigate the service quality and its relationship to customer satisfaction among the customers of conventional banks and Islamic banks…

Abstract

Purpose

The purpose of this paper is to investigate the service quality and its relationship to customer satisfaction among the customers of conventional banks and Islamic banks. A modified SERVQUAL scale is utilized to ascertain the functional dimensions of service quality specific to the industry and service context under study. In addition, the study examines the differences in service quality satisfaction and its impact on the behavioral intentions of customers.

Design/methodology/approach

A field survey carried out with the help of a questionnaire constructed by using a modified SERVQUAL scale. Data were collected from 200 walk‐in customers conveniently drawn from three major conventional banks and three Islamic banks located in urban areas of Pakistan. Data were analyzed using the analytical hierarchy process to identify service quality and customer satisfaction‐related factors for Islamic and conventional banks.

Findings

By using factor analysis, 52 measurement items with a factor loading greater than (0.5) were identified to form five service quality dimensions namely empathy, service architecture, convenience service encounter, employee service criteria, customer focus and five customer satisfaction dimensions: responsiveness, competency, safe transaction, competitive services, knowledge for the overall banking industry explained 56 percent of the variance. Results from regression analysis of the relationship between multidimensional service quality dimensions and unidimensional customer satisfaction factors also validated the importance of service quality aspects for behavioral intentions (satisfaction, feelings) for customers from conventional banks and Islamic banks.

Originality/value

This study has practical significance for conventional and Islamic banking policy makers for understanding the behavioral intentions of their customers and using them for effectively positioning the service quality of their banks.

Details

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

Keywords

To view the access options for this content please click here
Article
Publication date: 22 March 2013

Khuram Shahzad Bukhari, Hayat M. Awan and Faareha Ahmed

The purpose of this paper is to explore the perceived importance of management about various corporate governance dimensions being practiced in the Pakistani Islamic…

Abstract

Purpose

The purpose of this paper is to explore the perceived importance of management about various corporate governance dimensions being practiced in the Pakistani Islamic banking context.

Design/methodology/approach

AHP is applied to analyze the corporate governance indexes and its dimension of five Islamic banks and 12 conventional banks which are providing Islamic banking facilities (Islamic bank window) throughout Pakistan. These dimensions included board of directors (BOD), Shari'ah supervisory board (SSB), audit, investment account holders (IAH), and information disclosure & transparency.

Findings

The study reveals that the most significant dimensions which affect the corporate governance in Islamic banks are BOD and SSB, while the significant factors for Islamic banking windows are almost all dimensions of corporate governance. The correlation, regression, and ANOVA tests are applied to check the contributions of various factors of corporate governance mechanisms. These results indicate that there is a significant difference between Islamic banks and Islamic banking windows regarding the BOD and SSB. On the other hand, no significant difference is seen for the rest of the factors. The dissatisfaction level of customers reduces with the increase in the audit and BOD governance and all other factors have no impact in the case of Islamic banking windows; whereas in Islamic banks, in addition to audit and the SSB, information disclosure also significantly reduces the dissatisfaction level of customers. The concern of customers decreases significantly with the increasing level of IAH in the case of Islamic banking windows whereas in the case of Islamic banks a significant impact is seen for BOD, information disclosure, audit and IAH, but improvement in the governance of these rather increases the concern of customers toward compliance of Shari'ah and SSB has no contribution towards the concern of customers.

Originality/value

This study has practical significance for conventional and Islamic banking policy makers for understanding the requirements of their stakeholders and aligning them with the fundamentals of Shari'ah compliance according to the guidelines provided by the code of corporate governance so as to get better insight into the relationship between customers' motives behind using Islamic banking products.

Content available
Article
Publication date: 20 September 2011

David Weir

Abstract

Details

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

Content available

Abstract

Details

Management Research Review, vol. 36 no. 4
Type: Research Article
ISSN: 2040-8269

1 – 5 of 5