Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing

Abstract

This study evaluates the contribution of religiosity-based marketing to persuade customers to purchase Islamic banking products through credibility, word of mouth and building customer relationships. An adapted survey questionnaire was used to collect the data from 440 respondents through convenience sampling from Gujranwala Division, Pakistan. Structural relations were assessed by employing the PLS-SEM (partial least squares structural equation modeling) technique, and the results revealed the existence of a positive and significant relationship between religiosity-based marketing and the purchase intentions of customers. However, credibility does not contribute to purchase intentions, possibly because the credibility of commercial banks is yet to be established in Pakistan. Religiosity-based marketing has been tested for the first time to evaluate its effectiveness in influencing the purchase behavior of Pakistani customers of Islamic banking products. Furthermore, the attempt to validate the conceptual model by using responses from a Muslim country shows its potential to be replicated in other Muslim countries.Contribution/Originality: This study contributes to existing literature by assessing the role of religiositybased marketing in turning the purchase intentions of consumers toward Islamic financial products. Marketing strategies designed in line with these recommendations will help banks to maintain and improve their customer base through credible offerings, generating positive word of mouth and strengthening relationships with customers.