The Effect of Knowledge, Promotion, and Religiosity on Intention to Use Islamic Banking Services

Kardoyo, Kardoyo; Nurkhin, Ahmad; Muhsin, Muhsin; Mukhibad, Hasan; Aprilia, Fatmala Dewi

doi:10.5430/ijfr.v11n2p128

Cited by 5 publications

(7 citation statements)

References 14 publications

(19 reference statements)

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“…Hence, such similarities are required to be combined under a single factor to avoid repetition in terms of their nature and concept. Similar treatment is also found in the existing literature where multiple factors are grouped into a single factor (Abduh et al , 2018; Abdul Rehman and Masood, 2012; Ahmad et al , 2011; Ali et al , 2018; Amin 2017a, 2019; Amin et al , 2009; Bizri et al , 2018; Butt et al , 2018; Echchabi and Azouzi, 2015; Gerrard and Barton Cunningham, 1997; Iqbal et al , 2018; Ismail et al , 2014; Jamshidi and Hussin, 2016; Januri et al , 2011; Kaakeh et al , 2018, 2019; Nurkhin et al , 2020; Kontot et al , 2016; Kumar et al , 2009; Lujja et al , 2018; Maulana et al , 2018; Shafie et al , 2004; Zabri and Mohammed, 2018).…”

Section: Methodssupporting

confidence: 68%

“…The previous studies are also in agreement with the results, like Mufraini et al (2020) analyzed promotion as an important factor that attracts the emotions of an individual and affects customer’s decision to use Islamic bank. Nurkhin et al (2020) proved promotion has a significant and positive impact to patronize Islamic banking. The research of Nemati et al (2018) showed advertisement as a positive influencer for attracting toward Islamic banking in Pakistan.…”

Section: Resultsmentioning

confidence: 99%

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Consumer shift behavior from conventional to Islamic banking: decision-making analysis through AHP

Ahmad,

Zafar,

Perveen

2024

JIMA

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Purpose This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan. Design/methodology/approach First, a comprehensive analysis of the existing literature was conducted to identify a broad range of factors related to customer shift behavior. Through an expert sampling, 14 essential factors were chosen for further investigation. Second, a questionnaire was developed using the analytical hierarchy process (AHP). This questionnaire was then distributed among customers who had previously been using conventional banking services but had made a shift toward Islamic banking. The purpose of this questionnaire was to gather data and insights regarding their motivations and decision-making process behind the shift, and a sample 215 customers are taken in the study. Findings The results of AHP depicts that the religiosity is a most important factor influencing customers to shift from conventional to Islamic banking, and the second most important factor is pricing. The other subsequent important factors are reputation of the bank, marketing and promotion, service quality, behavior of banks staff, Shariah compliance, management, convenience, fastness and charges/fees. Whereas documentation, ambiance and recommendation are found least important factors to patronize Islamic banking. Practical implications The study recommends Islamic banks to create awareness, concentrating on religious factor to have a greater impact on growth of Islamic banking and shrinking of conventional banking. Further, it suggests Islamic banks to apply Shariah-recommended approach of doing business, to help community in best possible way and to launch differentiated marketing techniques to attract customers. It also proposes regulatory authorities to provide facilitation to Islamic banking business by providing level playing field similar to conventional banking, tax equality and conversion of public financing from conventional banking to Islamic banking. Originality/value The originality of this study lies in its comprehensive analysis of factors influencing consumer shift behavior from conventional to Islamic banking in the context of consumer finance in Pakistan. By using the AHP, the study provides a structured approach to understanding the relative importance of these factors. This is the uniqueness of the paper that it applies the AHP for the analysis. Furthermore, the study offers practical implications for Islamic banks and regulatory authorities to effectively address and capitalize on this consumer shift trend.

