Application of the Theory of Planned Behaviour Model for Examining Customers’ Intentions towards Islamic Hire Purchase Financing

Abstract

The paper deals with the issues relevant to behavioural economics studies, demonstrating psychological and behavioural aspects of Muslim banking customers across the world. The aim of the research is to investigate the factors that are significant to customers using the Islamic hire purchase (auto financing) in Pakistan. The novelty of this study is to develop a modified model based on the Theory of Planned Behaviour (TPB) and apply it to bridge this gap as well as to identify the determinants. The TPB model was applied to examine the intention of customers buying automobiles through Islamic hire purchase financing. This study involves 730 respondents who are customers of Islamic hire purchase (IHP) from major Islamic banks of Pakistan. The results of the study demonstrated that the basic items of the TPB instrument, for instance, subjective norms, attitude, and perceived behavioural control, significantly influenced customers' intention to use Islamic hire purchase financing. At the same time, researchers assimilated three factors such as religious belief, pricing of Islamic banking products, and knowledge of Islamic banking products as moderating variables. The results verified their moderation and exhibited a significant link between items of the Theory of Planned Behaviour model and intention to use the Islamic hire purchase.

Corporate social responsibility and employee behavior: Evidence from mediation and moderation analysis

“…Table displays the tolerated ranges of Cronbach's alpha and composite reliabilities are more than 0.85; however, according to Hair Jr. et al (), the threshold value is 0.60. Moreover, factor loadings of constructs are in the ranges of 0.80–0.95; hence, it also demonstrates that the criterion of discriminant validity is met (Ahmed et al, ). According to Fornell and Larcker (), the average variance extracted (AVE) values are more than 0.50 that also substantiated the convergent validities.…”

“…According to Ahmed et al (), it is a pre‐requisite that data should follow a normal pattern for the employment of structural equation modeling (SEM)‐based multivariate methods. Thus, data were converted into z‐scores, and descriptive analysis was then done.…”

“…The responses were taken by the mono‐method survey technique using a modified structured measurement scale. The instrument scale is based on a modified questionnaire, which is derived from literature for CSR by Glavas (), and Zulfiqar et al (), and EE was modified from Ahmed, Vveinhardt, Streimikiene, and Štreimikienė (), Farid et al (), and Glavas (). The items for JS and OC were adapted from Farid et al ().…”

Customer Satisfaction & Loyalty and Organizational Complaint Handling: Economic Aspects of Business Operation of Airline Industry

“…The outcomes of Table 1 confirm the normality pattern of the data; for this purpose, we transformed data into zscores and employed the descriptive analysis. The results demonstrated that values of skewness and standard deviation lie between ±1.5, and values of kurtosis range between ±3; hence, the normality of the collected data is evident (Ahmed et al, 2019;Byrne, 2013).…”

“…The outcomes of Table 2 exhibit that measure of composite reliabilities and Cronbach's alpha are more than 0.80, which meets the minimum criterion of 0.60 (Ahmed et al, 2019;Hair et al, 2010). The values of all the factors loadings (FL) that have been extracted through the rotated component matrix (Principal component analysis) are more than 0.50, which also meets the criterion of discriminant validities.…”