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Section: Methodssupporting

confidence: 68%

Section: Resultsmentioning

confidence: 99%

Consumer shift behavior from conventional to Islamic banking: decision-making analysis through AHP

Ahmad,

Zafar,

Perveen

2024

JIMA

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“…This research proves that knowledge of the prohibition of bank interest cannot strengthen the relationship, but knowledge of the customers about the fatwa should play an important role in shaping the religious motive of the customers. When customers have a better understanding of the rules of Islamic banking, it will increase their religiosity (Kardoyo et al, 2020).…”

Section: Results and Discussion Resultsmentioning

confidence: 99%

Examining The Role of Bank Interest Haram Fatwa on Factors Influencing Customer Desires

Mochlasin

2023

muqtasid

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This research tries to explain the actual use of customers in the context of sharia banking in DIY. Specifically, this research aims to examine the role of fatwa knowledge in moderating the relationship between customer satisfaction, customer trust, and religious motives with behavioral intentions. A survey was conducted to collect data, resulting in 300 complete usable responses. Moderated Regression Analysis (MRA) was used to test the research hypothesis. The findings of this research reveal that customer trust and religious motives influence behavioral intentions, while customer satisfaction and fatwa knowledge have no influence. However, knowledge about the fatwa issued by the MUI was found to mediate the influence of customer satisfaction on behavioral intentions but did not mediate customer trust and religious motives on behavioral intentions. Additionally, behavioral intentions were found to influence actual usage by customers. Ultimately, this research provides valuable insights for practitioners and policy makers in the sharia banking industry to create actual utilization and increase customer literacy regarding fatwas in sharia banking.

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“…It also has no bearing on the relationship between the selection of Shariah banks by customers and the products and visuals they saw (Ichwan et al, 2021). Other studies from various other contexts generated similar outcomes (Amin et al, 2011;Kusumawardhini et al, 2016;Khan et al, 2019;Kardoyo Nurkhin et al, 2020), suggesting that religiosity is not necessarily a significant predictor and may not always impact users' adoption of technology.…”

Section: Religious Commitment and Consumer Intentionmentioning

confidence: 93%

Does consumer religiosity matter for green banking adoption? Evidence from a Muslim-majority market

Bouteraa,

Chekima,

Amin

et al. 2024

JIMA

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Purpose A significant dilemma facing humankind in the present time is environmental degradation. To alleviate the pressure on natural resources, green banking (GB) has been acknowledged as an effective solution. However, creating consumer engagement is still challenging for banks. Hence, the purpose of this study is to investigate the influence of religiosity on GB adoption among Muslim consumers. Design/methodology/approach The deductive approach was used to explain how GB adoption is affected by the religiosity of the consumer. A total of 332 sample data were collected cross-sectionally from Islamic bank customers in the UAE. Partial least square structural equation modelling (PLS-SEM) via Smart PLS 4 was used to analyse the data. Five dimensions (i.e. ideological, ritualistic, intellectual, consequential and experimental) were used to measure religiosity which served as the independent variable. Customer intention to adopt GB represents the dependent variable. Findings The PLS-SEM results revealed that Islamic religiosity affects the adoption of GB among Muslim consumers. Indeed, their religious commitment and beliefs affect the products they intend to adopt and how they intend to do it. Originality/value To the best of the authors’ knowledge, this is a pioneering study in the investigation of Islamic religiosity and its influence on the intention to adopt GB. This is a pioneering study in the sense that it proposes a comprehensive religiosity construct using five intertwined dimensions in the literature of GB. This study offers an improved and broader insight assessment of Islamic religiosity, which would help emphasise its significance and utility for business-related decisions by developing an emotionally-driven link between GB practices and the Muslim-oriented consumer market towards increasing the latter’s engagement.

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The Effect of Knowledge, Promotion, and Religiosity on Intention to Use Islamic Banking Services

Cited by 5 publications

References 14 publications

Consumer shift behavior from conventional to Islamic banking: decision-making analysis through AHP

Consumer shift behavior from conventional to Islamic banking: decision-making analysis through AHP

Examining The Role of Bank Interest Haram Fatwa on Factors Influencing Customer Desires

Does consumer religiosity matter for green banking adoption? Evidence from a Muslim-majority market

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